Budget Analysis 09

UNION BUDGET 2009-10
Impact Analysis
UNION BUDGET 2009-10: Impact Analysis
CONTENTS
BUDGET AT A GLANCE............................................................................................. 1
UNION BUDGET 2009-10 : A MACROECONOMIC PERSPECTIVE......................... 2 - 3
SECTORAL IMPACT............................................................................................ 4 - 24
CHANGE IN CENTRAL PLAN OUTLAY...................................................................... 25
RECEIPTS......................................................................................................... 26 - 27
EXPENDITURE................................................................................................. 28 - 29
KEY ECONOMIC INDICATORS (Absolute Values).................................................... 30
KEY ECONOMIC INDICATORS (Percentage Change Over Previous Year)................ 31

BUDGET AT A GLANCE
(Rs bn) 2008-09 2009-10

Revised Estimates Budget Estimates
1 Revenue Receipts 5,621.73 6,144.97

2) Tax Revenue 4,659.70 4,742.18
(net to centre)
3) Non-Tax Revenue 962.03 1,402.79
4 Capital Receipts (5+6+7)$ 3,387.80 4,063.41
5) Recoveries of loans 96.98 42.25
6) Other receipts 25.67 11.20
7) Borrowings and other liabilities *
3,265.15 4,009.96
8 Total Receipts (1+4) $
9,009.53 10,208.38
9 Non-Plan Expenditure 6,179.96 6,956.89

10) On Revenue Account of which 5,617.90 6,188.34
11) Interest Payments 1,926.94 2,255.11
12) On Capital Account 562.06 768.55
13 Plan Expenditure 2,829.57 3,251.49
14) On Revenue Account 2,416.56 2,783.98
15) On Capital Account 413.01 467.51
16 Total Expenditure (9+13) 9,009.53 10,208.38
17) Revenue Expenditure (10+14) 8,034.46 8,972.32
18) Capital Expenditure (12+15) 975.07 1,236.06
19 Revenue Deficit (17-1) 2,412.73 2,827.35
% of GDP (4.4) (4.8)
20 Fiscal Deficit {16-(1+5+6)} 3,265.15 4,009.96
% of GDP (6.0) (6.8)
21 Primary Deficit (20-11) 1,338.21 1,754.85
% of GDP (2.5) (3.0)

$ Does not include receipts in respect of Market Stabilisation Scheme.
* Includes draw-down of Cash Balance.
Note : GDP for BE 2009-2010 has been projected at Rs.5856569 crore assuming 10.05% growth
over the revised estimates of 2008-2009 (Rs.5321753 crore) released by CSO. Deficit indicators in
RE 2008-09 have been retained on the basis of advance estimate for 2008-09 (Rs. 5426277 crore).
1
UNION BUDGET 2009-10 : A MACROECONOMIC PERSPECTIVE
The Union Budget 2009 -10 is largely positive, and seems to be an ‘aspirational’ budget in terms
of what it seeks to achieve over a long term horizon. The continued thrust on agriculture, social
sector and infrastructure would support the economy to get back on the revival path soon.
The stimulus related proposals in the budget will however place a huge burden on the Centre’s
already strained fiscal position. Having said that, the Government does not have too much room
to maneuver and perhaps, living with a high fiscal deficit may be inevitable for the time being.
Fiscal Arithmetic for FY10

