Though direct tax unchanged but is second fastest growing economy said in Interim Budget 2009/10

The Interim Budget was presented today in the Lok Sabha, India Parliament by acting finance finance minister Pranab Mukherjee. The budget showed a mixed view by critics but the most awaited subject was Direct Tax, and it was unchanged. Well, nothing to be sad of it, at least in this world economy slow down the economy of India has maintained a growth rate of over 9% and the per capita has rose by 7.4%.

Pranab Mukherjee presented the budget in the Parliament after a gap of 25 years.

Highlights of the Budget
Below are the highlights of the Interim Budget presented by acting finance minister Pranab Mukherjee in the Lok Sabha today:

* Fiscal deficit 5.5 pct of GDP in 2009/10.

* Revenue deficit 4 pct of GDP in 2009/10.

* Gross market borrowing 3.62 trillion rupees in 2009/10.

* Total plan spending is 9.53 trillion rupees in 2009/10.

* 2009/10 gross budgetary support 2.85 trillion rupees.

* GDP growth 7.1 pct in 08/09.

* The country has weathered inflation crisis. There is no room for complacency.

* It is the time for extraordinary measures to be taken.

"Now most of the economies are struggling to stay afloat, ours is a healthy 7.1 % of GDP growth. It is the second fastest growing economy in the world.

* Additional measures may be taken in the post-poll budget.

Tax:

* There is a substantial relief of about 400 bn rupees due to tax cuts in 2008/09.

"Distortions in tax structure reduced by expanding the tax base and moderating the tax rates.

* New technology has enhanced the tax compliance.

Defence:

*Defence expenditure increased to Rs 1,41,703 cr.
*2008-09 defence plan expenditure was only Rs 73,600 cr. Now it is an increase of Rs 13,279 crore this year.

Farm:

* 2008/09 farm outlook is encouraging.

* Government will be providing interest subsidy to farmers in this fiscal year.

* Farm loan waiver has so far cost 653 billion rupees.

Social sectors:

* It is the time to strengthen the social security nets.

* Rural job schemes will hence forth get 301 bn rupees in 2009/10.

* Rural health spending 120.7 billion rupees.

* The midday meals scheme for schools will cost 80 bn rupees.

* Urban renewal spending in 2009/10 will be at 118.4 bn rupees.

* Rural sanitation spending will be at 12 billion rupees for 2009/10.


2008/09 data:

* 2008/09 fiscal deficit seen at 6 percent of GDP.

* 2008/09 to end with revenue deficit of 4.4 percent of GDP.

* 2008/09 revised estimate of spending 9.9 trillion rupees.

* 2008/09 revised estimate of extra non-plan spending 1.1 trillion rupees.

* 2008/09 revised estimate of tax collection 6.28 trillion rupees.

* Apr-Nov FDI registered at $23.3 billion.