Budget in 1st week of July; focus on sectors hit by crisis: FM

New Delhi, May 26 (PTI) Faced with the challenge of
revving up the economy, India's Finance Minister Pranab
Mukherjee Tuesday said the union budget would be presented in
the first week of July with focus on 'Aam Admi' and a special
attention to areas like textiles that were hit hard by global
meltdown.

Racing against time to avert a second vote-on-account,
Mukherjee said: "I would not like to have a second batch of
vote-on-account... the budget will be presented in the first
week of July". The budget will have to be passed before July
31, failing which another interim budget would be mandatory.

"We have identified issues and areas of concern that need
to be addressed in this budget and will work closely with
Manmohan Singh in presenting the first budget," Mukherjee said
in an interview to private news channel CNBC-TV18.

The focus of the government policies would be "Aam Admi"
(common man), the minister said, adding that the budget would
address the problems of sectors like textiles, leather and
gems and jewelery as they are the ones hit hard by the global
financial crisis.

Immediately after being named as the Finance Minister,
Mukherjee had told reporters: "Indian economy is resilient,
strong and we shall have to build up and come back to the
growth track as early as possible."

After being given additional charge of Finance Ministry
before elections, Mukherjee had presented an interim budget in
February and immediately after taking charge yesterday started
consultation with top officials on budget.

"Aam Admi is to be at the focal point", Mukherjee said,
adding that the manifesto proposed to increase the minimum
wages under the National Rural Employment Guarantee scheme to
Rs 100 per day.

Similarly, the issue of providing food security would get
top priority, he added.

On the need for another stimulus package to boost the
economy, Mukherjee said the government had since December last
announced three packages while noting that signs of economic
recovery in Europe are not promising.

Asked whether he would prefer growth to fiscal prudence,
Mukherjee said, "What is needed is stimulus to growth, we
cannot indulge in fiscal profligacy."

The job of a finance minister, he added, is to strike
a balance between the competing demands of different sections
of society.

Answering questions on economic growth, Mukherjee said
2008-09 growth will be close to the assessment made by the
Central Statistical Organisation, which projected the economy
to expand by 7.1 per cent in 2008-09.

As regards the current year, he said, things may start
picking up in the second half. "I am hoping so. Some
indications are available."

The capital inflow in April-May started picking up slowly
but steadily, he said, adding "manufacturing is yet to pick
up." PTI BSP
RKM