UNION BUDGET 2010-11

Highlights of the Union Budget 2010-11 presented by Finance Minister Pranab Mukherjee on Friday:

1. Net revenue gain from tax proposals at Rs 20,500 crore
2. Certain accredited news agencies exempted from service tax
3. Service tax to remain 10 per cent
4. Increase in duty on gold and silver import
5. Clean energy cess of Rs 50 per tonne to be levied on coal produced in India
6. 10 per cent central excise duty on all non-petroleum products
7. Structural changes in excise duties on cigarettes, cigars and cigarillos.
8. Revenue loss of Rs 26,000 crore on direct tax proposals.
9. 7.5 per cent duty on petrol, diesel, crude restored.
10. Exempt duty raised for all non-smoking tobacco producs
11. Investment linked tax deductions to be allowed to two
12. star hotels anywhere in the country.
13. Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively.
14. 20 per cent tax for income above Rs 5 lakh and up to Rs 8 lakh
15. 30 per cent tax for income above Rs 8 lakh.
16. Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses
17. Surcharge on companies reduced to 7.5 per cent
18. Additional exemption of Rs 20,000 for long term investment in infra bonds
19. Ten per cent tax slab for income above 1.6 lakhs up to Rs. 5 lakhs.
20. No income Tax upto Rs. 1.6. lakhs
21. National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore
22. Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector
23. Exclusive skill development programme for the textile sector
24. Fifty percent hike in allocation for schemes for women and child development
25. Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent
26. Rs.2,600 crore allocated for ministry of minorities affairs
27. Rs.1,900 crore for Unique Identification Authority of India
28. Rs.147,344 crore allocated for defence
29. 2,000 youth to be recruited in central paramilitary forces
30. Draft Food Security Bill prepared and will be put in the public domain
31. Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore
32. Banking facilities to be provided to all habitations with a population of 2,000 and more
33. Rs.66,100 crore allocated for rural development in 2010—11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman
34. Rs.1,270 crore allocated for Rajiv Awas Yojna for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.
35. Forty—six percent of plan allocations in 2010—11 will be for infrastructure development
36. Coal Regulatory Authority to be set up to benchmark standards of performance
37. Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11
38. National Clean Energy Fund to be established
39. Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover.
40. Government committed to growth of SEZs.
41. Four—pronged strategy for growth of agricultural sector.
42. Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative.
43. Involvement of private sector in grain storage to continue for another two years.
44. In view of drought and floods, debt repayment period extended to June 2010.
45. Five more mega food processing projects in addition to 10 existing ones.
46. FDI flows in April—December 2009 $20.9 billion.
47. FDI policy to be made more user—friendly with one comprehensive document.
48. Apex level financial stability council to be set up for banking sector.
49. Indian Banking Association to give additional licences to private players.
50. Provision for further capital for regional rural banks.
51. Roadmap for reducing public debt in six months.
52. Implementation of direct tax code from April 2011.
53. Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011.
54. Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11.
55. New fertiliser policy from April 2010; will lead to improved productively and more income for farmers.
56. Economy stabilised in first quarter of 2009—10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account.
57. Export figures for January encouraging.
58. Hope to breach 10 percent growth mark in not too distant future.
59. Government set in motion steps to bring down food inflation.
60. Need to review stimulus package; need to make growth more broad—based.
61. India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in
62. southwest monsoon had undermined agricultural production.
63. First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased.
64. Second challenge is to make growth more inclusive; have to strengthen food security.
65. Third challenge is to overcome weakness in government’s public delivery mechanism; a long way to go in this.