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Cruellest month?

V. S. Jayaraman, e-mail

Of all months, February has got its own significance because it is during this month that the Railway/Union Budgets are presented.

Though the Prime Minister has forewarned that the 2001-02 Budget will contain harsh measures, it remains to be seen how harsh the exercise will be and what sort of tremors it will produce.

It has now become a ritual to put embargo on despatches of excisable goods on the day of the Budget presentation. As a result, manufacturers are unable to make any despatches. Prior to this date, manufacturers are to provide details of stock available wi th them for the verification of the officials. Though they can remove material even on Budget day, they can be done only after obtaining special permission from the Excise Authorities.

Since this facility is fraught with problems, manufacturers never use it. Thus, despatches are held up even after the Budget day, as the officials delay the clearance procedures.

In this manner, manufacturers are unable to make despatches continuously for two days. This also means loss of revenue to the Government, as no excise payments are made.

With the opening up of the economy, India has become a major dumping ground for materials produced by multinationals, causing enormous injury to the indigenous manufacturers. With such embargoes, the indigenous industry will be affected more.

While some of the Budget proposals, such as increase in postal stationery, takes effect from April, one does not understand why a few proposals should come into force immediately. Moreover, the proposals are for the financial period April 2001/March 2002 . As such, the Budget implications should come into effect only during the said period and not earlier. The Railway Budget is an example in this regard, as the revision in passenger fares/freight comes into effect only from April.

The Budget's proposals should be implemented only during the period it reckons with. Then, business will be as usual and there will be revenue loss to none.