The finance minister on Monday presented to parliament the federal budget for the year March 2010.
Following are the highlights from his speech:
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-"The first challenge is to return the GDP growth rate of 9 percent per annum at the earliest."
-The main growth driver in the current period is the private investment
- Govt to sell stakes in RITES, Manganese Ore
- Infrastructure investments to be 9% of GDP.
- Increase agriculture growth by 4% every year
- First challenge is to lead the economy back to the 7% GDP growth
- NHAI support up by 23%
- To hike private partnerhip in all PSU's
- Budget makes subvention of 1% as incentive to farmers
- NREGA Outlay increased by 144%
- IIFCL, banks can support projects worth Rs 1,00,000 crore
- Govt to support natural gas grid
- To initiate institutional measures to control fiscal deficit
- Govt to set up panel to advice on oil pricing
- Irrigation programme outlay increased 75% to 1,000 crore
- Local production of natural gas will be doubled
- Income tax return forms to be simplified
- Rs 3.25 lalk cross agiculture credit for current year
- Simple, exemption free tax structure in four years
- To modernise empployment exchanges through PPP mode
- To add handloom clusters in West Bengal and Tamil Nadu
- Nutrient based fertiliser subsidy being worked upon
- Government wants public shareholding in PSUs to go up
- NREGA (National Rural Employment Guarantee Act) has been an outstanding success
- Biometric smart cards issued to 18.6 lk families
- Govt to work closely with industry to address concerns
- NREGA's minimum wage set at Rs 100/day
- 46 lakh BPL families under new health insurance plan
- Banks, insurance cos are out of disinvestment plans
- Govt to launch housing programmes for central paramilitary
- Paramiltary housing project to cost Rs 1,000 crore
- Farm loan waiver plan extended
- Govt to spend Rs 120 cr in FY 10 on unique ID project
- Commonwealth games allocation raised substantially
- New AMU campuses in West Bengal and Kerala
- Food security to provide wheat and rice at Rs 3/kg
-Indira Awaas Yajona outlay raised by 63%
- PM's Adarsh Gram Yajana starts with Rs 100 crore funding
- Bharat Nirman outlay incresed by 59%
- Plan expenditure is raised by 34%
- Govt to spend 1.42 lk crore on defence
- Interest payments are a third of expenditure plans
- Fiscal deficit seen at 6.8% in FY10
- Govt to move food security bill very soon
- PSU cos will remain under govt control
- Revenue Deficit seen at 4.8%
-Construction industry gets full exemption for concrete slabs
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PART B of the Budget
- To release new direct tax code in 45 days
- To introduce GST by April, 2010
- GST will be dual in nature
- States and Federal Government to impose GST
- No changes in corporate taxes with a view to provide interim relief to small and micro enterprises
- To raise personal IT exemption to Rs15,000 for seniors
- To raise severe disability limit
- Surcharge on paersonal income tax scrapped
- FBT ( Fringe Benefit Tax) has been scrapped
- Tax Holidays for exporters extended to 2011
-Minimum Alternative Tax raised to 15% of book profits
- MAT Tax credit extended to 10 years from 7 years earlier
- National Pension scheme made exempt from STT
- National Pension scheme given tax exemptions
- Commodity transaction Tax ( CTT ) is abolished
- Political funding will get 100% tax deduction
-Tax holiday extended on commercial production of natural gas
- Manufacturing growth barely appears to be turning corner
-Maintaining overall excise, service , custom tax
- Customs duty on set top boxes is now 5%
- Customs duty on some bulk drugs halved to 5%
- 4% excise duty on cotton textiles restored
- 8% excise duty on manmade fibres restored
- Exempting branded jewellery from excise
- No new taxes on edible oil imports
- Exporters are exempted from service tax to transporters
- Some law services brought under service tax
- Individual law consulattion not to attract service tax
- Govt to extend service tax to goods moved by rail, post
