What P Chidambaram, Pranab Mukherjee, Jaswant Singh Did During Interim Budgets: 10 Points

What P Chidambaram, Pranab Mukherjee, Jaswant Singh Did During Interim Budgets: 10 Points

What P Chidambaram, Pranab Mukherjee, Jaswant Singh Did During Interim Budgets (file image)

New Delhi: The Interim Budget will be presented by the Union Minister Piyush Goyal in Parliament, today. Before the upcoming General Elections, this will be the last budget by the NDA government. The expectations from the government is high this year, from a cash package for the farmer to tax reliefs for the common man. But can an interim budget contain income tax sops, or propose to significantly inflate expenditure?

Here's 10 points: 

1. Former finance minister, P Chidambaram was the first Minister of Finance to make significant tax changes in an interim budget.

2. Mr Chidambaram, in his February 17, 2014 speech had stated that the economic situation at the time demanded interventions that could not wait for a regular budget.

3. P Chidambaram, in the 2014-15 interim budget had announced a number of changes to indirect tax laws. Excise duty cuts on items such as automobiles, mobile phones and industrial oils are part of these changes.

4. The former Union Minister also proposed to exempt loading, unloading, packing and storage of rice from service tax.

5. Apart from these, Mr Chidambaram also accepted the principle of one rank one pension for the defence forces, to be implemented from the next financial year.

6. Mr Chidambaram, however, was not the only finance minister to have announced major changes with financial implications.

7. the then finance minister Pranab Mukherjee, In the interim budget for 2009-10 had announced a six-month extension to a 2 per cent interest subvention on shipment credit for employment-oriented sectors. That involved an additional financial outgo of Rs. 500 crore.

8. Mr Mukherjee also proposed refinancing of up to 60 per cent of commercial bank loans for PPP projects in critical sectors by IIFCL. That involved a total investment of Rs. 100,000 crore in infrastructure.

9. Jaswant Singh, the former finance minister, in the interim budget for 2004-05 had proposed to merge 50 per cent of dearness allowance (DA) with basic salary of central government employees (worth Rs. 3,500 crore).

10.  Mr Singh also proposed extension of the Farm Income Insurance Scheme from 20 to 100 districts.