Union Budget 2010-11: Highlights

Highlights of the Union Budget 2010-11 presented by Finance Minister Pranab Mukherjee on Friday:

— Net revenue gain from tax proposals at Rs 20,500 crore

— Certain accredited news agencies exempted from service tax

— Service tax to remain 10 per cent

— Increase in duty on gold and silver import

— Clean energy cess of Rs 50 per ton to be levied on coal produced in India

— 10 per cent central excise duty on all non-petroleum products

— Structural changes in excise duties on cigarettes, cigars and cigarillos.

— Revenue loss of Rs 26,000 crore on direct tax proposals.

— 7.5 per cent duty on petrol, diesel, crude restored.

— Exempt duty raised for all non-smoking tobacco producs

— Investment linked tax deductions to be allowed to two—star hotels anywhere in the country.

— Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011—12 and 2012—13 respectively.

— 20 per cent for income above Rs 5 lakh and up to Rs 8 lakh

— 30 per cent tax for income above Rs 8 lakh.

— Income Tax department ready with two—page Saral—2 return forms for individual salaried assesses

— Surcharge on companies reduced to 7.5 per cent

— Additional exemption of Rs 20,000 for long tem investment in infra bonds

— Ten per cent tax slab for income upto Rs. 5 lakhs.

— No income Tax upto Rs. 1.6. lakhs

— National Social Security Fund created for workers in unorganised sector with allocation of Rs.1,000 crore

— Government to give Rs.1,000 for each National Pension Scheme account opened by workers in the unorganised sector

— Exclusive skill development programme for the textile sector

— Fifty percent hike in allocation for schemes for women and child development

— Rs.4,500 crore allocated for ministry of social justice and empowerment, a hike of 80 percent

— Rs.2,600 crore allocated for ministry of minorities affairs

— Rs.1,900 crore for Unique Identification Authority of India

— Rs.147,344 crore allocated for defence

— 2,000 youth to be recruited in central paramilitary forces

— Draft Food Security Bill prepared and will be put in the public domain

— Allocation on primary education raised from Rs.26,800 crore to Rs.31,300 crore

— Banking facilities to be provided to all habitations with a population of 2,000 and more

— Rs.66,100 crore allocated for rural development in 2010—11; Rs.40,100 crore for National Rural Employment Scheme; RS.48,000 crore for Bharat Nirman

— Rs.1,270 crore allocated for Rajiv Awas Yojna for slum dwellers, up from Rs.150 crore, an increase of 700 percent with the aim of creating a slum free India.

— Forty—six percent of plan allocations in 2010—11 will be for infrastructure development

— Coal Regulatory Authority to be set up to benchmark standards of performance

— Allocation for new and renewable energy sector increased 61 percent from Rs.620 crore to Rs.1,000 crore in 2010—11

— National Clean Energy Fund to be established

— Rs.200 crore allocated as special package for Goa to prevent erosion and increase green cover.

— Government committed to growth of SEZs.

— Four—pronged strategy for growth of agricultural sector.

— Rs.200 crore to be provided in 2010—11 for climate—resilient agricultural initiative.

— Involvement of private sector in grain storage to continue for another two years.

— In view of drought and floods, debt repayment period extended to June 2010.

— Five more mega food processing projects in addition to 10 existing ones.

— FDI flows in April—December 2009 $20.9 billion.

— FDI policy to be made more user—friendly with one comprehensive document.

— Apex level financial stability council to be set up for banking sector.

— Indian Banking Association to give additional licences to private players.

— Provision for further capital for regional rural banks.

— Roadmap for reducing public debt in six months.

— Implementation of direct tax code from April 2011.

— Government actively engaged in finalising structure of general sales tax regime; hopes to implement it from April 2011.

— Rs.35,000 crore raised from divestment in 2009—10; will be higher in 2010—11.

— New fertiliser policy from April 2010; will lead to improved productively and more income for farmers.

— Economy stabilised in first quarter of 2009—10; strong rebound in second quarter; overall growth at 7.2 and could be higher when Q3 and Q4 are taken into account.

— Export figures for January encouraging.

— Hope to breach 10 percent growth mark in not too distant future.

— Government set in motion steps to bring down food inflation.

— Need to review stimulus package; need to make growth more broad—based.

— India has weathered global economic crisis well; Indian economy in far better position than it was a year ago. In 2009 Indian economy faced grave uncertainty; delay in southwest monsoon had undermined agricultural production.

— First challenge now is to quickly revert to 9 percent growth and then aim for double digit growth; need to make recovery more broadbased.

— Second challenge is to make growth more inclusive; have to strengthen food security.

— Third challenge is to overcome weakness in government’s public delivery mechanism; a long way to go in this.