02-17-2009, 03:13 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Budget in wonderland</b>
pioneer.com
PNS | New Delhi
<b>UPA set to leave economy in mess for next Government</b>
With tax collections falling and expenditure going through the roof, it is a perfect economic mess the UPA Government leaves behind for its successor. <b>The current state of the nationâs economic health is nightmarish and it may take several years to get the economy back on track</b>.
The Government proposes to finance the unprecedented fiscal deficit (6 per cent of the GDP) through <span style='color:red'>huge borrowings, which could lead the country into a debt trap.</span>
Consider these figures: <b>The total receipts of the Government for 2008-09 are estimated at Rs 5,74,438 crore, down from Rs 6,17,517 crore projected at the time of presentation of the last Budget by then Finance Minister P Chidambaram, down by Rs 43,159 crore. The total expenditure has been estimated to be Rs 9,00,953 crore, up from Rs 7,50,884 crore, or over Rs 1,50,000 crore against the projected figure.</b>
This leaves a yawning gap of Rs 3,26,575 crore, called the <b>fiscal deficit, or 6 per cent of the GDP</b>, which is up from Rs 1,33,287 crore or 2.5 per cent projected by Chidambaram. This gap is proposed to be financed through borrowings, whose interest payment would again be huge.
Mukherjee, who is now holding the charge of finance portfolio also, did not propose any tax changes but made a valiant attempt to hide the dire straits the nationâs economy is in. His 90-minute speech mainly focused on popular schemes the UPA Government had introduced in the last four years. His last 10 minutes of the âelection speechâ disappointed everyone when he failed to give any policy outlines for the revival of the economy. <b>As a result, the sensex plunged by 329 points and closed at 9,305, down by more than 3 per cent</b>.
According to Mukherjee, <b>the fiscal deficit in 2009-10 is expected to be 5.5 per cent </b>or at Rs 3,32,835 crore. The marginal drop of 0.5 per cent, according to him, would be possible due to higher growth in GDP and not in real value. With industrial and services sectors growing at a negative rate, how the GDP will go up remains unexplained.
<b>Mukherjee explains that the spurt in expenditure in 2008-09 was mainly due to the Sixth Pay Commissionâs implementation, increase in food, fertiliser and oil subsidies and farmersâ debt waiver</b>. Of this, subsidies alone accounted for Rs 1,29, 243 crore, up by almost Rs 60,000 crore estimated by Chidambaram. This is expected to come down to Rs 1,00,000 crore in 2009-10, by merely Rs 29,000 crore. It should have been more, given the fact that oil and commodity prices are down to where they were at the beginning of 2008.
The fall in subsidy bill by Rs 29,000 crore, however, is getting offset by the rise in interest payment to Rs 2,25,511 crore from Rs 12,694 crore in 2008-09.
This, according to experts, would be a huge burden. <b>With the Government borrowings now at Rs 3,30,000 crore, the investment would be a major deterrent to economic growth and will have an impact in the value of rupee and inflation</b>.
This will pose the biggest challenge to the incumbent Government in May 2009, which will have to deal with the unprecedented borrowings by the Government and servicing of the loans. If the economy fails to respond in the next 12 months, the servicing of huge borrowings would be the single biggest challenge and the Government may have to borrow more to pay interests, leading itself into a debt trap.
See Edit: Mocking at aam admi â Congress insists all is fine at time of crisis
<b>What Interim Budget contains</b>
Revenue receipts in 2009-10 budget estimates at Rs 6,09,551 crore against Rs 5,62,173 crore in 2008-09 revised estimates
Capital receipts in 2009-10 interim budget at Rs 3,43,680 crore against Rs 3,38,780 crore in revised estimates of 2008-09
Non-Plan expenditure at Rs 6,68,082 crore
Fiscal deficit at Rs 3,32,835 crore
Rs 1,31,317 crore for Govtâs flagship programmes
Allocation of Rs 30,100 crore to National Rural Employment Guarantee Scheme in 2009-10
The scheme has been extended to all districts
For Sarva Shiksha Abhiyan, an allocation of Rs 13,100 crore has been proposed
India Post gets 55% hike in outlay; 5,000 POs to be networked
To lend Rs 607 cr to public enterprises in FY10
To raise Rs 1,120 crore through disinvestment
Raises farm sector allocation by 5 pc to Rs 15,000 crore
Hit hard by economic slowdown, Centreâs tax kitty slated to have shortfall of about Rs 60,000 crore this fiscal against original estimates
Collections this fiscal are slated to be lower for both direct and indirect taxes
<!--QuoteEnd--><!--QuoteEEnd-->
UPA social engineering had ruined wealth what NDA was able to create in 4 years.
