Interim Union Budget 2009 - 2010 of India by Pranab Mukherjee
Indian General elections are a few weeks away and as the Financial Year draws to an end, the Union Government of India has presented a Vote on Account to guide the Indian State till such time a new government is elected.
All the Official Budget Documents can be found at www.indianbudget.nic.in. This site has the videos of two previous budget and also Economic Survey.
As is being reported across all the news channels the Indian Industry has given a thumbs down and the sentiment is visible in the sharp drop in the Sensex and Nifty. Sensex closed the day at 9312 points, down 322 points.
Highlights Budget 2009 :
India's Fiscal Deficit Quadruples.
The interim budget presented in the Parliament on Monday indicated that the revenue deficit quadrupled due to the impact of the fiscal stimulus to various sectors.
Stocks Tumble - Sensex is trading -327 points at 9307 13:19 IST
Essentially the stock markets have given a thumbs down to the vote on acount.
Defence Allocation is UP by 34%
Revenue Deficit is 4% of GDP and Fiscal Deficit 6% of GDP
Foreign Trade 35% of GDP
Economy Grew at 9% for third straight year.
Link for Complete Information about Vote on Account / Indian Budget 2009.
Pranab Mukherjee the Interim Finance Minister of India (in the Absence of Dr. Manmohan Singh who is indisposed) presented the Vote on Account for the financial year 2009 - 2010. He has pegged the growth at 7% and this would make India one of the few growing economies across the globe, as most of the developed economies are in recession. On the other hand India would slow down from above 9% growth in the last three years to 7%.
In its 10th minute his budget speech was interrupted as one of the members of Parliamant Mr. Veerendra Kumar was taken ill. It resumed after 10 minutes.
So far the budget has shown the Rural focus of the outgoing government. The UPA government was elected on the poll plank of Aam Aadmi (Common Man) and through this budget it has tried to reach out to the common man one last time.
Agriculture credit has been increased by three fold to Rs 2,50,000 crore. Rs 65,300 crore in loans waived for farmers during 2008-09 and it benefited 3.6 crore households, said Mukherjee.
The government would continue interest subvention scheme for farmers for loans up to Rs 3 lakhs, he said.
Mukherjee also said that minimum support price for wheat has been increased from Rs 630 to Rs 1080 per qunital.
The government's ongoing commitment for Farm Loan waivers have weakned the State Bank of India that is trading down by 5 % post budget.
Economy showed 9% gdp growth for three consecutive years
Savings rate up at 37.7%
Tax to GDP has risen to 12.5% vs 9.2% in FY04
GDP growth seen at 7.1%; have weathered crisis, but no room for complacency
Growth needs to be faster, more inclusive to accelerate policy reforms including financial
Need for additional measures post poll budget
Social security net needs to be strengthened
2009 to be difficult year vs 2008
India still second fastest growing economy; current global situation not encouraging
Rs 67,000cr infrastructure projects given in-principle approval
IIFCL has raised Rs 10,000cr in FY09, can raise Rs 30,000cr if requiered
60% of infra project loans to be refinanced by IIFCL
Raised plan farm allocation by 300% under UPA
Interest rate subvention for farmers to continue for one more year
Provided Rs 65,300cr farm debt waiver in FY09
As per the ruling party they had maintained Constitutional Propriety in presenting the budget and the thought is echoed in the statements of some industry pundits who are saying that a vote on account is passed so that the state treasury can continue to do its work till the new government is elected.
External Affairs Minister Pranab Mukherjee did not present a populist budget as the United Progressive Alliance (UPA) government had done a "tremendous job" and does not need to play to the gallery, the ruling Congress maintained on Monday.
Mukherjee observed "constitutional propriety" while presenting the interim budget, Congress spokesperson Manish Tewari said.