Indian Finance Minister, Chidambaram subamaniam, announced major investments to boost economic growth in the country's first budget to be presented during the state of emergency.
SV Bags of budge papers being unloaded and police guarding (4 shots)
SV Finance minister posing for photographers (2 shots)
SV PAN Mrs. Gandhi walking along corridor towards Parliament Hall
SCU PAN Finance Minister walks along corridor towards Parliament Hall
SV EXT Newsmen waiting for budget papers (2 shots)
SCU Budget papers being distributed to newsmen (2 shots)
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Background: Indian Finance Minister, Chidambaram subamaniam, announced major investments to boost economic growth in the country's first budget to be presented during the state of emergency.
Addressing the Lok Sabha (Lower House) in New Delhi on Monday (15 March) the Minister said the increased outlay of 31.6 per cent to 78,520 million rupees (9,000 million US dollars) for the third year of the current five-year plan, marked the biggest jump in development spending ever in India.
He said one major item of expenditure would be 6,930 rupees (800 million dollars) on irrigation and flood control projects.
Mr. Subramaniam also reduced the maximum rate of taxation from 75 per cent to 66 per cent, but said the Government was determined to hold down price levels and continue compulsory savings for another year.
He said defence expenditure would be increased marginally to 25,440 million rupees (2,900 million dollars).
He told Parliament that the current year would end with a higher deficit than anticipated. This was due to "certain unavoidable increases in expenditure", partly to take advantage of increased food grain production.
Mr. Suramaniam said the Government's major achievement was to cut inflation to a minus rate of 7.3 per cent compared to this time last year.