Only 10 Janpath bank balance is showing growth and ofcourse corrupt Babus.
pioneer.com
PNS | New Delhi
<b>UPA set to leave economy in mess for next Government</b>
With tax collections falling and expenditure going through the roof, it is a perfect economic mess the UPA Government leaves behind for its successor. <b>The current state of the nationâs economic health is nightmarish and it may take several years to get the economy back on track</b>.
The Government proposes to finance the unprecedented fiscal deficit (6 per cent of the GDP) through <span style='color:red'>huge borrowings, which could lead the country into a debt trap.</span>
Consider these figures: <b>The total receipts of the Government for 2008-09 are estimated at Rs 5,74,438 crore, down from Rs 6,17,517 crore projected at the time of presentation of the last Budget by then Finance Minister P Chidambaram, down by Rs 43,159 crore. The total expenditure has been estimated to be Rs 9,00,953 crore, up from Rs 7,50,884 crore, or over Rs 1,50,000 crore against the projected figure.</b>
This leaves a yawning gap of Rs 3,26,575 crore, called the <b>fiscal deficit, or 6 per cent of the GDP</b>, which is up from Rs 1,33,287 crore or 2.5 per cent projected by Chidambaram. This gap is proposed to be financed through borrowings, whose interest payment would again be huge.
Mukherjee, who is now holding the charge of finance portfolio also, did not propose any tax changes but made a valiant attempt to hide the dire straits the nationâs economy is in. His 90-minute speech mainly focused on popular schemes the UPA Government had introduced in the last four years. His last 10 minutes of the âelection speechâ disappointed everyone when he failed to give any policy outlines for the revival of the economy. <b>As a result, the sensex plunged by 329 points and closed at 9,305, down by more than 3 per cent</b>.
According to Mukherjee, <b>the fiscal deficit in 2009-10 is expected to be 5.5 per cent </b>or at Rs 3,32,835 crore. The marginal drop of 0.5 per cent, according to him, would be possible due to higher growth in GDP and not in real value. With industrial and services sectors growing at a negative rate, how the GDP will go up remains unexplained.
<b>Mukherjee explains that the spurt in expenditure in 2008-09 was mainly due to the Sixth Pay Commissionâs implementation, increase in food, fertiliser and oil subsidies and farmersâ debt waiver</b>. Of this, subsidies alone accounted for Rs 1,29, 243 crore, up by almost Rs 60,000 crore estimated by Chidambaram. This is expected to come down to Rs 1,00,000 crore in 2009-10, by merely Rs 29,000 crore. It should have been more, given the fact that oil and commodity prices are down to where they were at the beginning of 2008.
The fall in subsidy bill by Rs 29,000 crore, however, is getting offset by the rise in interest payment to Rs 2,25,511 crore from Rs 12,694 crore in 2008-09.
This, according to experts, would be a huge burden. <b>With the Government borrowings now at Rs 3,30,000 crore, the investment would be a major deterrent to economic growth and will have an impact in the value of rupee and inflation</b>.
This will pose the biggest challenge to the incumbent Government in May 2009, which will have to deal with the unprecedented borrowings by the Government and servicing of the loans. If the economy fails to respond in the next 12 months, the servicing of huge borrowings would be the single biggest challenge and the Government may have to borrow more to pay interests, leading itself into a debt trap.
See Edit: Mocking at aam admi â Congress insists all is fine at time of crisis
<b>What Interim Budget contains</b>
Revenue receipts in 2009-10 budget estimates at Rs 6,09,551 crore against Rs 5,62,173 crore in 2008-09 revised estimates
Capital receipts in 2009-10 interim budget at Rs 3,43,680 crore against Rs 3,38,780 crore in revised estimates of 2008-09
Non-Plan expenditure at Rs 6,68,082 crore
Fiscal deficit at Rs 3,32,835 crore
Rs 1,31,317 crore for Govtâs flagship programmes
Allocation of Rs 30,100 crore to National Rural Employment Guarantee Scheme in 2009-10
The scheme has been extended to all districts
For Sarva Shiksha Abhiyan, an allocation of Rs 13,100 crore has been proposed
India Post gets 55% hike in outlay; 5,000 POs to be networked
To lend Rs 607 cr to public enterprises in FY10
To raise Rs 1,120 crore through disinvestment
Raises farm sector allocation by 5 pc to Rs 15,000 crore
Hit hard by economic slowdown, Centreâs tax kitty slated to have shortfall of about Rs 60,000 crore this fiscal against original estimates
Collections this fiscal are slated to be lower for both direct and indirect taxes
<!--QuoteEnd--><!--QuoteEEnd-->
UPA social engineering had ruined wealth what NDA was able to create in 4 years.
Only 10 Janpath bank balance is showing growth and ofcourse corrupt Babus.