Business Line

Hyderabad, Jan 23: Sounding upbeat on the economic growth rates achieved and the boom in investments, the Union Finance Minister, P. Chidambaram, categorically stated that social concerns and fiscal prudence and responsibility would guide the coming Budget. 

Without elaborating on the third Budget to be presented by the United Progressive Alliance (UPA) Government in five weeks, the Finance Minister said ways would be devised to raise resources to fund the range of programmes taken up to aid the underprivileged, farmers and infrastructure development.

Taxing the `super rich': While not being drawn into the scope of changes in the personal income-tax regime, Chidambaram said a meeting with the Left parties was slated for February 2 to discuss the issue of taxing the `super rich' class.

He gave enough hints that the Rs 2 lakh benefit provided through direct exemption and savings could well be the optimum for the salaried class, adding that they fully deserve the incentives.

Chidambaram, who was briefing newspersons about the `economic resolutions' of the Congress Plenary, also found the full support of the party to go after tax evaders, take steps to eliminate tax loopholes and recover tax arrears with a single-minded sense of purpose.

`Broad smile on my face': Presenting a smiling face to the large media gathered, Chidambaram said, "I have a fairly broad smile on my face thanks to the healthy economic growth. All indications are that we will end the current fiscal on a pleasantly above 7 per cent growth rate. Inflation is now at a low of 4.2 per cent and we will reign it further."

On disinvestment, Chidambaram said, "We have not put disinvestment on the back-burner. Similarly, we are not inclined to dismantle the PSUs. There would be no disinvestment of Navaratnas also."

However, in the case of non-Navaratnas, the Government is following the course of divesting a small percentage of equity, the money returns of which would be put in the National Investment Fund. On the food subsidy to below poverty level (BPL) families, Chidambaram said the Government decision has been put on hold due to the differing views expressed. The Government had not increased the price of rice and wheat for the BPL families, but only adjusted the quantity, that too marginally, he clarified.