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...
FM prunes tax rates:
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.
Government's net borrowing to be Rs 3,45,010 crore for 2010-11.
Additional deduction of Rs 20,000 allowed on long term infrastructure
bonds for income tax payers; this is above Rs one lakh on saving
instruments allowed already.
A unique identity symbol would be provided to the Indian Rupee in
line with US Dollar, British Pound Sterling, Euro and Japanese Yen.
Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and
2012-13 respectively.
Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6
per cent.
Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax
revenues at Rs 1,48,118 crore.
FM appeals to "misguided elements" (left wing extremists) to eschew
violence and join the mainstream.
Planning Commission to prepare integrated action plan for
Naxal-affected areas.
Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs
1,41,703 crore in the previous year. Of this, capital expenditure
would account for Rs 60,000 crore.
Fiscal deficit pegged at 6.9 per cent in 2009-10 as against 7.8 per
cent in the previous fiscal.
Finance Minister to continue giving cash subsidy for fuel and
fertiliser instead of previous practice of bonds.
Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure
at Rs 7,35,657 crore in budget estimates. 15 per cent increase in
plan expenditure and six per cent in non-plan expenditure.
Rs 1,900 crore allocated for Unique Identification Authority of
India.
Rs 1,73,552 crore provided for infrastructure.
Need to take firm view on opening up of the retail.
Government committed to ensure continued growth of Special
Economic Zones development.
Repayment of loan by farmers extended by six months to June 30,
2010 in view of drought and floods in some part of the country.
One-time grant of Rs 200 crore provided to Tirupur textile
cluster in Tamil Nadu.
Allocation for new and renewable energy ministry.
Clean Energy Fund to be created for research in new energy
sources.
Rs 500 crore allocated for solar and hydro projects for Ladakh
region.
Alternative port to be developed at Sagar Island in West
Bengal.
Allocation for National Ganga River Basin Authority doubled to
Rs 500 crore.
Government for competitive bidding for coal blocks for captive
power plants.
Mega power plant policy modified to lower cost of generation;
allocation to power sector more than doubled to Rs 5,130 crore
in 2010-11.
Government proposes to set Coal Development Regulatory
Authority.
Propose to maintain thrust of upgrading infrastructure in rural
and urban areas. IIFCL authorised to refinance infrastructure
projects.
Interest subvention for timely repayment of crop loans raised
from one per cent to two per cent, bringing the effective rate
of interest to five per cent.
Bottleneck of public delivery mechanism can hold us back.
Rs 200 crore provided for climate resilient agriculture
initiative.
Government to provide Rs 16,500 crore to public sector banks to
maintain tier-I capital.
Allocation for women and child development hiked by 80
per cent.
Government decides to set up National Social Security
Fund with initial allocation of Rs 1000 crore to provide
social security to workers in unorganised sector.
Rs 1,270 crore provided for slum development programme,
marking an increase of 700 per cent.
Allocation for development of micro and small scale
sector raised from Rs 1,794 crore to Rs 2,400 crore.
One per cent interest subvention loan for houses costing
up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore
provided.
25 per cent of plan outlay earmarked for rural
infrastructure development
Road transport allocation raised by 13 per cent to Rs
19,894 crore, says FM.
Allocation for urban development increased by 75 per cent
to Rs 5,400 crore in 2010-11.
Indira Awas Yojana scheme's unit cost raised to Rs 45,000
in plain area and Rs 48,500 in hilly areas.
Allocation for NREGA stepped up to Rs 40,100 crore in
2010-11.
For rural development, Rs 66,100 crore have been
allocated.
Plan allocation for health and family welfare increased
to Rs 22,300 crore from Rs 19,534 crore.
Plan allocation for school education raised from Rs
26,800 crore to Rs 31,036 crore in 2010-11.
Deficit in foodgrains storage capacity to be met by
private sector participation.
Exclusive skill development programme to be launched for
textile and garment sector employees.
Plan allocation for Ministry of Minority Affairs raised
from Rs 1,740 crore to Rs 2,600 crore.
Plan outlay for Ministry of Social Justice raised by 80
per cent to Rs 4,500 crore.
Government to contribute Rs 1,000 per year to each
account holder
Finance Minister says Government hopes to implement
direct tax code from April 2011.
Kirit Parekh report on fuel price deregulation will be
taken up by Oil Minister Murli Deora in due course.
Government has decided to set up apex-level Financial
Stability and Development Council.
FDI inflows steady during the year. Government has taken
series of steps to simplify FDI regime
Market capitalisation of five PSUs listed since October
increased by 3.5 times.
