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