Interim Budget 2009

Well, the long wait ended but didn’t bring much change. Ask why and the answer comes straight and simple from finance minister Shri Pranab Mukherjee, “The mandate of the government is coming to an end by May 22-23. Elections are due. I can neither indulge in reckless borrowing nor go on imposing taxes without the mandate of Parliament. My hands are tied.” In such a crisis a budget is published. So let’s draw an analysis on what we get and what not.

• Huge allocation of Rs 1,31,317 crore to Government’s flagship rural employment program  in a bid to counter the economic recession.
• Few other schemes to curtail such crises.
• The extension of a 2% interest subvention on pre-shipment and post-shipment credit for certain employment sectors to support exports hit by the global economic slump.
• A total expenditure summing up to 9.5 hundred thousand crores.
• Defense becomes the most gaining sector as a healing up step after 26/11 attacks. With an increase of 34% the budget goes up to 1.41 lac crores from 1.05 lac crores.

Fund Injection :

• The Bharat Nirman scheme gets Rs 40,900 crore and the National Rural Employment Guarantee Scheme Rs 30,100 crore which are said to be for the masses.
• Sarva Siksha Abhiyan gets Rs 13,100 crore, Integrated Child Development Scheme gets  Rs 6,705 crore, Jawaharlal Nehuru Urban Renewal Scheme gets Rs 11,842 crore, National Rural Health Mission gets Rs 12,070 crore, Rajiv Gandhi Rural Drinking Water Mission Rs 7,400 crore and Total Rural Sanitation Programme get Rs 1,200 crore respectively.

According to Mr.Mukherjee, the country will definitely return to the fiscal responsibility budget management once the economic slowdown is restored though he added that a fiscal deficit of 5.5% of GDP which is around Rs 3 lac crores, is inevitable. Also a revenue deficit of 4% GDP is understandable.

Additional Plan Expenditure:

• Additional plan expenditure from 0.5 per cent to 1 per cent of GDP is expected and the system should be changing accordingly and
• Above all recession is to be handled with care, the finance minister genuinely added and lastly
• Rs 40,000 crore relief extended through tax cuts to counter this economic slowdown

Some extra Highlights :

• Budgetary support increased for Ministries of Rural Development, Road Transport & Highway, Power, Railways, Industrial Policy & Promotion and IT.
• Fertiliser subsidy increased by Rs 44,863 crore from about Rs 14,000 crore during 2008-09
• World economy, according to forecasts, will fare worse in 2009 than in 2008
• India is second fastest growing economy in the world with 7.1 per cent GDP expansion in 2008-09
• India Infrastructure Finance Company to raise Rs 10,000 crore from market by end of March 2009
• India Infrastructure Finance Company will finance 60 per cent of commercial loans in private public partnership in critical projects
• India Infrastructure Finance Company to raise Rs 30,000 crore from market in next fiscal year
• Government to continue interest subvention scheme for farmers for loans up to Rs 3 lakh
• Six new IITs started functioning in 2008-09. Two more IITs in Madhya Pradesh and Rajasthan will start functioning in 2009-10

Thus went on the session for ninety minutes, but nothing showing as promising but  an appealing step before the elections as stated once by the finance minister ”hand” (in an obvious reference to the Congress party’s election symbol) that can help the nation and chanted the mantra of   AAM AADMI and sooner the opposition starting giving allegations like it happens in India.