Describing the Union Budget presented by Finance Minister P Chidambaram as "outstanding," Prime Minister Manmohan Singh said it provided potential for achieving 8-10 per cent economic growth. He also said emphasis had been laid on the farming community, rural health, education and infrastructure development.
"It is a 'pro-common man' Budget and will help the country move towards a higher growth path," he said, reacting to proposals in the 2006-07 Budget. He said it laid special stress on social sectors like healthcare, education and infrastructure.
"It is an excellent combination of the twin-imperatives of social justice and economic growth," he said.
Asserting the Budget would provide "unprecedented" opportunities in the major sectors, the prime minister said the government would provide funding to core areas for which money may not come through the market borrowings route.
He added that there was a lot the government needed to do in social sectors. "We will use public finances in sectors like rural development, infrastructure and education," he said.
Asked about concerns that the funds allocated in the last Budget were not spent adequately, he said the "concern was justified" but, since these were new initiatives, the money was not spent the way it was meant to be.
The prime minister said the finance minister had produced an "outstanding" Budget.
Noting that the country was on the "threshold of an unprecedented opportunity," Singh said the economy grew at 7.5 per cent during the last three years .
The challenge is to ensure a growth of 8-10 per cent, he said, adding it could be achieved.
The prime minister did not rule out the possibility of leakages in social sector spending, but said "powerful" safeguards like Right to Information Act have been put in place to enable people to keep a check on how the government spends the money.
He also said a large amount of social sector spending would be done through Panchayati Raj Institutions. If PRIs function properly, it would help check such leakage.
Terming the Budget as "outstanding," Singh said for the third consecutive year, gross tax revenues have increased by a hefty 20 per cent and the GDP ratio has gone up from nine per cent to 11 per cent.
On the Fringe Benefit Tax, he said: "Let us keep some things for a later day."
The prime minister said the budget would provide a "big stimulus to growth."
Singh said the budget has provided funds for social sector, including the government's flagship programme Bharat Nirman, besides the Jawaharlal Nehru Urban Renewal Mission and the National Rural Mission.
There will be relief for "aam aadmi" (common man), he said, adding that strong emphasis had particularly been laid on the farming community. In this regard, he mentioned the government's proposal to give agriculture credit of upto Rs 3,00,000 at an interest of 7 per cent to farmers. Singh said this would particularly give relief to those farmers facing problems on account of debts.
The Budget will also be helpful to important sectors like textiles.
The middle-class, the prime minister said, should also be happy with the Budget.
Singh said the finance minister had also factored in the security needs of the country in the Budget.
"A significant step up has been provided" (to the defence sector) in the Budget, he said, lauding Chidambaram's work.
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