Budget Highlights:
• The budget for full fiscal year 2009/10 (April-March) will announced on July 6 /2009
• Annual economic survey for 2008/09 was presented on July 2 /2009
• Railway budget for 2009/10 was presented on July 3 /2009
• The month-long budget session will start from July 2 and conclude on August 7
Watch video from manorama tv live union budget 2009 here
Rural Development
The corpus of Rural Infrastructure Development Fund (RIDF) increased from
Rs.5,500 crore in 2003-04 to Rs.14,000 crore for the year 2008-09. A separate
window for rural roads created with a corpus of Rs.4,000 crore for each of the last
three years.
As against 60 lakh houses to be constructed under Indira Awaas Yojana by
2008-09, 60 lakh twelve thousand houses constructed between 2005-06 to
December, 2008.
Panchayat Empowerment and Accountability Scheme (PEAIS) proposed to be
expanded.
‘Project Arrow’ to provide new technology enabled services through post offices
to common man and support effective implementation of social sector schemes
like NREGS, while promoting financial inclusion.
Education
Major initiatives including a new Centrally Sponsored Scheme launched to
universalize education at secondary stage in the year 2008-09.
Outlay on Higher Education increased 9 fold in the Eleventh Five Year Plan. Ordinance
promulgated for establishing 15 Central Universities. In addition to 6 new Indian
Institutes of Technology (IITs) in Bihar, Andhra Pradesh, Rajasthan, Orissa, Punjab
and Gujrat which started functioning in 2008-09, two more IITs in Madhya Pradesh
and Himachal Pradesh are expected to commence their academic session in
2009-10.
5 Indian Institute of Science Education and Research (IISER) announced
earlier have become functional.
2 new schools of Planning and Architecture at
Vijayawada and Bhopal have started functioning.
Teaching is expected to commence from academic year 2009-10 in four out of six new Indian
Institute of Management
proposed for the Eleventh Plan in Haryana, Rajasthan, Jharkhand and Tamil Nadu.
Due to revision in Educational Loan Scheme by the Government number of
beneficiaries increased from 3.19 lakh to 14.09 lakh and amount of loan outstanding
increased from Rs.4,500 crore as on March, 31, 2004 to Rs.24,260 crore as on
September 30, 2008.
500 ITIs upgraded into centers of excellence. National Skill Development
Corporation created in July, 2008 with initial corpus of Rs. 1,000 crore.
Social Sector
Authorised capital of National Safai Karamchari Finance and Development
Corporation (NSKFDC) is being raised from Rs.200 crore to Rs.300 crore.
Scope of the pre-metric scholarship for children of those engaged in unclean
occupations expanded and rates of scholarship doubled in 2008-09.
Annual ad-hoc grant increased by about 50 per cent as compared to earlier rates.
Rashtriya Mahila Kosh to be strengthened by enhancing its authorized capital.
‘Priyadarsini Project’ a rural women’s employment and livelihood programme
will be implemented as pilot in the district of Madhubani and Sitamarhi in Bihar
and Shravasti, Bahraich, Rai Bareli and Sultanpur in Uttar Pradesh.
146 lakh persons benefited under Indira Gandhi National Old Age Pension Scheme
in the current financial year.
Two new schemes – ‘Indira Gandhi National Widow Pension Scheme’ to provide
pension of Rs.200 to widows between age groups of 40-64 years and ‘Indira Gandhi
National Disability Pension Scheme’ to provide pension for severely disabled
persons.
Widows in the age group of 18-40 years to be given priority in admission to ITIs,
Women ITIs and National/Regional ITIs for women. Government to bear cost of
their training and provide stipend of Rs.500 per month.
22 States and Union Territories initiated process to implement Rashtriya Swasthya
Bima Yojana for BPL familities in the unorganised sector and 60 lakh thirty two thousand
persons covered for death and disability under ‘Aam Admni’ Bima Yojana (AABY).
Public Sector Enterprises
Turnover of Central Public Sector Enterprises increased from Rs.5,87,000 crore in
2003-04 to Rs.10,81,000 crore in 2007-08 and profits grew from Rs.53,000 crore
to Rs.91,000 crore. While number of loss making enterprises came down from 73
in 2003-04 to 55 in 2007-08, number of profit making enterprises has gone up
from 143 to 158 during the same period..
Government approved implementation of Guidelines on Corporate Governance in
Central Public Sector Enterprises (CPSEs) in June, 2007.
Corpus of National Investment Fund created out of disinvestment proceeds from
Central PSUs stood at Rs.1,815 crore as on December 31, 2008.
Financial Sector Reforms
NPAs of Public Sector Banks declined from 7.8 per cent on March 31, 2004 to 2.3
per cent on March 31, 2008.
As a result of initiating process of amalgamation and recapitalization of Regional
Rural Banks (RRBs) with negative net worth, 196 RRBs merged into 85 RRBs. The
Government has contributed Rs.652 crore for capitalization of RRBs upto December
31, 2008.
Number of reforms undertaken in the last four years to deepen and widen the
securities markets and strengthen the regulatory mechanisms for these markets.
The Companies Bill, 2008, undertaking comprehensive revision of Companies Act,
1956 to enable adoption of internationally accepted best practices, has been
introduced in the Parliament.
