Former Finance Minister Manmohan Singh has warned that the 'status quo please-all' Budget would not boost economic growth beyond 5-5.5 per cent as it has failed to address the unsustainable fiscal deficit pegged at 5.6 per cent for 2003-04.

"The fiscal deficit may look harmless because of comfortable balance of payment  position and low inflation. But it might lead to stagnation," Singh said projecting that deficit was slated to go up beyond 6 per cent in 2003-04.

Doubting the official projection of 8 per cent GDP growth buoyed by 4 per cent growth in agriculture and 10 per cent in industry, 10 million new jobs and reduction in poverty level to 15 per cent during 2002-007, Singh said, "I don't find the finance minister even attempting to meet the challenge, despite talking about the five priorities."

Singh, also the Leader of Opposition in Rajya Sabha, said the economy was not geared up for high growth, and GDP will continue to grow at about 5.5 per cent. "The Budget will not be able to give it a stimulus," he said at a post-Budget meeting last night.

If there is war in the Gulf, Singh said it would adversely affect remittances and the exchange rate. Criticising the interest rate cut on small savings and PPF, the former finance minister said that although the business community would be happy, it would have marginal impact on the economy and a disastrous effect on savings.

"I do note with regret that because of government is entrapped in a debt burden, Reserve Bank has been coerced to cut rates," the former RBI Governor said.