New Delhi, Feb 29 (ANI): Prime Minister Dr. Manmohan Singh today hailed the Union Budget proposals for 2008-09 as pro-agriculture, pro-investment and growth-oriented, saying that the measures announced by Finance Minister P.Chidambaram would address critical problems of the farm sector and would lead to the overall development of the economy.

He said the prime objective of the Budget is to ensure growth and reasonable price stability.

He described the loan waiver of farmers as generous and an unorthodox move by the Government.

Complimenting the move for development of stock markets and investment opportunities, he said the listing of more PSUs would help market sentiment.

"There are good prospects for PSUs... markets are thirsty for good chips," he said on P.Chidambaram's initiative to list more public sector companies through part divestment to unleash their potential.

Dr.Singh said the Budget has made an attempt at removing regional inequalities by aiding in the development in backward states like Bihar, Orissa and Madhya Pradesh.

He, however, added, while the Central Government has made allocations, it was for the states to implement the schemes on the ground level.

The Prime Minister described the sluggish growth rate in the agricultural sector as a matter of concern, and noted that the government would raise investment in the area to 16 per cent of the GDP.

He said the number of initiatives announced by the Finance Minister for farmers is encouraging and would make them active partners in facilitating accelerated economic growth.

Dr.Singh said except for the Women's Reservation Bill, the Government had made beginnings on all other points listed in the UPA's Common Minimum Programme.

Budget proposals for 2008-09 has also got the thumbs up from the industry and investment bankers, who described it as a "fantastic" job.

Confederation of Indian Industry (CII) President Sunil Mittal described the Budget as being on expected lines, "Although we are disappointed that the corporate tax has not been changed."

"Corporate taxes are at fair levels. An increase of five per cent on short-term capital gains will make people hold for medium term," Kotak Mahidra Bank Managing Director Uday Kotak said.

"This is a mixed budget and the FM has not touched upon the corporate tax, which we were anticipating. The focus is on agriculture and the education sector," said Sajjan Jindal, Vice-Chairman and Managing Director of JSW Steel said.

What was disappointing was the lack of concern for iron ore conservation and the need for taxes to be imposed on chrome ore export.

Union Finance Minister P. Chidambaram should be pleased with the initial reactions to his "populist budget" proposals for fiscal 2008-09, as he has in the run-up to next year's general elections, probably provided solutions or balm for every demand or complaint in each sector.

One cursory look at Friday's budget proposals suggests that while presenting his fifth consecutive budget and seventh overall, Chidambaram has catered to every section of society. He has made it farmer-friendly by waiving off loans worth Rs.60, 000 crore for small farmers (Rs.50, 000 crore worth of loans to small and marginal farmers and a settlement scheme for other farmers that would cost the exchequer another Rs.10, 000 crore).

He has made it defence sector friendly by hiking the defence budget by 10 per cent Rs.96, 000 crore to Rs.1, 05, 600 crore,
 
He has proposed additional allocation for several social sector schemes, including education, health, job guarantee, urban renewal and rural development, and most importantly, raised the threshold of exemption for all income tax assesses from Rs.1, 10, 000 to Rs.1, 50, 000, and provided benefits to senior citizens.

But as far as the opposition is concerned, Chidambaram has hijacked their agenda and can do no right.

Take for example the waiving off of farm loans, the opposition stood up immediately and vociferously protested against the announcement, saying that Chidambaram had failed to acknowledge their role in putting pressure on the Government in the last few weeks on the subject of loans and mounting farmer suicides.

Proceeding in the Lower House of Parliament was stalled for several minutes over the issue before Speaker Somnath Chatterjee could prevail upon both sides to begin announcement and debate anew.

The opposition also said that increased allocations for the social sectors were an agenda that they had initiated when they were in power between 1998 and 2004, and was not something new. They also said that the hiking of the defence budget did not seem warranted.

It is a known fact that no Finance Minister has ever been able to please all and sundry with his budget projections. Almost all who occupy this prestigious Cabinet post spend almost a month of two interacting with various sections of society - be it industry, social sectors and farmers etc. to get their views on what the forthcoming budget should contain or be like.

Based on these views, projections are prepared without compromising on what is required to ensure both growth and development. (ANI)