Interim Budget 2009-10
Revenue deficit For 2009-10 estimated At 4 Per cent & fiscal deficit 5.5 per cent of GDP
In the Interim Budget-2009-10, Gross Tax Revenue receipts at the existing rates of taxation are estimated at Rs.6,71,293 crore and Centres net tax revenue at Rs.5,00,096 crore for the fiscal 2009-10. This was stated by the Finance Minister Shri Pranab Mukherjee while presenting the Interim Budget for 2009-10 in Lok Sabha today.
With revenue expenditure estimated at Rs.8,48,085 crore, the revenue deficit amounts to 4.0 per cent of GDP. Fiscal Deficit is estimated at Rs.3,32,835 crore which is 5.5 per cent of GDP. This would be lower than in 2008-09, but higher than would be appropriate under normal circumstances. However, conditions in the year ahead are not likely to be normal and, therefore, the high fiscal deficit is inevitable. We will return to FRBM targets once the economy is restored to its recent trend growth path, the Finance Minister added.
Revenue deficit 4.4 pc of GDP against 1.0 pc in be fiscal deficit in R.E. estimated at 6 pc
The current year is expected to end with a revenue deficit of Rs.2, 41,273 crore as against the budgeted figure of Rs. 55,184 crore. Accordingly, the Revised revenue deficit stands at 4.4 per cent of GDP against 1.0 per cent in the Budget Estimates. Similarly, the fiscal deficit for 2008-09 has gone up from Rs. 133,287 crore in the BE to Rs. 326,515 crore in the RE. The revised fiscal deficit is estimated at 6 per cent of the GDP as against the budgeted figure of 2.5 per cent.
Non-Tax Revenues in the revised Estimates are Rs. 96,203 crores, against the Budgeted Estimates of Rs. 95,785 crore for 2008-09, showing an increase of Rs. 418 crore.
The Revised Estimates of Tax collection have been projected at Rs. 6,27,949 crore as against the Budgeted Estimate of Rs. 6,87,715 crore. This shortfall is primarily on account of the Governments pro-active fiscal measures initiated to counter the impact of global slowdown on the Indian economy. A substantial relief of about Rs. 40,000 crore has been extended through tax cuts, including a fairly steep across the board reduction in central excise rates in December 2008. Despite this, it is expected that the tax collection in 2008-09 would exceed last years collection.
Rs. 953,231 crore expenditure proposed for 2009-10
RS.1,31,317 CRORE ALLOCATED TO FLAGSHIP PROGRAMMES
In the Interim Budget 2009-10, the total expenditure has been proposed at Rs. 953,231 crore. Of this, Rs. 285,149 crore is under Plan and Rs. 668,082 crore under the Non-Plan sector. The total Gross Budgetary Support (GBS) for the Plan is 17.16 per cent higher in nominal terms than the GBS Plan for the BE 2008-09. The budgetary support to the Plan sector for 2009-10 has been increased for the Departments of Rural Development, Road Transport & Highways, Railways, Information Technology and Industrial Policy & Promotion and the Ministry of Power, with a view to maintain the fiscal tempo to address the economic slow down and meet the requirements of rural and infrastructure development.
An allocation of Rs.1, 31,317 crore has been made for the flagship programmes which directly impact Aam Aadmi. Rs. 30,100 crore has been allocated to National Rural Employment Guarantee Scheme (NREGS) in 2009-10. The Scheme has been extended to all the districts of the country and provided employment of 138.76 crore person days, covering 3.51 crore households during 2008-09.
For Sarv Shiksha Abhiyan, an allocation of Rs.13,100 crore have been proposed. About 98 per cent of our habitations have been covered by primary schools and the focus now is on improving the quality of elementary education. An allocation of Rs.8,000 crore has been made for the Mid-Day Meals Scheme.
An allocation of Rs.6,705 crore have been proposed for the Integrated Child Development Scheme (ICDS) in the country. Rs.11,842 crore have been allocated for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Under the
Bharat Nirman, the time bound plan for building rural infrastructure, has been allocated Rs.40,900 crore for 2009-10. During 2005-09, the allocation to this programme has been increased by 261 per cent. National Rural Health Mission has been allocated Rs.12,070 crore. The programme aims to bring about uniformity in the quality of preventive and curative health care in rural areas. Rajiv Gandhi Rural Drinking Water Mission is envisaged to supply safe drinking water to uncovered habitations and slipped back habitations. An allocation of Rs.7,400 crore has been made for this programme for the year 2009-10. Rs.1,200 crore have been assigned for Total Rural Sanitation programme.
