Taking forward its strategy to counter the global meltdown through enhanced spending, the Union Budget for 2009-10 is all set to provide an additional Rs 40,000 crore to the gross budgetary support (GBS). Added to the funds allocated in the interim Budget, this would take the GBS to Rs 3,25,000 crore. The same for 2008-09 was Rs 2,43,386 crore.

Social infastructure is likely to get the major focus in Budget 2009-10, with the sector expected to receive a chunk of the additional allocations. Giving impetus to the UPA government’s commitment to promote economic activity in rural areas, finance minister Pranab Mukherjee is likely to enhance funding for the rural sector.

An additional allocation of Rs 10,000 crore is likely to be set aside to meet the growing demand of the National Rural Employment Guarantee Scheme (NREGS). Sources indicate that expansion of the programme as well as enhancement of wages under NREGS has been kept in abeyance as the sheme has been accounting for around 12 per cent of national spending. “From around Rs 16,000 crore in 2008-09, the programme will now be getting Rs 40,000 crore for this year,” a source said.

The National Rural Health Mission — a key programme aimed at social welfare and much publicised during the UPA’s last tenure — will also get an additional Rs 1,000 crore so as to provide better health services to the rural India. The programme was already allocated Rs 12,070 crore in the interim Budget.

Another of the UPA’s flagship programmes, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), will get an additional Rs 1,200 crore against Rs 11,842 crore allocated in the interim budget. “A chunk of this money would go for providing housing for the urban poor,” sources said.

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