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Indian Union Budget 2010-2011


About Indian Union Budget 2010-2011

Indian Finance Minister Pranab Mukherjee presented the Indian Union Budget 2010-2011 in the Parliament.

Budget 2010-2011 Highlights

  • 11:00 AM: Finance Minister Pranab Mukherjee raises to submit his Budget speach
  • Expresses confidence for the implementation of Direct Tax Code by April 1, 2011
  • Says inflation control measures are underway
  • Divestment target of Rs 25,000 cr. this year
  • RBI is considering to give additional banking licenses to (newer) private Banks and NBFC as required. Banking sector reforms announced. More capital to banks to help them meet CAR. Rs 1,900 cr. additional capital in four PSU banks. Licenses for IDFC and IFCI are under consideration.
  • Oil Ministry will take decision on Parikh Report
  • Goods and Services tax and Direct Tax Code to be effective from April 1, 2011. Says GST date should be followed by concrete roadmap. The UPA government carried forward the process of tax administration reforms in the country through the General Budget 2010-11.
  • Fertilizer subsidy will be reduced
  • High fuel prices have increased inflation
  • Has extend 2% interest subvention on export credit for 1 year
  • Govt. is committed to SEZ plans to boost exports and employment
  • 2% loan subsidy to farmers to be provided.
  • Rs 200 crore to be provided for climate resilient agriculture initiative
  • Food Security Bill draft to be ready soon.
  • Rs. 1,73,552 crore for infrastructure development. Loan of Rs 16,752 cr to rail development projects and Rs 19,894 cr. for road transport. Rs. 2 km road of National Highway to be built every day. IIFCL to double re-finance to banks for infra
  • Doubles allocation to power sector.
  • Power sector allocation doubled to Rs 5130 cr.
  • Increased allocation for renewable to Rs 1,000 cr.
  • Rs 500 crore allocated for solar and hydro projects for Ladakh region.
  • One time grant of Rs 200 cr to Government of Tamil Nadu for textile project at Tirupur
  • Allocated Rs 200 cr to Goa to restore beaches. Aims to improve tourism
  • Coal Development Regulatory Authority (CDRA) to be established. To launch competitive bidding for captive coal mining
  • 5 more mega food park projects to be setup
  • Rs. 300 cr. for Rashtriya Krishi Vikas Yojana
  • Rs. 66,100 cr. for Rural Development.
  • Rs. 40,100 cr for NREGA.
  • Improvement of banking facilities for all villages with population of 2,000
  • Education plan outlay at Rs 31,030 cr. States to get Rs 3,675 cr for primary education at rural level.
  • Rs. 22,300 cr. allocation for the Health Ministry
  • Rs 500 cr. for National Ganga River Basin Authority (Clean Ganga Mission)
  • Social sector spending at Rs 1.38 lakh cr for FY11. The Centre allotted Rs 4500 crore to the Ministry of Social Justice and Empowerment, which marks a significant increase of 80 percent in comparison to last year.
  • Unorganised sector social security fund with Rs 1,000 cr.
  • Allocation for urban development at Rs. 3,500 cr. Bharat Nirman FY11 plan outlay at Rs 48,000 cr.
  • Micro finance & equity fund doubled to Rs 400 cr.
  • National pension scheme increased
  • Exclusive skill development program in the Textile sector.
  • Health insurance extended to NREGA beneficiaries
  • 50% increase in allocations for women & child development
  • Proposes for the development of an alternative port at Sagar Island in West Bengal.
  • Subsidy for affordable housing is extended
  • Rs 1,900 cr. to Unique Identification Authority of India (UIDAI) allocated. First set of UID to be issued by this year
  • Technical adviser group led by Nandan Nilekani to be setup
  • Rs 100 cr. for women farmer fund scheme
  • Setting up of financial sector legislative reforms panel
  • Rs 2,600 cr. allocation for Minority Affairs Ministry
  • Smart card system to be extended to NREGA.
  • Defense spending at Rs 1.47 lakh cr.
  • Indian Rupee symbol will be finalized soon
  • Khadi institutes get Rs 400 cr.
  • Government to contribute Rs 1,000 per year to each account holder under the New Pension Scheme (NPS).
  • Funds to manage a taskforce to counter problems in Maoist affected areas
  • Sign language training centre for hearing impaired to be set up
