FM defends General Budget, says it focuses on agri

Chennai, Mar 11: Finance Minister P Chidambaram today defendedUnion Budget 2007-08 saying it was aimed at distributing the fruits ofeconomic growth in an equitable fashion among all sections of thesociety, especially the poor, besides giving a boost to agriculture.

Addressing a public meeting on the Union Budget organised by theTamil Nadu Congress Committee here, Mr Chidambaram said, ''If the 1997Budget had a message to the world that India was ready to enter thecompetition-driven market economy and achieve economic growth, Budget2007-08 conveyed to the people that we are ready to share the benefitsof growth with the weaker and neglected sections of society.'' MrChidambaram said if the 1997 budget was a ''dream budget'', aimed atindustrial and service sectors' growth, the current Budget was a''green budget'' to lift the agricultural economy to help it achievefour per cent growth.

No tax exemptions and concessions were given to corporate sector ''since it was not necessary,'' he said.

He also pointed out industry and service sector had alreadyrecorded more than eight per cent growth which would continue this yearalso.

The combined net profits of the corporates stood at about Rs 4.84lakh crore and they paid 19.26 per cent of their profit as tax whichhad not been increased so far by the government.

The Centre had done nothing to affect their profits or economicgrowth. ''You are prospering and continue to prosper. We have donenothing to harm you. There are other weak sectors and weaker sectionslike farmers to be taken care of,'' he said.

Terming this year's budget as ''Green Budget'' aimed at ''lifting theagricultural economy,'' Mr Chidambaram said it had all solutions torectify shortcomings of the sector. Debt, water scarcity, inadequateavailability of quality seeds, fertilisers and electricity at therequired time impaired agriculture.

''These shortcomings should be rectified to achieve four per centgrowth in the sector and to contain inflation and price rise,'' hesaid.

The prices of pulses were going up because their annual production-- 1.45 crore tonne -- was less than the needed 1.60 crore tonne. Todouble the yield of pulses within three years, steps were being takento provide quality seeds, he said.

''The Centre had decided to provide loans amounting to Rs 2.25lakh crore to farmers this year at seven per cent interest rate. ''AWorld Bank assisted Rs 2,182 crore project to revitalise waterresources in Tamil Nadu has been announced and similar plans would betaken up in other states also,'' he added.

Around Rs 11,000 crore has been allocated to complete the pendingirrigation projects and Rs 18,000 crore earmarked for subsidy to 70lakh farmers for digging wells, he said, adding India would faceserious problems if water problem was not addressed.

Mr Chidambaram also pointed out since the country was on the thresholdof the next five-year plan, the priorities of the Budget had changed.He said 65 per cent of the people lived in rural areas and 60 crorepeople were dependent on agriculture for living. Though the Centre hadprovided fertiliser subsidies, it had not reached farmers andbenefitted only some middlemen, he added.

''A mother naturally cares for the weak and crippled child thanthe healthier ones. If the healthier child feels bad about it, it isunfair,'' he claimed.

He said there was 35 per cent increase in allocation for educationand 22 per cent hike for health sector. The country would recruit twolakh teachers and build five lakh classrooms this year, which would bea record for a single financial year.

The government had announced scholarships to decrease dropouts in eighth standard.

He said containing HIV/AIDS was a great challenge since India wasone of the countries worst-affected in the world and the Centre hadallocated Rs 1,000 crore to prevent the spread of HIV from mother tochildren.

Rural Employment Guarantee Scheme would be expanded to 330districts this year and concessions would be given to industries toemploy the disabled.

He claimed for the first time in 60 years, the country's averagegrowth stood at 8.6 per cent continously for the last three years.

Union Minister of State for Textiles E V K S Elangovan, TNCCPresident M Krishnasamy and Former Union Minister K V Thangabalu wereamong those who spoke.

UNI