Finance Minister P Chidamabaram has said that he challenges anyone who says that his figures in the interim Budget are a mathematical jugglery, to prove it.
Commenting on the general criticism of his fiscal management, he said: “last year too they (critics) had said that my numbers were not credible, I can’t achieve the target. But, I have achieved the target. My numbers are there on the table…Nobody had pointed out which number of revised estimate of 2013-14 is not credible,” he said.
He also added that this is the annual ritual of the critics. “They have nothing to say...They will say your numbers are not credible...My numbers are credible…I achieved a fiscal deficit of 4.6 per cent after setting a target of 4.8 per cent .. You take it from me 4.1 per cent is double target….” he added.
“I am open to the idea that if the Congress finds someone younger to fight even from my constituency of Sivaganga, I will campaign for that person…” Chidambaram told CNN-IBN’s Bhupendra Chaubey while talking about passing the baton to younger generation.
The Finance Minister further added that the Vote on Account (VoA) was not an exercise to win votes, more to reach out to the Middle classes and the urban poor. There was no question of playing swapping this financial year’s expenditure in next years’ quota. “Subsidies is a reality, we have to live with it. lPG subsidy isn’t going to cross beyond 12 cylinders,” he admitted.
On tax saving, he said that last year he had set high target… “We didn’t achieve the target but I have achieved the fiscal deficit.” he added.
“Reason why we set a high target is that the only way in which Central Board of Direct Taxes, Central Board of Excise Taxes and Customs will aim at high target. Even if we fall short and the is growth slower, it doesn’t matter. If you set a low target, they will achieve a low target...So it is always good to setup a target which appeared difficult and try to achieve that target...” he added.
On oil Subsidy and the charges of creating financial problem for next Government, he said: “last year 2013-14, the current year, the budget estimate placed fuel subsidy at Rs 65,000 crore. The revised estimate shows it as Rs 85,481 crore. One of the reasons for this, we rolled over Rs 45,000 crore to this year...Next year I am rolling over only Rs 35,000 crore ... Which means I am paying Rs 10,000 crore this year....I could have shown the revised estimate of Rs 75,481 and showed Rs 10,000 next year.. So next year’s number is Rs 63,500. For comparison purposes, it is really Rs 73,500 because I am paying Rs 10,000 crore this year…”
On correcting diesel prices, Chidambaram said: “If the Govt continues to correct diesel prices at 50 paisa a month, we will get Rs 6 a litre over the year... and that is premium revenue. We are trying to tighten the system by which say lPG is distributed. If we eliminate duplicate or false lPG connections about one to one half crore that itself saves us a very large amount every month... Say the subsidy about Rs 800 a cylinder, if you eliminate one and one to half crore that saves you Rs 800 to Rs 1200 crore every month.”
“That is the big saving budgeting for over the next year and pushing the Ministry of Petroleum and Natural Gas to eliminate duplicate and false connections,” Chidambaram added.