For FY10, total expenditure is budgeted to increase by 36% to a record Rs 10,208 bn. Plan
expenditure received a major boost in the Budget, reinforcing the Government’s commitment
towards accelerating the growth process. At Rs 3,251 bn, the Plan expenditure has been increased
by 34%. The non-Plan expenditure is however budgeted to grow at a faster pace; the expenditure
on this front is slated to increase by 37% and account for 68% of the total expenditure. The
increase in non-Plan expenditure is mainly on account of implementation of the Sixth Central
Pay Commission recommendations and higher subsidies (budgeted to grow at 55.8%). Significant
increase in Government borrowing has exerted pressure on interest payments and are budgeted
to increase by 18.2%.
Revenue collection targets of the Government are fairly moderate with total receipts likely to
grow by 36% during FY10. The gross tax revenue targets for FY10 are set in consonance with
the slowdown in the economic activity. The gross tax revenue receipts are budgeted to decline
by 6.8% owing to a projected decline in income tax, customs and excise duty collections. The
Minimum Alternate Tax is proposed to go up to 15% from the current rate of 10%. On the other
hand, the proposed abolishment of the FBT is a welcome move.
For FY10, Fiscal Deficit has been budgeted to increase to 6.8% of GDP and Revenue Deficit to 4.8%
of GDP, deferring the attainment of the FRBM targets with respect to both. However, intentions
towards structural changes in direct taxes by releasing the new Direct Taxes Code within the
next 45 days and in indirect taxes by accelerating the process for the smooth introduction of
the Goods and Services Tax (GST) with effect from April 1, 2010 are welcome. Of course, these
measures would have been even more welcome if a specific road map for containing the fiscal
deficit had been laid out for the medium term. As economic revival sets in, and the high fiscal
deficit becomes a potential bottleneck, monetary policy may have to be appropriately adjusted
to take care of the issues pertaining to fund availability – which in itself may not have too much
room. Hence, over the medium term, concerns over the fiscal deficit remain.
2
The positives contained in this budget will become most apparent over the longer term, and
that is where it scores the most – provided the intent and aspiration is met. While disinvestment
could have found greater articulation, there seems to be a positive movement in that direction.
The large number of measures proposed with regard to institutional, procedural and regulatory
reform in such diverse areas as petrol prices, taxation and growth inclusiveness will unlock much
of the economic growth potential. As the FM indicated, one budget speech will not solve all our
problems! Hence, we may see some policy measures announced as off-budget initiatives.
3
SECTORAL IMPACT
Sector Rating
Agriculture Positive
Social Sector Positive +
Infrastructure Positive +
MSME Positive
Automobiles Marginally Positive
Capital and Engineering Goods Neutral
Cement Positive
Oil & Gas Positive
Power Positive
Petrochemicals Neutral
Pharmaceuticals & Healthcare Positive
Consumer Goods Marginally Positive
Leather Positive
Gems & Jewellery Neutral
Textiles Neutral
Banking and Finance Positive
Hospitality Marginally Positive
Media and Entertainment Neutral
Information Technology Positive
Retail Positive
Ratings:
Positive + Predominantly positive proposals
Positive Positive proposals
Marginally Positive Positive proposals but not up to industry expectations
Neutral Negative proposals offsetting positive proposals
4
Agriculture
ÿÿ The total outlay allocated to agriculture sector is to be increased by 5.51% to Rs 106.29 bn.
ÿÿ The target for agriculture credit flow for the year FY10 is being set at Rs 3,250 bn.
ÿÿ An additional allocation of Rs 10 bn over Interim Budget Estimates for the Accelerated
Irrigation Benefit Programme (AIBP), marking an increase of 75% over the allocation in FY09
(Budget Estimates).
ÿÿ The allocation for the Rashtriya Krishi Vikas Yojna (RKVY) to be increased by 30% over Budget
Estimates of FY09.
ÿÿ An allocation of Rs 11 bn for National Horticulture Mission.
ÿÿ An allocation of Rs 13.50 bn for National Food Security Mission.
ÿÿ An allocation of Rs 9.50 bn for Macro Management in Agriculture.
ÿÿ An allocation of Rs 4.30 bn for Micro Irrigation.
ÿÿ An allocation of Rs 6.44 bn for National Agricultural Insurance Scheme.
ÿÿ An allocation of Rs 3.20 bn for Integrated Oilseeds, Oil Palm, Pulses & Maize Development.
ÿÿ Proposal to continue the interest subvention scheme for short term crop loans to farmers for
loans upto Rs 0.3 mn per farmer at the interest rate of 7% per annum. Further, an additional
subvention of 1% is proposed as an incentive to those farmers who repay their short term
crop loans on schedule. An additional Budget provision of Rs 4.11 bn over Interim BE to be
made for the scheme.
ÿÿ Under the Agricultural Debt Waiver and Debt Relief Scheme (2008), farmers having more
than two hectares of land were given time upto June 30, 2009 to pay 75% of their overdues.
Proposal to extend this period by six months upto December 31, 2009.
ÿÿ To ensure balanced application of fertilizers, the Government intends to move towards a
nutrient based subsidy regime instead of the current product pricing regime.
ÿÿ In some regions of Maharashtra, a large number of farmers had taken loans from private
money lenders and the loan waiver scheme did not cover them. Hence, there is a proposal
to set up a Taskforce to examine the matter in greater detail and suggest the future course
of action.
ÿÿ An allocation of Rs 750 mn as a Special package for farming population in 31 suicide prone
districts.
ÿÿ An allocation of Rs 15.84 bn for Agricultural Research and Education.
ÿÿ An allocation of Rs 2.52 bn for World Bank Aided National Agricultural Innovation Project.
5
Positive
The strong focus of the budget on the irrigation sector reiterates the Government’s commitment
to boost the overall agriculture growth in India. Moreover, the substantial increase in the target
for farm credit to Rs 3,250 bn coupled with increased allocation for Krishi Vikas Yojana and an
allocation for agriculture research & development are some of the key measures intended to
promote growth in agriculture sector. The proposal to move towards a nutrient based subsidy
regime for fertilizers instead of current product pricing regime is commendable and is expected
to result in availability of innovative fertilizer products in the market at reasonable prices. While
the extension of period for payment of overdues under Agricultural Debt Waiver and Debt Relief
Scheme (2008) and a Special package for farming population in 31 suicide prone districts augurs
well for debt-ridden farmers, the additional subvention of 1% on short-term crop loans is expected
to encourage farmers to repay their crop loans on schedule, in turn leading to improvement in
banks’ loan recovery.
6
Social Sector
Human Resource Development and Social Justice
ÿÿ An allocation of Rs 67.05 bn for Integrated Child Development Services.
ÿÿ An allocation of Rs 600 mn for Integrated Child Protection Scheme.
ÿÿ An allocation of Rs 391 bn for FY10 for NREGA which marks an increase of 144% over FY09
Budget Estimates.
ÿÿ An allocation of Rs 1 bn for Pradhan Mantri Adarsh Gram Yojana (PMAGY). Each village
would be able to avail gap funding of Rs 1 mn over and above the allocations under Rural
Development and Poverty Alleviation Schemes.
ÿÿ The Swarna Jayanti Gram Swarozgar Yojna (SGSY) is being restructured as the National Rural
Livelihood Mission to make it universal in application, focused in approach and time bound
for poverty eradication by 2014-15.
ÿÿ Stress to be laid on the formation of women Self Help Groups (SHGs).
ÿÿ Apart from providing capital subsidy at an enhanced rate, it is also proposed to provide
interest subsidy to poor households for loans upto Rs 0.1 mn from banks.
ÿÿ The corpus of the Rashtriya Mahila Kosh to be raised to Rs 5 bn, over the next few years from
Rs 1 bn at present.
ÿÿ Proposal to launch a National Mission for Female Literacy, with focus on minorities, SC, ST
and other marginalised groups.
ÿÿ To enable students from economically weaker sections to access higher education, it is
proposed to introduce a scheme to provide them full interest subsidy during the period of
moratorium. It will cover loans taken by such students from scheduled banks to pursue any
of the approved courses of study, in technical and professional streams, from recognised
institutions in India.
ÿÿ The Plan outlay of Ministry of Minority Affairs to be enhanced from Rs 10 bn in BE FY09 to Rs
17.40 bn in FY10, registering an increase of 74%. This includes an allocation of Rs 9.90 bn for
Multi-Sectoral Development Programme for Minorities in selected minority concentration
districts, almost two times increase in Grants-in-aid for Maulana Azad Education Foundation,
and provisions for National Minorities Development and Finance Corporation and Pre-Matric
and Post-Matric Scholarships for Minorities. Further, allocations to be made for the new
schemes of National Fellowship for Students from the Minority Community and Grants-in-
aid to Central Wakf Council for computerization of records of State Wakf Boards.
ÿÿ An allocation of Rs 250 mn each for Aligarh Muslim University’s campuses at Murshidabad in
West Bengal and Malappuram in Kerala.
7
ÿÿ There is a proposal to launch a new project for modernisation of the Employment Exchanges
in public private partnership. Under the project, a national web portal with common software
to be developed which will contain all the data regarding availability of skilled persons on the
one hand and requirements of skilled persons by the industry on the other.
ÿÿ An allocation of Rs 450 mn for computerisation of PDS operations in all States/Union
Territories.
ÿÿ An allocation of Rs 1 bn for Rajiv Gandhi National Creche Scheme.
ÿÿ An allocation of Rs 1.10 bn for Rajiv Gandhi Scheme for Empowerment of Adolescent Girls.
ÿÿ An allocation of Rs 590 mn for Relief to and Rehabilitation of Rape Victims.
ÿÿ An allocation of Rs 4.80 bn towards Special Central Assistance for Scheduled Castes Component
Plan.
ÿÿ An allocation of Rs 7.50 bn and Rs 2.73 bn for Post Matric Scholarships for SC and ST students
respectively.
8
Education
ÿÿ An allocation of Rs 131 bn for Sarva Shiksha Abhiyan.
ÿÿ An allocation of Rs 13.54 bn for Rashtriya Madhyamik Shiksha Abhiyan.
ÿÿ An allocation of Rs 80 bn for National Programme of Mid Day Meals in Schools.
ÿÿ An allocation of Rs 7.50 bn for National Means-cum-Merit Scholarship Scheme.
ÿÿ The overall allocation for higher education is proposed to be increased by Rs 20 bn over
Interim Budget Estimate.
ÿÿ An allocation for the scheme, ‘Mission in Education through ICT,’ to be increased to Rs 9 bn.
ÿÿ An allocation for setting up and up-gradation of Polytechnics under the Skill Development
Mission to be increased to Rs 4.95 bn.
ÿÿ An allocation of Rs 8.27 bn to set up one Central University in each uncovered State.
ÿÿ An allocation of Rs 21.13 bn for IITs and NITs, which includes a provision of Rs 4.50 bn for new
IITs and NITs.
ÿÿ An allocation of Rs 500 mn for improvement in the facilities at Punjab University, Chandigarh.
Further, there is a proposal to enhance the Plan allocation for Chandigarh during FY10 to
enable the Union Territory Administration to provide better infrastructure to the people.
ÿÿ There is a proposal to extend the scope of Section 80E of the Income-tax Act which provides
for a deduction in respect of interest on loans taken for pursuing higher education in
specified fields of study, to cover all fields of study, including vocational studies, pursued
after completion of schooling.
ÿÿ An allocation of Rs 43.75 bn for University Grants Commission - includes provision for
implementation of the recommendations of Oversight Committee.
ÿÿ An allocation of Rs 39.02 bn for Technical Education, including a provision for implementation
of the recommendations of Oversight Committee.
ÿÿ An allocation of Rs 9 bn for National Mission in Education through Information and
Communication Technology.
9
Health & Sanitation

