Highlights of 2010-11 budget presented by Finance Minister Pranab Mukherjee in parliament Friday February 26, 2010:
Budget Highlights
● Online news agencies to attract tax
● Sensex surges 350 points on new tax slabs
● Rationalising tax criteria on gaming software
● No hike in service tax
● Corporate surcharge down from 10 per cent to 7.5 per cent
● Liquor prices set to go up
● Prices of gold, silver, precious stones set to rise
● Makers of mobile accessories to get tax breaks
● No taxes on transportation of pulses
● Prices to go up for cars, cement, fuel, cigarettes, air conditioners, TVs,
steel
● To restore 7.5 per cent duty on petrol and diesel
● Raise excise duty on all non smoking tobacco
● Uproar over hike in fuel prices in Lok Sabha
● To restore 5 per cent duty on crude petroleum
● Fuel prices likely to go up
● Central exicse duty on petrol and diesel raised to Rs 1 per litre
● Rollback in excise duty to 10 per cent
● Govt announces partial rollback in excise duty
● Excise on large cars, SUVs and MUVs raised to 22 per cent
● Presumptive tax limit raised to Rs 60 lakh
● Investment linked deduction benefit for two star hotels
● Deduction of Rs 20,000 towards infrastructure bonds
● Reduce current surcharge on companies to 7.5 per cent
● Income above 8 lakh - 30 per cent tax
● Income from 5 lakh to 8 lakh - 20 per cent tax
● Income between 1.6 lakh to 5 lakh - 10 per cent tax
● No tax on income up to Rs 1.6 lakh
● IT department to notify Saral 2 forms
● Net market borrowing pegged at Rs 3.45 lakh crore
● IT return forms to be more user friendly
● Govt to bring subsidy related liability into fiscal accounting
● Borrowing plan to be decided in consultation with RBI
● FY 10 budget deficit seen at 6.9 per cent of GDP
● FY 13 fiscal deficit target at 4.1 per cent
● Fy 12 fiscal deficit target at 4.8 per cent
● Govt to set up National Mission of Delivery of Justice
● Gross tax receipts seen at Rs 7.46 lakh crore in FY'11
● Fiscal deficit target of 5.5 per cent in FY11
● 15 per cent increase in plan expenditure
● Defence Capex rasied to Rs 60000 crore for FY'11
● Allocation for defence raised to 1.47 lakh crore
● UIDA to roll out first set of IDs by end of 2010
● Allocation of Rs 1900 crore to Unique Identity Project
● Allocation to minority welfare ministry Rs 2600 crore
● Govt to contribute Rs 1000 per month for pension security
● Home loans up to Rs 20 lakh to get 1 per cent subvention up to March 2011
● Allocated RS 66,100 crore for rural development
● Social Security Fund to have a corpus of Rs 1000 crore
● National Social Security Fund for unorganised sector
● Extend interest subvention for housing loans up to Rs Rs 10 lakh
● To allocate Rs 10,000 crore to Indira Aawas Yojana
● Rs 1200 crore assistance for drought in Bundelkhand
● To allocate 48000 crore for Bharat Nirman
● Allocation to NREGA raised to Rs 41,000 crore
● To allocate 22,300 crore allocation for health ministry
● Social sector spending at 1.38 lakh crore for FY11
● 25 pc of plan allocation for development of rural infrastructure
● To increase plan allocation for education to 31600 crore
● Rs 300 crore of Krishi Vikas Yojna
● Body for macro supervision of big companies
● Annual health survey to be conducted in rural areas in 2011
● Govt ready with draft food securty bill
● To provide one time grant to Tirupur exports
● Competitive bidding for coal block for power sector
● Allocation for power sector Rs 5130 crore in FY11
● Allocation for road infrastructure raised to 19,894 crore
● Rs 1.73 lakh crore or 46 per cent of the plan allocation for infrastructure
● Oil ministry to consider Parikh report in due time
● Crop loan interest subvention for timely repayment raised to 2 per cent
● Period of repayment of farm loan waiver extended to June 30
● Farm credit target raised to Rs 3.75 lakh crores for FY11
● Govt to take a firm view on opening up retail trade
● More captial for rural banks
● Govt to provide credit support to farmers
● RBI will give addtional licenses to private banks
● Challenge is to make growth inclusive
● FDI regime has been simplified by the government
● India received more FDIs last FY
● Disinvestment target Rs 25000 crore this year
● Good and Services Tax to be in place next year
● Valuation of listed PSUs has increased greatly
● Listing of PSUs will ensure corporate governance
● Govt will implement direct tax code by April 1, 2010
● Process to make a simple taxation system
● Need to make growth broad-based
● Gradual phasing out of fiscal stimulus
● With economy recovering, need to review public spending
● Bad monsoon affected food prices adversely
● Food inflation should come down in 2010-11: Pranab
● Export figures for January have been encouraging: Pranab
● Hope to breach 10% growth mark in the near future: Pranab
● Manufacturing has been a growth driver: Pranab
● Growth registered a strong rebound in the second quarter: Pranab
● Govt must deliever to lesser privileged sector: Pranab
● Economy stabilised in first quarter of 2009-10: Pranab
● We have to sustain food security in rural areas: Pranab
● Modernisation of PDS a priority for the govt: Pranab
● Our task is to quickly revert to high GDP growth path: Pranab
● Challenge to make development more inclusive: Pranab
● Indian economy is in far better position now: Pranab
● Pranab Mukherjee begins Budget speech
● Pranab Mukherjee reaches Parliament
● Banks raise deposit rates ahead of budget.
● Mukherjee is scheduled to begin his budget speech at 11 am.
● Budget is expected to slash the deficit as the economy rebounds.
● Government borrowing was forecast to rise by another 2.2 per cent.
● Investors were hoping FM will also be firm on keeping borrowing in check.
● Calls for fiscal discipline are urgent as inflation is forecast to reach 10 pc
in coming weeks.
● Mukherjee may also unveil plans to address shortfalls in food production and
distribution.
● Budget may include initiatives to address India's chronic infrastructure
deficit.
