Faced with criticism on various budgetary proposals including the foreign direct investment cap hike in insurance, telecom and civil aviation, and education cess, Finance Minister P Chidambaram on Monday clarified the government's stand on these issues.
Addressing a general body meeting of the United Progressive Alliance, the finance minister explained the government's thrust on agriculture and rural development to accelerate economic growth.
Chidambaram's clarification came following queries by UPA members including Karan Singh, Jairam Ramesh, Santosh Bagrodia, Saifuddin Soz, Bhupinder Singh Huda and others on various issues.
The members also raised the issue of two per cent education cess, the transaction tax and short-term capital gains tax during the meeting.
Bagrodia wanted enough measures for encouraging entrepreneurs. He also wanted the government to take steps to strengthen the infrastructure.
The 90-minute meeting was attended among others by RJD president and Railway Minister Lalu Prasad, NCP President and Agriculture Minister Sharad Ðawar and JMM chief and Minister for Coal and Mines Shibu Soren.
Defence Minister Pranab Mukherjee, HRD Minister Arjun Singh, Petroleum Minister Mani Shanker Aiyar and Social Justice and Empowerment Minister Meira Kumar also attended the first UPA general body meeting.
