M A I N   N E W S

A forward-looking, balanced Budget: PM

New Delhi, February 28
Prime Minister Atal Behari Vajpayee today described the Budget as forward looking and balanced and said Finance Minister Yashwant Sinha had removed all apprehensions that it would be anti-people.

“I congratulate the Finance Minister and his officials for presenting a balanced Budget. It is forward looking and will take development ahead at a much speedier pace,’’ the Prime Minister told newspersons in Parliament.

Mr Vajpayee said several steps had been taken and proposals announced in various sectors, particularly to solve the problems of the farmers.

He said WTO was going to create certain problems for the farmers and to take care of their interests, customs duty had been increased. Steps were also in the Budget to protect the surplus foodgrain in the country.

“Farmers should not be under any fear now,’’ the Prime Minister said.

He said unemployment and poverty which had seen a decrease would be further reduced through the proposals in the Budget. For rural development, too, the Budget had given special attention.

Mr Vajpayee admitted that government employees had been affected by the decision to suspend LTC for two years. He said the employees had benefited by the Pay Commission and would be able to bear with this decision.

The agriculture, the industry and the export sector had all got concessions in the Budget and this would result in further development in the country, he added.

Surcharge and corporate tax had been abolished as there was no benefit accruing from them, Mr Vajpayee said in reply to a question.

Full attention had been paid in the Budget to schemes for the rehabilitation of the quake-affected parts of Gujarat, the Prime Minister said adding that the issue of a tax holiday for the state would be taken up through a separate proposal.

The BJP on Wednesday said the Budget was not “a hard one” as apprehended and would “make people happy and the Opposition sad” as it had given better facilities to farmers and cut down government expenditure.

“In the circumstances there could not be a better Budget. It is one which will generate employment and boost development, including housing and infrastructure development. It has contained fiscal deficit to 4.7 per cent despite natural disasters like the Orissa cyclone and Gujarat earthquake,” BJP spokesman V.K. Malhotra told reporters here.

Describing it as “farmers budget”, he said there were numerous benefits for them with the Kisan Credit Card being linked to insurance.

In the area of labour, the compensation for voluntary retirement scheme (VRS) had been increased to 45 days per completed year from the existing 15, Mr Malhotra said.

He said the income tax net had been increased so as to bring within its net more people.

BJP party President Bangaru Laxman in a statement said the Budget would be a ‘springboard’ to enable the nation to emerge an important economic power in the next few years.

Considering the expectations of a ‘harsh Budget’ in the light of Gujarat earthquake, the international scenario and the problems faced by many developing countries, the Finance Minister had displayed ‘quiet confidence’, through laying strong foundation for a healthy economy.

Mr Laxman said the party was happy that the NDA government had addressed effectively the current problems faced by the farmers “due to commitment to the World Trade Organisation by the previous Congress government.” Steps had been taken to protect the agriculture by raising import duties substantially on imports. UNI, PTI