FM says budget is a calculated risk

The Budget is a calculated risk to boost growth, said Finance Minister Pranab Mukherkjee in an exlusive interview to CNBC-TV18 soon after the Budget.

Speaking to CNBC-TV18’s Karan Thapar, he said that while fiscal deficit was indeed worrisome, the government had growth in mind. But he was quick to add that the UPA government aimed to bring down the fiscal deficit to 4 per cent in the next 2 years. In his budget speech earlier today, Mukherjee had pointed out that fiscal accommodation had led to an increase in fiscal deficit from 2.7 per cent in 2007-08 to 6.2 per cent of GDP in 2008-09.

• IIFCL to refinance 60 per cent of commercial bank loans for PPP projects in critical sectors over the next fifteen to eighteen months. IIFCL and Banks are now in a position to support projects involving total investment of Rs 100,000 crore (US$ 20.61 billion).

• Allocation to National Highways Authority of India (NHAI) for the National Highway Development Programme (NHDP) increased by 23 per cent over B.E. 2008-09 in B.E. 2009-10 and allocation for Railways increased from Rs 10,800 crore (US$ 2.23 billion) in Interim B.E. 2009-10 to Rs 15,800 crore (US$ 3.27 billion) in B.E. 2009-10.

• Allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM) stepped up by 87 per cent to Rs 12,887 crore (US$ 2.65 billion) in B.E. 2009-10 over B.E. 2008-09.

• Allocation under Accelerated Power Development and Reform Programme (APDRP) increased by 160 per cent to Rs 2,080 crore (US$ 429 million) in B.E. 2009-10 over B.E. 2008-09.

• Blueprint to be developed for long distance gas pipelines leading to a National Gas Grid to facilitate transportation of gas across the length and breadth of the country.

• Target for agriculture credit flow set at Rs 325,000 crore (US$ 67.14 billion) for the year 2009-10. In 2008-09 agriculture credit flow was at Rs 287,000 crore (US$ 59.3 billion).

• Adjustment assistance scheme to provide enhanced Export Credit and Guarantee Corporation (ECGC) cover at 95 per cent to badly hit sectors extended upto March 2010.

• Allocation under National Rural Health Mission (NRHM) increased by Rs 2,057 crore (US$ 424.3 million) over Interim B.E. 2009-10 of Rs 12,070 crore (US$ 2.49 billion).

• Rs 2,113 crore (US$ 436.32 million) allocated for IITs and NITs which includes a provision of Rs 450 crore (US$ 92.91 million) for new IITs and NITs.
• The overall Plan budget for higher education is to be increased by Rs 2,000 crore (US$ 412.86 million) over Interim B.E. 2009-10.

• Budget Estimates provide for a total expenditure of Rs 10,20,838 crore (US$ 211.1 billion) consisting of Rs 695,689 crore (US$ 143.81 billion) under Non-plan and Rs 325,149 crore (US$ 67.31 billion) under Plan registering an increase of 37 per cent in Non-plan expenditure and 34 per cent in Plan expenditure over B.E. 2008-09.
• Total expenditure in B.E. 2009-10 increased by 36 per cent over B.E. 2008-09.