Budget 2003 to be presented tomorrow by Finance Minister, Mr. Jaswant Singh is likely to be soft, growth oriented and distributing largees to all sectors of society feels Professor J.D.Agarwal, Chairman, Indian Institute of Finance. The rosy, though largely realistic picture presented through Economic Survey released today is basis of his forecast.

The Budget 2003 is likely to focus on infrastructure, provision of quality transportation facilities in form of roads, rail roads, ports and airports, provision of adequate power supply, social sector, eradication of illiteracy , reduction in infant and maternal mortality rate, eradication of diseases like malaria and polio, safe drinking water and sanitation at reasonable price by encouraging public private partnerships.

According to Dr. Agarwal the budget is likely to consider fiscal consolidation to contain the consolidated fiscal deficit in single digit by restructuring tax system particularly with a greater focus on service tax and bring a large number of services in the tax net and also by focussing on tax administration efficiency. The budget may announce rationalisation of subsidies on food, fertilizers and LPG.

The budget may also focus on improving the production in horticulture products particularly fruits and vegetable and on development of rural infrastructure through micro credit institutions and enhancing the flow of rural credit. According to Prof Agarwal, Finance Minister might announce the schemes to remove inefficiencies and existing regulatory mechanism for increasing the export potential of agriculture and also to create newer avenues for fresh private investment in agriculture.

On Tax front, Prof. Agarwal feels that minimum exemption limit may be raised; tax rates / slabs may be realigned, both individual and corporate surcharge removed. The payment of dividend tax in the hands of individuals may also be removed. Dr. Agarwal feels that further rationalisation of excise and custom duties may also be announced in the Budget tomorrow.

The Budget 2003 may bring cheers for most as outlook of economy as presented in economic survey is good and encouraging and also due to political compulsions in light of forthcoming elections.