Nutrient based fertiliser subsidy scheme to come into
force from April 1, 2010.
Nutrient based fertiliser subsidy scheme to come into
force from April 1, 2010.
Earnest endeavour to implement General Sales Tax in April
2011.
Status paper on public debt within six months.
Government will raise Rs 25,000 crore from disinvestment
of its stake in state-owned firms.
Government to provide Rs 300 crore to organise 60,000
pulse and oilseed villages and provide integrated
intervention of watershed and related programme.
Government to continue interest subvention of 2 per cent
for one more year for exports covering handicrafts,
carpets, handlooms and small and medium enterprises.
Government intends to make FDI policy user friendly by
compling all guidelines into one document.
RBI considering some additional banking licenses to
private companies, NBFC will also be considered if they
meet criteria.
Export in January encouraging.
Need to review the public spending and mobilize
resources.
FM stresses on the need to make growth more
broad-based.
Need to ensure that the demand-supply imbalance is
managed.
Need to review stimulus imparted to economy.
Government conscious of the situation of price rise
and taking steps to tackle it.
Erratic monsoon and drought-like conditions forced
supply side bottleneck that fuelled inflation.
Double digit food inflation last year due to bad
monsoon and drought-like conditions.
Figures for merchandise exports for January
encouraging after turnaround in November and
December last.
Govt to raise Rs 25,000 cr this year to meet cap
expenditure requirements
GST and DTC can be introduced in April 2011
Direct tax code will be implemented April 1, 2011
Final figure may be higher if earnings in last
quarters are strong
18.9% growth rate in manufacturing sector in 2009
Concerned over emergence of double digit food
inflation
Export figures encouraging; pvt investments can be
expected
Double digit food inflation in 2009
Need to review stimulus, move to fiscal
consolidation
Signs of food inflation going to non-food items
Steps to reduce public debt, paper to be presented
in 6 months
1st challenge: quickly revert to higher GDP growth
path of 9%, cross double digit growth
2nd challnge: harden economic growth to make dev
more inclusive
3rd challenge: relates to problems in government
system
Focus shifts to non-governmental actors
Uncertainity was there on account of delay in
monsoon, concerns about production and food prices.
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...
FM prunes tax rates:
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.
Government's net borrowing to be Rs 3,45,010 crore for 2010-11.
Additional deduction of Rs 20,000 allowed on long term infrastructure
bonds for income tax payers; this is above Rs one lakh on saving
instruments allowed already.
A unique identity symbol would be provided to the Indian Rupee in
line with US Dollar, British Pound Sterling, Euro and Japanese Yen.
Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and
2012-13 respectively.
Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6
per cent.
Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax
revenues at Rs 1,48,118 crore.
FM appeals to "misguided elements" (left wing extremists) to eschew
violence and join the mainstream.
Planning Commission to prepare integrated action plan for
Naxal-affected areas.
Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs
1,41,703 crore in the previous year. Of this, capital expenditure
would account for Rs 60,000 crore.
Fiscal deficit pegged at 6.9 per cent in 2009-10 as against 7.8 per
cent in the previous fiscal.
Finance Minister to continue giving cash subsidy for fuel and
fertiliser instead of previous practice of bonds.
Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure
at Rs 7,35,657 crore in budget estimates. 15 per cent increase in
plan expenditure and six per cent in non-plan expenditure.
Rs 1,900 crore allocated for Unique Identification Authority of
India.
Rs 1,73,552 crore provided for infrastructure.
Need to take firm view on opening up of the retail.
Government committed to ensure continued growth of Special
Economic Zones development.
Repayment of loan by farmers extended by six months to June 30,
2010 in view of drought and floods in some part of the country.
One-time grant of Rs 200 crore provided to Tirupur textile
cluster in Tamil Nadu.
Allocation for new and renewable energy ministry.
Clean Energy Fund to be created for research in new energy
sources.
Rs 500 crore allocated for solar and hydro projects for Ladakh
region.
Alternative port to be developed at Sagar Island in West
Bengal.
Allocation for National Ganga River Basin Authority doubled to
Rs 500 crore.
Government for competitive bidding for coal blocks for captive
power plants.
Mega power plant policy modified to lower cost of generation;
allocation to power sector more than doubled to Rs 5,130 crore
in 2010-11.
Government proposes to set Coal Development Regulatory
Authority.
Propose to maintain thrust of upgrading infrastructure in rural
and urban areas. IIFCL authorised to refinance infrastructure
projects.
