• Most Popular
  • Most Shared

FACTBOX-India's 2009/10 budget and the economy

Mon Jul 6, 2009 10:39am EDT

NEW DELHI, July 6 (Reuters) - India's finance minister on Monday outlined plans to speed infrastructure development and unveiled increased spending for farmers and the poor in the first budget since the Congress-led government was re-elected convincingly in May.

Bonds

The government said the additional spending would push the 2009/10 fiscal deficit to 6.8 percent of GDP, much higher than markets had expected, sending local shares sharply lower and pushing up bond yields.

* For the main story, please click [ID:nCOL544329]

* For views on the budget from industry and analysts, please click [ID:nDEL127413], [ID:nBOM540412] and [ID:nBOM543961]

Following are some facts about the budget and key numbers from the 2009/10 federal budget.

SIZE OF ECONOMY (GDP): $1 trillion

POPULATION: 1.15 billion

GROWTH: The government said on Monday economic growth slowed to 6.7 percent in 2008/09 from year-earlier 9.0 percent. It would be the slowest growth in six years.

The budget assumes growth of 8 percent in 2010/11 and of 9 percent in 2010/11.

INDUSTRIAL GROWTH: India's industrial output INIP=ECI, which accounts for a quarter of its GDP, grew 2.4 percent in the year to March 2009, compared with 8.5 percent growth the year before.

Output was up 1.4 percent in April.

EXPORTS: India's exports, which form 16 percent of the economy, grew 3.4 percent in the year to March 2009, compared with growth of 23.02 percent in 2007/08.

They fell 29.2 percent in May and fell 33.2 percent in April.

BUDGET ESTIMATES FOR 2009/10:

* Total receipts seen at 10.21 trillion rupees

* Revenue receipts seen at 6.14 trillion rupees

* Capital receipts seen at 4.06 trillion rupees

* Borrowings and other liabilities seen at 4.01 trillion rupees

* Total expenditure seen at 10.21 trillion rupees

* Plan expenditure seen at 3.25 trillion rupees

* Non-plan expenditure seen at 6.96 trillion rupees

* Fiscal deficit seen at 4.01 trillion rupees, or 6.8 percent of GDP

* Revenue deficit seen at 2.83 trillion rupees, or 4.8 percent of GDP (Compiled by Surojit Gupta and C.J. Kuncheria)

Bonds


More from Reuters

Tea Party member Mike Kopczyk holds a sign during a rally marking the one-year anniversary of the movement in Troy, Michigan February 27, 2010. Some Tea Partiers say they can pinpoint the precise moment when they made it clear to the Republican Party they had no intention of being its lapdog. Picture taken February 27, 2010. REUTERS/Rebecca Cook

Special Report: Tea Partiers vs. Republicans

Tea Partiers want it known that they are not Republican Party lapdogs, but are they a fringe movement or a sleeping giant, awakened?  Full Article 

    A patient waits in the hallway for a room to open up in the emergency room at Ben Taub General Hospital in Houston, Texas, July 27, 2009. Credit: Reuters/Jessica Rinaldi

    CBO: Health bill to cut deficit

    Democrats predicted weekend passage of a sweeping healthcare overhaul that budget analysts say would hit fiscal targets and cut the deficit.  Full Article 

    Healthcare Reform
    Billionaire financier and Berkshire Hathaway Chief Executive Warren Buffett attends the Berkshire Hathaway Annual Shareholders meeting in Omaha, Nebraska May 2, 2009. REUTERS/Carlos Barria

    Adoration is not a strategy

    A graduate student has Wall Street buzzing after offering some straight-shooting advice on investing in Warren Buffett’s empire.  Full Article 

    Berkshire Hathaway