ECONOMY AFFAIRS JULY 2009

ECONOMY AFFAIRS JULY 2009

• The RBI has revised base year to 2004-05 from the current base year of 1993-94.

  
  
• China has emerged as India's largest trading partner, replacing US in 2008-09. Bilateral trade engagement between India and China stood at Rs 1,63,202 crore (nearly $ 36 billion) in April to February 2008-09, an increase of nearly 7% over Rs 1,52,713 crore in the year ago period. In the same period under consideration, bilateral trade between India and the US dipped 7.5% and stood at Rs 1,55,353 crore (approximately $ 34 billion).

  
  
• Infosys became the first private company to get protection from the Central Industrial Security Force (CISF).

  
  
• RBI Policy for the year 2009-10.

  
  

  GDP growth rate is estimated to be 6%.

  
  

  No change in interest rates.

  
  

  4.75% repo rate, 3.25% reverse repo rate and 5% (CRR) cash reserve ratio.

  
  

  Inflation is estimated at 5% by the end of the financial year.

  
  
• AP State’s Budget for the year 2009-10. For the financial year 2009-10, it is programmed for

  
  

  An expenditure of Rs.1,03,485.33crores out of which

  
  

  Rs.63,301.22crores under non-plan and

  
  

  Rs.40,184.11crores under Plan

  
  

  Revenue surplus would be Rs.2, 406crores.

  
  

  The fiscal deficit is estimated to be Rs.16, 162crores, which would be 3.96 percent of GSDP.

  
  

  Sector wise budget allocations :

  
  

  Irrigation – 17,800crores.

  
  

  Panchayat raj and rural development – 3, 330crores.

  
  

  Education – 1850crores

  
  

  Building Houses – 1800crores

  
  

  Healthcare, agriculture – 1470crores

  
  

  Others – 1223crores.
• Budget 2009-10 Highlights :

  
  

  Govt plans to bring back economy to high growth of 9%.

  
  

  GDP growth dipped to 6.7% in FY|09

  
  

  Fiscal deficit up from 2.7% to 6.8% of GDP

  
  

  IT exemption limit raised; Rs 15,000 for Sr.citizens

  
  

  Limit raised by Rs 10,000 for tax payers, including women

  
  

  10% surcharge on personal income tax scrapped

  
  

  Fringe Benefit Tax abolished

  
  

  No change in corporate tax

  
  

  Defence gets Rs 1,41,703 cr, up 34%

  
  

  Total fiscal stimulus in 2008-09 amounts to Rs 1,86,000 cr

  
  

  Funds for housing, amenities for urban poor up Rs 3,973 cr

  
  

  Funds for JN Urban Renewal Mission up 87% to Rs 12,887 cr

  
  

  Assistance for storm-water drainage project up by Rs 300 cr

  
  

  Farm credit target up at Rs 3,25,000 cr from Rs 2,87,000 cr

  
  

  Additional Rs 1,000 crore for accelerated irrigation scheme

  
  

  Commodity Transaction Tax abolished

  
  

  New pension system trust exempted from STT; DDT

  
  

  Minimum Alternate Tax hiked to 15% from 10%

  
  

  Tax holiday on petro sector extended to natural gas

  
  

  100% tax deduction on political donation

  
  

  Fertiliser subsidy to be nutrient-based, not price

  
  

  Banks and insurance firms to remain in public sector

  
  

  Rs 100 cr one-time grant to expand banks in unbanked areas

  
  

  Allocation of Rs 39,100 cr to be made for NREGA

  
  

  NREGA coverage increased to 4.74 crore households in FY|09

  
  

  Work National Food Security scheme has begun

  
  

  Allocation for Bharat Nirman being raised by 45 per cent

  
  

  Rs 2,000 cr rural housing fund under National Housing Bank

  
  

  Mission for female literacy with focus on minorities, SC/ST

  
  

  50% of all rural women to be brought into SHG programmes

  
  

  Action for social security to unorganised sector workers

  
  

  New pension benefits for 12 lakh jawans and JCOs from July

  
  

  One lakh dwelling units for paramilitary forces personnel

  
  

  Unique Identification Card to citizens in 12-18 months

  
  

  Provision of Rs 120 crore for UIC project

  
  

  Rs 2,113 crore allocated for IITs and new IITs

  
  

  Rs 3472 cr for Commonwealth Games from Rs 2112 cr

  
  

  Customs, excise and service tax base rates unchanged

  
  

  For Indira Awas Yojana, allocation increased 63%

  
  

  8 missions being launched under Plan on climate change

  
  

  Allocation for market development assistance scheme up 148%

  
  

  Allocation for Rural Health Mission raised by Rs 257 cr above interim budget

  
  

  Rs 500 cr for rehabilitation of Sri Lankan Tamils

  
  

  Rs 1,000 cr for infrastructure in cyclone-hit area in WB

  
  

  Total expenditure crosses Rs 10 lakh cr for first time

  
  

  Share of direct taxes in revenue increased to 56% in FY|09

  
  
• AP Govt announced agriculture action plan.

  
  

  Increasing cultivation land to 124.06lakh hectares from 121.46 hectares

  
  

  Increasing production of food grains to a target of 214.87lakh metric tons from 204.27lakh metric tons.

  
  

  Fertilizer supply to a target of 71.75lakh metric tons.

  
  

  Seeds supply to a target of 59.50lakh quintals.

  
  

  Rs.500crores to modernize agriculture techniques.

  
  
• 2009-10 Railway Budget :

  
  

  Plan outlay of Rs.40, 745crores.

  
  

  57 new trains, 12 nonstop duronto trains.