New Delhi, July 6
India today sent out a strong signal about its concentration on stepping up national security. Allocations for the Defence and Home Ministries respectively have been increased substantially. The focus will be on speeding up acquisition of equipment for the armed forces, securing the borders, the coast and also modernising the police forces of the states by equipping them with the best gadgets.

The move comes eight months after Pakistan-based terrorists surprised India by attacking Mumbai and also going by the increasing restiveness in the countries surrounding India.

The budgetary allocation for defence has been jacked up to Rs 1,41,703 crore, a 34 per cent increase over the previous fiscal. This is more or less the same as in the interim budget presented in February this year. Most of it will be used to upgrade the existing ageing fleet of aircrafts, naval warships, submarines, military equipment besides addition of radars, sensors, new weapons and fast boats for coastal security.

For the Home Ministry, which handles border security, Rs 33,809 crore has been allocated against Rs 25,439 crore in 2008-09, showing a rise of nearly 33 per cent.

Notably the Finance Minister today allocated Rs 2,284 crore for the construction of fences, roads, flood-lights on the international borders. This is over and above the allocation made in the interim budget in February this year. An additional amount of Rs 430 crore is for modernisation of police forces, over and above the provisions in the interim budget, said Mukherjee amidst thumping of desks in Parliament.

For the current year, 12 per cent of all expenditure of the government will be on defence. It will also include Rs 54,824 crore for capital expenditure, an increase of Rs 13,824 crore as against Rs 41,000 crore in the revised estimates for 2008-09. Out of the Rs 54,824 crore capital outlay for 2009-10, about 95 per cent will go towards procurements for the Army, Navy, Air Force and the Coast Guard and the rest 5 per cent will go towards research and production units.

Of the total budgetary allocation for 2009-10, Rs 58,648 crore were rarmarked for the Army, Rs 8,322 crore for Navy, Rs 14,318 crore for Air Force, Rs 833 crore for Ordnance factories and Rs 4,458 crore for research and development.

The Armed Forces Tribunal, set up last year, was given Rs 53.41 crore to meet its expenditure and another Rs 25 crore towards the construction of a building in New Delhi to house it.

Despite today’s hike, India will be spending just a shade above 2 per cent of its GDP on the subject. In comparison, China spends 7 per cent of the GDP while Pakistan spends 5 per cent.

In the Ministry of Home Affairs, the bulk of the increase is on account of additional allotment of funds for the central paramilitary forces to raise new battalions and train personnel, according to the Budget papers.

Under the category for the modernisation of police forces, more assistance will be provided to states and UTs in the form of 100 per cent grants-in-aid. The money will be utilised for purchase of vehicles, wireless equipment, computers and other sophisticated gadgets.

Significant augmentation in the strength of para-military forces is being done. This calls for more investment in creating necessary infrastructure, particularly in the area of housing, Mukherjee said, while announcing the launch of a massive programme of housing to create 1 lakh dwelling units for paramilitary personnel.

Allocation for NREGA up 144 pc
Vibha Sharma
Tribune News Service

New Delhi, July 6
The government today set aside generous allocations for its flagship programmes like National Rural Employment Guarantee Scheme (NREGS), Pradhan Mantri Gram Sadak Yojana (PMGSY), National Rural Health Mission(NRHM) and Bharat Nirman in what has been described as a rural development-oriented Budget.

Giving a further impetus to the government’s ongoing rural development projects, Finance Minister Pranab Mukherjee announced a 144 per cent jump in the allocation for the flagship job guarantee scheme NREGA and 45 per cent hike for the Bharat Nirman programme, which seeks to improve infrastructure in villages.

Presenting the Budget, Mukherjee announced additional allocation of Rs 39,100 crore for NREGS for 2009-10, adding that the government was committed to provide Rs 100 a day as wages under the scheme. “We are committed to providing a real wage of Rs 100 a day as an entitlement under NREGA,” Mukherjee said.

NREGA provided employment opportunities to more than 4.4 crore households in 2008-09. At the national level, average wage paid under NREGA has increased from Rs 65 in 2006-07 to Rs 84 in 2008-2009 (provisional). The rural job guarantee scheme would now be converged with other schemes relating to agriculture, forest, water resources, land resources and rural roads to increase productivity of assets and resources under the Act. In the first stage, a total of 115 pilot districts have been selected for such convergence.

