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
- 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
-
- 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%
- 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
