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| India cancels small farmers' debt | India cancels small farmers' debt |
| (about 1 hour later) | |
| The Indian government is to cancel the entire debt of the country's small farmers in a giant scheme that will cost 600bn rupees ($15bn; £7.6bn). | The Indian government is to cancel the entire debt of the country's small farmers in a giant scheme that will cost 600bn rupees ($15bn; £7.6bn). |
| The move is a centrepiece of India's latest budget, with the government also increasing education spending by 20% and health funding by 15%. | The move is a centrepiece of India's latest budget, with the government also increasing education spending by 20% and health funding by 15%. |
| Widely seen as a populist budget ahead of elections due by May 2009, Delhi has also pledged to control food prices. | Widely seen as a populist budget ahead of elections due by May 2009, Delhi has also pledged to control food prices. |
| The government also said it would keep up work to control wider inflation. | The government also said it would keep up work to control wider inflation. |
| The farm loan cancellations will be offered to all farmers with less than two hectares of land. | |
| Reaction from farmers groups has so far been mixed, with some complaining that the land-size criteria is too strict, and that those with larger fields will unfairly miss out. | |
| Mohan Manidwar of Farmers Agitation Group, which highlights the large number of impoverished farmers committing suicide, said most farmers in the Vidarbha region of central Indian would miss out. | |
| 'Price pressure' | 'Price pressure' |
| Unveiling the latest budget, Finance Minister Palaniappan Chidambaram said India's annual economic growth was now running at 8.7%. | Unveiling the latest budget, Finance Minister Palaniappan Chidambaram said India's annual economic growth was now running at 8.7%. |
| Analysts say Mr Chidambaram has one eye on forthcoming elections | Analysts say Mr Chidambaram has one eye on forthcoming elections |
| This figure, which covers the current financial year to 31 March 2008, is a slight slowdown from 9.6% in 2006/07 - India's fastest economic expansion in 18 years. | This figure, which covers the current financial year to 31 March 2008, is a slight slowdown from 9.6% in 2006/07 - India's fastest economic expansion in 18 years. |
| Over the past year India has increased interest rates and reduced the supply of the rupee to cool this breakneck growth. | Over the past year India has increased interest rates and reduced the supply of the rupee to cool this breakneck growth. |
| "There is pressure on domestic prices, especially the prices of food articles," Mr Chidambaram told the Indian parliament. | "There is pressure on domestic prices, especially the prices of food articles," Mr Chidambaram told the Indian parliament. |
| "Management of the supply side of food articles will be the most crucial task in the ensuing year." | "Management of the supply side of food articles will be the most crucial task in the ensuing year." |
| "Keeping inflation under check is one of the cornerstones of our policy." | "Keeping inflation under check is one of the cornerstones of our policy." |
| Mr Chidambaram added that the government was determined to see India become self-sufficient in food grains. | Mr Chidambaram added that the government was determined to see India become self-sufficient in food grains. |
| Mr Chidambaram also announced higher spending on rural infrastructure and highways. | Mr Chidambaram also announced higher spending on rural infrastructure and highways. |