Mumbai: The Union budget would provide stimulus to agriculture and encourage rural development, Maharashtra Chief Minister Prithviraj Chavan said here on Friday.

"Raising the provision for agriculture sector by Rs one lakh crore would help improve the condition of farm sector in the country. Use of Kisan Card at ATM centre would make several facilities available to farmers," he said reacting to the Budget.

The provision of Rs 300 crore for irrigation for Vidarbha and Rs 70 crore for powerloom cluster at Ichalkaranji in Maharashtra is a welcome step, Chavan said.

He also lauded the announcement of providing Rs 10,000 crore to Nabard for making finance available to rural banks.