Bharat Nirman allocation has been hiked by 45 per cent and that of the Indira Awas Yojana (IAY)by 63 per cent to Rs 8,883 crore. The proposed hike in the IAY is expected to meet the demand of housing for the rural population living below the poverty line.

In addition, a provision of Rs 2,000 crore for rural housing fund under National Housing Bank has also been made in the proposed Budget. There is also Rs 100 crore one-time grant to expand banks in unbanking areas.

The allocations for the Pradhan Mantri Gram Sadak Yojna has been hiked up by 59 per cent to Rs 12,000 crore. The allocation is expected to facilitate more construction of rural roads and enhance rural connectivity. Besides this, the Pradhan Mantri Grameen Adarsh Yojna on pilot basis will be launched in 100 villages with SC/ST population.

The government also plans to make Swarna Jayanti Swarozgar Yojna (SGSY), now known as National Rural Livelihood Mission (NRLM), universal, more focussed and time bound for poverty alleviation by 2014. A target has been fixed to enroll 50 per cent rural women in self-help groups over the next five years.

New Delhi, July 6
Ignored in the Interim Budget presented earlier this year, health sector emerged among the major gainers today, with Finance Minister Pranab Mukherjee allocating an additional Rs 4,145 crore over the previous year’s outlay of Rs 16,968 crore. The Budget estimates for the current fiscal are Rs 2,113.33 crore, marking a 25 per cent increase over the last year.

In line with the government’s declaration in the President’s speech, 50 per cent of the enhanced allocation has been made in the ongoing National Rural Health Mission, which today got Rs 13,930 crore — Rs 2,057 crore over and above the estimates of Rs 12,070 crore provided in the Interim Budget. Further, all BPL families are sought to be covered under the ongoing Rashtriya Swasthya Bima Yojana, which today saw a 40 per cent increase in budgetary support over the estimates provided in the Interim Budget.

Another significant part of the enhanced outlay will go towards setting up six AIIMS-like institutes in Bihar, Orissa, Madhya Pradesh, Rajasthan, Uttaranchal and Chattisgarh.

Whereas the Budget for these institutes was Rs 490 crore in the plan outlay of the previous year, it now stands increased by 195 per cent at Rs 1,447. 92 crore. Health Minister Ghulam Nabi Azad had said upon assuming charge that establishment of these super-specialty institutes would be government’s top priority. That explains the allocation.

Majority funding has, however, been reserved for the NRHM, which, among other things, takes care of disease prevention. The increased allocations need to be seen in the light of India’s stubbornly high disease burden of malaria, filarial, Kala-Azar and leprosy.

Against the 10 per cent target population under surveillance for malaria prevention, only 4.94 per cent has so far been covered. Statistics on Kala-Azar are grimmer, with 18,197 cases being reported in the last year. Although these cases have been treated, prevention remains a major strategy under the National Disease Control Programme which is integral to NRHM.

Leprosy is another concern under NRHM, with the programme showing huge success. Leprosy case load in the country has come down from 4 million in 1981 to 83,000 cases at the end of March 2007. A lot more needs to be done to counter the disease. Another focus area uinder NRHM would be removal of iodine deficiencies. At present, nearly 71 million people are estimated to be suffering from Iodine Deficiency Disorders. That explains enhanced Budget allocation of Rs 37 crore (from Rs 28 crore previously) for the National Iodine Deficiency Disorders Control Programme.

Another major gainer is medical education and research, with the FM setting aside Rs 1000 crore extra for medical research institutes. Interestingly, funds for National Tobacco Control Programme remain unchanged this year, at Rs 24 crore.

New Delhi, July 6
Development of infrastructure continues to remain a priority for the Congress-led United Progressive Alliance (UPA) government with Finance Minister Pranab Mukherjee announcing an increased public investment in this sector.

Presenting the annual Budget for the year 2009-10, the Finance Minister said, “The investment in infrastructure for the growth of economy is critical. I have urged my colleagues in the Central and state governments to remove policy, regulatory and institutional bottlenecks for speedy implementation of infrastructure projects.”

The minister increased by 23 percent the allocation for National Highways Authority of India (NHAI) for road development in the country, which was among the highest in any sector.

The Budget allocation for the Railways has also been increased from Rs.10,800 crore made in the interim budget to Rs 15,800 crore. Presenting the Railway Budget, Railway Minister Mamata Banerjee had pointed out that her ministry would be getting an additional funding of over Rs 5,000 crore.

Apart from that, Mukherjee has also proposed to enhance the allocation for housing and provision of basic amenities to urban poor to Rs 3,973 crore in the current year’s budget. Allocation for rural roads scheme has been raised by 59 per cent.

