SME Times News Bureau | 26 Feb, 2010
Prime Minister Manmohan Singh Friday commended Finance Minister Pranab Mukherjee for the budget, describing it as a right mix of enabling growth while sticking to the fiscal deficit consolidation requirements.
"My overall impression is that the FM has done a right mix of estimating the growth requirements as well as the same time building in it a certain amount of moderation on the price front," Manmohan Singh said in his post-budget interview to a national television channel.
"You must look at the total picture emerging from the budget, the revenue gains for the finance minister is only Rs.20,000 crore in an economy as large as India," he added.
When asked if the proposed hikes in central excise duties would result in increased inflationary trends, the prime minister said: "This resource mobilisation effort should not trigger any inflationary pressures at the same time it gives a much needed signal. The finance minister has not gone back to the pre-stimulus excise duty rate.
"He has exercised moderation while signalling to the economy that you cannot have all things together."
The prime minister also sought to allay fears of India Inc over the proposed direct tax code and said all apprehensions of stake holders would be considered before the roll-out.
"The direct taxes code must be a source to strengthening the growth impulses, dynamic impulses but the direct taxes code which was delayed it has aroused certain apprehensions in the minds of the business community," he said.
Home Minister P. Chidambaram described the union budget as a "balanced effort" marked by a responsible judgement of the state of the economy and of the measures required "to sustain high and inclusive growth".
"Finance Minister Pranab Mukherjee's budget for 2010-11 is a very balanced effort marked by a mature assessment of the state of the economy and of the measures required to sustain high and inclusive growth," Chidambaram said in a statement.
Opposition joins hands to slam government on budget
The entire opposition, including the Bharatiya Janata Party (BJP), the Left parties, the Rashtriya Janata Dal (RJD) and the Samajwadi Party (SP), joined hands Friday to condemn the union budget as "anti-people".
Party leaders addressed the reporters jointly to slam the government over the hike in central duty on petrol and diesel.
"This is a anti-farmer, anti-poor, anti-people budget," Sushma Swaraj, BJP leader and leader of opposition in the Lok Sabha, told reporters shortly after walking out of the Lok Sabha in what was a departure from the norm.
Also present were SP leader Mulayam Singh Yadav and RJD chief Lalu Prasad.
BJP's deputy leader in the Lok Sabha Gopinath Munde said the walkout from Lok Sabha was "spontaneous" and "reflected the feelings of common man on price rise".
"We had hoped that the budget will lessen impact of price rise on people. But it is anti-farmer. The hike in prices of petrol and diesel will further lead to increase in prices," he said.
Communist Party of India (CPI) leader D. Raja said the walkout from Lok Sabha was spontaneous and reflected the gravity of the problems faced by the people due to price rise. "The government did not give a convincing reply," he said.
Congress spokesperson Manish Tewari said the budget would consolidate the post-downturn recovery process, strengthen infrastructure and improve collection of revenues.
He said the opposition was just interested in "scoring political brownie points".
