New Delhi, July 8
Prime Minister Manmohan Singh today commended the 2004-05 General Budget for being focussed on key social sectors and giving a boost to the agricultural and industrial sectors.
After the presentation of the Budget by Finance Minister P Chidambaram, he said the proposals provided a meaningful solution to the problem of mass poverty, ignorance and disease afflicting millions of people in the framework of an expanding economy.
Emphasising that the Budget had taken note of the “rapid economic growth with social justice”, the Prime Minister stressed there should be no fear on the inflation front as the government would take steps towards fiscal rectitude and consolidation.
On the increase in the defence budget, Dr Manmohan Singh said the additional allocation would help as defence expenditure had been neglected in the past few years. “We are committed to making good the deficiency in defence. It is an investment for national security and we must honour that.”
Stating that he had always believed in fiscal rectitude coupled with greater social equity, Dr Manmohan Singh felt that maintaining the fiscal deficit at 4.4 per cent of the GDP was reasonable.
He contended that the Budget had sought to provide high doses of investment both in agriculture and industry as well as in social and physical infrastructure. In this context, he drew attention to the Rs 10,000 crore additional Plan expenditure in the Budget for meeting the objectives of the National Common Minimum Programme.
Considering India’s diversity and complexity, he said no single application would work. Therefore, he called for experimentation of viable options which had to vary from state to state and region to region.
He sought the cooperation of NGOs as they made an impact in social development and other areas like education and social services.
On subsidies, the Prime Minister said a study of the National Institute of Public Finance and Policies in this regard would be discussed in Parliament.
