Finance Minister Pranab Mukherjee said the government would make it a priority to reach 9% gross domestic product growth in the medium term and would seek to spend 9% of GDP on infrastructure development by 2014.  Budget release was heavy on spending for farmers and the poor, a core constituency of the Congress party-led ruling coalition, funded by a surge in borrowing and an increase in the fiscal deficit to 6.8 percent of GDP.  With the Budget supporting the rural economy, the bullish rural growth plans will get a major boost.  Read more about the impact of budget on fast moving consumer goods (FMCG) companies here.

The Economic Times article titled “Budget 2009-10: Happy about shiksha, naukri & Bluetooth” says that India’s Budget for 2009-10 is also focused on Young India.  The budget allows weaker sections access higher education with interest-free education loan which will enable poor and rural youth to have better access to education.  The article also notes that implementation to make sure the subsidy for poor students will reach the beneficiaries is tough.  Gen YRI concern on Energy and conservation was not tackled in the Budget.  But the verdict is that the FM has done a lot for students, a section of the salaried class, women and also for infrastructure.