New Delhi: Breaking News! Union Finance Minister Pranab Mukherjee presented the 'Union Budget 2010' in Lok Sabha today and announced a slew of measures focusing on agriculture, growth and infrastructure. The corporate, banking and agriculture sectors got a major boost in the Union Budget 2010.

 

There was a huge uproar in the Parliament over the hike in CET on petro products. The Opposition staged a walkout from the Lok Sabha, protesting against the hike. The FM also hiked the Excise Duty from 8% to 10%, while the Service Tax has been retained at 10%.

The BSE Sensex has witnessed a rise, as the FM presented the budget today. The Corporate Sector and Industry have given a thumbs up to Pranab Mukherjee's Budget 2010. The BSE Sensex witnessed a rise of 372 points at 12.50 PM.

The taxpayers got a huge relief, as the  Finance Minister changed the income tax slabs, making it wider and simpler. There was a partial excise rollback on cement and large cars, which mean the prices of these items, will go up. The excise duty on cigarettes has gone up.

 

"Our economy is a much better position today. Our first challenge is to quickly revert to high GDP Growth of 9%. The second challenge will be to make development more exclusive", said the Finance Minister.

 

Talking about Food Security and Inflation, he said that India need to strengthen the food security. "Short-term global outlook looks bleak during FY 2010-11. The Southwest Monsoon undermined our kharif crops. We need to work hard to contain the inflation", he said.

 

Mr. Mukherjee said that the manufacturing growth in 20009-10 has been highest in the last two decades. He also said that thrust in rural infrastructure spending in a must. "We need to review fiscal stimulus and public spending".

 

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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