Professional Documents
Culture Documents
2009 – 2010
By PAT Team
What the FM said
“Members would appreciate that a single budget speech cannot solve all our
problems, nor is the union budget the only instrument to do so” –
Finance Minister, Pranab Mukherjee, Union Budget 2009-10.
What he means
•Market expectations unnecessarily overstated
•Scope for off-budget initiatives
Budget silent but not without direction
The government is eager to play the role of growth driver at the expense of
fiscal prudence in the near term –a calculated step but one that could be a
sentimental blow for FIIs.
•Including off-balance sheet items like OMC and fertiliser bonds, budgeted fiscal deficit at 7%
for FY10 as compared to 7.8% in FY09.
•Assumption of 10% growth in nominal GDP conservative, in our opinion, considering 8%
growth in Q4FY09 and revival in manufacturing activity.
•No provision for revenues from disinvestment activities; could act as bonus in FY10 and FY11.
Sector snapshot
Thank
You….