Rs.14,000 crore corpus for RIDF XV
Rs.100 CRORE FOR UNIQUE IDENTIFICATION AUTHORITY
In the Interim Budget 2009-10, Rural Infrastructure Development Fund-XV (RIDF-XV) has been proposed with a corpus of Rs.14,000 crore and continuation of the separate window for rural roads with a corpus of Rs.4,000 crore. This is to ensure continuity in financing of rural infrastructure projects. This was stated by the Finance Minister Shri Pranab Mukherjee while presenting the Interim Budget for 2009-10 in Lok Sabha today..
Interest subvention of two per cent on pre and post shipment credit for certain employment oriented sectors like textiles (including Handlooms and Handicrafts), carpets, leather, gem and jewellery, marine products and SMEs has been extended till September 30, 2009 from March 31, 2009. This is expected to involve an additional financial outgo of Rs.500 crore during the financial year 2009-10.
A provision of Rs.100 crore has been made for 2009-10 for the setting up of Unique Identification Authority of India. The Authority, being set up under the aegis of Planning Commission, will put in place a comprehensive system of unique identity for resident population of the country.
Defence gets Rs.1,41,703 crore in the Interim Budget
In the Interim Budget 2009-10, the allocation for Defence has been increased to Rs.1,41,703 crore. The total revised expenditure for 2008-09 was Rs.1,14,600 crore. The Plan expenditure will be to the tune of Rs.86,879 crore against Rs.73,600 crore and will include Rs. 54,824 crore for capital expenditure as against Rs.41,000 crore in the RE for 2008-09. The raise has been made to strengthen the security in view of the recent terror attacks.
US $ 32.4 billion FDI received in 2007-08
Despite the global financial crisis, which began in 2007 impacting most emerging market economies, 7.1 per cent rate of GDP growth in the current year makes
He further stated that under the Public Private Partnership (PPP) mode, 54 central sector infrastructure projects with a project cost of Rs. 67,700 crore were given in principal or final approval and 23 projects amounting to Rs. 27,900 crore approved for viability gap funding in 2008-09. A record US dollar 32.4 billion FDI received in 2007-08 and notwithstanding financial uncertainty and slow down, FDI inflows during April-December 2008 were US dollars 23.3 billion recording a growth of 45 per cent over the same period in 2007.
GDP records a sustained growth of over 9 per cent for 3 consecutive years for the first time
FISCAL DEFICIT DOWN FROM 4.5 PER CENT IN 2003-04 TO 2.7 PER CENT IN
The Gross Domestic Product has increased by 7.5 per cent, 9.5 per cent, 9.7 per cent and 9 per cent in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9 per cent for three consecutive years for the first time. With per capita income growing at 7.4 percent per annum, this represented the fastest ever improvement in living standards over a four-year period. The gross domestic savings rate shot up from 29.8 percent to 37.7 percent during this period. The growth drivers for the period were agriculture, services, manufacturing along with trade and construction. The fiscal deficit has come down from 4.5 per cent in 2003-04 to 2.7 per cent in 2007-08 and revenue deficit from 3.6 per cent to 1.1 per cent in 2007-08. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha today.
He further stated that the annual growth rate of agriculture rose to 3.7 per cent during 2003-04 to 2007-08. The foodgrain production recorded an increase of 10 million tonnes each year during this period and touched an all time high of 230 million tonnes in 2007-08. The manufacturing sector recorded a growth of 9.5 per cent per annum in the period 2004-05 to 2007-08. The exports grew at an annual average growth rate of 26.4 per cent in US dollar terms in the period 2004-05 to 2007-08.
15 Central Universities established
6 NEW IITs START FUNCTIONING; TWO MORE TO COMMENCE FROM ACADEMIC SESSION 2009-10
An Ordinance was promulgated for establishing 15 central universities and in addition to this, 6 new Indian Institutes of Technology (IITs) in Bihar, Andhra Pradesh, Rajasthan, Orissa, Punjab and Gujarat have started functioning in 2008-09 while two more IITs in Madhya Pradesh and Himachal Pradesh are expected to commence their academic session in 2009-10. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha today.
He further stated that two new schools of Planning and Architecture at
CPSEs turn over increased from Rs. 5,87,000 crore in 2003-04 to Rs. 10,81,000 crore in 2007-08
The turn over of Central Public Sector Enterprises (CPSEs) has increased from Rs. 5,87,000 crore in 2003-04 to Rs. 10,81,000 crore in 2007-08 showing a growth of 84 percent. During the same period profits of CPSEs have increased by 72 per cent from Rs. 53,000 crore to Rs. 91,000 crore and their contribution to the central exchequer by way of dividend, interest and taxes and duties has recorded an increase of 86 per cent. The number of loss making enterprises has come down from 73 in 2003-04 to 55 in 2007-08 and the number of profit making enterprises has gone up from 143 to 158 during the same period. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha today.
