Yashwant Sinha

NEW DELHI: The Opposition parties on Tuesday said they found nothing in the Union budget for farmers and little for aam aadmi, the common man.

The former Finance Minister, Yashwant Sinha, who presented five budgets for the National Democratic Alliance Government, said the NDA regime lowered interest rates for short-term credit to farmers to nine per cent in 2004. Finance Minister P. Chidambaram should have brought it down to six per cent. "We are disappointed." It was reduced to seven per cent.

Farm income scheme

Bharatiya Janata Party president Rajnath Singh expressed a similar view. "The Finance Minister referred to a farm income guarantee scheme last year, but this time he ignored it. He seems to have thrown the idea into the dustbin."

Almost all Opposition parties described the budget as "inflationary," "pro-corporate" and "disappointing to farmers." Mehngai aur badegi (prices will rise), said the former Prime Minister Atal Bihari Vajpayee.

Leader of the Opposition L.K. Advani said the budget "punishes farmers, ignores the middle classes and gladdens the affluent."

Janata Dal (United) leader Sharad Yadav described the budget as an "eyewash," saying there was nothing in it for unemployed youth, farmers or the rural population. "It pretends to do something for farmers but in effect is a budget for well-to-do people. Even the money pledged for rural development schemes is the same as last year."

Samajwadi Party leader Amar Singh found the budget negative. "The growth projection and economic development are artificial. Unless there is prosperity with equality the budget will remain meaningless."

Akali Dal leader Sukhbir Singh Badal said: "There is no proposal to ensure that farmers' produce is bought at the right price. No proposal to compensate farmers for crop loss. The reduction in interest rates is for a limited section, up to a limited amount. The interest for buying farm equipment and for Kisan Card loans is 12 per cent."

Mr. Sinha gave a detailed analysis of the budget. Perhaps what he found most wanting was a "big, bold picture that would have contributed to the projected aim of reaching 10 per cent growth". There was no hint of furthering the reform process, no big-ticket reform, no hint of when legislation on pension reforms would be taken up, nothing on foreign exchange and no further liberalisation.

The budget was "not bold" but "rather timid." The Finance Minister "lost a golden opportunity" to push the country forward. Mr. Sinha even charged him with "fiddling with figures to show a lower fiscal deficit."

Several BJP leaders including Mr. Sinha, Mr. Rajnath Singh and Sushma Swaraj blamed the Minister for not implementing the Rangarajan Committee recommendations. Asked whether the BJP wanted to drastically cut back subsidies on cooking gas, Mr. Sinha shot back: "Yes, I will support that but let the Congress first apologise for criticising me for reducing LPG subsidy."

He did not respond when he was reminded that he was criticised fiercely by his own party, forcing a rollback.

Ms. Swaraj likened the budget to a sweet dish that caused food poisoning the next day.

Infrastructure

The Opposition parties criticised the budget also for doing "precious little" for development of infrastructure. "The allocation is poor," said Mr. Rajnath Singh. The increase in the rate of service tax would add to the burden of the common man, a point on which Janata Dal (United) spokesman Shambhu Srivastavaagreed. "The announcement about agriculture and the ground realities are poles apart. Moreover, widening of the service tax will adversely affect the middle class."

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