TRIVIA: Morarji Desai

RUN UP TO THE BUDGET 2004-05

Morarji Desai was the only finance minister to have had the opportunity to present two budgets on his birthday "" in 1964 and in 1968 "" he was born on February 29.

When Morarji Desai became India's finance minister, he had the distinction of presenting the maximum number of budgets "" 10, in all. The record holds even today. They included five annual and one interim budget during his first stint, and three final and one interim in the second tenure, when he was both finance minister and the deputy prime minister.

His annual budgets were for the years 1959-60 to 1963-64, and the interim Budget for 1962-63. The third general elections were held on February 19, 1962. The annual budgets for three years, 1967-68 to 1969-70, and the interin Budget for 1967-68, were also presented by him.

The interim Budget for 1967-68 was on account of the general elections in March 1967. Desai resigned in July 1969 in protest against the nationalisation of major banks by an ordinance on a Saturday evening. He felt social control of banks was more than enough.

BULL DOSE

Budget 2004 should ensure income-tax on derivative trading is on par with tax levied on equity transactions. The Budget should eliminate differential rates of tax between domestic and foreign investors.

Of course, there is no denying that the dividend tax on distribution should be waived. It must provide one time exemption from stamp duty to stock exchanges on demutualisation, while forming a corporate entity. The Budget should rationalise the burden of compliance and encourage financial institutions and banks to actively invest in equities.

LEXICON

Resources transferred to States: The state governments are paid grants and loans for various plan and non-plan purposes. Besides, sizeable amounts of tax revenues collected by the central government are also transferred to the state governments. Some of the states also get grants to cover the gap in their revenue resources, as recommended by the Finance Commission.

The total resources transferred to state and union territory governments are indicated in a statement incorporated in the document presented with the Budget.

Further details of these transfers by way of share of taxes, grants-in-aid and loans, are given in the Expenditure Budget Vol.1. Bulk of grants and loans are disbursed by the Ministry of Finance and are included in the 'Demand Transfers to State and Union Territory Governments', which is presented on its behalf.

The grants and loans released by other ministries or departments are provided for in their respective demands.