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Govt ready to bite the bullet, says Budget Man Sinha

Union Finance Minister Yashwant Sinha has warned that the National Democratic Alliance coalition government will unfold a tough budget on February 29.

"Come February 29 and you will see that we are ready to bite the bullet," Sinha said in New Delhi on Friday.

Ruling out what he called "soft options", he said that "fiscal profligacy indulged in by both Centre (the federal government) and states (India's provinces) in the last several years" has depleted the government coffers.

There has been speculation that India's first budget in the new millennium is likely to pave the way for cut in lending rates to trigger industrial growth. India's annual GDP growth rate, currently at six per cent, is being sought to be pushed up to eight per cent.

The budget could raise personal taxes and slash lavish subsidies to trim the fiscal deficit. India's development expenditure has failed to improve key areas of the Indian economy, economists said.

Run-up to the Budget 2000-2001

Budget 1999-2000

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