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Feb 17, 2009

Pranab presents Interim Budget 2009-10

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Minister for External Affairs Pranab Mukherjee in the Lok Sabha has presented the Interim Budget 2009-10 in Lok Sabha today. The annual budget would be presented after the general election.

The revenue deficit quadrupled due to the impact of the fiscal stimulus to various sectors, as the budget indicated. Mukherjee extended a Rs 40,000 crore relief through tax cuts to counter economic slowdown. India's economy has slipped from a growth rate of about nine per cent in the past three years, but still looks healthy compared with most developed economies, many of which are in recession.

Here are the highlights of the Interim Budget 2009-10:
  • Government focused on farms, jobs, fiscal devolution
  • Government spent Rs.70,000 (Rs.700 billion) crore on 37 infrastructure projects in 2008-09
  • Government may consider additional fiscal measures in budget
  • Government will need to return to deficit targets after revival
  • Government to expand employment generation schemes
  • Economy grew at 9% for three straight years
  • Per capital income growth at 7.4% per annum for four years
  • Investment as percentage of GDP rose to 39% in 2007-08 from 27.6%
  • Gross domestic savings rate at 37.7% during 2007-08
  • Foreign trade at 35.5% of GDP during 2007-08
  • Forecasts indicate 2009 may be worse than 2008
  • Refinance to banks for long term credit to infra projects
  • IIFCL to refinance 60% of commercial bank loans for PPP
  • FRBM targets relaxed to boost consumption demand
  • Mukherjee: Steps to bring back 9% growth needed at earliest
  • Mukherjee: Growth rate of exports down to 17.1% in 9 months
  • Mukherjee: Need to accelerate pace of policy reforms
  • Plan allocation for agriculture increased by 300% in 08-09
  • India got record $32.4bn FDI in FY'08
  • Defence Allocation hiked to 141,703 crore, linking it to 26/11 Mumbai terror attacks


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