India Interim Budget '09 : Highlights

By Abhishek on 1:29 PM

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New Delhi : Pranab Mukherjee, the stand-in Prime Minister and Finance Minister of India announced the interim Budget 2009 in Parliament.  Mukherjee pointing out that the United Progressive Alliance (UPA) had succeeded in implementing the promises outlined in the Common Minimum Programme (CMP).





“Achieving 7% growth rate on a sustained basis was one of the targets of the UPA,” Mukherjee said. “And the country clocked above 9% growth rate for three consecutive years — FY06, FY and FY08.”





Here are highlights of the Interim Budget 2009


*  All efforts made to deliver on commitments





*  Sustained growth over 9% in last 4 years


*  Per capita income grew 7.4% during UPA regime





*  Gross domestic savings rate at 37.7%, gross cap formation at 14.2%





*  Tax-GDP ratio at 12.5% in 2007-08, close to fiscal correction target





*  Domestic investment rate over 39% in FY08





*  Growth drivers - agriculture, services, manufacturing, construction


*  Outlook for food grain production encouraging for coming year





*  Exports grew at annual average rate of 26.4% during last 4 years





*  Challenges related to capital inflows and global inflation





*  We have weathered the crisis, but no room for complacency





*  Moderate pass through of prices affected domestic inflation in '08





*  Dec industrial growth fell 2% (YoY)





*  Forecasts indicate that world economy may fare worse in 2009





*  India has been affected along with other slowing EM economies





*  GDP growth of 7.1% makes India second fastest growing economy





*  Fiscal packages announced provide tax relief to boost demand, spending





*  Have taken steps to encourage private investments in infra via PPP





*  Approved 37 infra projects worth Rs 70,000 cr between Aug 08-Jan 09





*  54 central infra proj of Rs 67700cr sent for final nod to PPP panel





*  Initiative for providing refinance to banks for long-term credit to proj





*  IIFCL can to raise Rs 10000 cr, nod for additional Rs 30000 cr





*  IIFCL to refinance 60% of the projects





*  Extension of export credit for labour intensive exports





*  FDI inflow of USD 23.3 billion during April-November 2008





*  Have relaxed fiscal responsibility & budget mgmt targets





*  May need to consider additional fiscal measures in next regular budget





*  Need to revert to fiscal consolidation at the earliest





*  Economic regulatory and oversight systems have to be more efficient





*  Attention given to agriculture sector, plan allocation up 300% in 4 yrs





*  Agri - govt implementing revival pkg in 25 states worth Rs 13500 cr





*  Agri - govt will continue to provide interest subvention for FY10





*  Farm debt waiver of Rs 65,300 cr covering 36 million homes





*  Govt to provide interest subsidy to farmers in FY10





*  Outlay on higher education up 900% in 11th 5-year plan





*  Annual ad-hoc grants have been increased by 50% (YoY)





