Following the announcement of the Indian Interim Budget 2009, this has now been revised to Rs.900,953 crore, with an increase of Rs.1,50,069 crore. That represents a pretty significant Budget Estimate increase of 19.9 per cent.

The Plan Expenditure for 2008-09 was initially placed at Rs.2,43,386 crore in the Budget Estimate. It has now gone up to Rs.2,82,957 crore in the Revised Estimate presented as part of the Interim Budget - a 16.4 per cent increase.

The additional plan spending of Rs.39,571 crore is due to an increase in the Central Plan by Rs.24,174 crore and an increase of Rs.15,397 crore in the Central Assistance to State and UT Plans.

Central Plan Expenditure has increased for Rural Development, Atomic Energy, Telecommunications, Textiles, Urban Development, Youth Affairs & Sports and Railways.

The increase in Central Assistance for State and UT Plans is on account of additional Central Assistance for Externally Aided Projects, Accelerated Irrigation Benefit Programme, Roads and Bridges, National Social Assistance Programme, Jawaharlal Nehru National Urban Renewal Mission and Tsunami Rehabilitation.

Non-Plan items have grown Rs.1,10,498 crore in the Revised Estimates through an increase in expenditure of Rs.44,863 crore on fertilizer subsidy, Rs.10,960 crore on food subsidy, Rs.15,000 crore on Agricultural Debt Waiver and Debt Relief Scheme, Rs.7,605 crore on Pensions, and Rs.5,149 crore on Police.

An additional amount of Rs.9,000 crore has also been provided for Defence expenditure.

Non-Tax Revenues are a key component of Indian Government receipts. As against the Budget Estimates of Rs.95,785 crore for 2008-09, the Revised Estimates for the Non-Tax Revenues are Rs.96,203 crore, a slight increase.

Actual tax collections during 2007-08 exceeded the Revised Estimates for 2007-08, both for Direct and Indirect Taxes.

However, for 2008-09, the RE of tax collection is projected at Rs.6,27,949 crore as against the BE of Rs.6,87,715 crore. This shortfall is due to Indian Government fiscal measures initiated to counter the impact of global slowdown on the Indian economy, as part of its stimulus packages.

A relief program of about Rs.40,000 crore has been extended through tax cuts, including a fairly steep across the board reduction in Central Excise rates in December, 2008.

Despite this, it is expected that the tax collection in 2008-09 will still exceed last year’s collection.

In summaiton of the variations in receipts and expenditure, the current year is expected to end with a Revenue Deficit of Rs.2,41,273 crore as against the Budgeted Figure of Rs.55,184 crore.

The revised Revenue Deficit stands at 4.4 per cent of GDP in the revised Budget Estimate, against the 1.0 per cent Revenue Deficit in the original Budget Estimates.

The fiscal deficit for 2008-09 has gone up from Rs.1,33,287 crore in the Budget Estimate to Rs.3,26,515 crore in the Revised Estimate, a very significant 144.9 per cent increase.

The revised fiscal deficit is estimated at 6 per cent of the GDP as against the budgeted figure of 2.5 per cent. This is a massive increase representing 3.5 per cent, and it may lead to a downgrading of India's soveriegn debt.

Public Sector Budget - Indian Interim Budget Estimates 2009, Public Sector Enterprises

India has created a strong public sector which has evolved in response to the nation’s needs and provided stability in development. The Indian Government has noted that turnover of Central Public Sector Enterprises (CPSEs) in 2003-04 was Rs.5 lakh 87 thousand crore which has grown by 84 per cent to Rs.10 lakh 81 thousand crore in 2007-08. During the same period, profitsof CPSEs have increased by 72 per cent from Rs.53 thousand crore to Rs.91 thousand crore.

The contribution of CPSEs to the Central Exchequer by way of dividend, interest and taxes and duties has recorded an increase of 86 per cent. The number of loss making enterprises has come down from 73 in 2003-04 to 55 in 2007-08 and the number of profit making enterprises has gone up from 143 to 158 during the same period.

In order to maintain ethics and probity in the functioning of CPSEs, the Government has approved the implementation of Guidelines on Corporate Governance in CPSEs in June, 2007.

In November 2007, Government constituted the National Investment Fund into which the proceeds from disinvestment of Government equity in Central Public Sector Enterprises (CPSEs) are deposited. Three-quarters of annual income of the Fund will be used to finance select social sector schemes which promote education, health and employment. The residual 25 per cent annual income of the Fund will be used to meet the capital investment requirements of profitable and revivable CPSEs. As on December 31, 2008, the corpus of the Fund was about Rs.1815 crore.

The Interim Budget - India Interim Budget 2009

Indian Interim Budget 2009 - Background, Overview, Objectives And The Eleventh Five Year Plan

Revised Estimates, Indian Revised Budget Estimates 2008-2009, RE 2008-09

Indian Budget Estimates 2009-2010, BE 2009-2010, Indian Interim Budget

Tax Budget - Tax and Taxes, Indian Interim Budget 2009

Agriculture Budget - Indian Interim Budget 2009, Agricultural Sector, Rural Development Budget

Education Budget - Indian Interim Budget 2009, Education Sector

Social Sector Budget - Indian Interim Budget 2009, Social Sector

Financial Sector Budget - Financial Sector Reforms, Indian Interim Budget 2009

India Budget 2008

Budget Expectations 2008

India Railway Budget 2008