INTERIM BUDGET 2009

The Indian economy has maintained a growth rate of 7% to 8% and per capita income has risen by 7.4% in the past four yrs - here are the highlights of the 2009-10 budget.
# 7-8% growth# Quality education for all# Generating emp and investment# Ensuring 100 days employment at min wage# Focusing on agr and rual dev# Fiscal consolidation# Higher fiscal devolution Fundamentals
# Maintaining 7-8% growth
# The govt has worked for increasing access to education, health
# Employment generation
# Assuring 100 days of employment
# Agri, rural development
# Fiscal consolidation and reform
# Fiscal devolution
# Indian showed sustained growth of over 9 %
# 4.7% growth in per capita in 4 yrs
# Fiscal Deficit between 4.5% to 2.3%
# Domestic investment rate as a proportion increased to 39% in 2008
# Domestic saving increased to 39%
# All with guidance of Sonia Gandhi, Manmohan and with P Chidambaram contribution
# Growth drivers were Agri, services, manufacturing, construction
# Real heroes of Indian success stories are farmers
# 22.5 of wheat 28.5 mt of rice in PDS
# Food production grew by 10% every year to reach 230 mt in 08
# Manufacturing growth 9.5% inform 04 to 08
# Construction growth 26% from 04 to 08
# Export grew by 26.4% from 04 to 08
# Foreign trade as part of GDP grew to 35.5% in 08
# Capital inflows in 08 : 97% of GDP
# Revenue deficit fell to 1.1% of GDP Vs 3.6 under UPA
# This lead to accumulation of reserves and pressure on prices
# Effort made to deliver on commitments
# We have weathered the crisis but no room for complacency

# Current indications of the global situation is not encouraging First 9 months:
# Exports slowed down to 17.1% in last 9 months
# IIP fallen by 2% on YoY basis
# India still is second fastest growing eco of the world
# Prompt action: two packages announced
# They provided tax relief’s to boost demand and increase public spending
# Govt accorded approval infra projects worth Rs 70,000 cr
# Successful in attracting investment via PPP mode worth 67,700 cr
# 54 projects worth 67,700 cr under PPA
# Exports grew by 26.4% in last 4 years
# Agri annual growth at 3.7%
# Savings rate up to 30.7% in FY 08
# Inflation down to 4.4% in January
# Exports slowed down to 17.1% in last 9 months
# Domestic investment rate over 39% in FY 08

# Private investment partnerships in infrastructure projects
# Mention presenting budget after 25 years# Rs 652 cr pumped into Regional Rural Banks
# FY 08 fiscal deficit 2.7% Vs 4.5% in FY 04
# India Infrastructure Co to refinance 60% of the projects
# IIFCL to refinance commercial banks for infrastructure
# FRPM targets relaxed
# USD 32.5 bn received by way of foreign investment
# Fiscal deficit reduced
# To consider additional fiscal measure
# Inward FDI inflow Apr-Nov at USD 23.3 bn up 45% on year
# Latest figures show slowdown of FDI inflows
# Employment schemes, social security net need to be expanded
# Need for accelerated pace of financial reforms
# 60.12 lakh houses constructed in rural areas

# Process of re-amalgamation has been started
# Centre has contributed 600 cr for re-capitalisation of RRBs
# Turnover of public sector companies has increased from Rs 587,000 crore in 2003-04 to Rs 10,87,000 crore in 2007-08,
# Rs 632 crore provided for recaptalisation of Regional Rural Banks.
# Non-performing assets of public sector banks have fallen from 7.8 per cent in 2007 to 2.3 per cent in March 2008.
# We undertook comprehensive reform of tax structure
# Personal tax structures have been rationalised
# Union excise duties have also been rationalised
# Tax rates must fall our ability to pay must rise
# Revised estimates for 08-09
# Budget estimates revised to 909,053 cr from Rs 750,884 cr.
# Plan expenditure revised to 282953 cr
Central plan expenditure increased from Rs 243386 cr to Rs 228957 cr
Fertiliser subsidy increased by Rs 44,863 cr from about Rs 14,000 crore during 08-09.comments