Narayana Murthy praises General Budget

Bangalore, July 7 (ANI): Chairman and chief mentor of the Infosys Technologies Ltd NR Narayana Murthy has said the General Budget will bring the economy back on rails.

Addressing reporters here on Monday, Murthy expressed confidence that the budget was pro-growth.

"Given the fact that they have increased allocation to the National Rural Employment Guarantee Act scheme, to national food security scheme, to highways, to education, they have something for everybody, something in every area. So, I do think this has pretty good chance of bringing economy back on rails," Murthy said.

The government ramped up spending for this fiscal year to support a fragile economic recovery, spooking stock and bond markets with plans for record borrowing and the biggest budget deficit in 16 years.

Investors had hoped the new government would use a strong re-election mandate to push through pro-market reforms, but the budget it unveiled lacked major policy changes and focused on increased borrowing and spending to aid farmers and the poor.

Stocks tumbled nearly six per cent, bond yields spiked and the rupee fell 1.4 per cent after Finance Minister Pranab Mukherjee, sticking to the Congress Party's theme of "inclusive growth", said the fiscal deficit for the year ending March 2010 would increase to 6.8 percent of gross domestic product (GDP). (ANI)