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Introduction
Economic Situation
Key Objectives
Agriculture
Housing
Infrastructure
Small Scale Industry
Science & Technology
Banking
External Sector
Capital Market
Expenditure Management
PSU Reform
Revised Estimates
Budget Estimates
Indirect Taxes
Custom Duties
Direct Taxes - A
Direct Taxes - B
Closing StatementBudget 1998-99
Budget 1997-98
Budget 1996-97
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Expenditure Management
 | The high rate of growth of non-developmental expenditure by Government is
a growing and critical source of concern. I propose the following initiatives:
 | The most effective and lasting solution to this problem is to begin the
process of downsizing Government. We are making an immediate beginning by abolishing four
Secretary-level posts through a process of merger and rationalisation of Central
Government departments. This will take effect on April 1, 1999. |
| To carry this process forward in a systematic way towards reducing the
role and the administrative structure of the Government, we will constitute an Expenditure
Reforms Commission headed by an eminent and experienced person. |
| In preparation for the next Budget, I propose to initiate a system of
Zero Base Budgeting. |
| To promote transparency and curb the growth of contingent government
liabilities, Government has decided to establish a Guarantee Redemption Fund with an
initial corpus of Rs.50 crore. I encourage all State Governments to set up similar Funds. |
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