“I, on my part, will ensure that sufficient funds are made available for this sector,” he said.

“To ensure that infrastructure projects do not face financing difficulties arising from the current downturn, the government has decided that IIFCL (India Infastructure Finance Co Ltd) will refinance 60 per cent of commercial bank loans for PPP (public-private partnership) projects in critical sectors over the next 15 to 18 months,” he said.

Mukherjee called on states to remove bottlenecks for infrastructure projects, and outlined plans for more flexible financing for infrastructure and development of long-distance gas pipelines.

The Finance Minister said that IIFCL and banks were in a position to support projects involving a total investment of Rs 100,000 crore.

The allocation for the Jawaharlal Nehru National Urban Renewal Mission was increased by 87 per cent to Rs 12,887 crore in an effort to step up urban infrastructure development.

The government has also decided to raise the allocation to Bharat Nirman, a rural infrastructure development project, by 45 per cent.

Sticking to the theme of ‘inclusive growth’, the minister also unveiled breaks for exporters hard-hit by the global downturn and direct subsidies for farmers.

He also urged a return to fiscal responsibility targets as soon as possible. “The first challenge is to return the GDP growth rate of 9 per cent per annum at the earliest,” Mukherjee said. “The second challenge is to deepen and broaden the agenda for inclusive development.”

New Delhi, July 6
The government has made a provision of of Rs 120 crore (Rs 1.20 billion) for the issuing of the unique identification cards, the pet project of Prime Minister Manmohan Singh for which Infosys co-chairman Nandan Nilekani had been picked the by the government some days ago.

Finance Minister Pranab Mukherjee while presenting the Budget proposals for the year 2009-10 in the Lok Sabha said, the Unique Identification Authority of India (UIDAI) set up recently by the government, would establish an online data base with identity and biometric details of Indian residence and provide enrolment and verification services across the country.

The first set of unique identity numbers will be rolled out in 12 to 18 months. A provision of Rs 120 crore (Rs 1.20 billion) has been proposed for this project. Mukherjee stated that the setting up of the UIDAI is a major step in improving governance with regard to delivery of public services.

Expressing happiness, the Finance Minister said this project also marked the beginning of an era where top private sector talent in India steped forward to take the responsibility for implementing the projects of vital national importance.

Mumbai, July 6
The Energy Research Institute (TERI) said it was disappointed with the Union Budget 2009-10, considering the fact that Central government has the mandate to carry out reforms in the energy and environment sectors.

“Unfortunately, the Budget did not take this opportunity to take strong reformist steps with regard to the energy sector,” TERI said in its statement.

The organisation said the Budget remained non-committal on the issue of pricing of petroleum products, deferring the decision to an expert group which would be constituted to advice on viable and sustainable system of pricing petroleum products. However, the indicated linking of domestic price of petroleum products to the international price is good news for the already stressed oil marketing companies of the country.

TERI felt that the development of a blue print for long-distance gas highway leading to a National Gas Grid, as proposed by the Budget, would help in accelerating the pace of economic development throughout the country. It also hailed the government’s decision to decrease the custom duty on the bio-diesel from 7.5 per cent to 2.5 per cent. “This may provide the necessary environment for the use of bio-diesel for blending purposes,” the statement said.

However, it flayed the budget for not aggressively addressing the issue of rural energy. “Over 85 per cent of households in rural India and 26

per cent in urban India continue to depend on traditional biomass - firewood and chips, dung and coal/coke- to meet domestic energy needs for cooking,” Teri noted.

“The linkage between provision of clean energy and alleviation of poverty is well recognised and it is surprising that the government, with its focus on the aam aadmi has overlooked this vital area,” the TERI said.

It added that in the pre-budget submission to the Ministry of Finance, TERI had underlined the urgent need for the government support to the development and dissemination of cleaner and more efficient cooking and lighting solutions- specifically, improved chulhas and solar lanterns. "The latter can be supported without additional expenses by redirecting the kerosene subsidy, a large proportion of which is knownto be misappropriated. The need to redirect the kerosene subsidy towards solar lanterns was explicitly noted in the Economic Survey 09 however it is unfortunate that the government did not muster the political gumption to take the step," TERI said.

New Delhi, July 6
Bigger cars will be cheaper as the government today reduced additional excise duty on those with engine capacities of 2,000cc and above by Rs 5,000 per unit.

