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WHAT’S IN IT? Indicus Analytics 16th February 2009
Budget speech focuses on government’s achievements in its 5 year term. Given upcoming polls, government presented an Interim Budget, so that expenditures of the next four months could be met.
Though full year’s accounts have been presented there are no significant changes compared to the current fiscal year.
But, important changes that happened in the current fiscal have been extended into the next year, assuming low growth in continuation of the present slowdown. Estimated GDP growth at 10.97% in current prices : though no inflation estimates have been made, this would mean growth in the 6-7% GDP growth in real terms.Risks do lie ahead of lower growth and higher inflation
Major changes in current fiscal i.e. budget estimates compared to revised estimates for 2008-09
Revenue receipts fallen by 7%, due to fiscal measures and tax relief worth Rs. 40,000 crore given as part of fiscal stimulus this year.
Capital receipts risen from budgeted Rs. 147949 crore to revised Rs. 338780 crore, an increase of 129%, thanks to rise in market borrowings of the govt. to offset fiscal expenses on stimulus.