ÿÿ The allocation for the National Rural Health Mission to be increased by Rs 20.57 bn over and
above Rs 120.70 bn provided in the Interim Budget.
ÿÿ An allocation of Rs 12 bn for Total Sanitation Campaign.
ÿÿ An allocation of Rs 3.50 bn for Rashtriya Swasthya Bima Yojana (RSBY).
ÿÿ Customs duty on influenza vaccine and nine specified life saving drugs used for the treatment of
breast cancer, hepatitis-B, rheumatic arthritis etc. and on bulk drugs used for the manufacture
of such drugs to be reduced to 5% from 10%. There is a proposal to fully exempt these drugs
from excise duty and countervailing duty.
ÿÿ Customs duty on two specified life saving devices used in treatment of heart conditions to be
reduced to 5% from 7.5%. There is a proposal to fully exempt these devices from excise duty
and countervailing duty.
Regional Development
ÿÿ An allocation of Rs 600 mn for North Eastern Development Finance Corporation.
Positive +
The social sector that has received almost 24.95% of the total plan outlay of the central Government
remains a key focus area for the Union Budget FY10. The allocation for rural development which
is proposed to be increased by almost 131% (as against FY09 BE) to Rs 438.5 bn point towards
the Government’s commitment for providing further impetus to the sector. The increase in
budgetary allocation for various employment generation and poverty alleviation programmes
is expected to increase the purchasing power in the hands of rural poor. On the education front,
the implementation of various schemes with greater allocation will help to enhance spread of
education especially among the weaker sections of the society. Further, the provision for new IITs
and NITs in the budgetary allocation and an increase in allocation for setting up and up-gradation
of Polytechnics under the Skill Development Mission is expected to provide fillip to the higher
education sector.
Nonetheless, public health & sanitation sectors which together have received allocation of mere
3.24% of total central plan outlays, needs to receive greater attention as it would go a long way
in improving sanitation facilities in the country.
10
Infrastructure
ÿÿ Increase infrastructure investment to more than 9% of GDP by FY14.
ÿÿ Greater flexibility is to be provided to the India Infrastructure Finance Company Limited
(IIFCL) to fulfill its mandate.
ÿÿ IIFCL would, in consultation with banks, evolve a ‘takeout financing’ scheme which could
facilitate incremental lending to the infrastructure sector.
ÿÿ The Central and State Governments have been urged to remove policy, regulatory and
institutional bottlenecks for speedy implementation of infrastructure projects.
Highways and Railways

ÿÿ The allocation during the current year to National Highways Authority of India (NHAI) for the
National Highways Development Programme (NHDP) stepped up by 23% over the FY09 (BE).
ÿÿ Allocation for Railways increased from Rs 108 bn made in the Interim Budget for FY10 to Rs
158 bn.
Rural Infrastructure
ÿÿ The allocations for Bharat Nirman increased by 45% to about Rs 453.56 bn in FY10 over the
BE of FY09.
ÿÿ The allocation for Pradhan Mantri Gram Sadak Yojana (PMGSY) increased by 59% over BE
FY09 to Rs 120 bn.
ÿÿ The allocation for the Indira Awaas Yojana (IAY) is proposed to be increased by 63% to Rs 88
bn in Budget Estimates FY10.
ÿÿ An allocation of Rs 20 bn for Rural Housing Fund in the National Housing Bank (NHB).
ÿÿ An allocation of Rs 80 bn for supplementing the States in their effort to provide safe drinking
water to all rural habitations.
ÿÿ An allocation of Rs 1 bn for Stand-alone Water Purification Systems in rural schools.
11
Urban Infrastructure
ÿÿ The allocation for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) proposed
to be stepped up by 87% to Rs 128.87 bn.
ÿÿ The allocation for housing and provision of basic amenities to urban poor enhanced to Rs
39.73 bn. This includes the provision for Rajiv Awas Yojana (RAY), a new scheme announced
intended to make the country slum free in the five year period.
Brihan Mumbai Storm Water Drainage Project (BRIMSTOWA)

