Pranab assumes charge as FM, faces tough task

Mukherjee, who held the Finance Ministry portfolio nearly 25 years ago in the government led by Indira Gandhi, was welcomed by top officials of the Finance Ministry including Finance Secretary Ashok Chawla, Revenue Secretary P V Bhide, Expenditure Secretary Sushma Nath and Chief Economic Advisor Arvind Virmani.

Immediately after assuming the charge Mukherjee held series of meetings with the senior officers of the ministry and reviewed the status of various programmes and issues relating to all the departments of the ministry.   “Issues relating to forthcoming budget were also discussed at the meetings,” official spokesperson of the Ministry told Deccan Herald.  

The immediate task before Mukherjee would be to prepare the full budget for the financial year 2009-10 spelling out economic policies and priorities of the new government.

Mukherjee, who held the additional charge of Finance Ministry in the previous government, presented the interim budget cum vote-on-account on February 16 to meet the day to day expenditure of the government till July 31.

While focusing on measures to the spur demand in various segments of the economy, Mukherjee is expected to get the budget passed by Parliament by July 31. In case the budget fails to get the approval of Parliament by that date, the government would have to seek another vote-on-account to meet government’s day to day expenditure till such time the budget is passed.

The Indian Inc and industry are hopeful that the new government with no more being restrained by the Left parties will pursue the much-needed reforms in key segments of the economy like banking, insurance, pension and restructuring of the Public Sector Undertakings.

While the government is expected to indulge in large public expenditure including carrying forward stimulus packages to spur demand in the economy and to boost its growth, the growing fiscal deficit is also likely to emerge as serious problem for the new Finance Minister.