A Complete Analysis Of The Interim Union Budget 2009-10

17 Feb

Posted by Shyam as Market News

The much awaited Interim Union Budget for the year 2009-10 has finally been tabled in the Parliament yesterday i.e: Feb 16th 2009 by the stand in finance minister Mr.Pranab Mukherjee. It was a much disappointing budget to be produced by the UPA govt before it goes to election in the coming months. Let us look at the key points of the Interim Union Budget.

Main highlights of the Interim Union Budget 2009-10:

India to remain the second fastest growing economy in the world with an estimated 7.1% GDP growth this fiscal.

There was no word of change in the tax patterns that people pay today. It remains the same like last year. We may see some revision coming in once the new Govt is elected to power in a few months from here.

The Indian govt has already spent RS 70,000 crore in many infrastructrure project in the year 2008-09.

The GDP has grown from 7.5% in the year 2004-05 to 9.7% in 2006-07. And it will remain 7.1% in this fiscal.

The inflation problems has been solved but the Govt still cannot relax and allow prices to rise.

The market has reacted badly to the budget this year. It tanked 329 points in sensex and 100 points in nifty. The markets might fall further from here as there is no big economic packages announced by the govt on the wake of high fiscal deficit this year.