ÿÿ The allocation for the Brihan Mumbai Storm Water Drainage Project (BRIMSTOWA) enhanced
from Rs 2 bn in Interim BE to Rs 5 bn to expedite the completion of the project.
Positive+
Overall the infrastructure sector is likely to benefit greatly from the Union Budget FY10. Steps
such as greater flexibility provided to the India Infrastructure Finance Company Limited (IIFCL)
and evolving a ‘takeout financing’ scheme are likely to boost investment in infrastructure
sector significantly. Further, removal of procedural bottlenecks for speedy implementation of
infrastructure projects will ensure timely availability of funds. The increased allocation for NHDP
programme and railways is expected to provide impetus to transportation sector. Moreover, a
significant increase in allocation for APDRP and RGGVY schemes point towards the Government’s
efforts to satisfy the ever rising demand for electricity in the country.
The greater allocation for the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and
the introduction of Rajiv Awas Yojana (RAY) intended to make the country slum free in the 5 year
period are likely to play a pivotal role in urban infrastructure development. The Union Budget lays
emphasis on the development of rural infrastructure as is evident from the greater allocation for
various schemes for housing, irrigation and sanitation.
12
Industry
Micro, Small and Medium Enterprises (MSMEs)
ÿÿ The Government has proposed a fund of Rs 40 bn in the form of a special fund to be provided
to Small Industries Development Bank (SIDBI) out of Rural Infrastructure Development Fund
(RIDF)
Positive
The provision of a special fund to the SIDBI is likely to help the MSMEs receive increased flow
of credit at reasonable rates. The increased allocation would provide incentives to the Banks
and State Finance Corporations (SFCs) to easily extend credit to the firms by refinancing 50% of
incremental lending to MSMEs during FY10. The MSMEs have been severely hit by the decline
in demand, both on domestic as well as export front. Moreover, credit crunch has left the SMEs
unable to finance their working capital. The additional allocation would provide them the much
needed respite.
Automobiles
ÿÿ Specific component of excise duty applicable on large cars and multi-utility vehicles with
engine capacity of 2,000 cc and above is to be reduced from Rs 20,000 per vehicle to Rs
15,000 per vehicle
ÿÿ Excise duty on petrol-driven trucks and lorries is to be reduced from 20% to 8%. Excise duty
on chassis of such trucks and lorries is to be reduced from 20% plus Rs 10,000 to 8% plus Rs
10,000
Marginally Positive
The reduction in additional excise duty on large cars and multi-utility vehicles is expected to have
a negligible impact on boosting demand for such vehicles. The focus on infrastructure is expected
to indirectly give a boost to demand for commercial goods carriers and is expected to be a long-
term demand driver for passenger cars.
Passenger Vehicles
The reduction in additional excise duty on large cars and utility vehicles is expected to have
negligible impact on boosting demand as the customer segment for this category of vehicles is
not price-sensitive.
Commercial Vehicles (CV)

The 12-percentage point reduction in excise duty on petrol-driven trucks and lorries is expected to
have negligible impact on demand as majority of the trucks in the country run on diesel engines.
13
Nevertheless, the CV industry is expected to benefit indirectly from certain other budgetary
announcements. Increased allocation to the infrastructure and road sectors is expected to have a
long-term positive impact on providing a boost to demand for such vehicles.
Two & three-wheelers

There were no specific announcements made for this sector. However, the focus on rural areas is
likely to have a positive impact on boosting demand for two-wheelers.
Auto Components
Since only a negligible proportion of trucks run on non-diesel engines, the reduction in excise duty
on chassis of petrol-driven trucks and lorries is expected to have neutral impact on pushing up
demand for petrol-driven trucks/lorries, and thereby for their auto components.
Capital goods and Engineering

ÿÿ Concessional customs duty of 5% on specified machinery for tea, coffee and rubber plantations
to be reintroduced for one year.
ÿÿ Customs duty on ‘mechanical harvester’ for coffee plantation to be reduced from 7.5% to
5%.
Neutral
Government announced reduction in customs duty on import of specified machinery for tea, coffee
and rubber plantations. This is expected to boost the tea, coffee and rubber plantation industry.
Apart from this, budget emphasis on several infrastructure and rural development projects
with increased fund allocation and defence expenditure will provide boost to capital goods and
engineering industry in FY10.
Cement
ÿÿ Customs duty exemption on concrete batching plants of capacity 50 cubic meter per hour or
more has been withdrawn. Such plants will now attract customs duty of 7.5%
Positive
The increase in customs duty on concrete batching plants would affect construction companies;
however the impact of the same on the cement industry would be minimal. Increased allocation
for various infrastructure segments, such as for the National Highway Development Programme
(NHDP) through NHAI, Bharat Nirman, Pradhan Mantri Gram Sadak Yojana, Jawaharlal Nehru
National Urban Renewal Mission (JNNURM), Accelerated Power Development and Reform
14
Programme (APDRP), Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), Accelerated Irrigation
Benefit Programme (AIBP) augurs well for the cement industry. The infrastructure sector would
also benefit from the decision to allow IIFCL to refinance 60% of commercial bank loans for PPP
projects in critical sectors. The infrastructure sector is one of the major consumer segments of
cement.
Oil and Gas

ÿÿ Government to set up an expert group to advice on a viable and sustainable system of pricing
petroleum products.
ÿÿ Government proposes to develop a blueprint for long distance gas highways leading to a
National Gas Grid, which would facilitate transportation of gas across the length and breadth
of the country. LNG infrastructure in the country is also being expanded.
ÿÿ Outlay for Assam Gas Cracker Project sanctioned in April 2006 to be stepped up suitably in
budget estimates for FY10.
ÿÿ Tax holiday under section 80-IB(9) of the Income Tax Act which was hitherto available in
respect of profits arising from the commercial production or refining of mineral oil to be
extended to natural gas. This tax benefit to be available to undertakings in respect of profits
derived from the commercial production of mineral oil and natural gas from oil and gas blocks,
which are awarded under the NELP-VIII round of bidding.
ÿÿ Investment linked tax incentives to be provided instead of profit-linked exemptions to
the business of laying and operating cross-country natural gas or crude or petroleum oil
pipeline network for distribution on common carrier principle. Under this method, all capital
expenditure, other than expenditure on land, goodwill and financial instruments, to be fully
allowable as deduction.
ÿÿ The ad valorem component of excise duty of 6% on petrol and diesel intended for sale with a
brand name to be converted into a specific excise duty. Petrol intended for sale with a brand
name would now attract an excise duty of Rs 14.50 per litre instead of ‘6% + Rs 13 per litre,
while diesel intended for sale with a brand name would now attract a total excise duty of Rs
4.75 per litre instead of ‘6% + Rs 3.25 per litre’.
ÿÿ Customs duty on bio-diesel to be reduced from 7.5% to 2.5%.
ÿÿ Duty paid High Speed Diesel blended with upto 20% bio-diesel to be fully exempted from
excise duties.
ÿÿ Excise duty on Special Boiling Point spirits has been reduced to 14%.
ÿÿ Excise duty on naphtha has been reduced to 14%.
15
Positive
Setting up the expert group for pricing of petroleum products would definitely aid the sector,
however for now uncertainty on the pricing and subsidy front would continue as no timeframe for
setting up the panel has been indicated. Oil exploration and production (E&P) companies would
benefit with the extension of benefits under section 80 IB (9) of Income Tax act.
Power
ÿÿ Allocation under Accelerated Power Development and Reform Programme (APDRP) increased
by 160% to Rs 20.80 bn in budget estimates for FY10 over FY09.
ÿÿ Allocation under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) increased by 27%
to Rs.70 bn.
ÿÿ Extension of benefits under section 80IA extended by1-year till March 31, 2011 for power
generation, distribution and transmission projects that are commissioned by March 31,
2011.
ÿÿ Excise duty on naphtha to be reduced to 14%.
ÿÿ Customs duty on permanent magnets for PM synchronous generator above 500 KW used in
wind operated electricity generators to be reduced from 7.5% to 5%.
Positive
The increased allocation under the APDRP and RGGVY schemes are major positives for the sector.
This could help in strengthening the distribution sector as also rural electrification. Power companies
using naphtha as feedstock would benefit from the reduction in excise duty on naphtha.
The power sector would also gain from the decision to allow IIFCL to refinance 60% of commercial
bank loans for PPP projects in critical projects and the extension of tax benefits under section 80-
IA by 1-year.
Petrochemicals
ÿÿ The excise duty on naphtha to be reduced to 14%.
ÿÿ There is no change in the excise duty (4% currently) on the paraxylene.
ÿÿ Excise duty on acrylonitrile to be increased from 4% to 8%.
ÿÿ Excise duty on PTA and DMT to be increased from 4% to 8%.
ÿÿ Customs duty on rock phosphate to be reduced from 5% to 2%.
16
Neutral
The reduction in the excise duty on the naptha from 16% to 14% will help to reduce input cost of
petrochemical & power sector.
The reduction in the custom duty from 5% to 2% on rock phosphate, which is used for manufacturing
Phosphoric Acid (used for production of Fertilizer and other chemicals), will bring down the cost of
phosphatic fertilizers and other chemicals.
The increase in excise duty on the acrolonitrile (raw material for the manufacture of acrylic fibre),
purified terephthalic acid and dimethyl terephthalate will have negative impact on the domestic
MMF producers.
Pharmaceuticals & Healthcare

