The finance minister said the process to divest stake in state-run companies had already begun. 'My ministry has initiated the discussions for identifying the undertakings,' he said, adding: 'Details will be announced in due course.'

The budget had hoped to raise Rs.1,120 crore (Rs.11.2 billion/$224 million) this fiscal by divesting in units like RITES, Cochin Ship Yard, Manganese Ore, Telecommunications Consultants India, Rashtriya Ispat and Satluj Jal Vidyut Nigam.

During the reply, Mukherjee also said high borrowings of the government and the large fiscal deficit, pegged at 6.8 percent of gross domestic product (GDP), were inevitable given the need to push growth and allocate more funds for welfare programmes.

'I had to take this risk. But I do believe that it is not possible to sustain this level of borrowings. We have to go back to high economic growth,' he said, referring to his fourth career budget and the first for the new UPA government.

He said he was aware of the criticisms by some members during the course of the debate, particularly on high government borrowings, pegged at Rs.391,000 crore (Rs.3,910 billion/$78.2 billion), and the resultant fiscal deficit.

'I have taken a tremendous step as finance minister with the hope that there will be a turnaround,' Mukherjee said referring to India's economic growth slipping to 6.7 percent last fiscal from over 9 percent in the preceding three years.

At the same time, he added, some members were also complaining that some of the flagship programmes of the government to tackle poverty across the country were inadequate.

'Should there be no enhancements in outlays of those projects?' Mukherjee queried, while adding this was necessary to reach the benefits of growth and development to the teeming millions of the society.

The finance minister also thanked fellow lawmakers, especially young parliamentarians, for the participating in large numbers in the debates on both the rail and the national budgets with keen interest.

'This clearly demonstrates the Indian democracy is entering a new phase.'