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Pranab Mukherjee
 
’s Union Budget
 
speech 2009-2010 (Full Text)
July 6th, 2009Madam Speaker,I rise to present the Budget for2009-10.
2. Just 140 days back, I had theprivilege to present the Interim Budgetfor 2009-10. It is a rare honour that Ihave been called upon to present theregular budget after the newGovernment assumed office.3. The Congress-led UPA Government has come back to power with arenewed mandate. As Prime Minister, Dr. Manmohan Singh, said recently ‘Itis a mandate for continuity, stability and prosperity. It is a mandate forinclusive growth and equitable development.’ It is a mandate that we acceptwith humility and a firm resolve to do all that we can for the welfare of thisnation.4. I am deeply conscious of the faith reposed by the people in ourgovernment and the responsibilities that come with it. I am sensitive to thegreat challenge of rising expectations of a young India . It reflects apopulation that is restless, yet engaged and is ready to seize theopportunities that it is presented with. There are new and powerful reasonsfor us to create, facilitate and sustain those opportunities.5. In the Interim Budget for 2009-10, I had stated that the newGovernment would need to anchor its policies for 2009-10, in a medium termperspective that would have to:(a) sustain a growth rate of at least 9 per cent per annum over an extendedperiod of time;
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(b) strengthen the mechanisms for inclusive growth for creating about 12million new work opportunities per year;(c) reduce the proportion of people living below poverty line to less than halffrom current levels by 2014;(d) ensure that Indian agriculture continues to grow at an annual rate of 4per cent;(e) increase the investment in infrastructure to more than 9 per cent of GDPby 2014;(f) support Indian industry to meet the challenge of global competition andsustain the growth momentum in exports;(g) strengthen and improve the economic regulatory framework in thecountry;(h) expand the range and reach of social safety nets by providing directassistance to vulnerable sections;(i) strengthen the delivery mechanism for primary health care facilities witha view to improve the preventive and curative health care in the country;(j) create a competitive, progressive and well regulated education system ofglobal standards that meets the aspiration of all segments of the society;and(k) move towards providing energy security by pursuing an IntegratedEnergy Policy.6. The Government recognizes the challenges that this task entails,particularly at a time when the world is still struggling with anunprecedented financial crisis and an economic slowdown that has alsoaffected India . While we are determined to convert our words into deeds,Members would appreciate that a single Budget Speech cannot solve all ourproblems, nor is the Union Budget the only instrument to do so. Yet, it is animportant means to share the vision of the Government, particularly as webegin a new term. I propose to do just that for the next hour or so, as I
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dwell on the challenges and outline the approach of the government in theshort term and medium term perspectives.7. The first challenge is to lead the economy back to the high GDP growthrate of 9 per cent per annum at the earliest. Growth of income is importantin itself, but it is as important for the resources that it brings in. Theseresources provide us with the means to bridge the critical gaps that remainin our development efforts, particularly with regard to the welfare of thevulnerable segments of our population.8. The second challenge is to deepen and broaden the agenda for inclusivedevelopment; and to ensure that no individual, community or region is deniedthe opportunity to participate in and benefit from the development process.9. The third challenge is to re-energize government and improve deliverymechanisms. Our institutions must provide high quality public services,security and the rule of law to all citizens with transparency andaccountability.
Overview of the Economy
10. Madam Speaker, at the time of the presentation of the Interim Budget,I had given a detailed analysis of the economic situation. Without repeatingmyself, I would like to highlight that the development course charted by theUPA Government in the last five years has been possible due to a step up inthe growth rate of the economy and improved revenue buoyancy. Theprincipal growth driver in this period has been private investment, which hasbeen predominantly funded by domestic resources. During the year 2008-09,there has been a dip in the growth rate of GDP from an average of over 9per cent in the previous three fiscal years to 6.7 per cent. It has affectedthe pace of job creation in certain sectors of the economy and theinvestment sentiments of the business community. It has also resulted inconsiderably lower revenue growth for the government. Another feature ofthe year 2008-09 was a sharp rise in the wholesale price index to nearly 13%in August 2008 and an equally sharp fall close to 0% in March 2009. While adetailed analysis of the developments has been presented in the EconomicSurvey-2008-09, tabled in both houses of Parliament last Thursday, I draw your attention to a few aspects.
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