'Nothing has structurally changed on either food or fertiliser subsidy'

Finance Secretary T V SOMANATHAN had a wide-ranging discussion with AK Bhattacharya, editorial director, Business Standard, at the Budget with BS: The Fine Print event in Mumbai on Wednesday. Edited excerpts from the interaction:

On the Budget vision: The Budget has tried to mix two things. One, continue what is good, and two, start more good things, if I put things very simplistically. So, in terms of fiscal consolidation, it signals continuity where it's important, especially in a changed political context. But there is a clear message of continued emphasis on macroeconomic stability. That includes the path of fiscal consolidation outlined several years ago.

The change part comes in a big focus on employment as a challenge for us to meet over the next five years. So, it's a big emphasis on employment and also, a number of new initiatives that will take this country forward in terms of a higher sustainable long-term growth rate (along with) structural measures in a series of areas... We have essentially tried to set out an agenda for the next five years and it, in essence, represents the political commitment to that agenda.

On job creation numbers:

This is one of the most important and yet most challenging part of what this Budget has tried to do and I admit (that) this is not an easy thing to do.... We have decided to take the plunge. Q&A This is something the PM was very keen on, doing something very concrete at scale, to push employment-intensity of growth. This is a response to that clear policy direction. Our conversations with manpower, agencies, industries do indicate that the government can neutralise some of the handicaps through fiscal incentives which don't require 28 states to agree. We want Indian style of polity and Chinese style (of) growth. These are some of the things we have to sort of experiment with.

On tax incentives: