| PM on waiver: Unorthodox, 'generous' response |
| BS Reporter / New Delhi February 29, 2008 |
| Prime Minister Manmohan Singh today termed the Rs 50,000 crore agriculture loan waiver as a "generous" gesture from his government towards distressed farmers. Commenting on the union budget that had offered the biggest-ever loan waiver to farmers in the country, Singh said: "I sincerely believe the government has been generous in its response. It is an unorthodox response but considering the amount of depression that prevails in the agriculture sector, this is a response mechanism that is justified." "There was a general feeling that agriculture had not done too well and the farmers were under a lot of stress," he added. Analysing the measures announced by Chidambaram in the budget, the Prime Minister said the government would list some more public sector undertakings, and noted that "markets are thirsty for good new chips. We have to explore all processes of enhancing our resources including listing enterprises in the markets," Singh said. Listing inflation and international recession as causes for concern, he said: "We will have to tackle both worries. There is a worry that international recession will impact the growth process. Rise in commodity prices, petroleum prices will lead to more inflation. So, we have to strike a balance. The Finance Minister has done a very good job. He has kept the fiscal deficit, the revenue deficit under control. Simultaneously, he has ensured if some adverse wind comes from outside the country, he has used the excise duty reductions," Singh said. Singh said the budget made an attempt at removing regional inequalities by aiding development in backward states like Bihar, Orissa and Madhya Pradesh. The Prime Minister said the sluggish growth rate in the agricultural sector was a matter of concern and noted that the government would raise investment in the area to 16% of GDP. He said a number of initiatives have been announced by the Finance Minister to encourage farmers and make them active partners in the accelerated economic growth. Singh said except for implementing the women |