It also cut the duty of petrol-driven trucks to 8 per cent from 20 per cent at present.

“In (the) case of vehicles of engine capacity below 2000cc, this component (specific duty) was Rs 15,000 per unit, while for vehicles of (a) higher engine capacity it was Rs 20,000 per unit. These rates are now being unified at the lower level of Rs 15,000 per unit,” Finance Minister Pranab Mukherjee said while presenting the Budget.

Excise duty on petrol-driven trucks and lorries has also been reduced to eight per cent from 20 per cent. — PTI

New Delhi, July 6
In a strange act of omission today, Finance Minister Pranab Mukherjee completely missed out the references to minority Budget in his speech in the Lok Sabha today.

Visibly strained (he was down with cold), the Finance Minister skipped two vital paragraphs, which, when read out later, managed the loudest applause from the Lower House. The portions dealt with the government’s decision to increase the Budget outlay for the Ministry of Minority Affairs (MOMA) by a never-before raise of a whopping 74 per cent (this is the second booster for minorities, especially Muslims, after railway minister Mamta Banerjee extended student concession scheme to madrassas across India).

Just when one was wondering how the Finance Minister could ignore voicing his government’s huge dole out for a critical sector, a Lok Sabha guard came into the House with a slip in hand. It was a written reminder to Pranab that he had missed something very important. That was when the Finance Minister made a quick apology to the Speaker, and announced the Budget of Rs 1,740 crore for MOMA - up by Rs 740 crore the ministry received last year. “I am sorry for the slip,” he said.

Of the increased allocation for MOMA, Rs 889 crore - 51 per cent of the total - is for multi-sectoral development of 90 minority concentration districts. The corresponding allocation in the interim budget was Rs 517 crore.

More funds have also been made available for the pre and post matric scholarships for minority students; funding for the two schemes is now Rs 180 crore (against Rs 72 crore last year) and Rs 135 crore (against Rs 90 crore last year), respectively.

“Allocations have been made for the new schemes of national fellowships for students from miniority community and grants-in-aid to the Central Wakh Council for computerisation of records of state wakf boards,” said the Finance Minister, further setting aside Rs 25 crore each to enable Aligarh Muslim University to set up campuses in Murshidabad (Pranab’s constituency) in west Bengal and Malappuram in Kerala. For the West Bengal campus of AMU, the CPM-led state government has been working for a long time.

Shimla, July 6
Terming the Union Budget as disappointing and directionless, the BJP said it had failed to provide any relief either to the industry or the middle class, especially in the time of recession.

In a statement issued here today, state BJP chief Jai Ram Thakur said the sudden decline in the Sensex was a clear-cut indication that the budget had dashed the hopes of the industry and commerce, who were pining their hopes on getting major incentives.

“The budget has led to a lot of disappointment in the housing, power and textile sector while no assurance has been given in cut on the interest rate on loans.

Thakur said the claims of the UPA regime in making 144 per cent increase in the budgetary allocation for NREGA had also turned out to be misleading as the allocation had been enhanced from Rs 30,000 crore to merely Rs 39,000 crore.

He lamented that not much attention had been paid to infrastructural development. “What is worst is the fact that the UPA regime has discriminated with states on political considerations and practically all demands of Himachal have been completely ignored,” he remarked.

He said it is not just Himachal, but interests of all hill states had been practically ignored in the budget. “The main demands put forth by the state, including restoration of the industrial package, special relief package and generation tax, do not find mention in the budget,” he added.

Patna, July 6
Bihar Chief Minister Nitish Kumar is disappointed with the Budget claiming that it has nothing for Bihar.

He alleged the Centre had done injustice with the people of Bihar by presenting a discriminatory and directionless Budget that would only promote regional disparities.

Welcoming the rehabilitation package announced for the ‘Aila’ victims of West Bengal, Nitish wondered over the denial of a similar rehabilitation package for the victims of Kosi floods in Bihar. “The Prime Minister had declared the Kosi floods as a national calamity and had given assurance to provide adequate money for carrying out the relief and rehabilitation work, but the budget is silent on the issue,” he said.

According to him, the budget had ignored Bihar on other fronts as well. Citing the budgetary announcement to open two branches of Aligarh Muslim University, Nitish said Bihar had been denied a branch of AMU although the state government had agreed to provide the land required for it in Kishanganj district. “Kishanganj has the highest population of Muslims (68 per cent),” he said.

