Highlights of Indian Union Budget 2010

Indian Finance Minister Mr.Pranab Mukherjee has presented his “Budget Proposals” for the Union Budget 2010 in Lokh Sabha on 26th February 2010. Mr.Mukherjee read his budget proposals and spoke for 110 minutes.
Highlights of Budget 2010
• GDP at 6.7 % will be raised to 10%
• Rate of Inflation will be brought down
• Growth Rate in Manufacturing Sector will be 18.5%
• Supply-Demand Imbalances will be removed
• To raise Rs 25 000 Crores by Disinvestment
• New Companies Act will be made soon
• Thrust of Rural Infrastructure
• More Licenses will be issued to new Private Banks
• Green Revolution will be extended to East parts of India
• Focus on Delhi-Mumbai industrial freight corridor
• Health insurance to NREGA beneficiaries
• 2,000 constables to be recruited in 5 para-military forces

The following Funds Allocations have been made in the Budget:-
• Rs 1,47,344 Crores for defence
• Outlay for Clean Ganga Project doubled
• Power sector allocation doubled
• Rs 400 Crores for Agriculture Production
• Rs 1,73,552 Crores for infrastructure development
• Rs 200 Crores for climate resilient agri-initiative
• Rs 200 Crores for Goa to preserve its natural resources.
• Rs 19,894 Crores for road transport
• Rs 950 Crores more for Railways
• Rs 31,036 Crores for school education
• Rs 3,675 Crores to States for Elementary Education
• Rs 40,100 Crors for NREGS
• Rs 300 Crores for Rashtriya Vikas Yojana
• Rs 5,400 Crores for urban development
• Rs 1,270 Crores for Rajiv Awas Yojana for slum dwellers
• Rs 10,000 Crores for Indira Awas Yojana
• Rs 1,600 Crores to banks for capital adequacy
• Rs 5,000 Crores for states to improve justice delivery
• One time grant of Rs 200 Crores to Tamilnadu for Tirupur textile hub
• Increase of loans to farmers by Rs 50,000 Crores
• Rs 1,900 Crores for unique identification authority
• Rs 500 Crores special package for Bundelkhand
• Indian Rupee will get unique identity and symbol.
• Bharat Nirman allocation goes upto Rs 41,000 Crores
• Plan outlay for minority affairs is Rs 2,600 Crores
• National Social Security Fund for the unorganised sector
• Rs 22,300 Crores for health ministry
• 20 km of highways to be constructed every day

Personal Income Tax:-
The limit of Personal Income Tax without Tax is kept unchanged:-
• No tax on income upto Rs 1.6 Lakh
• 10 per cent tax on income above Rs 1.6 lakh upto Rs 5 Lakhs
• 20 per cent tax on income above Rs 5 Lakhs upto Rs 8 lakhs
• 30 per cent tax on income above Rs 8 Lakhs
• Minimum alternate tax increases from 15 per cent to 18 per cent
• Direct tax code from April 1, 2010
• IT returns form will be of two pages
• 1 per cent rebate on home loans upto Rs 20 lakh till March 31, 2011
• Section 80C limit hiked by Rs 20,000

Indirect Taxes/Excise Duties:-
• Partial roll back of central excise duty from 8 per cent to 10 per cent
• Excise duty on large cars, SUVs increased to 22 per cent
• Cigarettes, liquor and non-smoking tobacco to be expensive
• Duty on crude oil back to 5 per cent
• Interests on late payment of taxes hiked to 18 per cent
• Corporate surcharge down from 10 per cent to 7.5 per cent
• Excise duty on cement and steel increases
• Duty on petrol and diesel hiked to 7.5 per cent
• Service tax remains unchanged at 10 per cent
• Gold prices increased from Rs 200 per ten gram to Rs 300

According to the Union Finance Minister Mr.Pranab Mukherjee the proposed Budget-2010 is focused on ‘development of the country with increase in GDP and ‘infrastructure development’.

However, as the prices of petroleum products have been increased, the opposition parties are opposing the budget proposals. They say that the budget will not favour the poor and the middle class. The budget has not given any solution to the current ‘burning problem’ of ‘price rise’ and the proposals are expected to elevate the price levels still further.

The discussions on the budget proposals in the remaining days of the budget session of the Parliament will be very hot.