Dr Siddharta Roy of Tata Group welcomes Budget '07

Mumbai, Feb 28 (UNI) Welcoming the Union Budget, Dr Siddhartha Roy, Economic Advisor, Tata Group, today said ''One of the major positive features of the Budget has been its prime focus on education and healthcare''.

It aims at improving access to social services and provides a social safety net.

In the absence of any fresh capital schemes, which could kick-start long term growth in this sector, it is difficult to envisage a 4 per cent growth rate in agriculture in 2007-08, leave alone averaging a 4 per cent growth during the 11th plan, he said.

About inflation, he said rising inflation has been a cause for concern lately. The government has admitted that supply side constraints have put pressure on prices, particularly in some essential commodities such as wheat, pulses and edible oils.

The cut in Peak Customs duty from 12.5 per cent to 10 per cent would also have a moderating effect on inflation by reducing the input costs of several import-dependent industries, he felt.

On the whole, it has done a good job of balancing political imperatives and economic compulsions. Although the Budget lacks concrete delivery mechanisms to generate accelerated growth, it has nevertheless not done anything adverse to derail the growth process, he said.

UNI