last updated on 26 February 2010
India has bravely battered the global financial crisis and Indian economy is estimated to be in a better state at present as compared to its position a year ago. The nation has experienced severe economic imbalance in the year 2009 and a major decline in the agricultural production due to delay in monsoons.
Therefore, the main challenges in front of the government is to swiftly relapse to 9% growth, target for double digit expansion to make the recuperation more intensive and make the development process more comprehensive by laying guidelines for food security and surmounting the failure of public delivery system of the government.
Union Budget 2010 Highlights
Highlights of Union Budget 2010 proposed by Finance Minister of India Mr Pranab Mukherjee on February 26, 2010 are:
- 4% of concessional tax to be charged on solar power plants constructed by the Council of Scientific and Industrial Research
- 5% of concessional tax to be charged on the machinery imported by cable TV operators
- Tax charged on coal manufactured in India is re-introduced at ` 50 per tonne.
- Toys to be entirely excluded from central excise tariff
- Service sector tax maintained at 10% to assist the initiation of GST. Inclusion of more services under tax limits.
- Authorized news agencies are entirely excluded from service tax
- Public participation will be appreciated for discussion on Draft Food Security Bill
- Monetary allotment on primary education is hiked from ` 26,800 crore against the existing ` 31,300 crore
- Banking services to be offered for all residents with a populace of more than 2,000
- Allocation of ` 66,100 crore for rural expansion in the current fiscal year
- Allocation of ` 40,100 crore and for the ` 48,000 crore for National Rural Employment Project and Bharat Nirman respectively
- Hike in allocation of ` 1, 270 crore for Rajiv Awas Yojna, that works for underprivileged section of the society, against the present ` 150 crore. It is an attempt to improve the living standards of slum dwellers and progress towards a "slum free India".
- 46% of scheme allowances for the development of infrastructure in the current fiscal year.
- Set targets for improvement in the performance standard of Coal Regulatory Authority of India
- 61% increase in the monetary allotments for new and renewable energy industry to ` 1,000 crore against the existing ` 620 crore
- Initiation of National Clean Energy Fund
- Allocation of ` 200 crore for Goa to check and prevent the corrosion activities and develop tourism.
- Commitment to the development of Special Economic Zones.
- Introduction of four different strategies for the development of agriculture industry.
- Allocation of ` 200 crore for the weather-resilient agricultural proposals.
- Participation of private sector in grain storage to prolong for the next two fiscal years.
- Considering the natural calamities like floods, drought, etc, the debt reimbursement phase is elongated to June 2010.
- Introduction of 5 major food processing plants
- FDI influx is registered at $20.9 billion during April-December 2009
- FDI guidelines to be made more accessible with one all-inclusive article.
- Excellent fiscal security council to be established for banking industry.
- Additional accredits will be provided to private sectors by Indian Banking Association
- Terms to be formulated on additional capital for provincial rural banks.
- Strategies laid for trimming down public liability in the next six months.
- Execution of direct tax policy from April 2011.
- Government is aggressively involved in settling the format of the common sales tax system and is looking forward to apply it from April 2011.
- Revenues from divestment are anticipated to be greater in 2010-11 against ` 35, 000 crore in 2009-10.
- Fertilizer policy to be introduced from April 2010 with an aim to enhanced industrial output and earnings of the farmers.
- Economy to alleviate in first quarter of FY 2009-10. Strong recovery is expected in second quarter and an entire overall escalation is estimated at 7.2 which will be greater than the Q3 and Q4 records.
- Exports registered steady growth in the month of January.
- Requirement of evaluating stimulus package and develop strategies to make the expansion more broad-based.
- Fiscal deficit is aimed at 5.5%, 4.8% and 4.1% for Fiscal years 2011, 2012 and 2013 respectively. Budget deficit is expected at 6.9% of GDP for FY 2010.
- Tax exempted on earning accrued upto ` 1.6 lacs.
- Existing additional costs to be reduced to 7.5% on firms
- Increase in Minimum Alternate tariff by 18%
- Tax to be charged on earnings above ` 8 lacs is 30%, between ` 5 lacs to 8 lacs is 20% and between ` 1.6 lacs to 5 lacs is 10%
- IT tax levels to be expanded
- Prices of fuel, cement, Cigarettes, Televisions, Jewelry and Refrigerators to go up.
- Excise tariff on big cars, SUVs to go up to 22%
Last updated on : 15-05-2011
