• Poll result is mandate for inclusive growth.
• A single Budget Speech cannot solve all our problems.
• Budget an important mean to present the view of the government
• Aim: To reduce number of people living below poverty line to less than half of
current level by 2014
• Aim to sustain a growth rate of 9% over a period of time
• Aims at farm growth of over 4%
• Ensure 4% agriculture growth
• Highlights of 2008-09:
• Sharp rise in inflation to nearly 13% and a equally sharp fall to 0%
• GDP dips from over 9% average in past three years to 6.7% in 2008-09
• Gross capital flow rose to over 9% over GDP
• Infra investment to be over 9% of GDP by 2014
• Foreign investors are returning to Indian markets
• FIIs are back in the market, the worst two quarters are behind us
• Govt have some success in attracting investments in certain sectors through
PPP
• Govt needs to provide further stimulus for the economy
• There are signs of revival in domestic industry
• Stepped up allocation of funds from Rs 10,800 cr to Rs 15,800 cr for
railways
• Highway and railways – allocation hiked by 23%
• IIFCL and banks in position to support Rs 1,00,000 cr in
infrastructure
• JNNURM support raised by 87%
• The Assam gas cracker project estimated at Rs 5,160 cr
• Loan for farmers Rs 3,00,000 at 7% per annum
• Govt announces rebate for farmers paying loan on time, and lower
rate of 6% proposed
• Proposes to extend deadline to farmers to pay off 75% of loans by six months
to December 31, 2009
• Exporters borne the brunt of eco crisis, will provide adj assistance till March
2010
• The market development assitance scheme allocation hiked by 148% to Rs
124 cr
• Budget makes subvention of 1% to benefit farmers
• 30% rise in Rashtriya Krishi Vikash Yojana allocation over 2008-09
• Micro and SMEs affected by global crisis;credit flow at reasonable rate out of
rural infra dev fund
• Special fund of Rs 4,000 cr from Rural Infrastructure Dev fund to help
MSME sector
• Return to FRBM target as soon as possible
• To increase fertiliser usage – govt proposes to move from product pricing
basis
• Institutional reforms to cover subsidies, expenditure
• Fiscal deficit up to 6.2% from 2.7% fo GDP
• IT Saral 2 form to be introduced
• Proposes people’s participation in disinvestment programme
• Turbulence in world markets left Indian financial sector unaffected
• PSU Banks, insurance firms outside disinvestment plan