*  Tax rates must fall during times of crisis





*  FY09 revised estimates of spending at Rs 9 lakh cr vs Rs 7.5 lakh cr





*  FY09 plan expenditure revised to Rs 2.8 lakh cr from Rs 2.4 lakh cr





*  Govt revises FY09 fertiliser subsidy to Rs 44863 cr





*  FY09 food subsidy revised to Rs 10960 cr





*  FY09 fiscal deficit seen at 6% of GDP vs estimate of 2.5%





*  FY09 revenue deficit at 4.4% of GDP vs est of 1%





*  FY10 spending seen at Rs 9.53 lakh cr





*  FY10 budgetary support seen at Rs 2.85 lakh cr





*  Rural jobs scheme to get Rs 30100 cr in FY10





*  JNNURM spending seen at Rs 11842 cr for FY10





*  Allocation of Rs 40900 cr for Bharat Nirman Scheme





*  Interest subvention for some export loans extended





*  Budget plan spending may have to be upped substantially post polls





*  Additional plan expenditure has to increase by 0.5-1% post polls





*  FY10 non-plan spend est at Rs 6.68 lk cr





*  Major subsidy spending for FY10 seen at Rs 95,500 cr





*  FY10 budget revenue deficit seen at 4%, fiscal deficit at 5.5%





*  FY10 gross tax revenue seen at Rs 6.71 lk cr





*  Interim Budget 2009: Allocation of Rs 8,000 cr for mid-day meal scheme





*  Interim Budget 2009: Rs 13,100 cr allocated for elementary education





*  Interest subvention for some export loans extended





*  Budget plan spending may have to be upped substantially post polls





*  Additional plan expenditure has to increase by 0.5-1% post polls





*  FY10 non-plan spend est at Rs 6.68 lakh cr





*  Major subsidy spending for FY10 seen at Rs 95,500 cr





*  FY10 budget revenue deficit seen at 4%, fiscal deficit at 5.5%





*  FY10 gross tax revenue seen at Rs 6.71 lakh cr





*  FY10 gross market borrowing seen at Rs 3.2-3.3 lakh cr





*  No tax changes in interim budget


*  Mid day meal scheme to get Rs 8000 crore


*  Revised estimates of spending has gone up from Rs 7.5 lakh crorte to 9.9 lakh crore





*  Revised estimates of tax collection at Rs 6.25 lakh crore





*  109 maiden vessels sanctioned for customs deptt





*  Expenditure for 08-09: Rs 750,884 crore , Planned expenditure: Rs 2, 43,386 crore





*  15 point programme for the welfare of minorities set up





*  Turnover of PSU enterprises has grown by 80% and profits have increased by 72%. Contribution to exchequer has recorded an increase of 86%. Loss making enterprises have come to 55 from 73





*  New scheme for young widows in the age group of 18 to 40 unveiled; will get priority in admission to ITIs and a stipend of Rs 500 per month





*  Govt to continue to provide interest subsidy to farmers in FY 10





*  Outlay on higher education has been increased 900% in the 11th five year plan





*  Tax GDP ratio at 12.5 pc in FY 08





*  FDI inflow of $23.3 bn between April and Nov 08





*  IIFCL can raise Rs 10,000 crore; nod for additional Rs 30,000 crore





*  GDP growth rate of 7.1 pc makes India the second fastest growing country in the world





*  54 infra projects cleared under PPP projects with an investment of Rs 67,700 crore





*  FY 08 capital inflow at 9 pc of GDP





*  Export rate for the first nine months of this fiscal has fallen to 17.1%





*  Global situation not encouraging, says Pranab





*  Exports grew at average annual growth rate of 26.4%





*  Plan allocation to agri increased 300 pc during the UPA regime





*  Gross domestic saving rate at 37.7%





*  Domestic investment rate at 39% in FY 08





*  The GDP went from 7.5% in 04-05 to 9.7% in 06-07 and clocked 9% in 08





* Extraordinary situation merits extraordinary measures




* Need to consider additional fiscal measures in regular budget




* Financial sector reforms need to be acceleratedQueen Stocks:




* In past three years, India grew by average of over 9 percent




* Per capita income expanded by 4.7 percent per annum




* Fiscal deficit was brought down from 4.5 percent to 2.7 percent




* Revenue deficit was cut from 3.6 percent to 1.1 percent




* Exports increased 26.4 percent per annum




* Foreign trade increased from 27.3 percent to 35.5 percent




* Tax to gross domestic product ratio expanded by 9.2 to 12.5 percent




* Agriculture grew by 3.7 percent per annum





* India Infrastructure Finance Company to raise Rs.10,000 crore (Rs.100 billion) by end-March




* India has weathered inflation crisis, but no room for complacency




* Country's agriculture outlook is encouraging




* Focussed attention to agriculture




* Plan allocation for farm sector hiked 300 percent in past five years




* Three-fold increase in short-term agriculture credit to Rs.250,000 crore (Rs.2,500 billion)




* Farm debt worth Rs.65,300 crore (Rs.653 billion) waived




* Government will continue to provide additional subsidy to farmers




* Corpus of Rural Infrastructure Development Fund hiked to Rs.14,000 crore (Rs.140 billion) from Rs.5,500 crore (Rs.55 billion)




* Outlay for higher education hiked 900 percent for 11th Five Year Plan




* All efforts made to deliver on commitments




* Sustained growth over 9% for 3 consequent years




* Per capital income grew 7.4% in last four years




* Per capita income grew 7.4% during UPA regime




* Revenue deficit fell to 1.1% of GDP vs 3.6% under UPA




* Domestic investment rate over 39% in 2007-08




* FY08 fiscal deficit 2.7% vs 4.5% in FY04




* Buoyant GDP helped in fiscal consolidation




* Tax to GDP ratio rose to 12.5% FY08 vs 9.2% in FY04




* FY08 tax to GDP ratio 12.5% vs 9.2% in FY04







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