Budget will have an inflationary impact: Yashwant Sinha

KOLKATA: The Budget for 2011-12 will have an inflationary impact, former finance minister and Bhartiya Janata Party MP and former Finance Minister Yashwant Sinha today said.

"Pranabda is banking on drastic reduction in inflation. However with coal, cement and steel prices shooting up, it will be very difficult for it to come down", Sinha said at an interactive session organised by Bharat Chamber of Commerce here.

He said the finance minister had completely ignored to announce steps needed to control inflation. "Inflation is the greatest threat to meet the growth targets for 2011-12", he said.

The next threat was that of agriculture. He said agriculture continued to remain vulnerable to the vagaries of nature and nothing could be done except to pray for a good monsoon.

Sinha also said the issue of unemployment was also neglected in the Budget.

"I have great sympathy for him and hope he becomes the Prime Minister of the country," Sinha said.

He said expenditure statements had been grossly understated in the budget.