Union Budget 2009 - Whats Your Say !?

kartik

kartik

Kartik Raichura
Staff member
The highlights of the General Budget 2009-10 are as follows:

1. Growth rate in 2008-09 dipped to 6.7 per cent from average nine per cent growth in previous three fiscal years.

3. Fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP

4. Total fiscal stimulus during 2008-09 amounts to Rs 1,86,000 crore.

5. in goods and services doubled to 47 per cent in 2008-09

6. Indian Infrastructure Finance Company Limited will re-finance commercial bank loans upto 60 per cent in critical projects through public private partnership to the tune of Rs 1,00,000 crore to raise investment in the sector.

7. More funds allocated to help Mumbai fight floods during rains.

8. Allocations for highways being stepped up by 23 per cent.

9. Allocation for urban poor for provision for housing and basic amenities to be raised to Rs 3,973 crore in the current year.

10. Allocation for Jawaharlal Nehru Urban Renewal Mission increased by 87 per cent to Rs 12,887 crore.

11. Central assistance for storm-water drainage project increased to Rs 500 crore from Rs 200 crore in the interim budget

12. Print media stimulus package extended by six months

13.Target for agriculture credit raised to Rs 3,25,000 cr in 2009-10

14.An expert panel will look into petroleum product pricing

15.Domestic oil prices must be in sync with global prices

16.Fertiliser subsidy to go directly to farmers

17.Export Credit Guarantee scheme extended till March 2010

18. Storm-water drainage project fund hiked to Rs 500 cr

19. Blueprint for national gas grid

20. Additional budget allocation to farmers.

21. Work on National Food Security scheme for subsidised food

22. Rs 100 cr one-time grant to expand banks in unbanking areas

23. Indira Awaas Yojna hiked by 63 per cent to Rs 8,883 cr

24. Allocation for Prime Minister Gram Sadak Yojna up by 59 per cent

25. Rs 39,100 crore allocation for NREGA

26. Rural mega clusters in Bengal and Rajasthan

27. Interest subsidy on education loans (ANI)
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The Stock Market Tanks as Pranab Mukherjee says its a budget for Bharat

A key sop is his proposal to increase the income tax exemption limit for senior citizens by Rs 15,000, for women and others by Rs 10,000 each, while keeping the corporate tax rate unchanged.

The exemption limit will now be Rs 240,000 for senior citizens, Rs.190,000 for women and Rs 160,000 for others.

Bowing to the long standing demand of India Inc, Mukherjee has proposed that fringe benefit tax and commodity transaction tax be abolished.
However, Minimum Allocation Tax (MAT) on book profits has been increased from 10 per cent to 15 per cent, but with a provision of carrying forward the tax credit on MAT to 10 years from the current seven years.
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Corporate India not so disappointed says moneycontrol
 
Well good to see Mumbai into the picture also...still overall we see its for the "Aam Aadmi" that the govt has focused at: the villages. But the question is will this alloted money and schemes reach the villages and they get benefited or disappear into the insatiable babu's pockets...only time will tell.
 
I dont understand that if the budgets are positive why the market fell so sharply (14000) points ? I understand the Government's budget decisions have a long-term impact on the economy, but still then impact of the budget on various sectors except infrastructure, was negative. There is no change in the corporate tax. I'm now just trying to analyze whether the budget will have a positive/ negative impact in near future ?

:SugarwareZ-055:
 
Lemme put it this way, if most of the people in your house earn....your std of living (more visits to malls and food courts...) is bound to increase and if its jus one but he earns more dosen make you prosperous, ideally speaking....same formula applies here but in a much larger scale... If rural India really shines, the country is bound to grow well. Just because corporate taxes are shown and accounted for dosen make rural segment a midget...it still stands tall...for the FM as well.
 
Hi,

Well budget reflects the duties and taxes, to be lavied. Hence, the product we buy (especially imported, like LCD, Laptop, etc.) are subject to such duties and taxes. Also gov. defines the rates for institutions like ECGC - what determines the prospective export growth opportunities.

This time budget focused more upon the infrastructure development.

- Tapan
 
Trapped between a stuttering economy and a spiraling deficit, India's newly reelected government of Prime Minister Manmohan Singh decided on July 6 to toe a middle path, with Finance Minister Pranab Mukherjee presenting a budget that disappointed an over-eager stock market and provided little clarity on the future of reforms that have driven the country's economic growth in the past. Instead, the government decided to tinker with tax rates, pledge increased spending in infrastructure, and borrow heavily from domestic markets to spend in rural areas, which make up more than 60% of India's population and 46% of its gross domestic product.
 
The sentiments towards Union Budget seem to improve. Corporates have appreciated the budget at the post budget meet held by Hon Pranav mukherjee with FICCI.

Market price is not the only determinant of how good the budget is and we should realise that the budget was aimed at giving more purchasing power to the "Aam Aadmi" which inturn will fuel consumption and the economy at large.

Listening to one of the Private Equities on CNBC made me realise that the foreign players will still invest in Infrastructure projects in India as a lot needs to be done on that front to create a developed nation. India is among the few countries that is having a strong GDP growth rate and the FM's statement of targeting 9 % growth rate is definitely a positive sign.
 
Well dont forget it gives relief to people whose taxable income is more than 10 Lacs .. so cant say its mainly for farmers ..

power sector is enjoying the priority :)
 
the focus seems more or rural india. lot of money has been spent on job gaurantee and bharat nirman. farmers benefit from Rs 38000 cr credit flow, croap loans at subsidised rate.
big boost to rural healthcare
tax breaks to agro based industries
 
The budget is simple wid sum benefits to the middle class and salaried people...apart frm dat its plain wid no big statements
 
Continuity visible from last budget is a positive. However, all major anticipated decisions will be coming up in next 2 quarters on a low key note.
 
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