ÿÿ The custom duty reduced from 10% to 5% on ten specified life saving drugs/vaccine and their
bulk drugs with nil CVD (by way of excise duty exemption).
ÿÿ There is no change in the excise duty on the formulations, maintained at the current level of
4%.
ÿÿ The excise duty on the medical equipment will be maintained at the current level of 4% while
the custom duty reduced from 7.5% to 5% on specified heart devices, namely heart and PDA/
ASD occlusion device with nil CVD (by way of excise duty exemption).
Positive
The budget has no changes in the excise duty on the formulations and bulk drugs (except the life
saving drugs) as the Government had reduced the excise duty on formulations from 8% to 4% and
on bulk drugs from 14% to 8% as a stimulus package (during December 2008 and February 2009)
to boost the sector.
A reduction in the custom duty (from 10% to 5%) and full exemption from the excise and
countervailing duties on the specified life saving drugs, which are used in the treatment of cancer,
Hepatitis B etc. will result in greater affordability of these life saving drugs to the consumers.
The reduction in the duties on the medical equipment will help in cheaper availability of life saving
medical devices resulting in more affordable treatment to the patients.
17
Consumer Goods
ÿÿ Basic customs duty on LCD panels to be reduced from 10% to 5%.
ÿÿ Exemption from countervailing duty (CVD) of 4% to accessories, parts and components
imported for the manufacturing of mobile phones extended for another year.
Marginally Positive
The Government has proposed to reduce the customs duty on LCD panels to 5% from previous 10%
in order to ease import of the same. This would help the indigenous production of LCD televisions.
Moreover, this may also lead to the reduction in prices of LCD televisions to the benefit of the
consumers.
The Government’s move to extend exemption of CVD on imports of accessories, parts and
components for mobile phones till next year will be beneficial if the manufacturers pass on the
benefits to the consumers.
The dual impact of an increase in the personal income tax exemption limit by Rs 10,000 for women
and all other categories of tax payers along with removal of 10% surcharge on personal income tax
may bring marginal increase in net wages to the employees. But the impact of the government’s
proposals is not expected to be reflected largely in the demand for consumer goods.
Leather
ÿÿ List of specified raw materials and equipment imported by manufacturer-exporters of leather
goods, which are fully exempt from customs duty to be expanded.
ÿÿ The Government has initiated measures to ensure that social security schemes for occupations
including leather workers, in the unorganised sector, are implemented at the earliest. The
Government has also proposed to make necessary financial allocations for the schemes.
Positive
The government has proposed some measures for the betterment of leather exports. A few more
items have been included in exemption of customs duty which will provide a boost for leather
exports and manufacturing. The extension of interest subvention of 2% on pre-shipment credit
beyond the current deadline of September 30, 2009 to March 31, 2010 for leather exports will
positively impact the sector.
Leather industry which largely constitute of SMEs will be benefited by the step taken by the
government for facilitating the flow of credit at reasonable rates to SIDBI. The government
initiation of social security schemes for leather workers will be beneficial for the leather industry
in a medium to long term period.
18
Gems and Jewellery

ÿÿ Branded gold and silver jewellery to be exempt from excise duty
ÿÿ Rough corals to be exempt from customs duty
ÿÿ Customs duty on gold bars (other than tola bars) and gold coins to be increased from Rs 100
per 10 gram to Rs 200 per 10 gram
ÿÿ The customs duty on other forms of gold used for jewellery to be increased from Rs 250 per
10 gram to Rs 500 per 10 grams
ÿÿ The customs duty on silver to be increased from Rs 500 per kilogram to Rs 1,000 per
kilogram
Neutral
Budget announcements have not addressed the issues of the gems and jewellery industry which
has been adversely impacted by the financial crisis. Increase in customs duty on gold and silver
is expected to have an adverse effect on the cost of manufacturing of jewellery. Exemption
of custom duty on rough corals is expected to boost exports of the same. On the other hand,
reduction in excise duty on branded jewellery could boost demand if the benefit is passed on
to the customers. However, this reduction is not likely to offset the effect of increase in customs
duty on gold and silver. Continuation of interest subvention of 2% by 6 months and extension of
adjustment assistance scheme till March 2010 will help the industry to boost exports in the short
term.
Textiles
ÿÿ Five mega clusters to be set up, these include West Bengal and Tamil Nadu for handlooms;
Rajasthan for powerloom; and Srinagar and Mirzapur for carpets.
ÿÿ The excise duty on manmade fibre and yarn to be increased to 8% from 4%
ÿÿ The excise duty on PTA and DMT to be increased to 8% from 4%
ÿÿ The excise duty on polyester chips to be increased to 8% from 4%
ÿÿ Restoration of scheme of optional excise duty of 4% on pure cotton
ÿÿ The excise duty on manmade and natural fibres (other than pure cotton) beyond fibre and
yarn stage to be increased to 8% from 4%
ÿÿ Suitable adjustments to be made in duty rates applicable to DTA clearances of textile products
made by Export Oriented Units manufactured using indigenous raw materials/inputs
ÿÿ The customs duty on cotton waste to be reduced to 10% from 15%
ÿÿ The customs duty on wool waste to be reduced to 10% from 15%
19
Neutral
Budget announcements have not met the expectations of the Indian Textile Industry. Ailing under
the global economic crisis, textile players had expected substantial measures to facilitate exports
and rationalisation of tax structure. However, the budget proposes increase in excise duties on
manmade fibres and yarns, which is expected to adversely affect the synthetic textile players.
One of the positive announcements for the textile sector relates to reduction in customs duty
of cotton waste and wool waste by 5 percentage points. This will facilitate growth of SMEs
manufacturing blankets, carpets and rugs. The proposals to add mega handloom, powerloom
and carpet cluster would help on generating additional employment in the sector. Increased
allocation to the Market Development Assistance (MDA) scheme by 148% and continuation of
interest subvention of 2% till March 2010 is expected to help the textile exporters in tapping new
markets.
20
Services
Banking and Finance
Banking
ÿÿ Public Sector Enterprises such as banks and insurance companies will remain in the public sector
and will be given full support including capital infusion to grow and remain competitive.
Agricultural and rural finance

