FM calls for 7-8% growth, fiscal consolidation

Finance Minister Chidambaram has proposed to wipe out revenue deficit by 2007-08 and Rs 3500 cr subsidy for Antodaya scheme.

Finance Minister Palaniappan Chidambaram has called for sustaining economic growth of seven-eight per cent in Asia's third-largest economy when unveiling the Union Budget for 2004-2005 on Thursday.

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Maintaining the focus on infrastructure and rural sectors, the minister has called for fiscal consolidation.

The Planning Commission will reorient its approach to planned development. In addition to gross budgetary support of Rs 1,31,000 crore provided in the interim budget, the Budget has decided to allocate Rs 3,000 crore.

Government has proposed to wipe out revenue deficit by 2007-08 against 2008-09 target set in the fiscal responsibility and Budget Management Act.

The Government has announced to draw a five-year road map for implementing the Common Minimum Programme to achieve growth and equity. It would be ensured that a child remains in school for at least eight years and does not go hungry.

Provisions will be made so that adequate funds are available for universalisation of primary education for all children and funds will be provided for ensuring availability of drinking water.

The Govt has proposed to launch new food for work programme to step up employment in rural areas and Rs 6,000 crore is provided under various schemes and more funds to be made available if needed.

Subsidy of Rs 3,500 crore will be provided for Antodaya scheme under which foodgrains would be made available for poorest of the poor.

The Govt promises to step up micro finance and encouragement of micro entreprises by self-help groups.