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{{Infobox government budget|year=2009|title=[[Union Budget of India]]|image=Emblem_of_India.svg|imagesize=100px|caption=[[Emblem of India]]|date_submitted=6 July 2009|submitter=[[Pranab Mukherjee]]|presented=6 July 2009|passed=10 August 2009|parliament=[[15th Lok Sabha|15th]] {{small|([[Lok Sabha]])}}|party=[[Indian National Congress]]|minister=[[Pranab Mukherjee]]|Total_Revenue={{INRConvert|6.19|t}} {{Increase}}{{small|(23.4%)}}|Total_Expenditures={{INRConvert|10.20|t}} {{Increase}}{{small|(23.4%)}}|deficit=0.57%|previous_budget=2008 Union Budget of India|previous_year=2008|next_budget=2010 Union Budget of India|next_year=2010}}
{{Use Indian English|date=February 2016}}
{{use dmy dates|date=February 2016}}
{{Infobox Government Budget
| title = Union Budget of India
| year = 2009
| country = India
| previous_budget = 2008 Union budget of India
| previous_year = 2008
| next_budget = 2010 Union budget of India
| next_year = 2010
| date_submitted = 6 July 2009
| submitter = [[Pranab Mukherjee]]
| url = {{url|http://indiabudget.nic.in}}
}}

The '''2009 [[Union budget of India]]''' was presented by the [[finance minister]], [[Pranab Mukherjee]], on 6 July 2009.

==Background==
During 2008–09, the growth rate of [[GDP]] of India fell from an average of over 9% in the previous three fiscal years to 6.7%. The [[wholesale price index]] of India also witnessed large fluctuations between 13% in August 2008 to 0% in March 2009. The [[fiscal deficit]] of Indian government had gone up to 6.1% in March 2009.<ref>{{cite web|url=http://www.indianexpress.com/news/aprfeb-fiscal-deficit-grew-6.1-per-cent/441529/|title=India's Fiscal Deficit at 6.1%|date=2009-04-01|publisher=Indian Express|accessdate=2009-07-21}}</ref> The budget was preceded by an interim budget by Pranab Mukherjee on 16 Feb 2009.

==Budget Estimates==
The total estimated expenditure for 2009–10 was {{Indian Rupee}}10,20,838 crore, of which {{Indian Rupee}}6,95,689 crore was towards Non Plan and {{Indian Rupee}}3,25,149 crore towards Plan expenditure. Total estimated revenue was {{Indian Rupee}}6,19,842 crore, including revenue receipts of {{Indian Rupee}}6,14,497 and capital receipts of {{Indian Rupee}}5345 crores, excluding borrowings. The resulting [[fiscal deficit]] was {{Indian Rupee}}4,00,996 crore while revenue deficit was {{Indian Rupee}}2,82,735 crore. The gross tax receipts were budgeted at {{Indian Rupee}}6,41,079 crore and [[non-tax revenue]] receipts at {{Indian Rupee}}1,40,279.<ref>{{cite web |title=Budget at a Glance |url=http://indiabudget.nic.in/ub2009-10/bag/bag1.htm |archiveurl=https://www.webcitation.org/5j5Od0ebX?url=http://indiabudget.nic.in/ub2009-10/bag/bag1.htm |archivedate=17 August 2009 |url-status=dead |accessdate=2009-07-25 |df=dmy }}</ref>

==Short term economic revival measures==

===Infrastructure development===
* Allocation of {{Indian Rupee}}15,800 crore to [[National Highways Authority of India]].
* Allocation of {{Indian Rupee}}12,887 crore to [[Jawaharlal Nehru National Urban Renewal Mission]].
* Allocation of {{Indian Rupee}}3,973 crore for housing and provision of basic amenities to urban poor.
* Allocation of {{Indian Rupee}}500 crore for [[Brihanmumbai Storm Water Disposal System|Brihan Mumbai Storm Water Drainage Project]] .
* Allocation of {{Indian Rupee}}2,080 crore for [[Accelerated Power Development and Reform Programme]]

===Agriculture development===
* Allocation of {{Indian Rupee}}411 crore for interest subvention for short term crop loans .
* Extension of time given to the farmers to pay their overdues under [[Debt Waiver and Debt Relief Scheme]] to 31 December 2009.
* Allocation under Accelerated Irrigation Benefit Programme (AIBP) increased by 75% over B.E. 2008–09.
* Allocation under Rashtriya Krishi Vikas Yojana (RKVY) stepped up by 30% in B.E. 2009–10 over B.E. 2008–09.

