New govt should aim for 4.1% fiscal deficit target: FM

This is a annual ritual of critics. If 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 percent after setting a target of 4.8 percent. You take it from me 4.1 percent is a doable target. Whoever is in government must aim to do the target of 4.1 percent.

On government expenditure cuts & government income

The last quarter’s subsidy for fuel is arrived at only after March 31 of the year. Therefore it is rolled over into first quarter (Q1). That has happened for several years now. Last year Q4 of 2012-13, I rolled over Rs 45000 crore into this year and I paid for it in Q1. People forget that. What was rolled over last year was Rs 45000 crore and was paid in Q1 of this year.

This year Q4 I am rolling over only Rs 35000 crore into the next year. I am prepaying Rs 10000 crore. I can rollover Rs 45000 crore but I am rolling over only Rs 35000 crore. So, where is the question of pushing the liability into the next year? I am pushing a lower liability into the next year but I absorbed the larger liability from last year to this year.

On Tax collections

Last year also I set a high target. We did not achieve that target but I have achieved the fiscal deficit. The reason why we set a high target is that is the only way in which the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) will aim at a high target. Even if they fall short because growth is lower it doesn’t matter. However if you set a low target they will achieve only the low target. It is always good to set a target which appears difficult and try to achieve that target.

On oil subsidies

2013-14 the current year the Budget estimate placed fuel subsidy at Rs 65000 crore. The revised estimate shows us Rs 85481 crore. One of the reasons is we rolled over Rs 45000 crore to this year. Next year I am rolling over only Rs 35000 crore which means I am paying Rs 10000 crore this year. I could have shown the revised estimate at Rs 75481 crore and showed the Rs 10000 crore next year.

So, next years number is Rs 63500 crore, for comparison purposes is really Rs 73500 crore because I am paying Rs 10000 crore this year.

Now is Rs 73500 or what I have shown Rs 63500 sufficient? Yes it is sufficient and I will tell you why. One, we are correcting diesel prices. If the government continues to correct diesel prices at 50 paise a month you will get Rs 6 a litre over the year and that will bring in revenue. Number two, we are trying to tighten the system by which LPG is distributed. If we eliminate the estimated duplicate or false LPG connections of about  1-1.5 crore that itself saves us a very large amount every month. Say the subsidy is about Rs 800 a cylinder if you eliminate  1 to 1.5 crore that saves you Rs 800-1200 crore every month.

On increasing number of subsidised cylinders

I don’t think it was a wrong decision. Government does not descend from skies. Government is elected by the people. There are million of people in the country who want more cylinders with subsidy. There are million who want food with subsidy, there are million who want fertiliser with subsidy. No government can brush them aside. The clamor came from the gathering at the AICC and the Vice-President of the party articulated that. We have given 9 to 12.

Earlier, we started with 6 but within a month without any clamor, getting the feedback from the ground we raised it to 9. It really doesn’t matter whether you have raised it to 9 or 12. I don’t think there will be clamor for more and let's stop at 12. If I eliminate the 1-1.5 crore duplicate or false connections I save Rs 800-1200 crore a month. That is the big saving I am budgeting for over the next year. I am pushing the ministry of petroleum and natural gas to eliminate the duplicate and false connections.

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On Narendra Modi

The problem is he doesn’t face an interview with you. You should sit him down and ask him this question. Has he given an interview? I wish I could interview him or I will give you the questions you should ask him.

On public debate with Narendra Modi

First let him face a press conference. I am not willing to engage in a school boy’s debate. We have to have a debate on a substantial subject. The subjects I am listing are he must first spell out his views like I have spelt out my views. I have a 10 point agenda in the end of my Budget speech. I want him to spell out whether he agrees with those 10 or not - What is his position on fiscal deficit, what is his position on current account deficit, what is his position on say monetary policy? What is his position on GST and DTC? I know the GST bill I s being stopped by Madhya Pradesh and Gujarat.

Therefore he must spell out his positions like we have spelt out our positions and then appropriate people from both sides can debate. However, without knowing what your position is, you hold your cards close to your chest and engage in this kind of what I would call a school boy’s word play.

On taking Narendra Modi seriously

I take him seriously. I will tell you why I take him seriously. He is the principal opposition party's prime ministerial candidate. I have always said when the principal opposition party puts up a candidate as Prime Minister we must take that seriously. It is because I take him seriously I closely follow what he says and I notice the undercurrent of majoritarianism, the undercurrent of individualism and his famous theme in every speech "I, me, mine" - give me power, I will give you Swaraj. Give me power I will get the black money. This "I, me, mine" and this individualism and his majoritarianism is not the way to govern India.