Did you Know that prior to 1977, the Interim Budgets and Full Budgets were presented by Congress back to back. It was after the defeat of Indira Gandhi in the 1977 Elections ending the Emergency regime, India’s first Non-Congress Administration spread its wing under the leadership of Prime Minister Morarji Desai’ Janata Party.
H.M. Patel was the first Non-Congress Finance Minister to present an Interim Budget for the year 1977-78. This Interim Budget or Vote on Account was not the last budget before the General Elections, but the maiden Budget of the Janata Party. It was an Interim Budget because the newly formed government had scarcity of time to recast estimates and to print the Budget documents afresh.
FM Patel apprised the parliament of the fiscal deficit of Rs.425 Crores for the year 1976-77 against the estimated Rs.326 Crores by the previous government. The Finance Minister though did not dig up the details of this monstrous fiscal deficit. “The Budget for the current financial year presented in March, 1976 envisaged an overall deficit of Rs.328 crores. Due to certain increases in expenditure, partly offset by improvement in receipts, the year is expected to close with a deficit of Rs.425 crores. It is not necessary for me to take you over the various details of the budgetary developments during the current year for which the present Government can obviously assume no responsibility,” clarified Patel.
As is the case with Interim Budgets, Finance Minister H M Patel didn’t come out with any new schemes or economic policies, until his cabinet and camaraderie would settle and re-estimate the fiscal health of the economy.
“I have asked my Ministry to request all Ministries, Departments and Public Sector Undertakings under the control of the Central Government not to take up new schemes and not to enter into fresh major commitments till we have completed our review. The possibility of re-phasing and re-scheduling continuing schemes would also be explored. All Ministries and Departments of Government, and Public Sector Agencies will be asked to observe the utmost economy in expenditure, keeping in view the present Government’s emphasis on austerity, and avoidance of all forms of ostentation,” said the Finance Minister.
FM Haribhai M Patel concluded his Interim Budget 1977 speech by saying, “It is the will of the people of India as expressed unequivocally at the Polls, that there is an urgent need to redirect our economic policies and priorities so as to ensure that economic growth subserves the objective of speedy eradication of poverty and unemployment, and a progressive reduction in inequalities of income and wealth. The House may rest assured that we shall keep our faith with the people. The task ahead is formidable, but with the willing support and goodwill of the people, we are confident that we shall achieve our objective.”