Govt. spending in Budget 2009-10 is slated to go up by one third to a record Rs.10.2 trillion. The proposed increase in budgetary allocation will accelerate growth of the economy. Some of the important expenditure side allocations are:
- Jawaharlal Nehru National Urban Renewal Mission (JNNURM): Allocation is Rs.12887 cr. (higher by 87% over last year)
- Target for agricultural credit flow is fixed at Rs.325,000 cr (up 15% from last year). Interest subvention scheme for small crop loans continued, an additional 1% subvention is proposed for timely payment of crop loans.
- National Rural Employment Guarantee Scheme (NREGS): Allocation is Rs.39100 cr. (higher by 144% over last year)
- Bharat Nirman: The outlay under six schemes covering Bharat Nirman has been increased by 45% over last year.
- Infrastructure financing: IIFCL will evolve a takeout financing scheme to enhance availability of long term funds and to refinance PPP projects.
- Interest relief for Export credit extended by six months upto 31st March 2010.
- Streamlining subsidies: Move to a system of direct transfer of fertiliser subsidy to farmers and introduction of a nutrient based subsidy scheme to ensure balanced use of fertilisers. Oil subsidies to be guided by a revised formula (to be announced later) to protect the upstream oil companies.
- The budget for Highway development and Railways has been stepped up by 23% and 46% respectively.
These and other steps outlined in the budget will ensure higher spending to boost demand and will result in restoring higher growth in GDP in the coming years. The focus of this budget has been to reduce the gap between the rural and urban India. Companies focusing on demand generation from rural India are likely to benefit the most from the increased allocations in budget 2009-10. The spoiler in the party, however, could be the deficient Monsoon rains.
No comments:
Post a Comment