Finance minister expected to unveil populist budget

India''s farmers hope to benefit from the budget today in the Union budget, which is expected to introduce measures aimed at boosting farming and infrastructure.

The government is also expected to target the rising inflation, which it said in its Economic Survey presented yesterday as being caused by supply bottlenecks.

Analysts have expressed concern that the economy could overheat as it grows at over than 9 per cent and shows signs of picking up further steam. The survey said India''s economy had "decidedly taken off and moved from a phase of moderate growth to a new phase of high growth".

The survey has raised concerns over the agricultural sector, which is forecast to grow by 2.7 per cent in the current financial year, down from 6 per cent in the previous year. earlier.

The prime minister and finance minister have said weaker growth in agriculture would be a constraint to inclusive growth for all sections. Accordingly, the farm sector, say commentators, would be weigh heavily on the government as it faces assembly elections in Uttar Pradesh in April, especially after its defeat in Punjab and Uttarakhand yesterday.

The government is also under pressure to increase spending on social programmes to offset some of the effects of rising food and raw materials costs.