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Key Features of Interim Budget 2009-2010

Key Features of Interim Budget 2009-2010

 

INTRODUCTION

 

�� The Gross Domestic Product increased by 7.5 per cent, 9.5 per cent, 9.7 percent

and 9 per cent in the first four years from fiscal year 2004-05 to 2007-08 recording

a sustained growth of over 9 per cent for three consecutive years for the first time.

The growth drivers for the period were agriculture, services, manufacturing along

with trade and construction.

 

�� Fiscal deficit down from 4.5 per cent in 2003-04 to 2.7 per cent in 2007-08 and

Revenue deficit from 3.6 per cent to 1.1 per cent in 2007-08.

 

�� The domestic investment rate as a proportion of GDP increased from 27.6 per cent

in 2003-04 to 39 per cent in 2007-08. Gross Domestic savings rate shot up from

29.8 per cent to 37.7 per cent during this period.

 

�� The Gross capital formation in agriculture as a proportion of agriculture GDP

increased from 11.1 per cent in 2003-04 to 14.2 per cent in 2007-08

 

�� The tax to GDP ratio increased from 9.2 per cent in 2003-04 to 12.5 per cent in

2007-08.

 

�� Annual growth rate of agriculture rose to 3.7 per cent during 2003-04 to 2007-08.

The foodgrain production recorded an increase of 10 million tonnes each year during

this period a



 
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