INTERIM GENERAL Budget 09-10

Pranab Mukherjee presents Interim General Budget Mukherjee is in charge of Finance Ministry in PM's absence This is UPA's 6th General Budget Focus on maintaining growth rate of 7-8 pct Fiscal deficit down to 2.7 pct All efforts made by Govt to deliver promises, says Mukherjee Tax to GDP ratio up to 12.5% Revised budget estimates for 2008-09 increased to Rs 909,053 crore from Rs 750,884 crore Revenue deficit seen at 4 per cent, fiscal deficit at 5.5 per cent of GDP in 2009-10 Central plan expenditure increased from Rs 2,43,386 crore to Rs 2,82,957 crore Food, fertiliser, petroleum subsidies to go up Rs 40,000 crore relief extended through tax cuts to counter economic slowdown Flagship NREGA scheme gets Rs 30,100 crore in 2009-10 Allocation of Rs 14,1703 cr for defence sector Budgetary support increased for Ministries of Rural Development, Road Transport & Highway, Power, Railways,Industrial Policy & Promotion and IT Rs 13,100 cr for primary education in SSA Foreign trade increased to 35.5% of GDP Consistent 9% growth for 3 yrs Investment rate grows to 39% Communication sector grew at the rate of 26% Annual growth rate of agriculture up 3.5% Per capita income up 7.4% during UPA regime Inflation rate fell to 4.4 per cent Export growth rate for first 9 months of FY08 down to 17.1% Govt approved 37 infrastructure projects Govt took prompt stimulus packages to curb slowdown Industrial production fell by 2 pct in 2008 on a YoY basis Capital inflows at 9% of GDP in FY08 GDP growth of 7.1% makes India 2nd fastest growing economy Tax collections in FY09 to exceed that of FY08 FRBM targets being relaxed Need to consider additional fiscal measures Govt to spend Rs 9.53 lakh cr in plan & non-plan expenditure Agriculture plan hiked by Rs 3,000 cr Agriculture credit increased 3-fold to Rs 2,50,000 crore Fertiliser subsidy increased by Rs 44,863 crore from about Rs 14,000 crore during 2008-09 IIFC to raise Rs 10,000 cr by end of March 2009 IIFC to finance 60% of commercial loans in private public partnership in critical projects Exports in dollar terms rose 26.4% in last 4 yrs PSU turnover up 84% Six new IIMs to be operational by 2010 2 more IITs in MP, HP to start ops in 2010 Educational loan scheme revised 13,100 cr for primary education in Sarv Shiksha Abhiyaan Widows to get priority in ITI Govt to spend Rs 1,200 cr for Total Sanitation Programme Rural jobs scheme to get Rs 30100 cr Rural jobs scheme to get Rs 30100 cr Bharat Nirman programme gets Rs 40,900 crore in 2009-10 Integrated Child Development Scheme gets Rs 6,705 crore in 2009-10 Allocation for Unique ID programme pegged at Rs 100 crore