Chelliah moots medium-term budget

CHENNAI, FEB 21: Noted economists Raja J Chelliah and Ashok V Desai have made a case for the country’s budget exercise to stretch over the medium term from the current annual programme.

Speaking at a seminar on Long-term Fiscal Policy’ organised by the Madras Chamber of Commerce and Industry (MCCI) here recently, Chelliah, said that the demands from the various ministries are so insistent that budget makers put down figures primarily to keep budget deficit down and do not consider the impact of these measures five years down the line. Lashing out at what he termed ad hocism’, Chelliah said that budgets have to be drawn for the medium-term and the government must stick to these measures.

Finance ministers keep making changes as they think fit, he charged. He was particularly critical of some policies of the UF and P Chidambaram.