Budget: Focus on education, agriculture

MUMBAI, INDIA: Finance Minister P Chidambaram has put a firm focus rural sector, agriculture and education in budget presented today.

He told the House that the main focus of the government has been to keep the inflation within limits but said that more can and should be done to augment inclusive growth.

Education sector received a 20 per cent hike (from Rs. 28, 674 crore to Rs. 34,400 crore) with states Bihar, Rajasthan and Andhra Pradesh becoming the venues for IITs.

The Finance Minister also put forth the institution of national knowledge centers and has allocated Rs. 100 crore for the Information Technology sector and encouraged students to opt for studies in the field of science.

With regards to education, Sarva Shiksha Abhiyan was allotted Rs 13,100 crore, Rs.4554 crores for the secondary education plan and Rs. 8000 crore for the mid day meal plan.

He also maintained that 6000 high quality schools would be built by FY 09 and 16 central universities will also be set up. Not surprisingly, the budget had major allocations for the agriculture sector.

With growth rate targeted at 2.6 per cent in the present year, Rs 75 crore was being allotted to the Agriculture Ministry to offer mobile soil analysis laboratories across 240 districts.

Irrigation projects that fall under AIPB would be given Rs. 20,000 crores (a surge of Rs. 9000 crore from the previous year).

Chidambaram also pointed out that the National Horticulture Mission would be provided Rs 1,100 crore in the current year and the main focus will be on the cultivation of coconuts.

A system of debt waiver was announced and a complete waiver with regards to loans for small farmers who own lands up to 1-2 hectares and minor farmers who own land of 1 hectare.