ÿÿ Agriculture credit flow target for FY10 was set at Rs 3250 bn. In FY09 agriculture credit
flow was at Rs 2870 bn.
ÿÿ Continuation of interest subvention scheme for short term crop loans up to Rs 0.3 mn per
farmer at the interest rate of 7% per annum. Additional subvention of 1% was announced,
as incentive to the farmers who repay short term crop loans on schedule, bringing down
the rate for such farmers to 6%. An additional allocation of Rs 4.11 bn over Interim budget
estimates was made for this purpose.
ÿÿ Under Debt Waiver and Debt Relief Scheme, time given to farmers to pay 75% of their
overdues was extended by six months- from June 30, 2009 to December 31, 2009.
ÿÿ Allocation of Rs 20 bn was made for Rural Housing Fund (RHF) in National Housing
Bank (NHB) to boost the resource base of NHB for refinance operations in rural housing
sector.
Infrastructure finance
ÿÿ IIFCL to refinance 60% of commercial bank loans for Public Private Partnership (PPP)
projects in critical sectors over the next fifteen to eighteen months.
Export finance
ÿÿ Interest subvention of 2% on pre-shipment credit for seven employment oriented export
sectors was extended beyond the current deadline of September 30, 2009 to March 31,
2010.
SME finance
ÿÿ To facilitate flow of credit at reasonable rates, Rs 40 bn was provided as special fund out
of Rural Infrastructure Development Fund (RIDF) to Small Industries Development Bank
of India (SIDBI). This would incentivise Banks and State Finance Corporations (SFCs) to
lend to Micro and Small Enterprises (MSEs) by refinancing 50% of incremental lending to
MSEs during FY10.
21
Financial inclusion initiatives and loans to weaker sections

ÿÿ A sub-committee of State Level Bankers Committee (SLBC) will identify and formulate an
action plan for providing banking facilities in under-banked or unbanked areas in the next
three years. Rs 1 bn has been set aside as one-time grant in-aid to ensure provision of
at least one centre or Point of Sales (POS) for banking services in each of the unbanked
blocks
ÿÿ The budget aims at enrolling at least 50% of all rural women in India as members of SHGs
over the next five years and links these SHGs to banks
ÿÿ Interest subsidy to poor households to be provided for loans upto Rs 1 hundred thousand
from banks
ÿÿ A scheme for economically weaker sections was announced, to provide full interest subsidy
during the period of moratorium introduced to cover loans taken from scheduled banks
to pursue any of the approved courses of study in technical and professional streams
from recognized institutions in India.
Financial sector
ÿÿ The threshold for non promoter public shareholding for all listed companies to be raised in a
phased manner
ÿÿ The Commodities Transaction Tax was abolished.
Positive
The overall impact of the budget on the banking and finance sector was positive, though not up
to the expectations of the industry. The budget specified that public sector banks would remain in
the public sector. The government reiterated its commitment towards providing capital support
to banks to retain growth and competitiveness.
Observing that the industry has made significant strides towards financial inclusion in the past
few years, the budget made ambitious plans with respect to financial inclusion in the next three
years. The addition to the Debt Waiver and Debt Relief Scheme continued, with the increase in
the time allowance to repay 75% of the debt. The scheme also influenced the introduction of an
interest subvention for farmers repaying loans on time.
Most of the announcements made in the budget were aimed at increasing the credit flow to needy
sectors, and not at directly facilitating the banking industry. The abolition of the Commodities
Transaction Tax will be beneficial for the traders trading on commodity exchanges.
22
Hospitality
ÿÿ Allocation for Commonwealth games increased from Rs. 21.12 bn in the interim budget to Rs
34.72 bn in the budget for FY10
ÿÿ Budgetary outlay for the National River and Lake Conservation Plans was raised to Rs 5.62 bn
in FY10 from Rs 3.35 bn in FY09.
Marginally Positive
No significant announcements were made impacting the hospitality industry. The hotel industry,
which had received a 5-year tax holiday for setting up hotels and convention centers in the
National Capital Region would marginally benefit from the increase in budgetary allocations for
the Commonwealth Games scheduled to be held in Delhi in 2010. Improvement in connectivity
through roads is likely to have marginally positive impact on the sector.
Media & Entertainment

ÿÿ Print media stimulus package extended by six months till December 31, 2009
ÿÿ Basic Customs Duty of 5% on Set Top boxes
Neutral
The extension of stimulus package for print media will help the industry mitigate the risk arising
out of the global crisis and is expected to provide a boost to the sector. The imposition of basic
customs duty of 5% on Set Top Boxes will help to facilitate the growth of set top box manufacturers
as it is intended to encourage domestic value addition. However it is expected that it will make Set
Top Boxes costlier for the consumers.
Information Technology
ÿÿ The excise and countervailing duty on packaged software to be exempt on the value considered
for transfer of the right to use the software
ÿÿ The excise duty on recorded smart cards and recorded proximity cards and tags to be made
optional
Positive
Excise and CVD exemption on packged software is expected to boost sales and check. The
Indian IT industry is expected to be indirectly benefited from various government projects like
modernisation of the employment exchanges and Unique Identification Authority of India’s
plans of setting up of online databases with identity and biometric details of Indian residents.
23
Implementations of these programs will lead to a wide usage of Internet besides providing a huge
business opportunity within India (especially in times of economic slowdown) to both IT software
as well as IT hardware industry. Budget announcements have also proposed the setting up of
an alternative dispute resolution mechanism within the Income Tex Department to effectively
address tax issues faced by foreign companies in a short span of time. This move will boost foreign
investment in the sector/country.
Budget announcements have also earmarked an amount of Rs 9 bn for “Mission in Education

through ICT” and Rs 21.13 bn for IITs and NITs. These moves will assist in the creation of quality
talent pool that is in line with global IT standards and will ease the industry’s “knowledge-pool”
scarcity.
Retail
ÿÿ Branded jewellery fully exempt from excise duty
ÿÿ IT exemption limit increased by Rs 15,000 for senior citizens and by Rs 10,000 for other
categories
Positive
The excise exemption on branded articles in jewellery is likely to boost organised jewellery
retailing.
The increase in exemption limit of personal income tax by Rs.15,000 for senior citizens; by Rs
10,000 for all other categories of individual taxpayers will increase personal disposable income of
consumers which is likely to increase consumer spending; a positive sign for the retail sector.
24
CHANGE IN CENTRAL PLAN OUTLAY
(Rs bn) 2008-09 2009-10 % Change

