Highlights of General Budget 2010-11

• THE FINANCE MINISTER SHRI PRANAB MUKHERJEE LAYS EMPHASIS ON CONSOLIDATED GROWTH, IMPROVING INVESTMENT ENVIRONMENT, INCLUSIVE DEVELOPMENT AND STRENGTHENING TRANSPARENCY AND PUBLIC ACCOUNTABILITY IN BUDGET 2010-11.
• THE TOTAL EXPENDITURE PROPOSED IN THE BUDGET ESTIMATES IS RS.11,08,749 CRORE, AN INCREASE OF 8.6% OVER LAST YEAR.
• THE PLAN AND NON-PLAN EXPENDITURE ESTIMATED AT RS.3,73,092 CRORE AND RS.7,35,657 CRORE RESPECTIVELY, AN INCREASE OF 15 PERCENT IN PLAN EXPENDITURE AND 6% IN NON-PLAN EXPENDITURE OVER THE BE OF PREVIOUS YEAR.
• FISCAL DEFICIT AT 5.5% OF GDP WORKS OUT TO BE RS. 3,81,408 CRORE.
• ROLLING TARGETS FOR FISCAL DEFICIT PEGGED AT 4.8% AND 4.1% FOR 2011-12 AND 2012-13.
• NET MARKET BORROWING WOULD BE OF THE ORDER OF RS. 3,45,010 CRORE LEAVING ENOUGH SPACE TO MEET CREDIT NEEDS OF PRIVATE SECTOR.
• AGAINST A FISCAL DEFICIT OF 7.8% IN 2008-09, INCLUSIVE OF OIL AND FERTILIZER BONDS, THE COMPARABLE FISCAL DEFICIT IS 6.9% AS PER RE 2009-10.
• GROSS TAX RECEIPTS ESTIMATED AT RS.7,46,651 CRORE AND NON-TAX RECEIPT ESTIMATED AT RS. 1,48,118 CRORE.
• STATUS PAPER GIVING ROAD MAP FOR CURTAILING THE OVERALL PUBLIC DEBT TO BE BROUGHT OUT WITHIN 6 MONTHS.
• ABOUT RS. 25,000 CRORES TO BE RAISED THROUGH DISINVESTMET PROGRAMME
• TO SIMPLIFY THE FDI REGIME, FOR THE FIRST TIME BOTH OWNERSHIP & CONTROL RECOGNISED AS CENTRAL TO THE FDI POLICY.
• RS. 16,500 CRORE TO BE PROVIDED TO PUBLIC SECTOR BANKS TO ACHIEVE A MINIMUM 8% TIER-I
• GROWTH OF 127% RECORDED IN EXPORTS FROM SEZs TILL DECEMBER, 2009.
• A FOUR-PRONGED STRATEGY TO SPUR THE GROWTH IN AGRICULTURE SECTOR ENVISAGED. WHICH INCLUDES AGRICULTURAL PRODUCTION, REDUCTION IN WASTAGE OF PRODUCE, CREDIT SUPPORT TO FARMERS AND THRUST TO THE FOOD PROCESSING SECTOR.
• AGRICULTURE CREDIT FLOW TARGET RAISED TO RS. 3,75,000 CRORE FROM RS.3,25,000 CRORE
• SUBVENTION FOR TIMELY REPAYMENT OF CROP LOAN INCREASED FROM 1% TO 2%.
• INFRASTRUCTURE DEVELOPMENT GETS AN ALLOCATION OF Rs. 1,73,552 CRORE, 46 % OF TOTAL PLAN ALLOCATION, AN INCREASE OF 13% IN ROAD TRANSPORT SECTOR.
• INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED'S DISBURSEMENTS TO REACH RS. 20,000 CRORE BY MARCH 2011.
• ALLOCATION FOR POWER SECTOR INCREASED BY MORE THAN DOUBLED TO RS. 5,130 CRORE.
• NEW TAX INCENTIVES ANNOUNCED FOR INFRASTRUCTURE SECTOR.
• NATIONAL CLEAR ENERGY FUND FOR FUNDING RESEARCH AND INNOVATIVE PROJECTS IN CLEAN ENERGY TECHNOLOGIES TO BE SET UP.
• SPENDING ON SOCIAL SECTOR TO ACCOUNT FOR 37% OF TOTAL PLAN OUTLAY AT RS.1,37,674 CRORE
• ALLOCATION FOR RURAL DEVELOPMENT ENHANCED TO RS.66,100 CRORES. ALLOCATION FOR NREGA STEPPED UP TO 40,100 CRORE.
• RS. 48,000 CRORE ALLOCATED FOR BHARAT NIRMAN PROGRAMME
• BACKWARD REGION GRANT FUND ALLOCATION ENHANCED TO RS. 7,300 CRORE.
