Finance minister P. Chidambaram will present the interim budget in the Lok Sabha today. It is a vote-on-account authorizing the government to carry out expenditure on different heads till a regular budget is presented.

Ahead of the beginning of the parliament session early this month, Chidambaram had said that the government would tinker only in areas that are essential to revive the economic growth which might likely include some changes in excise and service taxes in the interim budget.

While the Interim Budget is not likely to have any major tax proposals, there might be minor restructuring here and there to benefit some sectors and states.

However ,the Interim Budget might be loaded with some strong statements highlighting the government’s focus on the social sector marked by increased allocation for some of the schemes related to education, health, food, rural population and women, among others.

Chidambaram is also expected to cut factory-gate duties on products like autos to support the manufacturing sector, extend an interest subsidy on bank loans to exporters, farmers, and offer tax concessions for poorer regions.

Above all Finance Minister may take some effective measures to arrest high inflation.