Union Budget 2009-10 Highlights

[Guest guest]

Union Budget 2009-10 Highlights

 

• Budget spells out the target for the UPA: To bring back the 9% growth

• Commodities Transaction Tax (CTT) to be scrapped

• 10% surcharge on personal Income tax scrapped

• Fringe Benefit Tax (FBT) to be scrapped

• IT exemption limit for Women hiked to Rs 190,000

• IT exemption limit for Senior Citizens hiked to Rs 240,000

• Rs 12000 crore earmarked for expenditure on rural roads in FY 2010

• Drugs related to heart diseases to be cheaper

• Service Tax to be now apllicable on law firms

• Bio-diesel custom duty lowered

• Customs Duty on import of Gold and Silver increased

• Branded women's jewellery to be cheaper

• Rs 16300 Crore to be set aside for the upcoming Commonwealth Games

• IITs and NITs to get Rs 2113 crore

• Corporate Tax unchanged

• One rank-one pension scheme to be in place for Ex-Servicemen

• National Ganga Project allocation to go up to Rs 562 Crore

• Unique Identification (UID) project under Nandan M. Nilekani to be out in

12-18 months

• NRHM allocation to be raised by Rs 257 crore

• A national level action plan in place for climate change

• National Employment Exchanges to be modernised

• Interest subsidy for home loans up to 1 lakh

• Indira Awaas Yojna bolstered up by 63% to Rs 8883 crore

• Saral 2 forms to simply tax filing process

• Emphasis on fertiliser subsidy reaching out directly to farmers

• Petroleum price expert panel to set petroleum prices which would be in sync

with the global levels

• Rashtriya Krishi Vikas Yojna allocation increased by 30%

• IIFCL, a new company would look into the infrastructure needs

• Extension of farm loan waiver scheme by 6 months

• Allocation of National Highway Authority of India (NHAI) increased by 23%

• Fiscal stimulus at 3.5% pf the GDP

• Small scale businesses to be exempted from advance tax

• 50% reduction in the Custom Duty on LCD panels

• Set top boxes to be costlier

• Goods and Services Tax (GST) to be in effect from April, 2010

• Textile units to enjoy continued tax holidays

• Pranab praises the 3 stimulus packages which were rolled out by the UPA to

fight the global economic meltdown

• Signals of revival in the domestic market: Pranab Mukherjee

 

More Updates - Features of Interim Union Budget

 

GDP increased by 7.5, 9.5, 9.7 and 9 percent in the first four years from fiscal

04-05 to 07-08 reflecting a sustained progression of more than 9 % for three

successive years.

Fiscal deficit down to 2.7% in 07-08 as compared to 4.5% in 03-04.

Gross capital formation in agriculture as a proportion of agriculture GDP

increased from 11.1% to 14.2% in 03-04 and 07-08 respectively.

Tax to GDP ratio increased from 9.2% in 03-04 to 12.5% in 07-08.

Annual growth of agriculture rose to 3.7% during 03-04 and 07-08.

Exports grew at an annual average growth rate of 26.4% (USD terms) in the period

04-05 to 07-08.

Manufacturing sector recorded a growth of 9.5% between the period 04-05 to

07-08.

Communication and construction sector grew at the rate of 26 and 13.5 percent

respectively.

Domestic Investment rate as a proportion of GDP increased from 27.6% to 39% in

03-04 and 07-08 respectively.

 

Rs. 1,41,703 cr for Defence Sector:

 

Mr. Mukherjee, in his union budget speech announced the allocation of Rs.

1,41,703 for the defence sector. He justified this allocation by saying that

increase had to be made considering the present security situation around the

country especially in the wake of the Mumbai terror attacks.

The Finance Minister increased Plan expenditure for Defence this year to Rs

86,879 crore. Last years Plan expenditure was only Rs 73,600 crore, which

contributed to an increase of Rs 13,279 crore this year.

 

India's Fiscal Deficits:

 

It was brought to the knowledge of the parliament that the revenue deficit has

outgrown four-fold as a result of extension of stimulus package provided to lot

of industries in the light of the global economic meltdown.

 

No Alteration to Tax Rates:

 

In his effort towards battling the on-going recession Mr. Mukherjee, allocated

Rs. 30,100 cr to the rural development program of the government. He refrained

from making any alteration in the tax and duty rates.

 

Tax collections in 08-09 to race ahead of the ones in 07-08.

Rs. 6705 cr to be put in to child development schemes.

Infrastructure investment to be hiked to 9% of the GDP by 2014.

109 maiden vessels sanctioned for the customs department.

Per capita income increased 7.4% p.a. during the tenure of the U.P.A.

government.