Interest subvention for timely repayment of crop loans raised
from one per cent to two per cent, bringing the effective rate
of interest to five per cent.
Bottleneck of public delivery mechanism can hold us back.
Rs 200 crore provided for climate resilient agriculture
initiative.
Government to provide Rs 16,500 crore to public sector banks to
maintain tier-I capital.
Allocation for women and child development hiked by 80
per cent.
Government decides to set up National Social Security
Fund with initial allocation of Rs 1000 crore to provide
social security to workers in unorganised sector.
Rs 1,270 crore provided for slum development programme,
marking an increase of 700 per cent.
Allocation for development of micro and small scale
sector raised from Rs 1,794 crore to Rs 2,400 crore.
One per cent interest subvention loan for houses costing
up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore
provided.
25 per cent of plan outlay earmarked for rural
infrastructure development
Road transport allocation raised by 13 per cent to Rs
19,894 crore, says FM.
Allocation for urban development increased by 75 per cent
to Rs 5,400 crore in 2010-11.
Indira Awas Yojana scheme's unit cost raised to Rs 45,000
in plain area and Rs 48,500 in hilly areas.
Allocation for NREGA stepped up to Rs 40,100 crore in
2010-11.
For rural development, Rs 66,100 crore have been
allocated.
Plan allocation for health and family welfare increased
to Rs 22,300 crore from Rs 19,534 crore.
Plan allocation for school education raised from Rs
26,800 crore to Rs 31,036 crore in 2010-11.
Deficit in foodgrains storage capacity to be met by
private sector participation.
Exclusive skill development programme to be launched for
textile and garment sector employees.
Plan allocation for Ministry of Minority Affairs raised
from Rs 1,740 crore to Rs 2,600 crore.
Plan outlay for Ministry of Social Justice raised by 80
per cent to Rs 4,500 crore.
Government to contribute Rs 1,000 per year to each
account holder
Finance Minister says Government hopes to implement
direct tax code from April 2011.
Kirit Parekh report on fuel price deregulation will be
taken up by Oil Minister Murli Deora in due course.
Government has decided to set up apex-level Financial
Stability and Development Council.
FDI inflows steady during the year. Government has taken
series of steps to simplify FDI regime
Market capitalisation of five PSUs listed since October
increased by 3.5 times.
Nutrient based fertiliser subsidy scheme to come into
force from April 1, 2010.
Nutrient based fertiliser subsidy scheme to come into
force from April 1, 2010.
Earnest endeavour to implement General Sales Tax in April
2011.
Status paper on public debt within six months.
Government will raise Rs 25,000 crore from disinvestment
of its stake in state-owned firms.
Government to provide Rs 300 crore to organise 60,000
pulse and oilseed villages and provide integrated
intervention of watershed and related programme.
Government to continue interest subvention of 2 per cent
for one more year for exports covering handicrafts,
carpets, handlooms and small and medium enterprises.
Government intends to make FDI policy user friendly by
compling all guidelines into one document.
RBI considering some additional banking licenses to
private companies, NBFC will also be considered if they
meet criteria.
Export in January encouraging.
Need to review the public spending and mobilize
resources.
FM stresses on the need to make growth more
broad-based.
Need to ensure that the demand-supply imbalance is
managed.
Need to review stimulus imparted to economy.
Government conscious of the situation of price rise
and taking steps to tackle it.
Erratic monsoon and drought-like conditions forced
supply side bottleneck that fuelled inflation.
Double digit food inflation last year due to bad
monsoon and drought-like conditions.
Figures for merchandise exports for January
encouraging after turnaround in November and
December last.
Govt to raise Rs 25,000 cr this year to meet cap
expenditure requirements
GST and DTC can be introduced in April 2011
Direct tax code will be implemented April 1, 2011
Final figure may be higher if earnings in last
quarters are strong
18.9% growth rate in manufacturing sector in 2009
Concerned over emergence of double digit food
inflation
Export figures encouraging; pvt investments can be
expected
Double digit food inflation in 2009
Need to review stimulus, move to fiscal
consolidation
Signs of food inflation going to non-food items
Steps to reduce public debt, paper to be presented
in 6 months
1st challenge: quickly revert to higher GDP growth
path of 9%, cross double digit growth
2nd challnge: harden economic growth to make dev
more inclusive
3rd challenge: relates to problems in government
system
Focus shifts to non-governmental actors
Uncertainity was there on account of delay in
monsoon, concerns about production and food prices.
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