Feb 13 (Reuters) - India's ruling coalition will present an interim budget on Monday, which is expected to unveil steps to protect jobs and growth, ahead of general elections due by mid-May.
Analysts expect the government to cut indirect tax rates, while otherS say direct rates could also be changed. [ID:nDEL437933]
Following are some facts about the interim budget and key numbers from the 2008/09 federal budget.
INTERIM BUDGET: It is presented by a government which is facing elections. So far India has seen 11 interim budgets.
INDIRECT TAXES: Changes such as reduction in factory gate duties are possible and would reflect a similar move by the Bharatiya Janata Party led-coalition government in 2004/05.
DIRECT TAXES: Former finance minister Palaniappan Chidambaram has said tax changes are possible. No government in the past has changed direct tax rates while presenting an interim budget.
VOTE-ON-ACCOUNT: The government will present the statement of accounts, revenues and expenditure and seek parliament's approval for spending for four months starting April. In July a new government following national polls due by mid May, is expected to present the full budget for 2009/10.
SIZE OF ECONOMY (GDP): $1 trillion
POPULATION: 1.15 billion
GROWTH: Government estimated growth will slow to 7.1 percent in 2008/09 from year-earlier 9.0 percent. It would be the slowest growth in six years.
INDUSTRIAL GROWTH: Contracted in December by 2.0 percent from year earlier.
EXPORTS: Fell in December by 1.1 percent from year earlier, the third successive monthly fall as the global slowdown hit demand. BUDGET ESTIMATES FOR 2008/09:
(In bln rupees)
2008/09 Revenue receipts 6,029.35 Capital receipts 1,479.49 Total receipts 7,508.84 ----------------------------------- Non-plan Expenditure 5,074.98 Plan expenditure 2,433.86 Total expenditure 7,508.84 ----------------------------------- Revenue deficit 551.84 Pctage of GDP (1.0) ----------------------------------- Fiscal deficit 1,332.87 Pctage of GDP (2.5) ----------------------------------- ($1=49 rupees) (SOURCE: Ministry of Finance, govt websites and interaction with officials) (Compiled by Surojit Gupta and Rajkumar Ray; Editing by Ranjit Gangadharan)