Union Budget 2009-10 – Key Highlights – Infrastructure, Housing

Key figures

• Growth rate in 2008-09 dipped to 6.7 per cent from average 9 per cent growth in previous three fiscal years.
• Fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP.

(Fiscal Deficit indicates the difference between the government’s revenue and expenditure. A positive fiscal deficit indicates that government’s expenditure is more than its revenue.)

• Budget expenditure crosses Rs 10 LAKH crore for the first time.

Infrastructure Allocations

• Allocation for National Highway project is up 23%.

(This should benefit the road construction and raw material industries like cement.)

• Indian Infrastructure Financial Corporation Limited (IIFCL) to evolve financing mechanism for giving increased support to infrastructure projects. It will will re-finance commercial bank loans upto 60 per cent in critical projects through public private partnership to the tune of Rs 1,00,000 crore to raise investment in the sector.
• Gram Sadak Yojana allocation has been hiked up 59% to Rs 12000 crore

Housing Schemes

• Housing allocation hiked under Rajiv Awaas Yojana. Allocation for urban poor for provision for housing and basic amenities to be raised to Rs 3,973 crore in the current year.
• Allocation for Jawaharlal Nehru Urban Renewal Mission increased by 87 per cent to Rs 12,887 crore.
• Rs 2,000 crore for rural housing fund under National Housing Bank.

(This shall also benefit the housing construction and raw material industries)