Given the continuing slowdown in the world economy, the government has assumed a GDP growth rate of about 7 per cent and an inflation of 4 per cent while working out the revenue-expenditure estimates for the next financial year in its interim Budget unveiled on Monday.
“We have assumed a nominal GDP growth rate of 10.97 per cent for 2009-10 which is lower than 13 per cent in the previous Budget,” Finance Secretary Arun Ramanathan told reporters at the customary post Budget briefing here today.
The 10.97 per cent nominal GDP growth rate include about 7 per cent real GDP growth and about 4 per cent inflation.
Last year the government has assumed a nominal GDP growth rate of 13 per cent while working out the Budget projections.
Replying questions on recapitalisation of public sector banks, Economic Affairs Secretary Ashok Chawla said the government has decided to seek from World Bank an additional assistance of USD 4.2 billion, of which USD 3 billion will be used for recapitalisation of banks.
The banks which are likely to receive capital infusion over the next two years include Central Bank of India, UCO Bank, Vijaya Bank and United Bank, he added.
The government has already decided to infuse Rs 1,900 crore in the current financial year.