PM concerned about inflation, investments

Prime Minister Manmohan Singh has actively involved himself in the Budget-making exercise this year, especially in areas dealing with inflation management and investment in manufacturing and agriculture.

However, government sources hastened to add that this was no reflection on Finance Minister P Chidambaram's handling of the economy. "He (the PM) just wants the best possible Budget," the sources said.

Singh will meet his Economic Advisory Council (EAC) on Saturday, where rising prices and inflation management will be discussed. The PM will also meet the editors of economic newspapers.

On January 16, he had warned that the increase in inflation could not be taken lightly and suggested that "mastery over inflation" was required.

"Singh has already met Chidambaram at least five or six times over the Budget," said a senior official in the government.

"The PM is taking stock of the economy and wants to understand public perception on the economy on the eve of the Budget session," the official added.