Govt not reworking budget

Declining to elaborate further, Ahluwalia said "I do not want to say anything on the budget. But all I can say is that reports of budget being reworked to take into account theeffects of sanctions is completely wrong. It is untrue."

They were speaking to newsmen on the sidelines of an Industrial Finance Corporation of India function here. "I am not worried," Jalan said indicating that the Indian banks had no immediate liquidity problems.He parried questions on the effect of the sanctions on the exchange rate of the rupee, saying "I don’t comment on the rupee at all." Asked if the government had worked out financial implications of the sanctions by the US, Ahluwalia said it is difficult to make any estimate, as they came under different heads. "It is not possible to make a full assessment within a short time of four to five days," he said.

Meanwhile, an official release said government was not contemplating any counter measures in the event of Washington blocking funds to India. Such reports are entirely baseless and mischievous. "The government is confident that any adverse impact on some flows would be offset by suitable measures," the release said.

However, it is learntthat the crucial Insurance Regulatory Authority (IRA) Bill and the new Companies Bill will not be taken up in the Budget session of Parliament. The government has also decided against taking up the new Income Tax Bill, the draft of which was prepared at breakneck speed by former finance minister P Chidamabram.

However, finance ministry sources pointed out the government proposes to discuss the FEMA and Proceeds of Crime and Money Laundering Prevention Bill in the Budget session beginning on May 27. Apart from the regular budget, the bills to be pursued include the Export-Import Bank of India (amendment) Bill (to increase the authorised capital of the Exim Bank from Rs 500 crore to Rs 2000 crore).