Union Budget 2010-11: Highlights
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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:
•Southwest monsoon undermined kharif crop
•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
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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
•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
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