• RAJIV AWAS YOJNA FOR SLUM DWELLERS AND URBAN POOR TO GET RS. 1,270 CRORE, AN INCREASE OF OVER 700%
• NATIONAL SOCIAL SECURITY FUND FOR UNORGANISED SECTOR WORKERS TO BE SET UP WITH AN INITIAL AMOUNT OF RS. 1,000 CRORE.
• MAHILA KISAN SASHAKTIKARAN PARIYOJNA WITH A PROVISION OF RS.100 CRORE LAUNCHED
• 80% INCREASE IN THE ALLOCATION FOR MINISTRY OF SOCIAL JUSTICE & EMPOWERMENT AT RS 4,500 CRORE.
• MINORITY AFFAIRS TO GET RS.2,600 CRORE, AN INCREASE OF 50%.
• TO REWRITE AND CLEAN UP THE FINANCIAL SECTOR LAWS, FINANCIAL SECTOR LEGISLATIVE REFORMS COMMISSION TO BE SET UP.
• UNIQUE IDENTIFICATION AUTHORITY OF INDIA TO GET AN ALLOCATION OF RS. 1,900 CRORE. A TECHNOLOGY ADVISORY GROUP FOR UNIQUE PROECT TO BE SET UP.
• ALLOCATION FOR DEFENCE INCREASED TO RS.1,47,344 CRORE
• NATIONAL MISSION FOR DELIVERY OF JUSTICE AND LEGAL REGORMS TO BE SET UP TO PROVIDE TIMELY JUSTICE TO ALL.
• INCOME TAX SLABS BROADENED - 10% ON INCOME ABOVE RS 1.6 LAKH TO 5.00 LAKH, 20% ON INCOME ABOVE 5.OO LAKH TO 8.00 LAKH, 30% ON ABOVE RS. 8.00 LAKH
• ADDITIONAL DEDUCTION OF RS. 20,000 FOR INVESTMENT IN INFRASTRUCTURE BONDS
• SURCHARGE OF 10% ON DOMESTIC COMPANIES REDUCED TO 7.5%
• MAT INCREASED FROM 15% TO 18%
• WIGHTED DEDUCTION NON EXPENDITURE INCURRED ON IN-HOUSE R&D FROM 150% TO 200%
• LIMIT OF TURNOVER FOR PRESUMPTIVE TAXATION OF SMALL BUSINESS ENHANCED TO RS. 60 LAKH.
• LIMITS OF TURNOVER NEEDING AUDIT ENHANCED TO 60 LAKH FOR BUSINESSES AND RS. 15 LAKH FOR PROFESSIONS.
• PROPOSAL OF DIRECT TAX TO RESULT IN REVENUE LOSS OF RS. 26,000 CRORE WHERE AS INDIRECT TAXES TO RESULT IN A REVENUE GAIN OF RS. 46,500 CRORE.
• SERVICE TAX PROPOSALS TO RESULT IN NET REVENUE GAIN OF RS.3,000 CRORE.
• ACCREDITED NEWS AGENCIES WHICH PROVIDES NEWS FEED ONLINE EXEMPTED FROM SERVICE TAX
• SARAL –II FOR INDIVIDUALSALARY TAXPAYERS READY FOR NOTIFICATION
• SERVICE TAX RETAINED AT 10%.
• CERTAIN NEW SERVICES TO BE BROUGHT WITHIN SERVICE TAX PURVIEW..
• MICRO-WAVE OVENS, PRE-PACKAGED IMPORTED GOODS, MOBILE PHONES, WATCHES, READYMADE GARMENTS, TOY BALOONS, LONG PEPPER, REPLACEABLE HOUSEHOLD WATER FILTER TO BE CHEAPER.
• INFOTAINMET SECTOR TO BENEFIT FROM CONCESSIONAL CUSTOM DUTY
• INDIAN RUPEE TO GET A SYMBOL, JOIN THE SELECT CLUB OF CURRENCIES
• SPECIAL DUTY CONCESSIONS TO PROMOTE CLEAN ENVIRONMENT CLEAN ENERGY CESS @ RS. 50 PER TONNE ON COAL
• RATE REDUCTION IN CENTRAL EXCISE DUTIES PARTIALLY ROLLED BACK AD VALOREM ON NON PETRO PRODUCTS & CARS INCREASED BY 2%
• UNIFORM BASIC DUTY OF 5% AND CVD OF 4% ON IMPORT OF MEDICAL EQUIPMNET.
• SCIENTIFIED INPUTS FOR ORTHOPAEDIC IMPLANTS EXEMPTED FROM IMPORT DUTY
• CENTRAL EXCISE ON PETROL & DIESEL RAISED BY RS. ONE PER LITRE.
• MAJOR TAX RELIEF TO AGRICULTURE & RELATED SECTORS
• PROJECT IMPORT STATUS FOR THE SETTING UP OF COLD STORAGES
• FULL EXEMPTION FROM EXCISE DUTY TO TRAILERS & SEMI –TRAILERS.

Source : Equity Bulls

Keywords