Bangalore: Senior Congress leader R.V. Deshpande on Thursday said there is nothing positive in the State budget that could encourage investments and give a fillip to economic growth.

Participating in the discussion on the budget in the Legislative Assembly, he said the budget held out promises to the people indicating that the coalition Government is gearing up for elections. It is a populist budget and there is hardly any message to investors.

Mr. Deshpande said the allocations made to certain core sectors such as health, education, irrigation, agriculture and industry are either the same as those of last year or even less.

There are no fresh taxes and adequate resources to meet the expenditure. Rather than holding out promises, the Government should have focussed on development.

The Government could permit the 4000-MW Tadri thermal project in Kumta taluk of Uttara Kannada only after taking all aspects into consideration.

It is the first major power project in the coastal region, and people, particularly fishermen, fear that it might destroy marine life and agriculture.

"I have written to Chief Minister H.D. Kumaraswamy and Union Power Minister Sushil Kumar Shinde that there should be a public hearing before implementing the project," he said.

The former Minister said the Bhagya Lakshmi scheme proposed in the budget under which the Government will deposit Rs. 10,000 in the name of a girl child of a below poverty line family, which could be withdrawn with interest when the beneficiary attains 18 years, will only invite corruption. The girl child will not stand to benefit.

The Finance Minister should have held discussions with life insurance companies on a policy that will ensure guaranteed returns to the beneficiary, Mr. Deshpande said.

On the scheme to extend farm loans at four per cent interest rate, he said the Government's expenditure towards farm-loan interest subsidy has come down.

While it was six per cent last year, it came down to three per cent after the Centre brought down the interest rate on farm loans to seven per cent, he added.

He criticised the proposal related to regularisation of encroached farmland (less than five acres), and the proposal to give Rs. 1,000 towards funeral expenditure in the event of death in a poor family.

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