Budget speech

Finance Minister Pranab Mukherjee in his budget speech said that in the Interim Budget for 2009-10, he had stated that the new government would need to anchor its policies for 2009-10, in a medium term perspective that would have to:

(a) sustain a growth rate of at least 9% per annum over an extended period of time;
(b) strengthen the mechanisms for inclusive growth for creating about 12 million new work opportunities per year; 
(c) reduce the proportion of people living below poverty line to less than half from current levels by 2014; 
(d) ensure that Indian agriculture continues to grow at an annual rate of 4%; 
(e) increase the investment in infrastructure to more than 9% of GDP by 2014; 
(f) support Indian industry to meet the challenge of global competition and sustain the growth momentum in exports; 
(g) strengthen  and improve the economic regulatory framework in the country; 
(h) expand the range  and reach of social safety nets by providing direct assistance to vulnerable sections; 
(i) strengthen the delivery mechanism for primary health care facilities with a view to improve the preventive and curative health care in the country;
(j) create a competitive, progressive and well regulated education system of global standards that meets the aspiration of all segments of the society; and 
(k) move towards providing energy security by pursuing an Integrated Energy Policy.

The government recognizes the challenges that this task entails, particularly at a time when the world is still struggling with an unprecedented financial crisis and an economic slowdown that has also affected India.

The first challenge is to lead the economy back to the high GDP growth rate of 9% per annum at the earliest. Growth of income is important in itself, but it is as important for the resources that it brings in. These resources provide us with the means to bridge the critical gaps that remain in our development efforts, particularly with regard to the welfare of the vulnerable segments of our population.

The second challenge is to deepen and broaden the agenda for inclusive development; and to ensure that no individual, community or region is denied the opportunity to participate in and benefit from the development process.

The third challenge is to re-energize government and improve delivery mechanisms. Our institutions must provide high quality public services, security and the rule of law to all citizens with transparency and accountability.