The Budget is neither Vote Catching nor Vote on Account
Vote on Account Budget 14-15 presented today is more an accounting than budget as all the income and expenditure for the next six months has to be spent on account. What the Union Finance Minister has done is gimmicks or jugglery of figures when it came to Fiscal Deficit. He postponed payments due during the last three months and demanded advance payments of dividend from all the banks and the PSUs and even asked the RBI to transfer its surplus to contain the deficit. In the process what would happen is that the government that comes to power has a responsibility to pay up all the pent-up dues and forego all the receipts for the six months April –October 2014 if they are at the expected level because they were all on the basis of some assumptions of revenues and expenses projected for the next financial year. He is for sure going to handover empty treasury to his unknown successor.
Nobody knows how the domestic and global environment would turn out. But the hope is that it would be better if we are to go by some global trends.