'Budget likely to be between March 12 and 16'

New Delhi: As most of us are busy in the guessing game, Economic Affairs Secretary R Gopalan indicated that Budget is likely to be between March 12 and March 16. In an interview to CNBC-TV18, Gopalan stressed that no final date has been decided but it is safe to assume the Budget to be tabled between March 12 and March 16.

There are already alarm bells ringing on the overburdening of fiscal deficit. Gopalan too is worried that fiscal deficit target may go beyond the projected 4.6 per cent. India's fiscal deficit rose to 6.5 per cent in 2008-09 due to the global financial crisis, but was brought down to 4.5 per cent in 2009-10. However, things look hopeful in the Budget F13. According to Gopalan, fiscal consolidation worries will be tackled in it.

PSU buy back and SUUTI

Elaborating on the various agenda of the Finance Minsitry, Gopalan informed that it will soon present a stake sale plan for state-run companies via the buyback route to the cabinet. The government's target is to raise Rs 40000 crore this fiscal year by selling shares in state-run firms. He also added that consultative process on Specified Undertaking of the Unit Trust of India (SUUTI) is not yet over.

Interest rates

There is some good news on the interest rate front. The Reserve Bank of India (RBI) is likely to take measures to ease tightening if inflation drops and there is a 'very good' possibility of interest rates falling, he assured. There may be a need to revisit rates if December WPI is sharply down, he reiterated.

Below is the edited transcript of Gopalan's interview with CNBC-TV18. Also watch the accompanying videos.

Q: There is a lot of question mark with regards to what is likely to happen with the economy and the budget. Is there any clarity on the date as far as the budget is concerned? The finance minister said 48 hours ago that the code of conduct expires on March 9. So, obviously the budget will happen post that, any indication of the timeline?

A: No, I don't think it is possible to say what exactly is the date is at this point in time, but certainly it is going to be beyond March 9. Beyond March 9 we have the Presidents address, then we have the Economic survey, Railway budget and so many other things are required to be done. The probable date is being worked out and it will be in the public domain shortly once the decision is taken in the matter.

Q: Speculation is that it would be in the week starting the 12th, perhaps around the 15th or the 16th, would that be fair to assume that at least in the ballpark of those dates?

A: I guess so. Yours is a fair assumption if you make on these kinds of dates. These are all fair assumptions; I can't say one single date.

Q: Whether we should temper our expectations as far as what the budget can deliver or should we have high expectations of what the budget can deliver. Montek Singh Ahluwalia said that the government is going to get back on the reform path with the union budget and the union budget is going to be the start of government's commitment to the reform agenda. But let us look at the political reality, we have got elections in five states can we expect a lot from this budget?

A: Reforms is one continuous process and we have been seeing reforms taking place with each budget. It is imperative that these reforms are taken forward as we go along. Therefore, it is a fair presumption to make that there will be a continuous process of reforms taking place. But, it is not necessary that all reforms have to come in the budget.

Reforms do take place in between the budgets. For instance you have this QFI investment, direct investment in the stock market and it is a good reform, which took place in between the two budgets. So reforms is a continuous process, it has got to be done. The question is that if you say that each budget is the occasion for announcing reforms I don't think so.

Q: The fiscal room that you enjoy to maneuver big ticket reforms is fairly restricted at this point in time. Are you going to be able to meet your Rs 40,000 crore disinvestment target? There are two plans that are currently being looked at by the finance ministry. The plan to go in for public sector company buybacks was supposed to be taken up by the cabinet this week. It finally didn’t come up for discussion. Where does the problem lie? We have picked up from sources that the power ministry and the coal ministry has expressed their concerns about the PSU buyback plan. What is the status as far as that plan is?

A: This is a note which was floated by the disinvestment department and it has got to go through the consultative process. The consultative process is on and once the consultation process is over a decision will be taken to put it up before the cabinet. You are not very far away from seeing when it is going to be put before the cabinet for consideration.