Budget to meet challenges of economic growth: PM

New Delhi, Feb 28 (PTI) Indian Prime Minister Manmohan
Singh on Monday said the Budget was aimed at consolidation of
fiscal deficit and moderation of taxes and will meet
challenges of the economic growth of the country.
On the controversial black money issue and lack of any
amnesty scheme in the Budget to bring it back, Singh said
there have been such schemes in past that have yielded little
success.
"I don't think they have succeed in providing
permanent cure for black money. We need to have a systems
reform in a holistic manner to deal with this menace," he
said.
Congratulating Finance Minister Pranab Mukherjee for
doing a "commendable" job, Singh said, "You cannot please all
the people. The Finance Minister has done as good a job as
possible."
He was responding to a query on why there was no
increase in the income tax exemption limit for women.
"This is the Budget which meets all the challenges of
our economy and polity face in the next fiscal year... This
is a Budget that matches the challenges that our economy
faces---sustained growth, inclusive growth, equitable growth
and thus, a determined effort to curb inflationary
expectations," Singh said in an interview to Doordarshan.
Singh also noted that "quite a lot" has been to
encourage foreign direct investment.
BUDGET-PM 2LST
The Prime Minister said that there was a need to
maintain a high growth rate for which adequate provisions have
been made in the areas of infrastructure, social and
agricultural sectors.
"It is certainly necessary to curb inflationary
expectations for which it is very essential that there should
be a path of fiscal consolidation and the Finance Minister has
done a commendable job by planning to reduce fiscal deficit
and revenue deficit," Singh said.
What Mukherjee has done by way of social sector
spending, encouraging investment in agriculture, tax
concessions, "I think this budget matches the challenges
that our economy faces", he said.
Singh said that Mukherjee has "walked on both legs" by
keeping the taxes moderate through a simplified system.
The Prime Minister said the Finance Minister by
raising the exemption of tax limit to the lowest rung of the
ladder benefited all tax payers.
Noting that the budget signals a "reforms-oriented"
government as Mukherjee has promised to come out with
legislations regarding insurance and pension fund, Singh said,
"If these promises are converted into solid acts of
Parliament, this will provide a boost to capital market as
well as the corporate sentiments".
Singh said the Direct Tax Code would become a
reality by April 1 next year. As far as the other promises
were concerned, much depends upon "what we can push through
Parliament", he said.
"There is no lack of effort on part of the
government. Although there are some difficulties with regard
to GST as some states are not on board. I am confident we will
persevere and we will succeed," Singh said.
He said that the moderation on taxes on balance was a
good thing to play with and "if you are moving towards a GST,
I think it is also necessary to have that end product in mind.
The Finance Minister has thought it through."
The peak rates of both Customs and Exercise duties
have been kept at ten per cent, he said, adding, "We cannot be
too certain that everything would work their arithmetic the
way we want to work. We must have ample scope to contribute to
fiscal consolidation".
On social sector spending, he said these programmes
required a boost in terms of delivery services and the problem
has to be faced head-on.
Asked whether it was an "easy" budget, Singh said that
considering the international climate and what was happening
in the international financial system, maintaining a high
growth was "something for which the Finance Minister and the
government deserve congratulations".