Following are the highlights of the interim budget presented by Minister for External Affairs Pranab Mukherjee in the Lok Sabha Monday:
* Total expenditure for 2009-10 pegged at Rs.953,231 crore (Rs.9.52 trillion)
* Plan expenditure for 2009-10 at Rs.2,85,149 crore (Rs.2.85 trillion)
* Non-plan expenditure at Rs.668,082 crore (Rs.6.68 trillion)
* Provision for subsidy on food, fertiliser and petroleum at Rs.95,579 crore (Rs.955.79 billion)
* Defence allocation increased to Rs.141,703 crore (Rs.1.417 trillion)
* Urban renewal spending pegged at Rs.11,842 crore (Rs.118.42 billion)
* 2009-10 gross budgetary support at Rs.2,85,000 crore (Rs.2.85 trillion)
* Substantial relief of about Rs.40,000 crore (Rs.400 billion) due to tax cuts in 2008-09
* Rural job schemes to get Rs.30,100 crore (Rs.301 billion) in 2009-10
* Rural sanitation spending at Rs.1,200 crore (Rs.12 billion)
* National rural health mission spending at Rs.12,070 crore (Rs.120.7 billion)
* Rural infrastructure development outlay at Rs.14,000 crore (Rs.140 billion)
* Midday meal scheme spending at Rs.8,000 crore (Rs.80 billion)
* 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 crore (Rs.700 billion) 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.2.5 trillion) in 2007-08
* Farm debt worth Rs.65,300 crore (Rs.653 billion) waived of 360 million farmers.
* 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
* New scheme unveiled for young widows in the age group of 18-40
* New disability pension scheme introduced for age group of 18-40
* 15-point programme for welfare of minorities set up
* 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
* Non-performing assets (NPAs) of public sector banks have declined
* State-run banks see NPAs drop from 7.8 percent to 2.3 percent in four years
* Number of loss-making state-run units down from 73 to 58
* Profit-making units up from 143 units to 158 units
* 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
* Revised estimates for 2009-09 peg plan expenditure at Rs.282,957 crore (Rs.2.83 trillion)
* Central plan increased for host of areas like telecom, rural development
* Tax collections expected to fall to Rs.627,949 crore (Rs.6.28 trillion)
* Revised revenue deficit is 4.4 percent of GDP against 1 percent
* Revised fiscal deficit at 6 percent of GDP against 2.5 percent
Showing posts with label Interim Budget 2009. Show all posts
Showing posts with label Interim Budget 2009. Show all posts
Monday, February 16, 2009
Sunday, February 15, 2009
Expectations run high on eve of India's interim budget
With the economic downturn beginning to hurt India Inc., pulling down exports and industry output, expectations are high from the interim budget to be presented in parliament Monday by Minister for External Affairs Pranab Mukherjee.
Although the measures to be announced by Mukherjee will be interim in nature, as the regular budget for the next fiscal will be tabled after inauguration of a new government following national elections, industry said exceptional circumstances called for special steps.
Industry chambers have accordingly given their wish list and top of that is tax break for both the corporate sector and individuals, as it would have a direct impact on the finances of industries and households alike and help lift demand.
"Tax rate reduction is desirable in the current context," said Suresh Tendulkar, who chairs Prime Minister Manmohan Singh's Economic Advisory Council. "This will essentially generate more purchasing power," he said ahead of the budget.
Industry feels it is unlikely that Mukherjee, who has additional charge of the finance, as Manmohan Singh, who holds the portfolio, is convalescing following a heart surgery, would ignore the suggestion from such a high-powered panel.
The United Progressive Alliance (UPA) government having announced two stimulus packages since December, industry feels this will also be the last chance for the government to comprehensively address the economic slowdown before the ensuing elections.
"A major demand of India Inc. for many years has been for reduction in corporate tax, which remains unattended to," said the Associated Chambers of Commerce and Industry of India (Assocham) in its pre-budget memorandum.
"India Inc. therefore anticipates that Mr. Mukherjee would revisit corporate tax rates in India and not only remove surcharge on it but bring it down to global average of around 26-27 percent, especially at times of meltdown."
Sharing this view, the Federation of Indian Chambers of Commerce and Industry (FICCI) also wanted tax holidays for housing to be extended by five years and the reintroduction of investment allowance, among other measures.
On a larger canvas, what is expected to weigh heavily in Mukherjee's mind is the drop in industrial production in October for the first time in 15 years that was attributed to demand slowdown. Industrial output fell again in December.
Exports have fared no better and logged a decline for three straight months since October, with commerce secretary G.K. Pillai predicting yet another fall in January.
As for Mukherjee, who has presented three budgets in the past as regular finance minister between January 1982 and December 1984, he is clear about what areas need urgent attention of policymakers and spelt that out three days ago at an industry seminar.
"There is a need to sustain our foreign trade, revive foreign investment and generate domestic demand to maintain our growth rates, which are essential for the uplift of the multitudes below the poverty line," Mukherjee said.
Although the measures to be announced by Mukherjee will be interim in nature, as the regular budget for the next fiscal will be tabled after inauguration of a new government following national elections, industry said exceptional circumstances called for special steps.
Industry chambers have accordingly given their wish list and top of that is tax break for both the corporate sector and individuals, as it would have a direct impact on the finances of industries and households alike and help lift demand.
"Tax rate reduction is desirable in the current context," said Suresh Tendulkar, who chairs Prime Minister Manmohan Singh's Economic Advisory Council. "This will essentially generate more purchasing power," he said ahead of the budget.
Industry feels it is unlikely that Mukherjee, who has additional charge of the finance, as Manmohan Singh, who holds the portfolio, is convalescing following a heart surgery, would ignore the suggestion from such a high-powered panel.
The United Progressive Alliance (UPA) government having announced two stimulus packages since December, industry feels this will also be the last chance for the government to comprehensively address the economic slowdown before the ensuing elections.
"A major demand of India Inc. for many years has been for reduction in corporate tax, which remains unattended to," said the Associated Chambers of Commerce and Industry of India (Assocham) in its pre-budget memorandum.
"India Inc. therefore anticipates that Mr. Mukherjee would revisit corporate tax rates in India and not only remove surcharge on it but bring it down to global average of around 26-27 percent, especially at times of meltdown."
Sharing this view, the Federation of Indian Chambers of Commerce and Industry (FICCI) also wanted tax holidays for housing to be extended by five years and the reintroduction of investment allowance, among other measures.
On a larger canvas, what is expected to weigh heavily in Mukherjee's mind is the drop in industrial production in October for the first time in 15 years that was attributed to demand slowdown. Industrial output fell again in December.
Exports have fared no better and logged a decline for three straight months since October, with commerce secretary G.K. Pillai predicting yet another fall in January.
As for Mukherjee, who has presented three budgets in the past as regular finance minister between January 1982 and December 1984, he is clear about what areas need urgent attention of policymakers and spelt that out three days ago at an industry seminar.
"There is a need to sustain our foreign trade, revive foreign investment and generate domestic demand to maintain our growth rates, which are essential for the uplift of the multitudes below the poverty line," Mukherjee said.
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