Interim budget: Huge allocation for flagship schemes
In many respects, the Interim Budget was more a statement
by the Government of its performance thus far and did not in
any material manner infuse any policy or fiscal changes. The
thrust was clearly on socially relevant sectors such as rural
development and agriculture. Infrastructure did find a
mention and the Finance Minister did touch upon some of the
The United Progressive Alliance government announced a
massive allocation of Rs. 1,31,317 crore for its various flagship
programmes to spur the economy and benefit the common man
in the interim budget 2009-10 presented on March 16, 2009.
Presenting the interim budget for a vote-on-account for the
necessary government expenditure in the first four months of the
new fiscal, External Affairs Minister Pranab Mukherjee, who
holds charge of Finance, desisted from
announcing any sops as he did not have the
parliamentary mandate to "tweak" the rates.
"Constitutional propriety requires that new
government formulates the tax and
expenditure policies for 2009-10…
Therefore, I am presenting an interim
budget for the purpose of vote-on-account
to enable the government to meet
expenditure during the first four months of
the next financial year," he said.
Traditionally, a Vote-On-Account is a
sanction of Parliament for withdrawal of
money from the Consolidated Fund of India
to meet the government's expenses, typically for 2-4 months before a full Budget is presented.
Apart from this, the revised estimates of revenue and expenditure during the ongoing
financial year are also presented.
Highlights: Interim Budget 2009-10
No change in tax rates
Total expenditure estimated at Rs 9,53,231 crore
Plan expenditure estimated at Rs 2,85,149 crore.
Non-Plan expenditure pegged at Rs 6,68,082 crore.
Revenue expenditure at Rs 8,48,085 crore
Centre's net tax revenue pegged at Rs 5,00,096 crore
Revenue deficit 4% of GDP
Fiscal deficit at 5.5% of GDP
Major subsidies estimated at Rs 95,579 crore
Two per cent interest subsidy for exports extended till
Sept 2009 for employment oriented sector
Defence allocation at Rs 1,41,703 crore
Rs 30,100 crore allocated for rural employment scheme
Bharat Nirman allocated Rs 40,900 crore
Rs 12,070 crore for National Rural Health Mission
Rural drinking programme allocated Rs 7,400 crore
Rural sanitation programme gets Rs 1,200 crore