Min. of Rural Development 751.54 807.7 7.5
Min. of Petroleum and Natural Gas 575.35 575.01 -0.1
Min. of Power 363.07 531.26 46.3
Railways 359.99 395.45 9.9
Min. of Human Resource Development 313.01 364 16.3
Ministry of Shipping* 29.87 50.99 70.7
Ministry of Road Transport and Highways* 171.5 204.5 19.2
Min. of Communications and Information Technology 220.72 196.38 -11.0
Min. of Health and Family Welfare 164.75 195.34 18.6
Min. of Civil Aviation 74.9 121.65 62.4
Min. of Agriculture 95.68 100.6 5.1
Min. of Women and Child Development 68.5 73.5 7.3
Min. of Coal 55.26 56.74 2.7
Department of Atomic Energy 60.86 62.77 3.1
Min. of Urban Development 73.58 52.84 -28.2
Min. of Finance 27.41 29.02 5.9
Min. of Textiles 40.92 45 10.0
Min. of Social Justice and Empowerment 24 25 4.2
Min. of Commerce and Industry 20.67 25.6 23.9
Min. of Mines 19.58 16.48 -15.8
Min. of Micro, Small and Medium Enterprises 17.85 18.64 4.4
Min. of Environment and Forests 15 18.8 25.3
Min. of Minority Affairs 6.5 17.4 167.7
Min. of Labour and Employment 8.18 9 10.0
Min. of Information and Broadcasting 6 8 33.3
Min. of External Affairs 4.5 6.29 39.8
Min. of Food Processing Industries 2.42 3.4 40.5

* In Budget 2008-09 this was a Department under the Ministry of Road Transport and Highways.
25
RECEIPTS
(Rs bn) 2008-09 Revised Estimates 2009-10 Budget Estimates

A. REVENUE RECEIPTS
1. Tax Revenue
Gross Tax Revenue 6,279.49 6,410.79
Union Excise Duties 1,083.59 1,064.77
Customs 1,080.00 980.00
Corporation Tax 2,220.00 2,567.25
Income Tax 1,226.00 1,128.50
Service Tax 650.00 650.00
Taxes of the Union Territories 15.90 16.02
Other Taxes and Duties 4.00 4.25
Less NCCD transferred to the National
18.00 25.00
Calamity Contingency Fund
Less States’ Share 1,601.79 1,643.61
Net Tax Revenue 4,659.70 4,742.18
2. Non-Tax Revenue
Interest Receipts 190.36 191.74
Dividend and Profits 397.36 497.50
External Grants 27.48 21.36
Other non-tax revenue 339.34 684.65
Receipts of Union Territories 7.49 7.54
Total Non-tax Revenue 962.03 1,402.79
Total Revenue Receipts 5,621.73 6,144.97
26
RECEIPTS (Contd...)
(Rs bn) 2008-09 Revised Estimates 2009-10 Budget Estimates

B. CAPITAL RECEIPTS*
Non-debt Receipts
Recoveries of loans & advances@ 96.98 42.25
Miscellaneous capital receipts 25.67 11.20
Total 122.65 53.45
Debt Receipts to finance Fiscal Deficit

Market Loans 2,619.72 3,979.57
Short term borrowings 575.00 -
External Assistance (Net) 96.03 160.47
Securities issued against Small Savings 13.24 132.56
State Provident Funds (Net) 48.00 50.00
Other Receipts (Net) -386.68 -312.64
Total 2,965.31 4,009.96
Total Capital Receipts (A+B) 3,087.96 4,063.41
Draw-Down of Cash Balance 299.84 -
TOTAL RECEIPTS 9,009.53 10,208.38
Financing of Fiscal Deficit (2+Draw-Down
3,265.15 4,009.96
of Cash Balance)
Receipts under MSS (Net) -817.81 -387.73
@excludes recoveries of short-term loans
and advances from States and loans to 14.95 14.95
Government servants, etc.
*The receipts are net of repayments.
27
EXPENDITURE
(Rs bn) 2008-09 2009-10

1. NON-PLAN EXPENDITURE
A. Revenue Expenditure
1 Interest Payments and Prepayment Premium 1,926.94 2,255.11
2 Defence 736.00 868.79
3 Subsidies 1,292.43 1,112.76
4 Grants to State and U.T. Governments
#
384.21 485.70
5 Pensions 326.90 349.80
6 Police 207.11 253.90
7 Assistance to States from National Calamity Contingecy 32.65 25.00
Fund (NCCF)
8 Economic Services (Agriculture, Industry, Power, 220.55 238.40
Transport, Communications, Science & Technology, etc.)
9 Other General Services (Organs of State, tax collection, 158.98 187.29
external affairs, etc.)
10 Social Services (Education, Health, Broadcasting, etc.) 281.26 334.91
11 Postal Deficit 38.25 53.95
12 Expenditure of U.T. without Legislature 30.92 31.62
13 Amount met from NCCF -32.65 -25.00
14 Grants to Foreign Govts. 14.35 16.11
Total Revenue Non-Plan Expenditure 5,617.90 6,188.34
B. Capital Expenditure
1 Defence 410.00 548.24
2 Other Non-Plan Capital Outlay 136.94 210.56
3 Loans to Public Enterprises 7.88 6.37
4 Loans to State and U.T. Governments 0.89 0.89
5 Loans to Foreign Governments 8.15 1.25
6 Others -1.80 1.24
Total Capital Non-Plan Expenditure 562.06 768.55
Total Non-Plan Expenditure 6,179.96 6,956.89

Note: Securities issued in the first and second
Supplementary Demands for grants 2007-08 in lieu of
subsidies.
(i) Oil Marketing Companies 759.42 103.06
(ii) Fertilizer Companies 200.00 …
28
EXPENDITURE (Contd...)
(Rs bn) 2008-09 2009-10

2. PLAN EXPENDITURE
A. Revenue Expenditure
1 Central Plan 1,716.33 2,002.90
2 Central Assistance for States & Union Territory Plans 700.23 781.08
State Plan 681.99 743.62
Union Territory Plan 18.24 37.46
Total Revenue Plan Expenditure 2,416.56 2,783.98
B. Capital Expenditure
1 Central Plan 324.95 395.50
2 Central Assistance for State & Union Territory Plans 88.06 72.01
State Plan 71.09 57.05
Union Territory Plan 16.97 14.96
Total Capital Plan Expenditure 413.01 467.51
Total-Plan Expenditure 2,829.57 3,251.49
Total Budget Support for Central Plan 2,041.28 2,398.40
Total Central Assistance for State & UT Plans 788.29 853.09
TOTAL EXPENDITURE* 9,009.53 10,208.38
DEBT SERVICING
1 Repayment of Debt** 3,373.16 3,428.91
2 Total Interest Payments 1,926.94 2,255.11
3 Total Debt Servicing (1+2) 5,300.10 5,684.02
4 Revenue Receipts 5,621.73 6,144.97
5 Pecentage of 2 to 4 34.30% 36.70%
Footnotes
# U.T. implies Union Territories
* Excludes expenditure matched by receipts (Details in Annex-2 to Expenditure Budget, Volume-1, 2008-2009)
** Excludes discharge of 91 days, 182 days & 14 days intermediate Treasury bills, discharge of Ways & Means
Advances including Overdraft, income and expenditure of National Small Savings Fund (NSSF), investments of
NSSF, Reserve Funds and Deposits not bearing interest and suspense transactions. Discharge under MSS met from
the sequestered cash balancesis not included.

