The Hindu Business Line : Govt would put growth on track: Pranab

MUMBAI: The Finance Minister, Mr Pranab Mukherjee, said while presenting the Union Budget 2009-10 in Lok Sabha that the Government would bring back the economy to the high GDP growth rate of nine per cent at the earliest. He said that the growth rate in 2008-09 dipped to 6.7 per cent from average 9 per cent growth in previous three fiscal years. The government is intending to make pre-budget consultations with state finance ministers an annual affair.

The country’s fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP. The total fiscal stimulus during 2008-09 amounted to Rs 1,86,000 crore, he stated.

To evolve financing mechanism for giving increased support to infrastructure projects, the government would set up Indian Infrastructure Financial Corporation Limited (IIFCL). He also said that allocations for highways would be stepped up by 23 per cent. Indian Infrastructure Finance Company Limited will re-finance commercial bank loans up to 60 per cent in critical projects through public private partnership to the tune of Rs 1 lakh crore to raise investment in the sector.

The government has plans to allocate for urban poor for provision for housing and basic amenities to be raised to Rs 3,973 crore in the current year and the central assistance for storm-water drainage project increased to Rs 500 crore from Rs 200 crore i n the interim budget.

The government has made an Additional allocation of Rs 1,000 crore for accelerated irrigation project and the Export Credit Guarantee scheme extended till March 2010. - PTI

Prev: I-T exemption raised; sops for farm, exporters

Business Line | NUS Index |

Copyright copy; 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line