===Export growth restoration===
* Allocation of {{Indian Rupee}} 124 crore for Market Development Assistance Scheme
* Extension of deadline for Interest subvention of 2% on pre-shipment credit for employment oriented export sectors to 31 March 2010.

==Medium term economic revival measures==
* Setting up of an expert group to advise on pricing petroleum products in sync with global prices.
* Raising of the threshold for non-promoter public shareholding for listed companies.
* Setting up of State Level Bankers Committee for providing banking facilities in under-banked/unbanked areas in the next three years.

==Inclusive development measures==
* Allocation of {{Indian Rupee}}39,100 crore to [[National Rural Employment Guarantee Scheme]]
* National Food Security Act to be brought in to ensure entitlement of 25 kilo of rice or wheat per month at {{Indian Rupee}}3 per kilo to every family living below the [[poverty line]] in rural or urban areas.
* Allocation of {{Indian Rupee}}12,000 crore to [[Pradhan Mantri Gram Sadak Yojana]] and {{Indian Rupee}}7,000 crore to [[Rajiv Gandhi Grameen Vidyutikaran Yojana]].
* Allocation of {{Indian Rupee}}8,800 crore to [[Indira Awaas Yojana]] and {{Indian Rupee}}2,000 crore to [[Rural Housing Fund]]
* Allocation of {{Indian Rupee}}100 crore to [[Pradhan Mantri Adarsh Gram Yojana]].
* Interest subsidy to poor households to be provided for loans up to {{Indian Rupee}}1 lakh.
* Increase of Corpus of [[Rashtriya Mahila Kosh]] from {{Indian Rupee}}100 crore to {{Indian Rupee}}500
* [[National Mission for Female Literacy]] to be launched with the aim to reduce level of female illiteracy by half in three years.
* Full interest subsidy for student loans during the period of moratorium introduced for approved courses of study in technical and professional streams from recognised institutions in India
* Plan outlay of [[Ministry of Minority Affairs]] enhanced to {{Indian Rupee}}1,740 crore.
* {{Indian Rupee}}75 corers allocated for establishing three campuses for [[Aligarh Muslim University]]
* Setting up of [[handloom]] mega clusters in [[West Bengal]] and [[Tamil Nadu]], [[powerloom]] mega cluster in [[Rajasthan]] and mega clusters for carpets in [[Srinagar]] and [[Mirzapur]]
* Allocation of {{Indian Rupee}}12,070 crore to [[National Rural Health Mission]]
* Launching of eight national missions under [[National Action Plan on Climate Change]].
* Setting up of [[National Ganga River Basin Authority]] and allocation of {{Indian Rupee}}562 crore for River and Lake Conservation Plans.
* One-time grant of {{Indian Rupee}}100 crore for [[Indian Council of Forestry Research and Education]], [[Dehradun]]

==Building Accountable Institutions==
* [[Unique Identification Authority of India]] to set up online data base with identity and biometric details of Indian residents.
* {{Indian Rupee}}430 crore provided to modernise police machinery in the States.
* {{Indian Rupee}}2,284 crore proposed for construction of fences, roads, flood lights on the international borders.
* 1 lakh dwelling units for housing of [[Central Para-military Forces]] personnel to be made.
* Increase of pension for servicemen at a cost of {{Indian Rupee}}2,100 crore.
* {{Indian Rupee}}495 crore allocated to setting up and upgrading of [[Institute of technology|polytechnics]].
* {{Indian Rupee}}827 crore allocated for opening one Central University in each uncovered State.
* {{Indian Rupee}}50 crore allocated for [[Panjab University, Chandigarh|Punjab University]], [[Chandigarh]]
* Outlay for [[Commonwealth games]] 2010 increased to {{Indian Rupee}}3,472 crore.
* {{Indian Rupee}}500 crore allocated for rehabilitation of [[Sri Lankan Tamil people|Sri Lankan Tamils]].
* {{Indian Rupee}}2,113 crore allocated for [[Indian Institute of Technology|IITs]] and [[National Institute of Technology|NITs]]
* {{Indian Rupee}}1,000 crore allocated rebuilding the damaged infrastructure caused due to [[cyclone Aila]] in West Bengal.

