Budget Highlights

The following are some of the key highlights on Union Budget 2010-2011.

  • The Finance Minister Shri Pranab Mukherjee  lays emphasis on consolidated growth, improving investment environment, inclusive development and strengthening  transparency and public accountability in budget 2010-11.
  • The total expenditure proposed in the budget estimates is rs.11,08,749 crore , an increase of 8.6% over last year.
  • The plan and non-plan expenditure estimated at rs.3,73,092 crore and rs.7,35,657 crore respectively, an increase of 15 percent in plan expenditure and 6% in non-plan expenditure over the be of previous year.
  • Fiscal deficit  at  5.5% of gdp works out to be rs. 3,81,408 crore.
  • Rolling targets for fiscal deficit  pegged at 4.8% and 4.1%  for 2011-12 and 2012-13.
  • Net market borrowing would be of the order of rs. 3,45,010 crore  leaving enough space to meet credit  needs of private sector.
  • Against a fiscal deficit of 7.8% in 2008-09 , inclusive of oil and  fertilizer bonds, the comparable fiscal deficit is 6.9%  as per re 2009-10.
  • Gross tax receipts estimated at rs.7,46,651 crore and non-tax receipt estimated at rs. 1,48,118  crore.
  • Status paper giving road map for curtailing  the overall public debt  to be brought out within 6 months.
  • About rs. 25,000 crores to be raised  through disinvestmet programme
  • To simplify the fdi regime,  for the first time both ownership & control recognised as central to the fdi policy.
  • Rs. 16,500 crore  to be provided  to public sector banks  to achieve a minimum 8% tier-i
  • Growth of 127%  recorded in exports from sezs till december, 2009.
  • A four-pronged strategy to spur the growth in agriculture sector envisaged. which includes agricultural production, reduction in wastage of produce , credit support  to farmers and thrust to the food processing sector.
  • Agriculture credit flow target  raised to rs. 3,75,000 crore  from  rs.3,25,000 crore
  • Subvention  for timely  repayment of crop loan  increased from 1% to 2%.
  • Infrastructure development  gets an allocation of rs. 1,73,552 crore, 46 % of total plan allocation , an increase of 13%  in road  transport sector.
  • India infrastructure  finance company limited’s  disbursements to reach rs. 20,000 crore by march 2011.
  • Allocation for power sector increased  by more than doubled to rs. 5,130 crore.
  • New tax incentives  announced for infrastructure sector.
  • National clear energy fund for funding research and innovative projects  in clean energy technologies  to be set up.
  • Spending on social sector  to account for 37% of  total plan outlay  at rs.1,37,674 crore
  • Allocation for rural development enhanced to rs.66,100  crores. allocation for nrega  stepped up to 40,100 crore.
  • Rs. 48,000 crore allocated for bharat nirman  programme
  • Backward region grant fund  allocation enhanced to rs. 7,300 crore.
  • Rajiv awas yojna for slum dwellers and urban poor to get rs. 1,270 crore , an increase of over 700%
  • National social security fund for unorganised sector workers to be  set up with  an initial amount of rs. 1,000 crore.
  • Mahila kisan sashaktikaran pariyojna  with  a provision of rs.100 crore launched
  • 80% increase in the allocation  for ministry of social justice & empowerment  at rs 4,500 crore.
  • Minority affairs to get  rs.2,600 crore, an increase of 50%. 
  • To rewrite and clean up the financial sector laws, financial sector legislative reforms commission  to be set up.
  • Unique identification authority of india to  get an allocation of rs. 1,900 crore. a technology advisory group for unique proect to be   set up.
  • Allocation  for defence increased to  rs.1,47,344 crore
  • National mission for delivery of justice and legal regorms to be set up  to provide timely justice to all.
  • Income Tax slabs broadened  -  10% on income above  rs 1.6 lakh to 5.00 lakh, 20%   on income above 5.oo lakh  to 8.00 lakh , 30% on above rs. 8.00 lakh
  • Additional deduction of rs. 20,000 for investment in infrastructure bonds
  • Surcharge of 10% on domestic companies reduced to  7.5%
  • MAT increased  from 15% to 18%
  • Wighted deduction  non expenditure incurred on in-house  r&d from 150% to 200%
  • Limit of turnover for presumptive taxation of small business enhanced to rs. 60 lakh.
  • Limits of turnover needing audit enhanced to 60 lakh for businesses and rs. 15 lakh for professions.
  • Proposal of direct tax to result in revenue loss of rs. 26,000 crore where as indirect taxes  to result  in a revenue gain of rs. 46,500 crore.
  • Service tax proposals to  result in net revenue gain of rs.3,000 crore.
  • Accredited news agencies  which provides news feed online exempted from service tax
  • Saral –ii  for individualsalary  taxpayers ready for notification
  • Service tax retained at 10%.
  • Certain new services  to be brought  within service tax purview..
  • Micro-wave ovens, pre-packaged imported goods,  mobile phones, watches, readymade garments, toy baloons, long pepper, replaceable household water filter  to be cheaper.
  • Infotainmet sector to benefit from concessional custom duty
  • Indian rupee to get a symbol, join the select club of currencies
  • Special duty concessions to promote clean environment clean energy cess @ rs. 50 per tonne on coal
  • Rate reduction in central excise duties partially rolled back ad valorem on non petro products & cars increased by 2%
  • Uniform basic duty of 5% and cvd of 4% on import of medical equipmnet.
  • Scientified inputs for orthopaedic implants exempted from import duty
  • Central excise on petrol & diesel raised by rs. one per litre.
  • Major tax relief to agriculture & related sectors
  • Project import status for the setting up of cold storages
  • Full exemption from excise duty to trailers & semi –trailers.

Source: IndiaInfoline

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