Parliament gives nod to Pranab budget

With the Rajya Sabha returning the Finance Bill, 2009, that contains tax proposals — both direct and indirect — for the current fiscal 2009-10, the final phase of Parliamentary process for approval of the Budget for 2009-10 was completed.

The Budget 2009-10 has proposed a record level of public expenditure to fund several populist socio-economic welfare measures as part of exercise to kick-start economy—currently impacted by the global slowdown.

But by doing so Mukherjee has projected a high level of fiscal deficit — the net difference between the government’s expenditure and income — at 6.8 per cent of the Gross Domestic Product (GDP).

Growth rate

Replying to discussion on the Finance Bill, 2009 in the Upper House, Mukherjee said the economy was expected to maintain at least a growth rate of 6.7 per cent in the current fiscal as achieved in the financial year 2008-09. “We expect to maintain level of GDP growth rate in 2009-10 as the economy is now witnessing some signs of revival,” he said.

There is already pick up in level of production in some key sectors of the economy in steel, cement and manufacturing industries during the first quarter of the current fiscal, Mukherjee said. However, he cautioned that it was too early to say that the economy had fully recovered.

Mukherjee also maintained that the Indian economy was witnessing early signs of improvement even as there are no signs of recover in the global economy.

Positive

While asserting that the primary economic objective of the government at the current juncture is to put the economy on path of high growth he  hoped the stimulus, both in terms of financial concessions, fiscal policy and the monetary measures as announced by the RBI would have positive impact on the economy.

DH News Service

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