The interim budget presented by Pranab Mukherjee kept well within the boundaries of what an outgoing government should do on a vote-on-account. Despite the expectations in many quarters about bailout packages for this or that sector, the government correctly restricted itself to outlining its achievements over the last four years and offering no tax proposals. This was a responsible move for a number of reasons. First, without the adequate numbers in Parliament any discussion over a tax proposal could have been seen to be populist and could have led to discussions that could possibly have led to the vote on account not being passed. Its passage is necessary for the smooth functioning of the government over the next four months, until a new government is in place after the elections. It would have been irresponsible to take that risk. Second, proposing any major initiatives would have set a dangerous precedent. It should be the prerogative of the next government to choose its tax and expenditure policy. In any such situation where a government is on its way out, this should remain the convention. If today this convention had been set aside on account of the economic slowdown, the next time there would have been an earthquake, a tsunami, a drought or a flood that could be regarded as pressing. The best thing to do was not to disturb the established convention that the outgoing government does not attempt to use its incumbent status to set a policy agenda. The stimulus packages already announced have a lot left that needs to be implemented before announcing new measures.

... contd.