==Taxation==
The tax proposals on direct taxes were claimed to be revenue neutral while those on indirect taxes were claimed to yield a net gain of {{Indian Rupee}}2,000 crore in a year.

===Direct taxes===
* Increase of personal income tax exemption limit from {{Indian Rupee}}2.25 lakh to {{Indian Rupee}}2.40 lakh for senior citizens, from {{Indian Rupee}}1.80 lakh to {{Indian Rupee}}1.90 lakh for women tax payers and from {{Indian Rupee}}1.50 lakh to {{Indian Rupee}}1.60 lakh for all other categories of individual taxpayers.
* Increase of the deduction under section 80-DD to {{Indian Rupee}}1 lakh from {{Indian Rupee}}75,000.
* Elimination of surcharge of 10% on personal income tax
* Extension of deduction in respect of export profits under sections 10A and 10B of the Income-tax Act till 2010–11.
* Abolition of [[Fringe Benefit Tax]]
* Extension of weighted deduction of 150% on in-house R&D expenditure to all manufacturing businesses.
* Increase of Minimum Alternate Tax from 10% of book profits to 15%.
* Exemption of income of the [[National Pension Scheme Trust]] from income tax and any dividend paid to this Trust from [[dividend distribution tax]]
* Abolition of [[Commodity Transaction Tax]] introduced in The Finance Act, 2008.
* Extension of the tax holiday under section 80-IB(9) to profits derived from the commercial production of mineral oil and natural gas from oil and gas blocks awarded under the New Exploration Licensing Policy-VIII round of bidding.

===Indirect taxes===
* Imposition of 5% [[customs duty|basic customs duty]] to imported [[set top box]]es
* Reduction of basic customs duty of [[LCD panel]] from 10% to 5%.
* Extension of CVD exemption of 4% for components of mobile phones.
* Reduction of customs duty from 10% to 5% for life saving drugs.
* Reduction of customs duty from 7.5% to 5% for life saving devices used in treatment of heart conditions.
* Increase of customs duty from {{Indian Rupee}}100 to {{Indian Rupee}}200 per ten grams for gold bars, from {{Indian Rupee}}250 to {{Indian Rupee}}500 per ten grams for gold jewellery and from {{Indian Rupee}}500 to {{Indian Rupee}}1000 per kg for silver.

===Central excise duties===
* Restoring the [[ad valorem]] central excise duty of 4% for cotton textiles beyond the fibre stage.
* Reduction of basic customs duty on wool waste and cotton waste from 15% to 10%.
* Increase of central excise duty rates for items attracting the rate of 4% to a mean rate of 8% with exceptions like food items and drugs.
* Reduction of basic customs duty on [[bio-diesel]] from 7.5% to 2.5%
* Full exemption to such goods manufactured at site for construction industry, when used for further construction at site.
* Reduction of ad valorem duty for vehicles of engine capacity above 2000 cc to {{Indian Rupee}}15,000 from {{Indian Rupee}}20,000.
* Reduction of excise duty for Petrol driven trucks from 20% to 8%.
* Exemption of branded jewellery from excise duty.

===Service tax===
* Exemption of service tax on the membership and other fees collected by [[Federation of Indian Export Organisations]].
* Extension of service tax to goods carried by [[Indian Railways]] and those carried as coastal cargo or through inland waterways
* Extension of service tax on advice, consultancy or technical assistance provided in the field of law.
* Exemption of service tax for private enterprises transporting passengers in vehicles having ‘Contract Carriage Permits’

