Gujral contradicts Chidambaram on fate of Budget

Prime Minister Inder Kumar Gujral and his new Finance Minister P Chidambaram made contradictory statements on the fate of the latter's ''baby''.

While Chidambaram said there won't be any ''compromise on the Budget,'' Gujral indicated that certain amendments might be made in it.

Making this observation in an interview with Doordarshan telecast on Thursday night, the prime minister said an all-party meeting would be called and certain provisions modified, if necessary, prior to passing the finance and appropriation bill.

Stressing the need for bold economic decisions, Gujral expressed concern over the high fiscal deficit (over Rs 500 billion).

Reiterating his earlier stand, Gujral said economic reforms would continue and the government would ensure a high growth rate of 8 per cent -- one per cent more than the earlier projection.

Describing the slight fall in the economic activities last year as ''a temporary dip'', Gujral hoped that there would be a recovery in the current financial year.

Gujral said a dynamic public distribution system was needed for the country. ''The government will provide subsidy to meet the demands of the poor,'' he stressed.

On the question of public sector undertakings, the prime minister said the PSUs have to be looked at separately and protection should be given to this sector.

On the issue of mounting oil deficit, he said ''you can't keep on swelling the oil pool deficit'' and observed that there was a need take a bold decision.

The prime minister was hopeful that the foreign direct investment in the current year could rise to $ 3 billion from $ 1 billion in the past three years.

However, Union Finance Minister Palaniappan Chidambaram said he does not feel ''any pressure'' from any quarter to make drastic changes in the Budget and asserted it would be passed without any problem.

Chidambaram, who was sworn in as minister along with five others on Thursday evening, said, ''I am ready to accept suggestions on the Budget, but there would be no compromise on it''.

The new finance minister said that cut motions and amendments in the Budget are not unusual, but there will be no problem in getting the Budget passed on time. He said the Finance Bill will be taken up for consideration on May 7 in Parliament.

Chidambaram refused to comment on the increase in the oil pool deficit, which now stands at more than Rs 180 billion. He said this question should be put to the petroleum and natural gas ministry.

He was one of the six ministers who were inducted into the eleven-day-old Gujral ministry on Thursday. The new entrant to the United Front ministry, S Jaipal Reddy, will be the information and broadcasting minister.

Chand Mahal Ibrahim, who held dual charge of civil aviation and information and broadcasting ministries, has been divested of the latter portfolio.

The other Cabinet minister, M Arunachalam will retain the labour portfolio he held in the H D Deve Gowda government.

The three ministers of state -- Dhanushkodi Adityan (youth affairs and sports), S R Balasubramaniam (parliamentary affairs) and Maqbool Dar (home) -- will retain their portfolios.

With this expansion, the strength of the Gujral ministry has gone up to 40.

The TMC quartet was part of the previous H D Deve Gowda government but had not joined the Gujral ministry when it assumed office on April 21 as their party had decided to support it from outside.

Subsequently, TMC supremo G K Moopanar, whose chances of becoming the prime minister were perceived to have been thwarted as he was too close to the Congress, was persuaded by Gujral and others to reconsider the decision.

Dar could not take oath on April 21 as he was away on haj.

Jaipal Reddy served as the leader of the Opposition in the Rajya Sabha for several years. He is not a member of either House of Parliament.