Union Budget 2010-11 Highlights |
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| Finance Minister Pranab Mukherjee presented the Union Budget 2010-11 in parliament on Friday. Has he lived up to the expectations of the taxpayers? Is it a populist Budget? Will it also help India to grow? To find out read on.. Highlights: Income up to Rs 1.6 lakh - nil Income above Rs 1.6 lakh and up to Rs 5 lakh - 10 per cent * Income above Rs 5 lakh and up to Rs 8 lakh - 20 per cent * Income above Rs 8 lakh - 30 per cent. * Income Tax department ready with two-page Saral-2 return forms for individual salaried assesses. * New tax rates would offer relief to 60 per cent of tax-payers. * Service tax to remain 10 per cent * Increase in duty on gold and silver import * Clean energy cess of Rs 50 per ton to be levied on coal produced in India * 10 per cent central excise duty on all non-petroleum products * Structural changes in excise duties on cigarettes, cigars and cigarillos. * Revenue loss of Rs 26,000 crore on direct tax proposals. * 7.5 per cent duty on petrol, diesel, crude restored. * Exempt duty raised for all non-smoking tobacco producs * Investment linked tax deductions to be allowed to two—star hotels anywhere in the country. * Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively. * 20 per cent for income above Rs 5 lakh and up to Rs 8 lakh * 30 per cent tax for income above Rs 8 lakh. * Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses * Surcharge on companies reduced to 7.5 per cent * Additional exemption of Rs 20,000 for long tem investment in infra bonds * Ten per cent tax slab for income upto Rs. 5 lakhs. * No income Tax upto Rs. 1.6. lakhs * National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore * Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector * Exclusive skill development programme for the textile sector * Fifty percent hike in allocation for schemes for women and child development * Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent * Rs.2,600 crore allocated for ministry of minorities affairs * Rs.1,900 crore for Unique Identification Authority of India * Rs.147,344 crore allocated for defence * 2,000 youth to be recruited in central paramilitary forces * Draft Food Security Bill prepared and will be put in the public domain * Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore * Banking facilities to be provided to all habitations with a population of 2,000 and more * 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 * 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. * Forty—six percent of plan allocations in 2010—11 will be for infrastructure development * Coal Regulatory Authority to be set up to benchmark standards of performance * Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11 * National Clean Energy Fund to be established * Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover. * Government committed to growth of SEZs. * Four—pronged strategy for growth of agricultural sector. * Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative. * Involvement of private sector in grain storage to continue for another two years. * In view of drought and floods, debt repayment period extended to June 2010. * Five more mega food processing projects in addition to 10 existing ones. * FDI flows in April—December 2009 $20.9 billion. * FDI policy to be made more user—friendly with one comprehensive document. * Apex level financial stability council to be set up for banking sector. * Indian Banking Association to give additional licences to private players. * Provision for further capital for regional rural banks. * Roadmap for reducing public debt in six months. * Implementation of direct tax code from April 2011. * Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011. * Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11. * New fertiliser policy from April 2010; will lead to improved productively and more income for farmers. * 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. * Export figures for January encouraging. * Hope to breach 10 percent growth mark in not too distant future. * Government set in motion steps to bring down food inflation. * Need to review stimulus package; need to make growth more broad—based. * 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 southwest monsoon had undermined agricultural production. * First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased. * Second challenge is to make growth more inclusive; have to strengthen food security. * Third challenge is to overcome weakness in government’s public delivery mechanism; a long way to go in this. |
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