Prof. J.D. Agarwal, Chairman & Director of Indian Institute of Finance feels that despite the adverse financial condition of the Govt. the budget is likely to be moderate if not soft, non-inflationaly & would target to revive the Indian Industry & the Economy.

According to Prof. Agarwal, the main issues before the Finance Minister in the budget 1999 are to control fiscal deficit & revenue deficit to the tolerable level, to maintain fiscal prudence and improve the overall credibility of the government. He has to control unproductive and wasteful expenses and propose reduction in unsustinable subsidies provided currently. Accroding to Dr.Agarwal, Finance Minister has got to provide sufficient funds for developing infrastructure, providing agriculture and rural development, take care of employment generation and suggest schemes for industrial revival targeting an eonomic growth rate of 6%. He has to adequately provide for education and health to take care of social sector.

According to Dr. Agarwal, to target the above issues the Finance Minister may bring out schemes for inoducing partial capital account convertability; suggest Banks currently with excess liquidity to finance infrastructure projects; bring out schemes for increased productivity in the agriculture and rual development and promote tourism. He may also suggest the scheme for agriculture credit for the small farmers and unify employment generation and antipoverty programmes. Dr. Agarwal feels that the Finance Minister may come out with schemes of safety nets for rural poor through public works Programme. Finance Minister may aslo suggest schemes to boost private initiatives and NGOs in promoting education and health using local and community resources. To revive the the industrry, The Finance Minister may suggest scheme to promete demating of shares and derivatives trading and also increase in import duty on certain items. Accroding to Dr. Agarwal allocation to Defence, Education & Health may be increased by 15 to 20 persent.

Dr. Agarwal feels that the minimum exemption limit my be raised to Rs. 65000/- to give relife to salaried class; rationalise some of the tax provisions and may withdraw some tex concessions, deductions and exemptions currently available including interst as a deduction allowed currently .Dr Agarwal feels that although widening tax base is a myth and would create more confusion yet government may cover service tax to cover more professional and small traders.

According to Dr. Agarwal, there may be increase in import duty on certain items and duty free baggague may also be increased to Rs. 15,000/- There might also be some increase in the excise duty on ciggarattes, alcohal and other luxury items. To rationalise in excise duty structure and revive Indian industry there might be overall education in excise duty rates and 4 to 5 excise rate slabs may be suggested. Dr. Agarwal feels that the postal tarrifs may be moderately raised.