Budget discussion to restrict deficit

Mangalore, March 2

Prof G.V. Joshi, Member of the Karnataka Planning Board, has said that the Budget proposal to restrict the fiscal deficit to 5.5 per cent of GDP during 2010-11 is in the interest of the economy. Speaking at a panel discussion on the Union Budget, organised by the Justice K.S. Hegde Institute of Management at Nitte in Udupi district, he said it is a step towards maintaining fiscal discipline. However, the Budget is adding to the inflationary forces in the economy, he said. Dr N.S. Shetty, Professor Emeritus at the institute, said that the Union Budget cannot be an instrument for executing second-generation economic reforms. The allocations for agriculture and rural development are inadequate, he said. Dr N.K. Thingalaya, Chairman of the Academic Council of the institute, demanded that the regional rural banks be recapitalised adequately to carry out their responsibilities. Dr M.S. Moodithaya, Director of the institute, moderated the discussion. — Our Bureau