New Delhi: Faced with criticism on various Budgetary proposals including FDI (Foreign Direct Investment) cap hike in insurance, telecom and civil aviation, and education cess, Finance Minister P Chidambaram today (July 12,2004) clarified Government's stand on these issues.

Addressing a general body meeting of the United Progressive Alliance (UPA), 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 percent education cess, the transaction tax and short term Capital gain tax during the meeting.

Bagrodia wanted enough measures for encouraging entrepreneurs. He also wanted Government to take steps to strengthen the infrastructure.

The 90-minute meeting was attended among others by RJD (Rashtriya Janata Dal) president and Railway Minister Laloo Prasad, NCP (Nationalist Congress Party) president and Agriculture Minister Sharad Pawar and JMM (Jharkand Mukti Morcha) chief and Minister for Coal and Mines, Shibu Soren.

Defence Minister Pranab Mukherjee, HRD (Human Resources Development) Minister Arjun Singh, Petroleum Minister Mani Shanker Aiyar and Social Justice and Empowerment Minister Meira Kumar also attended the first UPA general body meeting.