Monday, July 6, 2009

Budget 2009

The budget presented few minutes back was far from market expectations and the market responded by a fall of over 700 points. I blogged last week that there is a possibility of capital market factoring in the budget expectations too early and falling (read here).

Some of the notable things missing from the speech given by finance minister Mr. Pranab Mukherjee were -

  • Divestment policy
  • FDI
  • Insurance
  • Fuel prices decontrol etc

The key highlights of the budget were (courtesy money control)

  • State-owned banks and insurance firms to remain in public sector
  • Work on National Food Security scheme for providing food at cheaper rates to the poor has begun
  • Increase allocation for Prime Minister Gram Sadak Yojana by 59 pc
  • Allocation of Rs 39,100 crore for NREGA for 2009-10
  • Govt to provide real wage of Rs 100 per day under NREGA
  • IT Return forms to be made simple and user friendly
  • Allocation for national highways development stepped up by 23 pc
  • Allocation for schemes for the urban poor to be raised to Rs.39,730 cr in 2009-10
  • 75 per cent increase for Accelerated Irrigation Programme
  • Extension of stimulus package for print media to be extended till December 2009
  • Indian Infrastructure Financial Corporation Limited (IIFCL) to evolve financing mechanism for giving increased support to in frastructure projects
  • Target for agricultu re credit raised to Rs 3,25,000 cr in 2009-10 from Rs 2,87,000 cr
  • Enhancing allocation from Rs 200 crore to Rs 500 crore for flood management project in Mumbai
  • Funds for Jawaharlal Nehru Urban Renewal Mission increased by 87 pc to Rs 12,887 cr
  • Funds for housing for urban poor to be raised to Rs 3,973 crore
  • FM forecasts GDP growth at 6.7 per cent for 2008-09
  • Growth rate in 2008-09 dipped to 6.7 pc from average 9 pc growth
  • Govt says its will broaden the agenda for inclusive development
  • Significant inflow of foreign capital is important
  • Govt moving towards providing energy security and integrated energy policy
  • Fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP
  • Total fiscal stimulus during 2008-09 amounts to Rs 1,86,000 crore
  • Govt plans to return economy to high GDP growth rate of 9 pc

No comments: