Budget to focus on agriculture, jobs: Chidambaram

Finance Minister P Chidambaram said agriculture and employment will occupy the centrestage among priority areas.

Finance Minister P Chidambaram on Saturday outlined the broad contours of the Budget for 2005-06, saying that agriculture and employment will occupy the centrestage among the six-seven priority areas.

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"There are commonalities in the views of Congress leaders. All agreed that there are six-seven programmes, which would result in highest benefit to the people," he said after a three-hour long brain-storming session with AICC office bearers on the Budget.

The meeting follows a directive from UPA chairperson Sonia Gandhi and Prime Minister Manmohan Singh to the Finance Minister to get inputs from Congress leaders in the run up to the Budget to be presented on February 28.

"This is an important exercise. Listening to Congress leaders gives a flavour of what people think and want. It sets the jurisdiction of the Budget. I have assured Congress leaders that when Budget is presented, their views are going to be reflected in it," Chidambaram said.

He noted that agriculture, employment, health and education schemes were the focus of the UPA's Common Minimum Programme, and observed that there had been concerns over inadequate credit for the poor.

He promised quick roll out of the food-for-work scheme and the employment guarantee scheme. Universal health and education schemes, mid-day meal scheme and programmes for the tribal, women and backward sections would be given greater attention in the Budget.

Congress MP Ambika Soni said, "Budget should reflect CMP promises. Aam admi should feel that Budget has implemented policies promised in the CMP." She said party leaders highlighted areas of concerns on unemployment and inflation.

Seeking to allay the fears of Congress leaders, Chidambaram said inflation, which was mainly caused by external factors like global oil price hike, has been stemmed and economic fundamentals were strong.

Soni highlighted the paradox of poor farmers committing suicide after failing to repay bank loans and the burgeoning non-performing assets in banks caused due to unwillingness of rich industrialists to repay their loans.

NPA recovery should be expedited and the concerns of debt-ridden farmers need to be addressed, she said.

Party leaders also suggested ways of strengthening public distribution scheme, Soni said.

"We gave political and general inputs," Soni said, declining to elaborate whether Congress leaders had suggested changes in tax rates or possibility of imposing a cess for tsunami relief.

However, former Union Minister Balasahed Vikhe Patil said, "We demanded hike in direct tax rates and cut in indirect tax rates, so as to unearth unaccounted money in the economy."

Congress MP Jyotiraditya Scindia said, "We discussed five issues. They are agriculture, employment, rural infrastructure, health and education, which are the key areas of the National Common Minimum Programme of UPA."

He said the Finance Minister focussed on these five areas in his last Budget. "Today, we discussed how to take them forward in the next Budget."