Budget-2010, -Key Highlits

 

Union Finance Minister Pranab Mukherjee began

presenting the Union Budget 2010-11 in the Lok Sabha today

at 11 am. Here are the key highlights of the Budget:

• Business sentiment weak at the time of last Budget      
• Averted crisis, Indian economy far better situation      
• Southwest monsoon undermined kharif crop      
• Short-term global outlook bleak during FY10 Budget      
• First challenge is to quickly revert to high GDP growth     
• Confident now economy in far better position      
• GDP growth hitting double-digit remains 1st challenge      
• Thrust for infrastructure in rural areas      
• Budget cannot be a mere statement of government account      
• First challenge is to return to high GDP growth of 9%      
• Second challenge is to make development more inclusive     
• Budget will also signal policy for future      
• State of the economy better       
• FY10 was a challenging year for the economy      
• Budget realises the need to strengthen food security      
• Some sectors have helped improve economic condition      
• Focus of economic activity shifted to non-govt factors      
• Govt must enable enterprise      
• Economy can achieve 10% GDP growth, says FM      
• Focus to improve food security and healthcare systems     
• Focus on development of infrastructure in rural and urban areas likely       
• FM indicates review of stimulus is now important 
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• 10% growth mark is not too distant in future  
• High fuel prices added to inflationary pressures
• Efforts on to lower inflation in the next 2 months
• Process of building a simple tax system is near completion
• Since December, signals of food inflation spilling over
• NBS will lead to agri productivity
• Will reduce fertiliser subsidy
• Working towards making FDI regime simple
• FY11 capital for PSU Banks at Rs 16,500 crore
• Company’s Bill to address regulation in corporate sector
• Extend 2% interest subvention on export credit for 1 year
• Rs 400 crore to extend green revolution to Eastern India
• Rs 200 crore for climate resilient agri initiative
• FY11 bank farm loan target raised to Rs 3.75 lakh crore
• To set up 5 more Mega Food park projects
• Allocation for road transport raised by 13%
• IIFCL to double re-finance to banks for infra
• To launch competitive bidding for captive coal mining
• To set up national clean energy fund
• To set up 20,000 mw of solar power by 2022
• Clean Ganga Mission allocated Rs 500 crore
• Ready with draft Food Security Bill
• FY11 education plan outlay at Rs 31,030 crore
• Banking for all villages with population of 2,000
• Bharat Nirman FY11 plan outlay at Rs 48,000 crore
• Allocation for urban development at Rs 3,500 crore
• Allocation for slum redevelopment increased to Rs 1,270 crore

• Unorganised sector social security fund at Rs 1,000 crore
• Village & child development outlay up 50%
• To soon finalise symbol for Indian Rupee
• Total expenditure this fiscal at Rs 11.87 lakh crore
• FY11 fiscal deficit pegged at 5.5% of GDP
• FY13 fiscal deficit pegged at 4.1%
• FY11 net market borrowing pegged at Rs 3.45 lakh crore
• Borrowing plan to be decided in consultation with RBI
• 10% tax for income between Rs 1.6-5 lakh
• Surcharge for companies reduced to 7.5% from 10%
• Focus of economic activity shifted to non-govt factors
• Govt must enable enterprise
• Focus to improve food security and healthcare systems
• 10% growth mark is not too distant in future
• Need to review stimulus and get back to fiscal consolidation
• Need to strengthen local macro-economic situation
• Need to better manage supply-demand mismatch
• Have acted on recommendations of 13th Finance Commission
• Finance panel has proposed withdrawal of stimulus
• PSU divestment mop-up seen at Rs 25,000 cr in FY10
• Divestment proceeds budgeted higher in FY11 vs FY10
• $20.9 bn FDI inflows during Apr-Dec '09
• RBI mulling banking license for pvt & NBFC players
• Capital for banks to help meet CAR aim
• Committed to SEZ plans to boost exports, employment
• Propose Rs 300 cr for Rashtriya Krishi Vikas Yojana
• PDS suffering from shortage of storage facilities
• Interest rate subvention for farm loans hiked to 2%
• To provide 2% loan subsidy to farmers
• ECB’s now available for food processing sector
• To construct 20 km of national highway each day
• Road development allocation hiked to Rs 19,894 cr
• To loan Rs 16,752 cr to rail development projects
• To set up coal regulatory authority
• Increased allocation for renewable to Rs 1,000 cr
• Micro power project in Ladakh at Rs 500 cr
• Allocated Rs 500 cr to set up solar, small hydro power units
• Allocated Rs 200 cr to Goa to restore beaches
• One time grant of Rs 200 cr to Tamil Nadu for textile
• Spending on social sector upped to Rs 1.37 lakh cr
• Allocation to Health Ministry at Rs 22,300 cr
• Rs 61,000 cr for rural infra development
• Rs 40,100 cr for NREGA
• Indira Aawas Yojana allocation at Rs 10,000 cr
• To extend 1% interest subsidy scheme for affordable housing to Mar 2011
• Allocated Rs 2,400 cr for micro, SME’s
• Micro finance & equity fund doubled to Rs 400 cr
• National Security Fund allocated Rs 1,000 cr
• Health insurance extended to NREGA beneficiaries
• Allocation for renewable energy at Rs 1,000 cr
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• Propose to launch skill development programme for textile sector
• Launched women farmer fund scheme with Rs 100 cr
• Allocated Rs 2,600 cr for Minority Affairs ministry
• Allocated Rs 5,000 cr to social justice ministry
• To set up financial sector legislative reforms panel
• UID authority to issue1st set of ID’s in FY11
• Allocated Rs 1,900 cr for UID project
• Defence spending at Rs 1.47 lakh cr
• Revised estimate for tax collection at Rs 7.47 lakh cr
• FY12 fiscal deficit pegged at 4.8% of GDP
• FY10 fiscal deficit revised to 6.9% of GDP
• To continue with practice of oil, fert subsidy in cash
• FY11 net market borrowing pegged at Rs 3.45 lakh cr
• Nil tax for Rs 1.6 lakh income
• MAT increased to 18%
• Weighted deduction from 150% to 200% for in-house R&D
• Excise duty hiked to 10% vs 8%
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• Partial rollback of excise duty on cement, cement products
• Partial rollback of excise duty on large cars
• CET on petro products hiked by Re 1
• Excise on cigars, cigarettes to go up
• Increased excise duty on all non-smoking tobacco
• To raise central excise on non-petro products to 10%
• Rs 50/t cess on Indian coal
• Excise duty on CFL halved to 4%
• Businesses with Rs 60 lakh turnover have to audit a/c
• Customs duty rationalized on music, gaming, software
• Uniform, concessional 5% duty on all medical appliances
• Not to levy import tax on some equipment in road proj
• 5% duty, project import status for MSOs
• Basic customs duty on gold ore reduced
• Excise on locally refined gold at Rs 280/gram
• Service tax to GDP ratio 1%
• Services tax retained at 10%
• Net rev gain of Rs 43,500 crore from custom, excise proposals
• FY11 net service tax gains seen at Rs 3,000 crore
• Rs 2,500 crore net revenue gain for FY11
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