PM-FM Budget meeting to focus on farm, rural sectors
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19/02/2008
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Financial Express
Prime Minister Manmohan Singh and finance minister P Chidambaram are expected to hold a meeting just before the Union Budget to discuss key issues. Budget 2008-08 is set to spell out various schemes and plans to boost agriculture and rural sectors. In a recent meeting with the finance minister, the Congress party members pointed out that the government should increase focus on the rural development as well as schemes for the common man. Another issue that is expected to figure prominently would be agriculture sector and its deceleration. The downfall of the agriculture sector has become a cause for concern for the ruling party. A mega financial package is on the anvil to take care of the non-performing assets in farm sector in the forthcoming Budget, which is the UPA government's last full Budget before the general electionson2009. Another factor that keeping the government worried is prices. With oil price being revised upwards on Thursday, inflation is expected to in chup in the coming months. Singh and the Congress party have time and again reiterated the need for steps to keep prices under check. Sources said budget would spell out plans to push up economic growth. This comes in the backdrop of the government's statistics office earlier this month estimated economic growth at 8.7% in the fiscal year ending March 31, the slowest paceinthreeyears.Theeconomyexpanded9.6%inthelastfiscal. The slowing down has been attributed to the slow credit inflow hurting consumer spending. In addition, growth in the manufacturing sector nose-dived over the last several months. In addition, exports which accounts for 23% of the country's economy have also slowed down on account the rising value of the Indian currency. Sources said steps could be expected to boost the manufacturing sector growth, which as been dwindling over the last few months. The government has targeted average growth of 9 percent in the first four years of the 2007-2012 five year plan period, ending with10percent growth in the final year.