Budget 2014: Urea subsidies, MNREGA to top Arun Jaitley’s Budget list

New Delhi: Union finance minister Arun Jaitley could be taking hard decisions in his maiden budget of the BJP led NDA by limiting subsidies on urea and review UPA’s flagship scheme MNERGA. In order to give a relief to the farmers who are reeling under a poor monsoon, subsidised diesel could be provided to them for agriculture.

For Delhi, which is going to face elections, Mr Jaitley may give a subsidy of Rs 1.20 per unit for those who consume power up to 200 units every month and up to 400 units it may be 80 paise per unit only.

With speculations and whispers over the budget proposals being heard in the corridors of power, the government recently issued a circular asking all the secretaries, who have given suggestions not to speak to the media on this issue. The circular stated that union budget “is a secret document”, speculative reports were appearing in newspapers and the officials “should desist from making any comments.”

However, it was learnt that in order to curb the use of tobacco, finance ministry is expected to increase tax on all its related products. Union health minister Dr Harsh Vardhan has already written to Mr Jaitley demanding a hike in taxes on cigarettes.

Cutting subsidy is essential for the government to control fiscal deficit at a time when tax revenue growth has come down due to economic slowdown. Indications that Mr Jaitley will not desist from making unpopular measures came on Monday, when during a debate in the Rajya Sabha, he criticised the previous government from failing to take tough decisions.

“Does he (Railway Minister) follow the weak-kneed policies of his predecessor that unpopular decisions can’t be taken even if they are in national interest or does he then take this decision and place this fact before the country that to run the railways this decision was necessary,” he added.

Former finance minister P. Chidambaram had budgeted Rs 70,586 crore as fertilizer subsidy in fiscal 2013-14, but had to roll over Rs 30,000 crore of that to 2014-15. In the interim budget he presented in February, Chidambaram had estimated the fertilizer subsidy at Rs 67,970 crore for 2014-15, with Rs 12,300 crore towards importing urea, Rs 31,000 crore on domestic urea and Rs 24,670 crore as decontrolled phosphatic and potassic fertilizers.