A balanced Budget is need of the hour: Yashwant Sinha

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Q: We are anyway going to see the fiscal deficit going down from 6.8% to 6.5%.

A: I would expect the government to also tell Parliament what would have be the fiscal deficit if the base year had not been changed.

I will give you an example. I had, when I was the Finance Minister, I decided to exclude the national savings collection from budget to the special deposit scheme (SDS). That moved a large part of the fiscal deficit out of the budget because it was an accountancies mirage, so what we did was we moved it out, but I was gave parallel figures that if it was included what have been the fiscal deficit, if it had not been included what is a fiscal deficit. So I expect the same integrity from the present Finance Minister that he would say that if the base year had not changed this is what it would have been.

I am concerned, you have raised fiscal deficit, borrowing Rs 4.5 lakh crore from the market is a very abnormal situation.

Q: Kirit Parikh report has been submitted, the BJP, the NDA government had tried to move towards the partial dismantling of the APM, will you support a price rise if the government were to move ahead with some of the recommendations of Kirit Parikh report?

A: We had on the April 1, 2002 announced the deregulation of the petroleum sector which was completely undone by the first UPA government. Now, we have the Kirit Parikh report, it is not breaking new ground, they are not repeating the old formula. When we dismantled and whenever there was price rise, the Congress party representative did not come and garland us at Vijay Chowk, so we are not going to garland them at Vijay Chowk.

Q: Are you going to take darnas and morchas opposing it?

A: Why not. This is politics and they did exactly the same thing to us. Why shouldn't we give it back?

Q: It is a fair game?

A: It is a fair game.

Q: You will give it back?

A: We will oppose price rise.

Q: You are being a little more charitable in comparison to what I heard you say six months ago so maybe you do understand Pranab Mukherjee's pain a little more and you are accessing your personal account.

A: I have great personal regard for Pranab Mukherjee. I hope he will do a good job. Even last year I appeared in a show, a TV show and said I had great faith in Pranab Mukherjee, but unfortunately he did not measure up to my expectations. I will hope that in this year's Budget he will do the right things and measure up to our expectations.

Q: So final word from you on the report card, what would it look like on the economic performance chart for the last couple of months since the last budget?

A: I will end by saying that if you have to chose between growth and the kind of abnormal intolerable and bearable price rise that we have seen, I would say let us choose less inflation, inflation control, price rise control than growth.

Nobody in this country is going to be bothered whether the growth rate is 7.5% or 7% or 6.5%, but price rise of essential commodities of food grains is something which is pinching you and me and the 'Aam Admi' every day of the week.

Q: You suggesting tightening more monetary measures?

A: No, I am not suggesting tightening of monetary measures, but given the fact that inflation in December went up to 7.31% if that is called for it should be. But on a standalone basis monetary measure will not suffice unless they are accompanied with fiscal measures.