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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
Stimulas Plan : The US Senate approved the USD 787 billion dollar financial stability plan to boost the ailing economy, sending the emergency stimulus legislation to President Barack Obama, who is expected to sign it into law. The senate voted 60-38 for the Compromise Bill on the same day the House of Representatives also passed it.
The measure, aimed at combating the worst economic crisis since the Great Depression of the 1930s, marks Obama's first major victory in Congress, less than a month after taking office.
The measure, aimed at combating the worst economic crisis since the Great Depression of the 1930s, marks Obama's first major victory in Congress, less than a month after taking office.
Speaking in his weekly radio and Internet address, Obama said, "I will sign this legislation into law shortly, and we'll begin making the immediate investments necessary to put people back to work doing the work America needs done."
At the same time, he cautioned, "The problems that led us into this crisis are deep and widespread, and our response must be equal to the task."
Earlier in the day, the US House of Representatives passed the USD 787 billion Economic Stimulus Bill in a 246 to 183 vote. The bill was passed with no Republican support. The final spending and tax cut mix in the USD 787 package stands at about 64% and 36% respectively.
Majority leaders like Stenny Hoyer accused Republicans of sticking to same policies of the failed eight years of the Bush administration.
Nancy Pelosi, House Speaker (Democrat), said the American people are feeling a great deal of pain. "They have uncertainty about their jobs, about healthcare, about ability to pay for the education of their children and sad to say in our great country even their ability to put food on the table. So, today we have passed legislation that does take that swift action on their behalf."
Senator Chris Dodd, Chairman, Banking Committee, said we are in the deepest economic crisis in the lifetime of any American. "They are worried about their pay. Our system of economy is at risk these days. We'll be judged by history as to whether or not we could respond intelligently to it."
WorldBank : The just started week can be good for Satyam as first SEBI ( Securities & Exchange Board of India ) reviewed its much awaited policy for takepver norms for distressed companies. Now its WorldBank to delight satyam shareholders as in the statement bank said , it can review the eight year ban on the company provided it takes corrective actions.
"The vendor would have to demonstrate (that) corrective action had been taken to address the original causes of the ... Ineligibility," a World Bank official from Washington told PTI in an emailed statement.
The official further said action should substantiate that Satyam is "again a responsible vendor with whom the Bank can do business".
Satyam had filed a request for review of the ban after a government appointed board took over the company following the declaration made by R Raju, its former chairman, where he admitted to fudging the company’s books of account for around seven years.
In 2008, the World Bank placed an eight-year ban on Satyam for providing improper benefits to the bank’s staff and also for failing to maintain records relating to fees charged for sub-contractors.
Satyam has a strong case for a review of the ban since its old board and management have been changed after its disgraced founder Chairman B Ramalinga Raju admitted to fudging accounts to the tune of Rs 7,800 crore.
Aggregated : MoneyControl & PTI ( Press Trust of India )
