Budget Highlights

- Minimum Alternate Tax up from 15% to 18% on book profits

- Fiscal deficit pegged at 5.5% of GDP
- I-T dept to notify simple two-page Saral 2 form for individuals for cur
rent year
- Personal income tax: Nil for income up to Rs 1.6 lakh, 10% for income b
et Rs 1.6 -5 lakh
- Personal income tax: Income between 5-8 lakh: Tax at 20%
- Personal income tax: Above Rs 8 lakh, tax at 30%
- Professionals with Rs 15 lakh income need account audit
- Partial rollback of excise duty relief on large cars
- To provide subsidy in cash instead of bonds for fertiliser, oil
- Customs duty on gold, platinum imports raised to Rs 300 from Rs 200
- Service tax to GDP ratio is 1%
- Net revenue gain of Rs 43,500 cr from customs, excise proposal
- Direct tax proposals result in Rs 26,000 cr loss; indirect tax yield Rs
45,000 cr gain
- News agencies exempt from service tax
- Some services hitherto not taxed would be brought under the purview of
new Service Tax
- Service Tax rates unchanged at 10%
- No import duty on some equipment in road projects
- Cut in duty for photovoltaic units
- External commercial borrowing will be available for food storage indust
ries
- Clean energy cess on domestic, imported coal
- Peak customs duty remains unchanged at 10%
- Central excise on LED lights halved to 4%
- Agricultural seeds exempt from service tax
- Full excise cut on electric cars
- For solar mission, solar power generating units rates are to be reduced
by 5%
- Cut on personal tax rates means saving of Rs 50,000 for income up to Rs
8 lakh
- Partial rollback of excise duty relief on large cars
- Peak excise duty hiked from 8% to 10%
- Market borrowing were up to 3,45,000 cr. Enough to meet credit need of
private sector
- Duties on smoking and non-smoking tobacco products up
- Excise duty on large cars, SUVs, multi utility vehicles hiked
- Petroleum products: basic excise duty of 5% crude, 7.5% on diesel & pet
rol; 10% on other products
- Structural changes in excise duties of tobacco, propose to extend excis
e duty
- Revenue loss of Rs 26,000 cr on a/c of direct tax proposals
- Surcharge for companies reduced to 7.5%
- Due to direct taxes, result in a revenue loss of Rs 26,000 cr
- Threshold limit for TDS applicability to be rationalised
- Extended scope of presumptive taxes up to Rs 40 lac
- Real estate sector now gets 5 years for completion instead of 4 years b
efore
- To boost tourism investment, offers investment linked tax deductions
- Addl Rs20,000 deduction available for investment in infra bonds
- Reduces current surcharge of 10% on domestic comp to 7.5%
- Automation of excise, service tax already rolled out
- FY11 market borrowing pegged at Rs 3.45 lakh cr
- Govt to set up apex level Financial Stability and Development Council
- FY13 fiscal deficit seen at 4.1%
- Fiscal deficit seen at 4.8% in FY12
- Allocates Rs 1,900 cr for UID project
- Planned expenditure up 15% over 2009-10
- Increase in non-planned exp up only 6%
- Total exp proposed up 8.7% over 2009-10, to Rs 11 lakh cr
- Taskforce to counter problems in Maoist affected areas. Adequate funds
will be allocated
- Allocation to Defence over Rs 147,000 crore
- Technology advisory group to be set up under Nandan Nilekani
- Smart card extended to NREGA
- RBI to dole out more banking licences: Pranab
- Sign language training centre for hearing impaired
- Rs 4,500 cr for program of social justice, sr citizens, backward classe
s, handicapped
- Rs 100 cr allocated for women farmers
- Exclusive skill dev prog in textile and garment sector
- Rs 48,000 cr for Bharat Nirman plan
- Asks state govt to contribute for social security to workers in unorgan
ised sector
- Infra stocks spurt on higher allocation
- To allocate Rs 22,300 cr to Health Ministry
- Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low inco
me citizens
- Khadi institutes get Rs 400 cr
- GOI sign $150 mn deal with ADB for implementing Khadi programme
- Rajiv Awas Yojana now ready' gets Rs 1,270 cr for FY11
- Rs 7300cr in 2011 for backward sections
- GST, Direct Taxes Code from April 2011
- Housing loan: 1% interest subvention scheme extended, allocation Rs 700
cr
- Urban dev allocation up more than 75% to Rs 5400 cr
- Allocates Rs 1,200 cr for drought mitigation
- Indira Awas Yojana: allocation up by Rs 10,000 cr
- NMDC, SVJN stake sale to fetch Rs 25,000 cr in FY10
- NREGS gets Rs 40,100 cr in FY11
- Rs66,1000 cr allocateds for rural development in FY11
- IIFCL disbursements at Rs 9000 cr by March 2010
- School education outlay for FY11 at Rs 31,000 cr
- States to get Rs 3,675 cr for primary education at rural level
- To set up coal regulatory authority
- Spending on social sector at Rs 137,000 cr
- Rs 25,000 cr allocated to develop rural infrastructure
- Growth to exceed 7.2% in this fiscal
- Final FY10 GDP figure maybe higher than estimate of 7.2%
- To set up National clean energy fund
- Plan outlay for Renewable energy ministry up 61%
- Power allocation doubles to Rs 5,100 cr
- To set up 5 more mega food park projects
- Allocation for road tansport Rs 19,894 cr
- Farm loan repayment extended by 6 months
- ECB to be available for cold storage
- To provide Rs 400 cr to boost farm output in eastern India
- Timely repayment of crop loans: subvention raised from 1% to 2%
- Govt is committed to growth of SEZ to promote exports
- Proposes allocation of Rs 200 cr for climate-resilient agricultural pro
gram
- Extend 2% interest subvention for exports for another year
- FY11 capital for PSU banks at Rs 16,500 cr
- Extends interest subvention of 2% for handloom, handicrafts for 1 more
yr
- Propose new bill to address problems in corpoate sectors
- Will augment assistance to RRBs to strengthen rural sector
- RBI may give license to some more private sector players and NBFCs
- Rs 1,900 cr addl capital in four PSU banks
- Ownership and control clearly defined in FDI policy
- To discuss Kirit Parikh report in due course
- Subsidy for fertiliser sector to increase farm productivity
- Govt to raise Rs 25,000 cr this year to meet cap expenditure requiremen
ts
- GST and DTC can be introduced in April 2011
- Steps to reduce public debt, paper to be presented in 6 months
- Signs of food inflation going to non-food items
- Need to review stimulus, move to fiscal consolidation
- Double digit food inflation in 2009
- Export figures encouraging; pvt investments can be expected
- Concerned over emergence of double digit food inflation
- 18.9% growth rate in manufacturing sector in 2009
- Final figure may be higher if earnings in last quarters are strong
- Need to make recovery
- Growth slows down to 6% in Q3 vs 7.9% in Q2 this fiscal
- Focus shifts to non-governmental actors
- 3rd challenge: relates to problems in government system
- 2nd challnge: harden economic growth to make dev more inclusive
- 1st challenge: quickly revert to higher GDP growth path of 9%, cross do
uble digit growth
- Economy is in a better position than a year ago, however, challenges re
main
- Uncertainity was there on account of delay in monsoon, concerns about p
roduction and food prices
- Pranab Mukherjee starts announcing Union Budget
- Bond yields steady ahead of Budget