Interim Budget presented by Sh. Jaswant Singh has managed the propriety of vote on account by not announcing any changes in the tax structure feels Prof. Agarwal.

According to Prof. Agarwal, the mini budget is people friendly, growth oriented and demand generating. For the first time after several decades the finance Minister has realised the importance of agriculture by announcing the second green revolution by selecting 80 districts in the country.

He has rightly focussed on poverty alleviation, employment generation and prosperity of people. By announcing the opening of 6 new medical colleges he has focussed on improvement of health care in future. The investment of 15,000 crores in the banks, setting up new technological centers, defense moderernisation of Rs. 25,000 crores, reduction in stamp duty to half and special package for sugar industry should help industry grow faster. The fiscal deficit of the current year is likely to be less than 5 % because of 2 to 2.5 % extra growth rate, reduction in expenditures better byonancy in tax receipts, reduction in savings due to payment of 5 billion dollar loan during the year, stronger rupee and reduction in subsidy on insurgent bonds repayment during the year.

However, Prof. Agarwal feels that Finance Minister announcement regarding inflation rate to range between 4 to 4.5 % is unrealistic. Dr. Agarwal feels that he has not shown sufficient concern for education particularly elementary education.

The central government employees will be benefited tremendously with the merger of 50 % DA with basic pay but this would result into a very heavy expenditure burden both for centre and states.