The Hindu Business Line : ‘Focus of Union Budget more on waiver, not on expenditure’

Mr G. Chidambaram, Member of the Planning Commission, Tamil Nadu, addressing a BL Club meeting at Kalasalingam University,Krishnankoil in Virudhunagar.

Our Correspondent

Madurai, March 21

Dr G. Chidambaram, Member, State Planning Commission, Tamil Nadu has said that discussion on the Union budget, including the media, is focussed more on farm loan waiver than on expenditure side of the budget that has positive aspects.

Participating in a panel discussion on ‘Union Budget 2008’ at a Business Line Club meeting of the Department of Management Studies, at Kalasalingam University, Krishnankoil, near here, he said that allocation towards education has been stepped up by 20 per cent.

The allocation towards health has also been raised, as reflected in the enhancement of funds under National Rural Health Mission.

The budget should be viewed as being in the right direction, he observed.

Increased expenditure in these two areas are necessary for the development of the country. The enrolment and retention rate in education is nationally low. The increased allocation would help to take care of the poorer sections in all communities and ensures inclusive growth.

On farmers’ loan waiver, he said while the measure was welcome, it appeared hasty, as the announcement could have been made with proper home work.

The norm required in keeping the fiscal deficit as a percentage to GDP (gross domestic product) has been adhered to and on the whole, ‘I feel the budget is good’, he said.

Presenting the farmer’s view, Mr S. Renganathan, Director, Centre for Cauvery Delta Development Studies, Tanjore, welcomed the announcement on farmers’ loan waiver.

After a long time, the budget has focussed on farmers’ interest. It has remained in the background in spite of the appreciative growth rate of the economy at 8.5-9 per cent.

On the waiver of loans, he said, the initiative, however, needed clarity as conditions differed among the States as to the beneficiaries.

Mr R. Sundaram, Director, Centre for Bharathia Management Development, Madurai, said the economy has been enjoying buoyancy with the proportion of revenue from direct tax on the rise.

The budget seemed as an attempt to leave more money with people to keep up the demand scenario for goods and services on the rise.

Mr R. Srinivasan, State Secretary, Swadeshi Jagran Manch, Madurai, welcomed the budget for providing more allocation towards AIDS Control and skills development.

He suggested that certification of Indian craftsmen would help the country gain a higher rating in the Human Development Index.

Dr Jeyakumaran, Head, Department of Management Studies was present.

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