NEW DELHI: Pranab Mukherjee has presented the interim budget in the Lok Sabha for the next fiscal. There were expectations that measures will be announced to cushion the impact of global meltdown on the Indian economy, and help revive consumer demand.
The exercise began with Mukherjee reading out his budget speech in the Lok Sabha, during which he will also seek an approval to finance the government's expenditure, till such time the regular budget is presented by a new government after elections, and passed by parliament.
Acting finance minister Pranab Mukherjee announced an extension of interest subsidies to debt-hit farmers, one of the first measures in his budget speech.
Pranab Mukherjee announced that the India Infrastructure Finance Company will raise Rs 10,000 crore from the market by end of March 2009.
India Infrastructure Finance Company will finance 60 percent of commercial loans in private public partnership in critical projects, he said.
The organisation is to raise Rs 30,000 crore from the market in the next fiscal year.
In the wake of the Mumbai attacks, the govt increased the defence expenditure to Rs 1,41,703 crore. In 2008-9, the total defence expenditure was Rs 105,600 crore.
Highlights of the Budget
Following are the highlights of the interim budget presented by acting finance minister Pranab Mukherjee in the Lok Sabha Monday:
*Budgetary support increased for Ministries of Rural Development, Road Transport & Highway, Power, Railways, Industrial Policy & Promotion and IT.
*Rs 40,000 crore relief extended through tax cuts to counter economic slowdown.
* Defence allocation increased to Rs1,41,703cr in wake of Mumbai attacks.
* Revised fiscal deficit estimated at 6 per cent of GDP as against 2.5 per cent in the Budget estimate. Revised revenue deficit placed at 4.4 per cent as against 1 per cent in the Budget estimate for 2008-09.
*Fiscal deficit has gone up from Rs 133,287 crore in the budget estimates to Rs 326,515 crore in the revised estimates for 2008-09.
*Rs 40,000 crore relief extended through tax cuts to counter economic slowdown.
*Budget estimate for expenditure for 2009-10 put at Rs 953,231 crore. This includes Rs 285,145 crore for plan expenditure while non-plan spend put at Rs 668,883 crore.
* India remains second-fastest growing economy in the world
* Economy expected to grow 7.1 percent this fiscal
* Need to make economic growth inclusive
* Government spent Rs.70,000 (Rs.700 billion) crore on 37 infrastructure projects in 2008-09
* Under public-private partnership (PPP), 54 central infrastructure projects approved
* Total expenditure of PPP projects estimated at Rs.67,700 crore (Rs.677 billion)
* 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
* Country's social security net will be strengthened
* Record foreign direct investment of $32.4 billion attracted
* Global economic situation not encouraging
* Extraordinary situation merits extraordinary measures
* Need to consider additional fiscal measures in regular budget
* Financial sector reforms need to be accelerated
* 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
Last year's financial highlights:
In past three years, India grew by average of over 9 percent
Exports grew at average annual growth rate of 26.4%
Gross domestic saving rate at 37.7%
Domestic investment rate at 39% in FY 08
Per capita income increased 7.4% per annum during the UPA govt's tenure
The GDP went from 7.5% in 04-05 to 9.7% in 06-07 and clocked 9% in 08
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
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
Soruce; http://timesofindia.indiatimes.com/Interim-Budget-raises-defence-outlay-by-34/articleshow/4135219.cms
