Gross budgetary support for annual plan increased by Rs. 40,000 crore
New Delhi, July 6 (ANI): Finance Minister Pranab Mukherjee in his budget speech on Monday said that the government has taken a conscious and bold decision to enhance the Gross Budgetary Support (GBS) for the Annual Plan 2009-10 by Rs.40,000 crore over the interim budget for 2009-10.
He stressed that bulk of enhanced GBS is directed towards public investment in infrastructure with special emphasis on rural infrastructure, raising growth potential and leading to income generations.
Besides this, Mukherjee said: "The State Governments will be permitted to borrow additional 0.5 per cent of their Gross State Domestic Product (GSDP) by relaxing the fiscal deficit target under FRBM from 3.5 per cent to 4 per cent of their GSDP. This will enable the State Governments to raise additional open market loans of about Rs.21,000 crore in the current year."
Thus, total additionally in the plan expenditure by Centre and the States put together would be Rs.61,000 crore over Interim Budget.
"I do believe that this fiscal expansion will go a long way in reversing the impact of slowdown and accelerate over growth revival in the medium term", the Minister added. (ANI)