Highlights of the Interim Budget 2009

Highlights of the Interim Budget 2009

-All efforts made to deliver on commitments
-Sustained growth over 9% in last 4 years
-Per capita income grew 7.4% during UPA regime
-Gross domestic savings rate at 37.7%, gross cap formation at 14.2%
-Tax-GDP ratio at 12.5% in 2007-08, close to fiscal correction target
-Domestic investment rate over 39% in FY08
-Growth drivers - agriculture, services, manufacturing, construction-Outlook for food grain production encouraging for coming year
-Exports grew at annual average rate of 26.4% during last 4 years
-Challenges related to capital inflows and global inflation
-We have weathered the crisis, but no room for complacency
-Moderate pass through of prices affected domestic inflation in '08
-Dec industrial growth fell 2% (YoY)
-Forecasts indicate that world economy may fare worse in 2009
-India has been affected along with other slowing EM economies
-GDP growth of 7.1% makes India second fastest growing economy
-Fiscal pkgs announced provide tax relief to boost demand, spending
-Have taken steps to encourage private investments in infra via PPP
-Approved 37 infra projects worth Rs 70,000 cr between Aug 08-Jan 09
-54 central infra proj of Rs 67700cr sent for final nod to PPP panel
-Initiative for providing refinance to banks for long-term credit to proj
-IIFCL can to raise Rs 10000 cr, nod for additional Rs 30000 cr
-IIFCL to refinance 60% of the projects
-Extension of export credit for labour intensive exports
-FDI inflow of USD 23.3 billion during April-November 2008
-Have relaxed fiscal responsibility & budget mgmt targets
-May need to consider additional fiscal measures in next regular budget
-Need to revert to fiscal consolidation at the earliest
-Economic regulatory and oversight systems have to be more efficient
-Attention given to agriculture sector, plan allocation up 300% in 4 yrs
-Agri - govt implementing revival pkg in 25 states worth Rs 13500 cr
-Agri - govt will continue to provide interest subvention for FY10
-Farm debt waiver of Rs 65,300 cr covering 36 million homes
-Govt to provide interest subsidy to farmers in FY10
-Outlay on higher education up 900% in 11th 5-year plan
-Annual ad-hoc grants have been increased by 50% (YoY)
-Tax rates must fall during times of crisis
-FY09 revised estimates of spending at Rs 9 lakh cr vs Rs 7.5 lakh cr
-FY09 plan expenditure revised to Rs 2.8 lakh cr from Rs 2.4 lakh cr
-Govt revises FY09 fertiliser subsidy to Rs 44863 cr
-FY09 food subsidy revised to Rs 10960 cr
-FY09 fiscal deficit seen at 6% of GDP vs estimate of 2.5%
-FY09 revenue deficit at 4.4% of GDP vs est of 1%
-FY10 spending seen at Rs 9.53 lakh cr
-FY10 budgetary support seen at Rs 2.85 lakh cr
-Rural jobs scheme to get Rs 30100 cr in FY10
-JNNURM spending seen at Rs 11842 cr for FY10
-Allocation of Rs 40900 cr for Bharat Nirman Scheme
-Interest subvention for some export loans extended
-Budget plan spending may have to be upped substantially post polls
-Additional plan expenditure has to increase by 0.5-1% post polls
-FY10 non-plan spend est at Rs 6.68 lk cr
-Major subsidy spending for FY10 seen at Rs 95,500 cr
-FY10 budget revenue deficit seen at 4%, fiscal deficit at 5.5%
-FY10 gross tax revenue seen at Rs 6.71 lk cr
-Interim Budget 2009: Allocation of Rs 8,000 cr for mid-day meal scheme
-Interim Budget 2009: Rs 13,100 cr allocated for elementary education
-Interest subvention for some export loans extended
-Budget plan spending may have to be upped substantially post polls
-Additional plan expenditure has to increase by 0.5-1% post polls
-FY10 non-plan spend est at Rs 6.68 lakh cr
-Major subsidy spending for FY10 seen at Rs 95,500 cr
-FY10 budget revenue deficit seen at 4%, fiscal deficit at 5.5%
-FY10 gross tax revenue seen at Rs 6.71 lakh cr
-FY10 gross market borrowing seen at Rs 3.2-3.3 lakh cr
-No tax changes in interim budget