29
KEY ECONOMIC INDICATORS

(Absolute Values)
2006-07 2007-08 2008-09
Gross Domestic Product at factor cost (Rs bn)

At current prices 37,793.84 43208.92Q 49331.83R
At 1999-00 prices 28,711.20 31297.17Q 33393.74R
Output (mn tonnes)

Foodgrains 217.3 230.8 229.9d
Electricity generation (bn kWh) 663 704 724
(Utilities only)
Prices
Wholesale Price Indexe (All commodities) 206.2 215.8 234.0
CPI-IW f
125 133 145
External Sector (US$ mn)

Imports 185749.0 251439.0 287759
Exports 126361.0 162904.0 168704
Current Account Balance (US$ mn) -9565 -17034 (PR) -36469
Foreign Direct Investment (US$ mn) 7,693 15,401 (PR) 17,496
Monetary and Finance

Money Supply (M3) (Rs bn)h 33,159.93 40,175.73 47,584.04
Foreign Currency Assets (US$ mn) h
191,924 299,230 241426
Exchange rate (Rs/US$) 42.25 40.26 45.99

Q-Quick est.; R-Revised est.; d- 3rd Advance Estimates; PR - Partially Revised
e-Index (with base 1993-94 = 100) at the end of fiscal year; f-Index (with base 2001 = 100) at the end of the fiscal
year; h- Outstanding at the end of financial year.
Source: RBI, CSO, Economic Survey, 2008-09
30
KEY ECONOMIC INDICATORS

(Percentage Change Over Previous Year)
(%) 2006-07 2007-08 2008-09
Gross Domestic Product at factor cost

At current prices 15.1 14.3Q 14.2R
At 1999-00 prices 9.7 9.0Q 6.7R
Sectoral Growth Rates at Constant (1999-200) prices

Agriculture & allied 4.0 4.9 1.6
Industry 11.0 8.1 3.9
Services 11.2 10.9 9.7
Prices
Wholesale Price Indexe (All commodities) 5.4 4.7 8.4
CPI-IW f
6.7 6.2 9.1
External Sector
Imports 24.5 35.4 14.4 (P)a
Exports 22.6 28.9 3.6 (P)a
Foreign Direct Investment 153.6 100.2 13.6
Monetary and Finance

Money Supply (M3)h 21.5 21.2 18.4
Foreign Currency Assetsh 32.3 55.9 -19.3
Exchange raten (Rs/US$) 4.6 4.7 -14.2

Q-Quick est.; R-Revised est.; d- 3rd Advance Estimates
e-Index (with base 1993-94 = 100) at the end of fiscal year; f-Index (with base 2001 = 100) at the end of the fiscal
year; (P)a - Growth rate on provisional over revised basis and based on Department of Commerce methodology; h-
Outstanding at the end of financial year; n-Percent change indicates the rate of appreciation (+)/depreciation (-) of
the Rupee vis-a-vis the US Dollar.
Source: RBI, CSO, Economic Survey, 2008-09

Budget Analysis 09

Enviado por

Dados do documento

Descrição original:

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Budget Analysis 09

Enviado por

Direitos autorais:

Formatos disponíveis

UNION BUDGET 2009-10

UNION BUDGET 2009-10 : A MACROECONOMIC PERSPECTIVE......................... 2 - 3

CHANGE IN CENTRAL PLAN OUTLAY...................................................................... 25

KEY ECONOMIC INDICATORS (Absolute Values).................................................... 30

KEY ECONOMIC INDICATORS (Percentage Change Over Previous Year)................ 31

(Rs bn) 2008-09 2009-10

1 Revenue Receipts 5,621.73 6,144.97

9 Non-Plan Expenditure 6,179.96 6,956.89

* Includes draw-down of Cash Balance.

UNION BUDGET 2009-10 : A MACROECONOMIC PERSPECTIVE

Fiscal Arithmetic for FY10

Positive + Predominantly positive proposals

Positive Positive proposals

Marginally Positive Positive proposals but not up to industry expectations

Neutral Negative proposals offsetting positive proposals

Health & Sanitation

Highways and Railways

Brihan Mumbai Storm Water Drainage Project (BRIMSTOWA)

Commercial Vehicles (CV)

Two & three-wheelers

Capital goods and Engineering

Oil and Gas

Pharmaceuticals & Healthcare

Gems and Jewellery

Agricultural and rural finance

Financial inclusion initiatives and loans to weaker sections

Media & Entertainment

Budget announcements have also earmarked an amount of Rs 9 bn for “Mission in Education

CHANGE IN CENTRAL PLAN OUTLAY

(Rs bn) 2008-09 2009-10 % Change

(Rs bn) 2008-09 Revised Estimates 2009-10 Budget Estimates

Total Revenue Receipts 5,621.73 6,144.97

(Rs bn) 2008-09 Revised Estimates 2009-10 Budget Estimates

Debt Receipts to finance Fiscal Deficit

*The receipts are net of repayments.

(Rs bn) 2008-09 2009-10

Total Revenue Non-Plan Expenditure 5,617.90 6,188.34

Total Capital Non-Plan Expenditure 562.06 768.55

Total Non-Plan Expenditure 6,179.96 6,956.89

(Rs bn) 2008-09 2009-10

Total Revenue Plan Expenditure 2,416.56 2,783.98

Total Capital Plan Expenditure 413.01 467.51

Total-Plan Expenditure 2,829.57 3,251.49

Total Budget Support for Central Plan 2,041.28 2,398.40

Total Central Assistance for State & UT Plans 788.29 853.09

TOTAL EXPENDITURE* 9,009.53 10,208.38

KEY ECONOMIC INDICATORS

2006-07 2007-08 2008-09

Gross Domestic Product at factor cost (Rs bn)

Output (mn tonnes)

External Sector (US$ mn)

Monetary and Finance

Source: RBI, CSO, Economic Survey, 2008-09

KEY ECONOMIC INDICATORS

(%) 2006-07 2007-08 2008-09

Gross Domestic Product at factor cost

Sectoral Growth Rates at Constant (1999-200) prices

Monetary and Finance

Source: RBI, CSO, Economic Survey, 2008-09

Você também pode gostar