Export industry subsidy extended for some sectors.

Rs. 8,300 cr earmarked for mid-day meal scheme.

No tax changes in the budget speech.

Rs. 1200 cr for Total Sanitation Program.

The defence sector allocation has been set at Rs. 141703 crore.

Subsidies to food, petroleum and fertiliser to go up.

Export rate in the first nine months of the fiscal year has fallen to 17.1 %.

Mr. Mukherjee acknowledged that the global economic conditions are not

encouraging.

 

Budget proceedings resumes after a momentary halt: Kerala MP taken ill.

Budget proceedings were stalled for some time in the wake of a Member of

Parliament getting ill. Ambulances were rushed in as Virender Kumar, JD(S) MP

from Kerala suffered epileptic fit following which the Budget proceedings were

stalled for a brief moment.

Sh. Pranab Mukherjee has resumed his budget speech now...

 

A rate cut in custom duties announced.

Rs. 65,300 crore of farmer loans waived off in the financial year 2008-09.

A 15 point welfare programme for minorities set-up.

New scheme for young widows in the age group 18 t0 40 yrs. Announced .

Widows will get priority in admission to the ITI's and also a stipend of Rs.

500/ month.

Outlay on higher education increased by 900% in the 11th. Five-Year Plan.

There was a FDI inflow of $23.3 billion between Apr. and Nov. 08.

Indira Gandhi nationall widow pension scheme for widows.

Madhya Pradesh & Himachal Pradesh to have two more IIT's by 2010.

Educational loan scheme is set to get revised.

Mr. Mukherjee, proposed an outlay for higher education increased by 900 per

cent.

60.12 lakh houses will be built under the Indira Awaas Yojna.

Government plans to introduce 6 new IIM's which will be operational by 2010.

Educational loan scheme to be revised.

PSU turnover up by 84%.

 

1984 to 2009... Exactly after 25 years:

 

Sh. Pranab Mukherjee, the External Affairs Minister of India (In-charge of the

Finance portfolio) will roll out this years interim Union Budget inside

parliament. Mr. Mukherjee, is not new to the finance ministry, having

successfully presented 3 budgets in succession after becoming the Finance

Minister way back in 1982. It is quiet ironical that exactly after 25 years he

gets to do it again. It all started with the move of the Ex-Finance Minister

P.Chidambaram to the Home Ministry and the subsequent heart by-pass of the Prime

Minister, the Congress-lead U.P.A. Government had no choice but to look up to

the veteran septuagenarian congressman, the man for all seasons and reasons.

 

News Updates on the Rail Budget (2009-10)

 

The 6th. edition of Sh. Laloo Prasad Yadav's Railway Budget has been welcomed by

one and all. The positives to come out of this years Rail Budget have been many,

some of the key positives are:

 

Agartala, the capital of the North Eastern State of Tripura, has been connected

by railway line, which marks the first rail connection to another state capital

of a North-eastern state since Independence .

A keen interest shown by the ministry towards conducting a pre-feasibility study

in order to introduce bullet trains in India on the lines of Japan, Germany and

France.

Reduction by 2% in the second class and sleeper class ticket fares for passenger

trains.

Earmarking of Rs. 37,905 crore as investment in the annual plan of 2009-10.

Effective implementation of the sixth pay commission with relative ease

considering the huge cash surplus at the disposal of Indian Railways.

 

Interim Budget Updates (2009-10):

 

To boost up the export sector there is a strong possibility of direct government

assistance in the form of transferable duty free scripts.

The aviation sector is also expected to get an increased outlay to Rs. 12,160

crore which would be a jump of 200% as compared to the previous years

allocation.

Analysts are expecting an increase in the outlay for power sector up by 29% at

Rs. 52,100 crore.

Government is likely to announce a major boost for the beleaguered

infrastructure sector.

In the upcoming budget new investment norms are likely for Venture Capital,

Private Equity and Hedge Funds.

To attract VC funding into certain sectors there is a likelihood of a tax pass

for domestic Venture Capital Funds.

The government is likely to put the registration of foreign VCFs under the

automatic approval route bringing them at par with the FIIs.

Welcome to the budget section of Surfindia where our present highlight is the

upcoming Indian Budget for the year 2009-10. The Railway Budget for 2009-10 will

be presented by Sh. Laloo Prasad Yadav on February 13, 2009 and the Union Budget

(2009-10) by Sh. Pranab Mukherjee on February 16, 2009. The budget comes at the

backdrop of India 's General Elections somewhere in April-May. This would

therefore be an interim budget and would get superseded by a fresh budget which

would be presented by the new Government once it takes over. The budget would

surely unravel lot of sops keeping the upcoming General Elections in view.