Montek, Rangarajan chip in with advice

RUN UP TO THE BUDGET 2005

Montek giving inputs on infra, while Rangarajan being consulted on macro-economic aspects.

Finance Minister P Chidambaram does not have to depend on his North Block team alone for inputs on the Budget.

While Deputy Chairman Planning Commission Montek Singh Ahluwalia is providing inputs on infrastructure, C Rangarajan, chairman of the Prime Minister's Economic Advisory Council is being consulted on macro-economic aspects and prices.

"The Economic Advisory Council is no longer a dormant body. For the first time, the Economic Advisory Council has a formal set up with a secretariat and is like a standing committee providing monthly inputs," said a top source is in the government.

The Economic Advisory Council has also been asked to look at regional imbalance-related matters, especially Jammu & Kashmir and the north-eastern states.

Chidambaram in his role as Finance Minister has to look at all points of view and inputs, while he and his advisor Parthasarathi Shome are working out details of the tax policy, which is expected to occupy centerstage in this year's Budget.

All proposals from the revenue department are being routed through Shome.

"This Budget will not be the government's statement of intent for 2005-06 but it will provide the UPA government's medium-term economic strategy," said an official.

The Finance Minister has already held three rounds of pre-Budget meetings with Prime Minister Manmohan Singh and at least one more interaction is planned for this week.

Singh would be away from the capital towards the end of the week.

"For the next three weeks, the Budget is the most important thing on the Prime Minister's agenda and given his background he takes keen interest in Budget preparation," said a PMO official.

Singh wants the Budget to sustain a 7 per cent plus growth rate during the next fiscal besides providing the roadmap to improve infrastructure through higher investment, especially in rural India.

Within North Block, in the absence of a finance secretary, the secretary concerned is taking the lead.

For instance, revenue secretary KM Chandrasekhar is coordinating tax related matters which are then sent to Shome before Chidambaram goes through it.

Similarly, Expenditure Secretary D Swarup takes the lead on matters related to spending, while economic affairs secretary Rakesh Mohan is in-charge of markets and monetary issues.

Finance ministry officials said the numbers are being co-ordinated by Swarup, who has the Budget division under his charge.