More on Union Budget 2010

• Union Cabinet approves Budget for 2010-11.
• Fiscal year 2009-10 was challenging for Indian economy
• First challenge before Government is to quickly revert to high GDP growth path of 9 per cent
• Second challenge is to harness economic growth to make it more inclusive and consolidate gains.
• Impressive recovery in the past few months. Can witness faster recovery in the coming months, says Mukherjee
• We have strengthened food security, says Mukherjee.
• 18.5 per cent manufacturing growth in December was highest in two decade.
• Figures for merchandise exports for January encouraging after turnaround in November and December last.
• Need to review stimulus imparted to economy, says FM.
• Need to ensure that the demand-supply imbalance is managed, says Mukherjee.
• FM appeals to “misguided elements” (left wing extremists) to eschew violence and join the mainstream.
Expenditure/ deficit and revenue

• Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6 per cent.
• Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure at Rs 7,35,657 crore in budget estimates.
• 15 per cent increase in plan expenditure and six per cent in non-plan expenditure.
Fiscal deficit pegged at 5.5% for 2010-11, says FM
• Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively.
• Fiscal deficit pegged at 6.9 per cent in 2009-10 as against 7.8 per cent in the previous fiscal.
• Government’s net borrowing to be Rs 3,45,010 crore for 2010-11.
Taxes, Disinvestments and Exports/Imports

• Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax revenues at Rs 1,48,118 crore.
Income Tax department ready with two-page Saral-2 return forms for individual salaried assesses.
• FM prunes tax rates: Income up to Rs 1.6 lakh – nil
• Income above Rs 1.6 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 8 lakh – 20 per cent
Income above Rs 8 lakh – 30 per cent.
• Finance Minister says Government hopes to implement direct tax code from April 2011.
• Earnest endeavour to implement General Sales Tax in April 2011.
• Finance Minister to continue giving cash subsidy for fuel and fertiliser instead of previous practice of bonds.
• Status paper on public debt within six months.
• Market capitalisation of five PSUs listed since October increased by 3.5 times.
FDI inflows steady during the year. Government has taken series of steps to simplify FDI regime.
• Government intends to make FDI policy user friendly by complying all guidelines into one document.
• Government to continue interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.
Tackling fuel/food price rise

• Double digit food inflation last year due to bad monsoon and drought-like conditions, says FM
• Erratic monsoon and drought-like conditions forced supply side bottleneck that fuelled inflation, says FM.
• Deficit in foodgrains storage capacity to be met by private sector participation.
• Government conscious of the situation of price rise and taking steps to tackle it, says FM.
• Kirit Parekh report on fuel price deregulation will be taken up by Oil Minister Murli Deora in due course, says FM.
Growth/Development schemes and proposals

• Government has decided to set up apex-level Financial Stability and Development Council.
• RBI considering some additional banking licenses to private companies, NBFC will also be considered if they meet criteria.
• Government committed to ensure continued growth of Special Economic Zones.
• Need to take firm view on opening up of the retail sector, says FM.
• Government proposes to set Coal Development Regulatory Authority.
• Government for competitive bidding for coal blocks for captive power plants.
• Clean Energy Fund to be created for research in new energy sources.
• Alternative port to be developed at Sagar Island in West Bengal.
• Exclusive skill development programme to be launched for textile and garment sector employees.
• Financial Sector Legislative Reforms Committee to be set up.
• Planning Commission to prepare integrated action plan for Naxal-affected areas.
• A unique identity symbol would be provided to the Indian Rupee in line with US Dollar, British Pound Sterling, Euro and Japanese Yen.

Rural and social sector development

• Govt to provide Rs 66,100 crore for rural development
• Outlay for social sectors pegged at Rs 1,37,674 crore, accounting for 37 per cent of the total plan allocation.
• Plan allocation for health and family welfare increased to Rs 22,300 crore from Rs 19,534 crore.
• Allocation for NREGA stepped up to Rs 40,100 crore in 2010-11.
Indira Awas Yojana scheme’s unit cost raised to Rs 45,000 in plain area and Rs 48,500 in hilly areas.
• Government will raise Rs 25,000 crore from disinvestment of its stake in state-owned firms.
• Government to provide Rs 16,500 crore to public sector banks to maintain tier-I capital.
• Rs 200 crore provided for climate resilient agriculture initiative.
• 25 per cent of plan outlay earmarked for rural infrastructure development.
• Allocation for urban development increased by 75 per cent to Rs 5,400 crore in 2010-11.
• One per cent interest subvention loan for houses costing up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore provided.
• Rs 1,270 crore provided for slum development programme, marking an increase of 700 per cent.
• Government decides to set up National Social Security Fund with initial allocation of Rs 1000 crore to provide social security to workers in unorganised sector.
• Government to contribute Rs 1,000 per year to each account holder under the new pension scheme.
Finance allocation
• For rural development, Rs 66,100 crore have been allocated.
• Govt to provide Rs 66,100 crore for rural development
• Allocation for development of micro and small scale sector raised from Rs 1,794 crore to Rs 2,400 crore.
• Allocation for women and child development hiked by 80 per cent.
• Rs 1,900 crore allocated for Unique Identification Authority of India.
• Plan outlay for Ministry of Social Justice raised by 80 per cent to Rs 4,500 crore.
• Plan allocation for Ministry of Minority Affairs raised from Rs 1,740 crore to Rs 2,600 crore.
• Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs 1,41,703 crore in the previous year. Of this, capital expenditure would account for Rs 60,000 crore.
Infrastructure and Education

• Rs 1,73,552 crore provided for infrastructure development.
• Road transport allocation raised by 13 per cent to Rs 19,894 crore, says FM.
• Propose to maintain thrust of upgrading infrastructure in rural and urban areas. IIFCL authorised to refinance infrastructure projects.
• Road transport allocation raised by 13 per cent to Rs 19,894 crore.
• Allocation for Railways fixed at Rs 16,752 crore, an increase of Rs 950 crore over last financial year.
• Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to Rs 5,130 crore in 2010-11.
• Rs 500 crore allocated for solar and hydro projects for Ladakh region.
• Allocation for new and renewable energy ministry increased by 61 per cent to Rs 1,000 crore.
• One-time grant of Rs 200 crore provided to Tirupur textile cluster in Tamil Nadu.
• Allocation for National Ganga River Basin Authority doubled to Rs 500 crore.
• Plan allocation for school education raised from Rs 26,800 crore to Rs 31,036 crore in 2010-11.
Agriculture

• Nutrient based fertiliser subsidy scheme to come into force from April 1.
• Nutrient based fertiliser subsidy will reduce volatility of subsidy and also reduce it
• Government to provide Rs 300 crore to organise 60,000 pulse and oilseed villages and provide integrated intervention of watershed and related programme.
• Repayment of loan by farmers extended by six months to June 30, 2010 in view of drought and floods in some part of the country, says FM.
• Interest subvention for timely repayment of crop loans raised from one per cent to two per cent, bringing the effective rate of interest to five per cent.
Source: http://www.timesnow.tv/Pranab-presents-budget-prunes-tax-rates/articleshow/4339395.cms

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