The Budget had announcements about developing mega clusters of handloom industry in states like West Bengal, Rajasthan and Tamil Nadu, but it had totally ignored the handloom industry of Bhagalpur in Bihar, he added.

New Delhi, July 6
When Finance Minister Pranab Mukherjee made a pointed reference to the return of the Congress-led UPA government while opening his Budget speech in the Lok Sabha this morning, it was seen as a clear giveaway that his proposals will be based on sound political inputs and bear the grand old party’s imprint.

This became even more evident during the following 100 minutes, as he read through the 27-page budgetary proposals. These met with the approval of the more conservative elements in the Congress, who were quick to see shades of Indira Gandhi’s framework in Mukherjee’s speech.

That Mukherjee is a quintessential Congressman, firmly rooted in the party’s ethos, was revealed when he pointed out that Indira Gandhi’s bold decision to nationalise banks 40 years ago had ensured that India’s banking and financial sector remained unaffected during the recent international economic crisis.

The Congress’ “aam admi” agenda was adequately reflected in Mukherjee’s budget that increased outlays for the government’s flagship programmes like the National Rural Employment Guarantee Scheme and Bharat Nirman, emphasised the importance of the public sector and stepped up allocations for infrastructure despite the global economic slowdown.

“To some extent, it was a return to the pre-Chidambaram days,” remarked senior Congress leaders, stating that unlike his predecessor who was able to bridge the gap between expenditure and earnings because of a booming economy, Pranab has opted to increase spending on pro-poor programmes even if it means an increase in the revenue deficit.

Pranab tread cautiously on economic reforms, which was also necessitated by the global economic situation. Forced to shelve its disinvestment plans during the UPA government’s last tenure because of the opposition from the Left parties, the present ruling combine has revived this programme with Mukherjee couching it in palatable terms. While admitting that disinvestment in PSUs is on course, Mukherjee clarified that the government will retain at least 51 per cent equity in these enterprises, which will exclude banks and insurance companies.

Further proof of the Congress President Sonia Gandhi and AICC general secretary Rahul Gandhi’s priorities was amply reflected in the new scheme titled the Pradhan Mantri Adarsh Gram Yojana for the integrated development of 1,000 villages where the scheduled castes constitute more than 50 per cent of the population.

Hyderabad, July 6
Terming the Union Budget as the “best in the most difficult times,” Andhra Pradesh Chief Minister YS Rajasekhar Reddy today said it clearly focused on infrastructure, rural development and inclusive growth.“The world is yet to come out of the global economic meltdown. The focus of the Budget has been to stimulate growth by stepping up investments in infrastructure,” Reddy said, reacting to the Budget.

The Chief Minister also welcomed targeted credit expansion to agriculture to about Rs.3.2 lakh crore and also reduction in the rate of interest on crop loans by 1 per cent.

Expressing happiness over permission given to the states to raise loans up to 4 per cent of their GSDP, he said, “All these initiatives together with the three fiscal stimulus packages will go a long way in pushing up investment in infrastructure.”

Chennai, July 6
Describing the Union Budget as "farmer-oriented and pro-poor", Tamil Nadu Chief Minister M Karunanidhi today lauded the proposal to disburse crop loans to the tune of Rs 3,25,000 crore and reduction of interest rates for farmers who repay their loans.

Appreciating the fund allocation for the development infrastructure, he said the allocation of Rs 12,887 crore for enhancing urban infrastructure would go a long way in transforming urban India within five years.

Welcoming the increased allocation for the National Rural Employment Guarantee Scheme, he applauded the allocation of Rs 12,000 crore for laying roads in villages and Rs 8,800 crore allocation for the housing schemes.

Thanking the Union Finance Minister for his proposal to allot Rs 500 crore for providing relief to the internally displaced people in Sri Lanka, he said the budget would benefit all sections of people and stimulate economic growth and social justice.

However, Opposition leader J Jayalalithaa termed the Budget as "weak, visionless and tentative" and said "it is nothing but a clerical exercise reflecting the continuity of a visionless government. It is partially populist, unimaginative and sets no clear road map for a Better India."

The decision to provide “below-poverty-level” families with 25 kg of rice or wheat every month at Rs 3 a kilo, though welcome, was a populist exercise for which there appeared to be no clear allocation of funds, the AIADMK leader said.

"The allocation of a mere Rs 120 crore for the ambitious National ID scheme makes a mockery of the entire exercise. Beyond these, the Budget has been hugely disappointing. Though infrastructure spending is higher than earlier, there are very little tax give-aways.