CHENNAI: Constituents of the Democratic Progressive Alliance on Tuesday welcomed the "farmer-friendly and taxless" Union budget.

DMK president Karunanidhi commended the Finance Minister for coming out with a package of welfare measures. He termed "unprecedented," provision of Rs. 1,41,500 crore for farm credit, reduction of farm interest rate to 7 per cent and the move to credit an amount equal to two percentage points of the farmers' interest liability.

Mr Karunanidhi hailed the announcements on developing the paddy processing research centre at Thanjavur into a national-level institute and allocation of Rs. 50 crore to Madras University for research.

M. Krishnasswamy, president of the Tamil Nadu Congress Committee, said the budget would benefit all sections of society.

Construction of 5,00,000 classrooms, appointment of 1.5 lakh more teachers and reduction of farm interest rate had been made with the interests of farmers and students in mind. He thanked the Minister for making the National Institute of Port Management into the National Maritime Academy and the plan to construct an access-controlled expressway from Chennai to Bangalore.

Marumalarchi Dravida Munnetra Kazhagam general secretary Vaiko welcomed several features of the budget but appealed to Mr. Chidambaram to withdraw the move to levy service tax on ATM operations. The interest rate for farmers should have been reduced further. No relief scheme had been announced for tsunami-hit farmers. He commended the Minister for providing tax relief on life-saving drugs, increasing old age pension and establishing special purpose tea fund.

PMK founder S. Ramadoss appreciated the increase in levy on cigarettes.

The allocation for eight major programmes of the United Progressive Alliance had been increased from Rs. 1.43 lakh crore to Rs. 1.72 lakh crore. The budget would help the country to grow stronger.

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