Union Budget unrealistic: Isaac

Kerala Finance Minister T M Thomas Isaac today described the Union Budget as 'unrealistic' as the projected growth rate of 7.5 percent was 'not going' to be achieved.

Reacting to the budget at a press conference here, he said even international agencies like World Bank, IMF and ADB had only projected a maximum growth rate of six percent for the country.

He said the budget did not contain any realistic package for overcoming the recession. The stimulus schemes were meant to be carried out through centrally conceived projects, which would not be helpful to states,he said.

The policy directive as reflected in the Budget was aimed at extending the liberalisation process to new areas,he said.

He, however, said introduction of service tax on freight movement would be beneficial to states.

Meanwhile, Opposition Leader in the Kerala Assembly, Oommen Chandy said the budget proposals to develop basic infrastructure would help overcome the economic meltdown.

In a statement here, Chandy said the budget had kept all the promises made in the UPA manifesto. He also welcomed the decision to retain insurance and banking in the public sector.