Budget 2009 Headlines: Pranab Mukherjee presents Interim Budget

New Delhi (24/7 News Network): External Affairs Minister Pranab Mukherjee presented the Interim Budget 2009 in the Lok Sabha today. This is UPA's sixth budget. Pranab Mukherjee is presenting the budget after a gap of 25 years. The final budget will be produced only after the forthcoming general elections.

Mr. Pranab Mukherjee, while presenting the interim budget, highlighted the achievements of the UPA government in the last five years, rather than announcing new measures. He thanked UPA Chairperson Sonia Gandhi, Prime Minister Dr. Manmohan Singh and former Finance Minister P Chidambaram for the "growth" India witnessed in the past five years.

Pranab Mukherjee said that the UPA Government is fulfilling its commitments and is making all efforts to deliver the promises made to the people. At the end of his budget speech, he thanked all UPA partners and the people of India for their support to the government.

Pranab Mukherhee also "sought" votes from people on the basis of government's policies, which did not go well with the opposition and they protested against it. Later, the vote-on-account was passed in the Lok Sabha by a voice vote.

Pranab Mukherjee's budget speech was interrupted for 10 minutes after JD(S) MP Virendra Kumar fell ill inside the house. This was the first time in history that a budget session was adjourned in the middle of a budget speech.

Here are the key features of Interim Budget 2009:

Growth and Vision

• Budget estimate expenditure revised to Rs. 953,231 crores
• Plan expenditure revised to Rs. 3 lakh crore
• Central Plan Expenditure revised to
• Consistent 9% growth in the past 3 years
• Farmers real heroes of our success story
• Tax to GDP risen to 12.5 per cent in 2008
• Focus on maintaining growth rate of 7.8 %
• Investment rate has grown to 39%
• Agriculture and Manufacturing witness high growth
• Foreign trade increased to 35.5% of GDP in 2008
• Policies ensured dream run of economy from 2003 - 2009
• 22.7 million tonne wheat distributed by PDS in 2008
• Govt. took fiscal measures to combat downturn
• Savings rate up to 30.7% in 2008
• Export growth at 26.4% annually in the past 4 years
• Export growth slowed down to 17.1% in the past 8\9 months
• Per Capita income grew by 7.4% during the UPA regime
• India is second fastest growing economy in the world with 7.1%
• Inflation rate fell to 4.4% on January 31, 2009
• India Infrastructure companies to re-finance 60% of projects
• FDI inflows at $23.3 billion between April - Nov 2008 - up 45%
• FY09 Fiscal Deficit is seen at 6% of GDP
• FY09 Revenue Deficit is 4.4% against estimated 1%

Agriculture

• Agricultural annual growth rate 3.7%
• Agriculture credit disbursement has gone up
• Agriculture Plan allocation up by 300% in the last 4 years
• Agriculture credit increased to 2,50,000 crore (three-fold increase)
• Rs. 65,300 loan waiver in 2008-09
• Rs. 13,500 crore Agriculture revival package implemented in 25 states
• Committed to ensuring to food security
• Farmers to get loans up to 3 lakh at 7% interest
• MSP for Wheat increased to Rs. 1080 from Rs. 638

Programmes and Policies

• 37 infrastructure projects worth Rs. 70,000 crore cleared
• Employment generation schemes to be expanded
• Literacy outlay increased
• Pension schemes for widows, disables launched
• Received 32.5 billion in dollars in 2007-08
• 60.12 lakh houses constructed under Indira Awas Yojna
• Gross Domestic Savings rate went up to 37.7 per cent
• 15-point programme for the welfare of minorities set up
• Food Subsidy revised to Rs, 10,160 crore
• 3/4th of NAT Investment Fund to be used in social sector
• Rs. 6,705 crore allocated for child development schemes
• Food, Fertilisers and Petroleum subsidies to go up
• Defence Allocation hiked to 141,703 crore, linking it to 26/11 Mumbai terror attacks
• Rs. 40,900 crore for Bharat Nirmal Scheme
• 2% subsidy on export credit
• New Pension Schemes for Poor People
• Rs. 12,000 crore for Rural Sanitaion Programme
• Rajiv Gandhi Drinking Scheme to get Rs. 7,400 crore

Education

• 15 central universities and 6 new IITs started in 2008
• Priority will be given to young widows in admission to ITIs
• 6 new IIMs to be operational by 2010
• 2 more IITS in MP and Himachal Pradesh
• 500 new ITIs to be set up
• Outlay for higher education hiked by 900%
• Education loan schemes revised
• Rs. 13,100 crore to Sarva Siksha Abhiyan
• Rs. 8300 crore for Mid-Day Meal scheme

PSUs

• Dividend contribution from PSUs increased by 86 percent
• PSU turnover up by 84%
• Number of loss making PSUs came down to 54 from 72 in the last five years
• NPAs of PSU Banks fell by 2.3% in 2008

Tax Policies

• Tax rates must fall in times of crisis
• Our ability to pay tax must rise
• Tax collection down by Rs. 60,000 crore over estimates
• Revised estimates for non-tax revenue is Rs. 96,703 crore
• 2009 Tax Collections to exceed previous year
• Rs. 40,000 relief through tax cuts

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