Highlights of Interim Budget 2009

The acting Finance Minister Pranab Mukherjee presenting the interim Budget for 2009-10 in Lok Sabha, on Monday claimed in Parliament that every effort has been made to fulfil promises made to the common man.

Following are the highlights of the Budget:

In the first four years of UPA government, the economy has shown a dream run with growth rates booming throughout the tenure.

Sustained growth of 9 per cent was witnessed in the last three years, said Mukherjee.

The per capita income also registered the fastest growth rate during the last four years.

The fiscal deficit dropped to 2.7 per cent, while the revenue deficit grew. The investment rate grew to 39 per cent and gross domestic savings rate showed great improvement from 29.8 per cent in 2003-04 to 37.7 per cent per cent in 2007-08. The tax to GDP ratio rose from 9.2 per cent 2003-04 to 4.5 per cent 2007-08, said Mukherjee.

UPA was focussed on delivering 7 per cent plus growth throughout its tenure.

This is United Progressive Alliance's sixth Budget.

The annual rate of growth in agriculture was 3.7 per cent. Foodgrain production increased by 10 million tonnes each year to all time high of 230 million tonnes in 2007-08.

Foreign trade rose from 23.7 per cent of GDP to 35.5 per cent of GDP in 2007-08.

Industrial production fell by 2 per cent in 2008 on a year to year basis.

World economy, according to forecasts, will fare worse in 2009 than in 2008, says Mukherjee.

Inflation rate fell to 4.4 per cent on Janaury 31, 2009

India is second fastest growing economy in the world with 7.1 per cent GDP expansion in 2008-09, says Mukherjee.

Export growth rate in first nine months of 2008-09 touched 17.1 per cent. Industrial production fell by 2 per cent in December, says Mukherjee.

The India Infrastructure Finance Company will raise Rs 10,000 crore (Rs 100 billion) from market by end of March 2009.

As many as 50 infrastructure projects worth Rs 67,700 crore (Rs 677 billion) were given in-principle or final approval.

The India Infrastructure Finance Company will raise Rs 30,000 crore (Rs 300 billion) from market in next fiscal year.

Need for accelerating pace of policy reforms, particularly in financial sector, says Mukherjee.

The FDI inflow between April-Nov 2008 was $23.3 billion, a growth of 45 per cent compared with that during the same period in 2007.

The government has relaxed the Fiscal Responsibility Budget Management (FRBM) targets to counter global economic slowdown.

Plan allocation 300 per cent increased for agriculture.

Rural infrastructure development scheme to be expanded through suitable allocations.

60.4 lakh (6.04 million) houses constructed under Indira Awas Yojana during the year, says Mukherjee.

Minimum support price for wheat increased from Rs 630 to Rs 1,080 per qunital.

The government will continue interest subvention scheme for farmers for loans up to Rs 3 lakh (Rs 300,000).

Rs 65,300 crore (Rs 653 billion) in loans waived for farmers during 2008-09. It benefitted 3.6 crore (Rs 36 million) households, says Mukherjee.

Agriculture credit has been increased by three fold to Rs 250,000 crore (Rs 2,500 billion). Six new IITs started functioning in 2008-09. Two more IITs in Madhya Pradesh and Rajasthan will start functioning in 2009-10.

Six new IITs started functioning in 2008-09. Two more IITs in Madhya Pradesh and Rajasthan will start functioning in 2009-10.

Student loans increased from Rs 4,500 crore on March 31, 2004 to Rs 24,260 crore (Rs 242.60 billion) as on September 30, 2008.

Turnover of public sector companies has increased from Rs 587,000 crore (Rs 5,870 billion) in 2003-04 to Rs 10,87,000 crore (Rs 10,870 billion) in 2007-08, says Mukherjee.

Non-performing assets of public sector banks have fallen from 7.8 per cent in 2007 to 2.3 per cent in March 2008.

Rs 632 crore (Rs 6.32 billion) provided for recaptalisation of Regional Rural Banks.

Fertiliser subsidy increased by Rs 44,863 crore (Rs 448.63 billion) from about Rs 14,000 crore (Rs 140 billion) during 2008-09.

Central plan expenditure increased from Rs 2,43,386 crore (Rs 2,433.86 billion) to Rs 2,82,957 crore (Rs 2,829.57 billion).

Revised budget estimates for 2008-09 increased to Rs 909,053 crore (Rs 9,090.53 billion) from Rs 750,884 crore (Rs 7,508.84 billion).

Revised fiscal defict esimated 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.

Rs 40,000 crore (Rs 400 billion) relief extended through tax cuts to counter economic slowdown.

Fiscal deficit has gone up from Rs 133,287 crore (Rs 1,332.87 billion) in the budget estimates to Rs 326,515 crore (Rs 3,265.15 billion) in the revised estimates for 2008-09, says Mukherjee.

Integrated Child Development Scheme gets Rs 6,705 crore (Rs 67.05 billion) in 2009-10.

Allocation for Sarva Shiksha Abhiyan programme increased to Rs 13,100 crore (Rs 131 billion).

Flagship NREGA scheme gets Rs 30,100 crore (Rs 301 billion) in 2009-10, says Mukherjee.

Budgetary support increased for Ministries of Rural Development, Road Transport & Highway, Power, Railways, Industrial Policy & Promotion and IT.

Budget estimate for expenditure for 2009-10 put at Rs 953,231 crore (Rs 9,532.31 billion). This includes Rs 285,145 crore (Rs 2,851.45 billion) for plan expenditure while non-plan spend put at Rs 668,883 crore (Rs 6,688.83 billion).

Allocation for JNNURM programme raised to Rs 11,842 crore (Rs 118.42 billion).

Bharat Nirman programme gets Rs 40,900 crore (Rs 409 billion) in 2009-10.

Revenue deficit seen at 4 per cent, fiscal deficit at 5.5 per cent of GDP in 2009-10.

Increase in the allocation of defence expenditure to Rs 1,41,703 crore (Rs 1,417.03 billion)in 2009-10.

Plan expenditure in 2009-10 may have to be increased substantially at the time of presentation of overall budget if we have to give economy the stimulus it needs, says Mukherjee.