Zeenews Bureau

New Delhi, July 06: Prime Minister Manmohan Singh on Monday lauded Finance Minister Pranab Mukherjee for presenting a balanced Budget, saying that the measures announced are meant to reduce the gap between Bharat and India.

Lauding Pranab, the PM said, “The Finance Minister has done an admirable job. It’s a balanced Budget, especially in such difficult fiscal times.”

PM pushes for quick return to 8-9% growth

Notwithstanding the impact of global meltdown, Prime Minister Manmohan Singh struck an optimistic note today saying the Union Budget 2009-10 seeks to recapture the rhythm of accelerated growth process and move towards eight to nine percent growth in the medium term.

Singh said that the Budget also aims to honour in large measure the commitments made by the UPA government to work steadfast for the well being of the aam aadmi(common man).

"Overall the strategy of the budget is to ensure that our economy recaptures the rhythm of the accelerated growth process," he said minutes after Finance Minister Pranab Mukherjee presented the budget in the Lok Sabha.

The Finance Minister has done a "commendable" job in reconciling the short term requirements of the economy, to provide a stimulus to the growth process and, at the same time, ensuring that the growth rate was regained despite the recessionary tendencies in the world economy.

To a question on country achieving a growth rate of seven percent, Singh said "we are working towards that goal and it is achievable.

"Seven per cent growth rate this year is an achievable target but it is not good enough for the medium term and we must move to a growth path of eight to nine percent", Singh said.

"Right now, a major concern is to minimise the impact of international recession on economy and for that it is necessary to provide stimulus to our economy. That process began in December last year. This budget carries that process further", Singh said.

Mukherjee has chosen a strategy to concentrate on increasing investments in the infrastructure sector, both in the public sector and in the private sector, through the public private partnership (PPP) route, he said.

Focus on rural development

Emphasising the UPA government’s focus on the Aam Admi, the PM said that Budget carries forward the process of inclusive growth and that it is primarily a rural development oriented Budget.

Terming the social sector as an area of focus, the PM said that the government intends to reduce the gap that exists between the two India’s - the developed city centric India and rural India.

Referring to the increased allocation for various rural programmes such as National Rural Employment Guarantee Programme for which Rs.39,100 crore has been earmarked and Bharat Nirman for which allocation has been hiked by 45 percent, Singh said "..These are all programmes which will primarily benefit our rural areas and reduce the gap between Bharat and India."

National Food Security programme

Clarifying on the absence of allocation for the proposed National Food Security programme, Singh said it was too early to come out with a specific fund as the whole act was yet to be put in place.

"The Finance Minister mentioned that he will soon come out with a draft, put on the website, and we will invite large scale discussions with the interested groups and civil society" before translating it into legislation, he said.

On food subsidy for below poverty line (BPL) families, Singh said Government`s commitment in this regard "has to be honoured and we will honour it in a credible way."

He said the Budget has also taken into account the government`s commitment for a "slum-free" India.

Fiscal defecit concerns

On the concerns regarding the FRBM (Fiscal Responsibility and Budget Management) targets, the PM said, “This is a matter which the govt has referred to the Finance Commission. Unless its recommendations are not taken into account, anything said about it will counter-productive.”

"....I think once the Finance Commission`s report is available, once the devolution pattern they recommend is known for the next five years, it is only then we can make credible guesses and work out strategies, how to handle the problem of fiscal deficit," Singh said adding the government recognises it as an "important problem".

Disinvestment

Referring to disinvestment, the Prime Minister said he has not done any detailed calculation on the issue.

"The Finance Minister has committed to increased disinvestment while maintaining public sector character of PSUs," he said adding that disinvestment process depends on various factors including world economic situation, state of the stock and commodity markets and that was the reason no figure was given in the Budget speech.

Administrative reforms

Regarding the important of administrative reforms, the PM made it clear that it is a priority and that an Empowered Group of Ministers was looking into the recommendations of a committee that has suggested such reforms.

The PM, while accepting that there is a shortage of policemen in the country, reiterated government`s commitment to do "all that is necessary to modernise the security and intelligence services".

“Law and order is a prerequisite for sustainable development,” he added.