Planning Commission grant special category status to the Bundelkhand region comprising 9 distt of Uttar Pradesh and 15 distt of Madhya Pradesh for the irrigation projects.
Under special category status, state govt can seek 90 % grant assistance from the centre and 10 % as loan.
Govt revises base year for the calculation of National Income from 1999-2000 to 2004-2005. The GDP for 2009-10 will be Rs. 55,74,449 crore and the fiscal deficit for the corresponding period will be 6.4 %.
Capital Control – Foreign capital inflows in the form of loans and equity that are allowed in a restricted form are said to be controlled. The capital inflows include foreign borrowings by Indian corporate and businesses, NRI deposits and portfolio flow from institutional investors into the stock market. Loans to Govt and short term trade credit are also included. India had control on both capital account transactions as well as on current account with the local currency fixed by the Central Bank. In 1991, rupee was first made convertible on the current account. In 1994, Govt allows foreign portfolio investments.
Govt will replace Benchmark Prime Lending System (BPLR) with Base rate system from 1 April 2010 to make bank lending more transparent. It provided for minimum rate for all types of loans for banks.
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