Lauding the growth metered by the Manufacturing and Service sector in the shadow of consistent economic growth, Finance Minister, P Chidambaram, urged the corporate sector to sacrifice something for the comparatively lagging Agriculture sector. He was referring to the principled emphasis given to agriculture and social sector in Budget 2008-2009.The Finance Minister has proposed loan waivers for farmers, especially small and marginal farmers, for which an amount worth Rs 60,000 crore has been earmarked in the current fiscal's Budget. Chidambaram was addressing business leaders in a post budget interactive session, organised at Vigyan Bhawan in the national capital.
Backing his 'unprecedented' budgetary support for agriculture, Finance Minister said that the production of food grains has become stagnant over the years and growing inter-regional and intra-regional disparities have made some respite for the farmers unavoidable.
"Manufacturing and service sectors are growing like never before, but farming sector is lacking the momentum. Farmers are slipping out of institutional credit system. Though, several efforts have been made by successive governments, but no significant change could be seen. So such comprehensive measure was inevitable and necessary," said the Finance Minister, who presented his Seventh, and Fifth consecutive Annual Budget on February 29.
Highlighting the contribution of agriculture in the Indian economy which has made the country self-sufficient in the food grains production, Chidambaram cautioned against ignoring this sector when he said, "We would be vulnerable to high priced imported grains if the state of farming is left unnoticed for long. So the stress on farmers should be reduced and the time has come to stand-up and say that we are for the farmers. All of us should sacrifice something for farmers."
The Finance Minister also sought for increased participation of corporate sectors in taking up their social responsibility. "We have proposed to provide tax holiday for establishing hotels, schools and hospitals in the hinterland. The Prime Minister announced that the government would be out of the skill development mission. You should take over ITIs (Industrial Training Institutes) for preparing better ground for skill supply in the future," said Chidambaram, while pulling the industry leaders for their lenient approach displayed towards the proposal.
Hitherto, only 244 ITIs have been taken over by corporates out of the existing 1396. This year's Budget had proposed reduction in CENVAT, excise and custom duty apart from leaving more money in the wallets of consumer in the form of income tax rebates, which would certainly fetch increased demand for goods and services and consequently the manufacturing and service sector would reap the dividends.
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