Highlights of Interim Budget

Highlights of Interim Budget:
The major highlights of interim budget is as follows:
Economy is expected to grow at 7.1 % this fiscal (FY09)
• FY09 Fiscal deficit seen at 6 % of GDP Vs estimate of 2.5%
• FY09 Revenue deficit at 4.4 % of GDP Vs estimate of 1%.
• FY09 Revised estimates of spending at Rs 9 lakh cr vs Rs 7.5 lakh cr
• FY09 Plan expenditure revised to Rs 2.8 lakh cr from Rs 2.4 lakh cr
• Apr-Nov 2008 FDI registered at $23.3 billion
• FY10 Budget revenue deficit seen at 4% of GDP, fiscal deficit at 5.5% of
GDP
• 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.
• 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.
• Interest subvention of 2 % 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.
• The gross tax revenue of the government during 2008-09 is likely to fall
short by about Rs 60,000 crore over the budgeted estimates.
• India Infrastructure Finance Company will raise Rs 10,000 crore from the
market by end of March 2009. India Infrastructure Finance Company will
finance 60% of commercial loans in private public partnership in critical
projects. The organisation is to raise Rs 30,000 crore from the market in
the next fiscal year.
Overall The Finance Minister in its interim budget did not announce any major sops
for ailing industries or changes in tax structure.
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