Tax Effort
Comprehensive reforms of tax system both direct and the indirect tax system have
enabled the tax administration to enhance its functional efficiency and provide
better tax payer services leading to increased compliance. Rates of Union Excise
Duties and Service Tax rationalized for eventual shift to the Goods and Service
Tax on 1st April, 2010.
109 marine vessels sanctioned for the Customs Department to prevent movements
of contraband goods across the country’s sea borders.
Administrative Reforms
The enactment of the Right to Information Act at the Centre and in many States
ushering in greater accountability of the public servants.
Recommendations of the Sixth Central Pay Commission approved by the
Government has benefited over 45 lakh Central Government employees including
Defence Forces and Para-Military forces and over 38 lakh pensioners.
REVISED ESTIMATES
The total expenditure at Rs.7,50,884 crore in B.E. 2008-09 revised to Rs.9,00,953
crore in R.E. 2008-09 showing an increase of Rs.1,50,069 crore.
Plan Expenditure gone up from Rs.2,43,386 crore in B.E. 2008-09 to Rs.2,82,957
crore in R.E. 2008-09.
Non-Plan expenditure increased by Rs.1,10,498 crore in R.E. 2008-09 over B.E.
2008-09.
Revised Estimate 2008-09 for Non-Tax Revenues increased from Rs.95,785 crore
in Budget Estimate 2008-09 to Rs.96,203 crore.
Revised Estimates of gross tax collection projected at Rs.6,27,949 crore as against
B.E. 2008-09 of Rs.6,87,715 crore, primarily due to pro-active fiscal measures
initiated to counter the impact of global slowdown on the Indian economy.
Revised Revenue deficit to be at Rs.2,41,273 crore (4.4 per cent of GDP) as against
budgeted figure of Rs.55,184 crore (1 per cent of GDP).
Fiscal deficit to go up from Rs.1,33,287 crore (2.5 per cent of GDP) in B.E.
2008-09 to Rs.3,26,515 crore (6 per cent of GDP).
BUDGET ESTIMATES
Total expenditure for fiscal 2009-10 estimated at Rs.9,53,231 crore. Plan
expenditure estimated at Rs.2,85,149 crore and Non-Plan expenditure at Rs.6,68,082
crore.
Budgetary support in Plan B.E. 2009-10 in comparison to B.E. 2008-09 increased
for Department of Rural Development, Department of Road Transport & Highways,
Railways, Ministry of Power, Department of Industrial Policy and Promotion and
Department of Information Technology to meet the requirements of rural and
infrastructure development along with higher allocation for Ministry of Youth Affairs
& Sports and Ministry of Culture to ensure adequate resources for hosting of the
Commonwealth Games. Allocations to flagship programme which directly impact
‘Aam Aadmi’ fully protected.
Rs.30,100 crore allocated for National Rural Employment Guarantee Scheme for
the year 2009-10. In 2008-09 employment of 138.76 crore person days covering
3.51 crore household already generated.
About 98 per cent habitations covered by primary schools under Sarva Shiksha
Abhiyan. Allocation for this programme increased by 571 per cent between
2003-04 and 2008-09. Allocation of Rs.13,100 crore proposed for 2009-10.
Rs.8,000 crore allocated for Mid-day Meals Scheme for the year 2009-10.
Allocation of Rs.6,705 crore proposed for Integrated Child Development Scheme
(ICDS) for the year 2009-10. New WHO child growth standards adopted for
monitoring growth of children under ICDS.
386 projects amounting to Rs.39,000 crore sanctioned till December 31, 2008 under
Jawaharlal Nehru National Urban Renewal Mission (JNNURM). Allocation of
Rs.11,842 crore proposed for the year 2009-10.
Rs.7,400 crore allocated for Rajiv Gandhi Rural Drinking Water Mission, Rs.1,200
crore for Rural Sanitation Programme, Rs.12,070 crore for National Rural
Mission, Rs.40,900 crore allocated for Bharat Nirman for the year 2009-10.
A provision of Rs.100 crore in the Annual Plan 2009-10 made for Unique
Identification Authority of India.
RIDF-XV proposed with a corpus of Rs.14,000 crore. Separate window for rural
roads to continue with a corpus of Rs.4,000 crore.
Interest subvention of 2 per cent on pre and post shipment credit for certain
employment oriented sectors i.e. Textiles (including handlooms & handicrafts),
Carpets, Leather, Gem & Jewellery, Marine products and SMEs extended beyond
March 31, 2009 till September 30, 2009 involving an additional financial outgo of
Rs.500 crore.
Government to recapitalize the public sector banks over the next two years to enable
them to maintain Capital to Risk Weighted Assets Ratio (CRAR) of 12 per cent.
Allocation for Defence increased to Rs.1,41,703 crore which includes Rs.54,824
for Capital Expenditure.
Major subsidies including food, fertilizer and petroleum estimated at Rs.95,579
crore.
For the fiscal 2009-10, with Centre’s net tax revenue estimated at Rs.5,00,096
crore and Revenue expenditure at Rs.8,48,085 crore, revenue deficit is estimated
at 4 per cent of GDP and fiscal deficit at 5.5 per cent of GDP.
You can also visit these sites for more info:
India budget 2009
Union Budget News & Highlights from economictimes