He further stated that in order to maintain ethics and probity in the functioning of CPSEs, the Government has approved the implementation of guidelines on corporate governance in CPSEs in June 2007. In November 2007, the Government constituted the National Investment Fund into which the proceeds from disinvestment of Government equity in central PSEs are deposited. Three-quarters of annual income of the fund will be used to finance select social sector schemes, which promote education, health and employment. The residual 25 per cent annual income of the fund will be used to meet the capital investment requirements of profitable and revivable CPSEs.
Plan allocation for agriculture up by 300 percent during 2003-04 and 2008-09
CREDIT DISBURSEMENTS UP THREE FOLD - TOUCH RS 2.5 LAKH CRORE IN 2007-08
While the plan allocation for agriculture has gone up by 300 percent between the period 2003-04 and 2008-09, the agriculture credit disbursement too has increased from Rs 87,000 crore to Rs 2,50,000 crore upto 2007-08. This was stated by the Finance Minister, Shri Pranab Mukherjee while presenting the Interim Budget 2009-10 in the Lok Sabha here today.
The Finance Minister further stated that to strengthen short-term credit structure, revival package in 25 states involving financial assistance of about Rs 13,500 crore is also being implemented by the government. The government will continue to provide interest subvention in 2009-10 to ensure that farmers get short-term crop loans upto Rs 3 lakhs at seven per cent per annum, he added.
RIDF corpus increased from Rs. 5,500 crore in 2003-04 to Rs. 14,000 crore in 2008-09
60.12 LAKH HOUSES FOR WEAKER SECTIONS CONSTRUCTED UNDER INDIRA AWAAS YOJANA
The corpus of the Rural Infrastructure Development Fund(RIDF), which is the main instrument of the Government to channelise bank funds for financing rural infrastructure, has been increased from Rs. 5,500 crore in 2003-04 to Rs. 14,000 crore for the year 2008-09 ensuring greater availability of funds for its activities. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha here today. He also added that a separate window for rural roads was created under RIDF with a corpus of Rs. 4,000 crore for each of the last three years.
The Finance Minister further informed that as against the target of 60 lakh houses which were to be constructed for the weaker sections in rural years under the Indira Awaas Yojana by 2008-09, 60.12 lakh houses have already been constructed between 2005-06 and December 2008.
Panchayat empowerment and accountability scheme to be substantially expanded
PROJECT ARROW LAUNCHED BY DEPARTMENT OF POSTS
The Government proposes to substantially expand the Panchayat Empowerment and Accountability Scheme (PEAIS) by making suitable allocations in order to empower the Panchayats and put in place accountability systems to make their functioning transparent and efficient. This was stated by the Finance Minister, Shri Pranab Mukherjee while presenting the Interim Budget 2009-2010 in the Lok Sabha here today.
Shri Mukherjee added that PEAIS is an existing scheme under the central sector plan which has been recognized as a powerful instrument to incentivise States to devolve funds, functions and functionaries and set up an institutional framework for such devolution.
The Finance Minister also gave the highlights of Project Arrow, which has been launched by Department of Posts to revitalize its core operations and to provide new technology-enabled service to the common man. Promising full Government support for the Project, he informed that so far it has been successfully implemented in 500 post offices in the country. The Project will enhance the services offered to masses and would also lay the foundation for a vibrant delivery mechanism for many social sector schemes such as pension and the National Rural Employment Guarantee Scheme (NREGS), Shri Mukherjee added.
Rs 65,300 crore debt waiver and relief given to 3.6 crore farmers
SUBSTANTIAL HIKE IN WHEAT AND PADDY MSP
TPDS PRICES MAINTAINED AT JULY 2000 LEVELS FOR BPL & AAY CATEGORIES
Under the Agricultural Debt Waiver and Debt Relief Scheme 2008, debt waiver and relief amounting to Rs 65,300 crore covering 3.6 crore farmers has been given by the Government since June 30, 2008. This was stated by the Finance Minister, Shri Pranab Mukherjee, while presenting the Interim Budget 2009-2010 in the Lok Sabha here today.
The Finance Minister reiterated that in order to ensure remunerative prices for the farmers for their crops, the UPA government has substantially hiked the Minimum Support Price (MSP) for wheat and paddy over the last five years. Since 2003-04, MSP for the common variety of paddy has been increased from Rs. 550 to Rs. 900 per quintal for the crop year 2008-09. In case of wheat, the increase has been from Rs. 630 in 2003-04 to Rs.1,080 per quintal for the year 2009.
Ensuring the commitment of his Government towards food security in the country and meeting the food requirement of the poor under the Targeted Public Distribution System (TPDS), Shri Mukherjee stated that in spite of higher procurement costs and higher international prices during the last five years, the central issue prices under the TPDS have been maintained at the level of July 2000 in case of Below Poverty Line (BPL) and Antyodaya Anna Yojana (AAY) categories and at July 2002 levels for Above Poverty Line (APL) category.