Tax cuts within statute: FM

Finance Minister Jaswant Singh yesterday dismissed the Opposition's charges that the recent tax cuts and concessions ahead of the Lok Sabha elections were populist in nature and they violate the Constitution.

"I would like to be informed in which democracy, management of economy does not have the vital inputs of political policy. I don't think any economic management is free of politics," Singh told the BBC World in an interview.

Irrespective of what others might say, Singh said "not a single step has been taken that is violative of the Constitution and the budgetary process."

Referring to the uptrend in the economy, the finance minister said it was more than the feel good factor and was resurgence of Indian self confidence across the board, including economic factors, international affairs, internal polity and social order.

He said management of the economy had also contributed to development.

Asked about the campaign issues, Singh said it would be finance, economy, development, stability of government and the leadership of the National Democratic Alliance as against "absence of all these in the largely unorganised mass that is our Opposition."

He felt that the general elections were "imminent" and they would be contested on the issues of development and leadership.