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Union Budget 2008-09  »   Story
Manmohan hints at debt relief for farmers
Press Trust of India
New Delhi, February 25, 2008
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Prime Minister Manmohan Singh on Monday hinted at the possibility of some debt relief for farmers.

"I understand the problems of the people of Punjab, particularly farmers. Last year also, we had waived off loans... With just a few days to go for the Budget, it will not be appropriate for me to disclose these things.

"But I want to assure you that the demands raised in your memorandum will be considered by our government under the leadership of (UPA Chairperson) Sonia Gandhi," he told the delegation led by former Punjab deputy chief minister Rajinder Kaur Bhattal.

The delegates submitted a memorandum to Gandhi and Singh asking for, among other things, a debt relief package for small and marginal farmers with a land holding of up to five acres.

In her remarks, Sonia Gandhi said, "since 2004 when our government came to power, it has taken many steps for the benefit of farmers. MSP for wheat and rice has been increased. We know farmers are facing difficult times. They are facing a lot of difficulties. I hope, I know Manmohan Singh's government will give due attention to your demands." Kaur also thanked the Prime Minister for announcing release of 10 lakh tonne subsidized wheat under the Public Distribution System for Punjab.

Earlier, the Prime Minister said that the ruling Akali Dal in Punjab was trying to launch an agitation to portray that the UPA government at the Centre was doing nothing to protect the interests of Punjab.

"This is absolutely wrong... As you have come in large numbers, this shows that Akali Dal's allegations are wrong. The reality is in contrast to their allegations. Punjab's interests are in the safe hands of UPA and Sonia Gandhi," Singh said.

Sector Analysis
AUTO
Negotiating a rough patch
Demand growth is expected to be buoyant driven by new vehicle launches, likely softening of interest rates and continued growth on the export front.
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Railway Budget
Lalu presents people's budget, slashes fares
The minister announced launch of several new trains and reduction in fares across all classes amid chaos by Opposition in Parliament.
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Features
A budget for Bharat
Buoyant tax revenues a lower fiscal deficit and an economy that's in top gear permit the FM to pump big money into agriculture and the social sector. Those efforts might help at the hustings, too.
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Economic Survey
'Expand telecom infrastructure, R&D'
"With rapid growth of telecom network, there is a need to further expand the infrastructure and research and development," the survey said.
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Surfers' comments
This is a very good budget, especially for agriculture and education. P Chidambaram is the best.
- By Saravanan P (plsharavanan@rediffmail.com)
If you can waive Rs 50,000 crore for farmers what about the tax on housing loan interest? That should also have been reduced.
- Chandra Shekar V (rilshekar@yahoo.co.in)
Please tax the street hawkers and give relief to the salaried persons.
- Rajaram (rajaramghurup@rediffmail.com)
This is the worst budget the finance minister has ever presented. The backbone of the country's economy is the transport but he completely missed it out.
- Jayakaanthan A (jayakaanthan@gmail.com)
The budget is sure to augment growth and will also lessen the volatility of the stock markets.
- Sidharth Paul (sidharth.paul@gmail.com)
Overall, the budget is satisfactory but the health sector should have been given greater importance.
- Ankit Chaudhary (chaudharyankit1987@gmail.com)
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Business Today's Budget edition
Editorial: Predictably populist budget
Special: Something for everyone...
Column: All for the common man
Exclusive interview with the FM
Maintaining the growth story
The Finance Minister defends Budget 2008 and the Rs 60,000 crore loan waiver doled out to farmers in an exclusive interview to Business Today's Sanjoy Narayan and R Sridharan.
VOX CEOs
"Total reduction of excise duties by 2% will give a welcome boost to the manufacturing sector. Also, the exemption of specified parts of set-top boxes from customs duties is commendable".
- Rakesh Bharti Mittal, Vice Chairman, Bharti Enterprises
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