The Highlights of Union Budget 2010:(Part II)

Here are the Highlights of Union Budget 2010:

Vision & Objective:

• GDP Growth to be targeted at 9%
• Target of Rs 25,000 cr disinvestment this year
• Direct Tax Code and GST will be implemented from April 1, 2011
• Fertilizer Subsidy to be reduced
• GDP to reach 10% in near future
• To consider Parikh Report on Fuel Price
• FDI Regime to be simplified
• Inflation Rate to be lowered in 2 Months
• 2% interest subvention for Exports extended for one year
• Committed to SEZ Growth

Banking:

• More Private Banks to be encouraged
• Additional Banking License to Private Players
• FY10 Capital for PSU Banks stand at Rs 16,500 crore
• Rs 1,200 crore to be allocated to PSU Banks
• Rural Banks to be supported
• Banks to get Rs 6,000 crore to improve fundamental structure
• Banks for all villages with a population of 2,000

Agriculture:

• Four-pronged agricultural strategy to be adopted
• More help to Food Processing Sector
• Rs 400 crore to be allocated for Green Revolution in Eastern India
• Rs 300 crore for Rashtriya Krishi Vikash Yojna
• Extend Loan Repayment for drohught-hit Farmers
• Farmers, who repay loan on time, will get a waiver of 2%
• Farmers to get Loans at 5%
• To extend farm loan repayment by 6 months
• Agriculture Loan for Farmers increased to Rs 3,75,000 crore
• New Food Policy from April 1, 2010
• Rs 300 crore to be allocated for Pulse Production

Infrastructure:

• Rs. 1.37 lakh crore for Infrastructure Development
• Railways to be allocated Rs 16,772 crore
• Road Development allocation increased to 19,894 crore
• 20 km National Highway to be built everyday
• Proposal to hike allotment for renewable energy by 61%
• To Establish Clean Energy Fund
• More than double allocation for Power Sector to 5,130 crore
• Coal Regulatory Authority to be set up
• One-time grant of Rs 200 crore for Tamil Nadu dor Textiles
• NREGA Allocation at Rs 40,100 crore
• Rs 1200 crore package for drought-hit Bundelkhand
• Ganages - Rs 500 crore
• Bharat Nirman Yojna - Rs 48,000 crore
• Solar Energy - Rs 1,000 crore
• Tirupur Textile Industry - Rs 500 crore
• Goa - Rs 200 crore special package
• To set up 20,000 MW Solar Power by 2022
• Delhi-Mumbai Industrial Corridor to be set up

Education:

• Allocation for School Education increased from Rs 26,800 crore to Rs 31,036 crore
• Allocation for Health at 22,300 crore
• Sarva Sikha Abhiyaan - Rs 36,000 crore

Urban Development & Housing:

• Rs 5,400 crore for Urban Development - hike of 75%
• Rs 61,000 crore for rural Development
• Indira Awas Yojna to get Rs 10,000 crore
• House Loans up to Rs 10 lakh - 1% subsidy extended for one year
• Focus on Slum Development

Social Sector:

• National Social Security Fund for unskilled labourers to be set up with Rs 1,000 crore
• National Pension Scheme - New Accounts to get Rs 1,000 per year by the government
• National Health Insurance Scheme for NREGA Workers, who work for 15 days in a Month
• Farmer Fund for Women - Rs 100 crore
• Dalits and Poor to get more focus

Technology:

• Unique ID to be given on time
• Rs 19000 crore allocated for Unique ID Project
• Rupee to have new Symbol. A new look Rupee to come up soon.
• Tech Advisory Group to set up under Nandan Nilekani

Plan & Expenditure:

• Gross Tax Receipts - Rs 7.46 lakh crore
• 15% rise in plan expenditure
• Fiscal Deficit for FY 2010 revised to 6.9% of GDP
• Fiscal Deficit - 5.5% for FY 2011
• Fiscal Deficit - 4.8% for FY 2012
• Defence Allocation - Rs 147,344 crore

Taxation:

• Income Tax Form Saral-2 to be re-introduced from next year
• No increase in Exemption Limit for the Taxpayers
• Tax Slabs changed
• Income up to Rs. 1.6 lakh - nil
• Income from Rs. 1.6 lakh - Rs 5 lakh - 10% tax
• Income from Rs 5 lakh - 8 lah - 20% tax
• Income of above Rs 8 lakh - 30% tax
• 60% of the taxpayers to be benefited
• Rs. 20,000 tax exemption for investment in infrastructure bonds.
• Tax Exemption under 80c will be Rs 1.2 lakh instead of Rs 1 lakh
• Corporate Surcharge reduced from 10% to 7.5%
• MAT (Minimum Alternative Tax) increased to 18% from 15%
• Excise Duty hiked from 8% to 10%
• Service Tax remained at 10%
• No Service Tax on News Agencies
• R&D deduction hiked
• CET (Central Excise Tariff) on Petroleum Products hiked by Rs 1
• Petrol, Diesel Prices to go up
• Partial Rollback on Excise Duty on Cement, Large Cars
• Cement and Large Cars to be costlier
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