Monday, March 20 2006 13:54 Hrs (IST) - World Time -

New Delhi: Enthused by tax buoyancy, Finance Minister P Chidambaram today (Mar 20 2006) said the mantra to sustain growth in tax revenues would be moderate taxes and widening of their base to achieve the "unprecedented" 20 per cent growth in revenue for the third year in succession.

"We have addressed the revenue side. Efforts will be made to keep up the momentum to achieve 20 per cent increase in gross tax revenues during the next fiscal," Chidambaram said while moving the Appropriation Bill, 2006 in Rajya Sabha.

The Finance Minister assured members that the government was not deviating from the Fiscal Responsibility and Budget Management Bill (FRBM) to achieve fiscal discipline and was hopeful of bringing down the fiscal deficit to 3.8 per cent of GDP during the next fiscal.

The Minister said the UPA government would give priority to the ambitious Rs 1,74,000 crore Bharat Nirman Programme and eight core sector flagship programmes.

He said the allocation for Bharat Nirman programme has been increased by 40 per cent from Rs 13,907 crore in 2005-06 to Rs 19,415 crore during the next fiscal.

Allocations had been increased: Chidambaram

Chidambaram said allocations for eight flagships comprising rural housing scheme, Rajiv Gandi rural drinking water scheme, mid-day meal scheme, national rural employment guarantee scheme, urban renewal mission and universal education had been increased during 2006-07.

This is proposed to be raised from Rs 39,500 crore during 2005-06 to RS 55,000 crore in the next fiscal, he said.

Chidambaram said the UPA government was committed to bringing in social justice.

Participating in a debate on the Bill, members sought timely availability of inputs including credit for farmers.

Kripal Parmar (BJP) demanded a separate budget for agriculture on the lines of Railways.

Parmar demanded a hike in MSP for wheat from Rs 650 per quintal to Rs 700 per quintal to assure adequate availability of foodgrains.

V. Narayanasamy (Cong) expressed concern over the delay in providing credit to farmers and said this problem should be addressed.