2009 Union budget of India

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. 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 10,20,838 crore, of which 6,95,689 crore was towards Non Plan and 3,25,149 crore towards Plan expenditure. Total estimated revenue was 6,19,842 crore, including revenue receipts of 6,14,497 and capital receipts of 5345 crores, excluding borrowings. The resulting fiscal deficit was 4,00,996 crore while revenue deficit was 2,82,735 crore. The gross tax receipts were budgeted at 6,41,079 crore and non-tax revenue receipts at 1,40,279.
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 2,000 crore in a year.
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 floods in Kosi.
Industry.
The Confederation of Indian Industry welcomed the budget, claiming that many of their recommendations were implemented. NASSCOM also welcomed the initiatives like modernisation of employment exchanges, the UIAD project, and smart cards for healthcare services. 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. D Sucheth Rao of Neuland Laboratories claimed that the government has largely ignored the demands of the Pharma segment.
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 fell by 258 points. The biggest impact was on banking stocks, with the sectoral index losing 8.17%
See also.
Dream Budget