==Reactions==

===Political parties===
[[Bharatiya Janata Party]] (BJP) president [[Rajnath Singh]] criticised the budget, claiming that the government failed to fulfil the people's expectations. BJP leader [[Venkaiah Naidu]] described the Budget as "escapist" and alleged that no steps were taken to attract investment or to provide relief for farmers. [[Communist Party of India (Marxist)]] (CPM) leader [[Brinda Karat]] termed the Budget as s pro-rich and claimed that there were no major allocations in health, education and food subsidy. [[Communist Party of India]] (CPI) leader [[Gurudas Dasgupta]] criticised the projected economic growth as 'utopian'. [[RJD]] chief [[Lalu Prasad Yadav]] described the Budget as balanced but criticised it for not providing funds for reconstruction of [[Bihar]] following the [[Koshi River#2008 flood in Bihar|floods in Kosi]].<ref>{{cite web|title=BJP, Left parties flay Budget |author=Prionka Jha |url=http://indiatoday.intoday.in/budget09/index.php?option=com_content&sectionid=91&secid=124&task=view&id=50366&site=budget09 |archiveurl=https://www.webcitation.org/5j5OtaJVc?url=http://indiatoday.intoday.in/budget09/index.php?option=com_content&sectionid=91&secid=124&task=view&id=50366&site=budget09 |archivedate=17 August 2009 |url-status=live |accessdate=2009-07-25 }}</ref>

===Industry===
The [[Confederation of Indian Industry]] welcomed the budget, claiming that many of their recommendations were implemented.<ref>[http://indiatoday.intoday.in/budget09/index.php?option=com_content&sectionid=91&secid=124&task=view&id=50343&site=budget09 CII welcomes budget]</ref> [[NASSCOM]] also welcomed the initiatives like modernisation of employment exchanges, the UIAD project, and smart cards for healthcare services.<ref>{{cite web|title=Nasscom welcomes Union Budget |author=Navneeta |url=http://indiatoday.intoday.in/budget09/index.php?option=com_content&sectionid=91&secid=124&task=view&id=50440&site=budget09 |archiveurl=https://www.webcitation.org/5j5OyM5VF?url=http://indiatoday.intoday.in/budget09/index.php?option=com_content&sectionid=91&secid=124&task=view&id=50440&site=budget09 |archivedate=17 August 2009 |url-status=live |accessdate=2009-07-25 }}</ref> Sudip Nandy, CEO of [[Aricent]] lauded the one-year extension granted to the tax holiday scheme and the abolition of Fringe Benefit Tax and double taxation on the packaged software.<ref>[http://indiatoday.intoday.in/budget09/index.php?option=com_content&task=view&id=50535&Itemid=1&sectionid=91&secid=124&site=budget09 Aricent reaction to Union Budget 2009–10]</ref> D Sucheth Rao of Neuland Laboratories claimed that the government has largely ignored the demands of the Pharma segment.<ref>[http://indiatoday.intoday.in/budget09/index.php?option=com_content&task=view&id=50470&Itemid=1&sectionid=91&secid=124&site=budget09 'Pharma sector demands ignored and MAT disappointing']</ref>

===Share market===
[[Sensex]], the benchmark index of the [[Bombay Stock Exchange]], reacted adversely to the budget, falling over 869 points, a loss of 6.53%, the biggest fall on any budget day. And the [[CNX Nifty]] index of the [[National Stock Exchange of India|National Stock Exchange]] fell by 258 points. The biggest impact was on banking stocks, with the sectoral index losing 8.17%<ref>{{cite web|title=Sensex records highest Budget-day fall on deficit concerns |author=Anupam Varma |url=http://indiatoday.intoday.in/story/Sensex+records+highest+Budget-day+fall+on+deficit+concerns/1/50307.html |archiveurl=https://www.webcitation.org/5j5P3IHZL?url=http://indiatoday.intoday.in/budget09/index.php?option=com_content&task=view&id=50307&Itemid=1&sectionid=91&secid=124&site=budget09 |archivedate=17 August 2009 |url-status=live |accessdate=2009-07-25 }}</ref>

==See also==
[[Dream Budget]]

==References==
<references/>

==External links==
* [https://web.archive.org/web/20090723045700/http://indiabudget.nic.in/ub2009-10/ubmain.htm Government of India Union Budget and Economic Survey ]
* [http://www.banknetindia.com/banking/fmreply09.htm Finance Minister's Reply to Budget Debate ]

{{Union budget of India}}

{{DEFAULTSORT:2009 Union Budget Of India}}

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[[Category:Union budgets of India]]
[[Category:2009 in Indian economy|Union Budget Of India, 2009]]
[[Category:Manmohan Singh administration]]
[[Category:2009 government budgets|Union budget of India]]

2009 Union budget of India - Revision history

MetaBOT at 17:19, 8 July 2023