Highlights of General Budget 2010-11

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SME Times News Bureau | 26 Feb, 2010
Finance Minister Pranab Mukherjee presented his annual budget on Friday. Following are the highlights of 2010-11 budget:

-- The Finance Minister lays emphasis on consolidated growth, improving investment environment, inclusive development and strengthening transparency and public accountability in budget 2010-11.
-- The total expenditure proposed in the budget estimates is rs.11,08,749 crore, an increase of 8.6 per cent over last year.
-- The plan and non-plan expenditure estimated at rs.3,73,092 crore and rs.7,35,657 crore respectively, an increase of 15 percent in plan expenditure and 6 per cent in non-plan expenditure over the be of previous year.
-- Fiscal deficit at 5.5 per cent of gdp works out to be rs. 3,81,408 crore.
-- Rolling targets for fiscal deficit pegged at 4.8 per cent and 4.1 per cent for 2011-12 and 2012-13.
-- Net market borrowing would be of the order of rs. 3,45,010 crore leaving enough space to meet credit needs of private sector.
-- Against a fiscal deficit of 7.8 per cent in 2008-09 , inclusive of oil and fertilizer bonds, the comparable fiscal deficit is 6.9 per cent as per re 2009-10.
-- Gross tax receipts estimated at rs.7,46,651 crore and non-tax receipt estimated at rs. 1,48,118 crore.
-- Status paper giving road map for curtailing the overall public debt to be brought out within 6 months.
-- About rs. 25,000 crores to be raised through disinvestmet programme
-- To simplify the fdi regime, for the first time both ownership & control recognised as central to the fdi policy.
-- Rs. 16,500 crore to be provided to public sector banks to achieve a minimum 8 per cent tier-i
-- Growth of 127 per cent recorded in exports from sezs till december, 2009.
-- A four-pronged strategy to spur the growth in agriculture sector envisaged. Which includes agricultural production, reduction in wastage of produce, credit support to farmers and thrust to the food processing sector.
-- Agriculture credit flow target raised to rs. 3,75,000 crore from rs.3,25,000 crore
-- Subvention for timely repayment of crop loan increased from 1 per cent to 2 per cent.
-- Infrastructure development gets an allocation of rs. 1,73,552 crore, 46 per cent of total plan allocation , an increase of 13 per cent in road transport sector.
-- India infrastructure finance company limited’s disbursements to reach rs. 20,000 crore by march 2011.
-- allocation for power sector increased by more than doubled to rs. 5,130 crore.
-- New tax incentives announced for infrastructure sector.
-- National clear energy fund for funding research and innovative projects in clean energy technologies to be set up.
-- Spending on social sector to account for 37 per cent of total plan outlay at rs.1,37,674 crore
-- Allocation for rural development enhanced to rs.66,100 crores. Allocation for nrega stepped up to 40,100 crore.
-- Rs. 48,000 crore allocated for bharat nirman programme
-- Backward region grant fund allocation enhanced to rs. 7,300 crore.
-- Rajiv awas yojna for slum dwellers and urban poor to get rs. 1,270 crore , an increase of over 700 per cent
-- National social security fund for unorganised sector workers to be set up with an initial amount of rs. 1,000 crore.
-- Mahila kisan sashaktikaran pariyojna with a provision of rs.100 crore launched
-- 80 per cent increase in the allocation for ministry of social justice & empowerment at rs 4,500 crore.
-- Minority affairs to get rs.2,600 crore, an increase of 50 per cent.
-- To rewrite and clean up the financial sector laws, financial sector legislative reforms commission to be set up.
-- Unique identification authority of india to get an allocation of rs. 1,900 crore. A technology advisory group for unique proect to be set up.
-- Allocation for defence increased to rs.1,47,344 crore
-- National mission for delivery of justice and legal regorms to be set up to provide timely justice to all.
-- Income tax slabs broadened - 10 per cent on income above rs 1.6 lakh to 5.00 lakh, 20 per cent on income above 5.oo lakh to 8.00 lakh , 30 per cent on above rs. 8.00 lakh
-- Additional deduction of rs. 20,000 for investment in infrastructure bonds
-- Surcharge of 10 per cent on domestic companies reduced to 7.5 per cent
-- Mat increased from 15 per cent to 18 per cent
-- Wighted deduction non expenditure incurred on in-house r&d from 150 per cent to 200 per cent
-- Limit of turnover for presumptive taxation of small business enhanced to rs. 60 lakh.
-- Limits of turnover needing audit enhanced to 60 lakh for businesses and rs. 15 lakh for professions.
-- Proposal of direct tax to result in revenue loss of rs. 26,000 crore where as indirect taxes to result in a revenue gain of rs. 46,500 crore.
-- Service tax proposals to result in net revenue gain of rs.3,000 crore.
-- Accredited news agencies which provides news feed online exempted from service tax
-- Saral –ii for individualsalary taxpayers ready for notification
-- Service tax retained at 10 per cent.
-- Certain new services to be brought within service tax purview.
-- Micro-wave ovens, pre-packaged imported goods, mobile phones, watches, readymade garments, toy baloons, long pepper, replaceable household water filter to be cheaper.
-- Infotainmet sector to benefit from concessional custom duty
-- Indian rupee to get a symbol, join the select club of currencies
-- Special duty concessions to promote clean environment clean energy cess @ rs. 50 per tonne on coal
-- Rate reduction in central excise duties partially rolled back ad valorem on non petro products & cars increased by 2 per cent
-- Uniform basic duty of 5 per cent and cvd of 4 per cent on import of medical equipmnet.
-- Scientified inputs for orthopaedic implants exempted from import duty
-- Central excise on petrol & diesel raised by rs. One per litre.
-- Major tax relief to agriculture & related sectors
-- Project import status for the setting up of cold storages
-- Full exemption from excise duty to trailers & semi –trailers.