PM Praises Pranab, Says Budget Will Enable Growth

Prime Minister Manmohan Singh has admired Finance Minister Pranab Mukherjee for the Union budget 2011-12, which he said, is a right mix of enabling growth while adhering to the fiscal deficit consolidation requirements, reported IANS.

“My overall impression is that the FM has done a right mix of estimating the growth requirements as well as the same time building in it a certain amount of moderation on the price front,” Manmohan Singh was quoted as saying in his post-budget interview to a national television channel.

“You must look at the total picture emerging from the budget, the revenue gains for the finance minister is only Rs.20,000 crore in an economy as large as India,” he was quoted as saying.

In response to a query whether the proposed increase in central excise duties would lead to inflationary trends, Singh was quoted as saying: “This resource mobilisation effort should not trigger any inflationary pressures at the same time it gives a much needed signal. The finance minister has not gone back to the pre-stimulus excise duty rate.

“He has exercised moderation while signalling to the economy that you cannot have all things together.”

Allaying fears of India Inc over the proposed direct tax code, the prime minister said that all apprehensions of stake holders would be considered before the roll-out, said report.

“The direct taxes code must be a source to strengthening the growth impulses, dynamic impulses but the direct taxes code which was delayed it has aroused certain apprehensions in the minds of the business community,” he was quoted as saying.
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