  • Gross receipts at Rs 7.46 lakh cr. (Revised estimate for tax collection)
  • Total expenditure this fiscal at Rs 11.87 lakh cr.
  • Fiscal deficit at 5.5% for FY11
  • FY12 fiscal deficit at 4.8%
  • FY13 fiscal deficit at 4.1%
  • Rolling target for fiscal deficit 4.2%
  • To take consultancy advise from RBI in regard to borrowing plan
  • Centralized Tax Centre at Bengaluru fully functional. Two more similar centres to be setup
  • Union Government to give assistance to computerise commercial taxes for states
  • Personal income tax slabs changed. Relief for Middle class. No Income tax till first Rs. 1.6 Lakhs. 10% from Rs. 1.6 to 5 Lakhs. 20% from Rs. 5 to 8 Lakhs. 30% for above Rs. 8 Lakhs Analysis: About 60% of tax payers to benifit from the new income tax slabs
  • Saral 2 form to be introduced in a simplified version.
  • New Saral form for salaried employees
  • Filing of returns to be made much simpler.
  • Rs. 20000 deduction on infrastructure bonds.
  • MAT increased to 18%
  • Surcharge for companies (Corporate Tax Surcharge) reduced to 7.5% from 10%
  • Compliance burden reduced on professionals and entrepreneurs
  • Professionals with Rs 15 lakh income need account audit
  • R&D Corporate Tax break up to 200%
  • Research deduction of 175% for research in educational institutions
  • Direct tax scheme to result in revenue loss of Rs 26,000 cr.
  • Partial rollback of excise duty on large cars
  • Partial roll back the rate reduction in central excise
  • Excise duty of Rs. 1 on petrol. 5% import duty on crude petroleum restored. Consumers expressed their concerns over the proposed hike in fuel prices
  • Partial rollback of excise duty on cement, cement products
  • Peak excise duty increased. Standard excise rate moved upwards from 8% to 10%
  • Tax audit limit increased to 60 lakhs for business.
  • Excise on cigarettes to go up
  • Investment linked tax deductions to boost tourism sector
  • Extended scope of presumptive taxes up to Rs 40 lakh.
  • Interest on Tax Deduction at Source (TDS) not deposited increased to 18% pa
  • Increased excise duty on all non-smoking tobacco.
  • Analysis: Cost of tobacco and tobacco-based products to go up
  • Increased excise duty on all non-smoking tobacco
  • Real estate sector now gets 5 years for completion instead of 4 years earlier.
  • Opposition walks out of Parliament in protest over petro hike
  • LED lights to cost less. Central excise on LED lights cut to 4%
  • Excise duty on CFL halved to 4%
  • Eco friendly excise duty reduction.
  • Rs 50/t cess on Indian coal
  • Revenue loss of Rs 26,000 crore on direct tax proposals
  • Peak excise duty hiked from 8% to 10%.
  • To waive excise duty on solar panels
  • Peak customs duty unchanged at 10%
  • Uniform, concessional 5% duty on all medical appliances
  • Customs duty rationalized on music, gaming, software
  • Custom duty on gold reduce. Excise on locally refined gold at Rs 280/gram
  • Customs duty on silver at Rs 1500/kg
  • Not to levy import tax on some equipment in road projects
  • New services in Service Tax ambit. To be notified shortly
  • Service tax rate unchanged at 10%
  • Service tax to result in net revenue gain of Rs 3000 cr.
  • The definition of export of services fine-tuned to make refund easier
  • Testing of agricultural seeds exempt from service tax
  • Agriculture seeds exempt from service tax
  • Service tax to GDP ratio 1%
  • Rs 2,500 crore net revenue gain for FY11
  • Rs.120.50 crore is earmarked for airports development in Northeastern India.

Reactions on the Budget

Indian Union Budget 2010-2011 news

Indian industry praises Mukherjees General Budget
Captains of the Industry on Friday welcomed the General Budget for 2010-2011 tabled in Parliament by Union Finance Minister Pranab Mukherjee, saying it was a balanced approach and a good job on part of the Finance Ministry. ANI

Chidambaram describes budget as a very balanced effort
Union Home Minister P Chidambaram on Friday described the annual Budget 2010-2011 as a very balanced effort marked by a mature assessment of the state of the economy. ANI

Special duty concessions to promote clean environment
Union Finance Minister Pranab Mukherjee on Friday provided relief measures to promote clean environment. ANI

Centre doubles plan allocation for power sector
Union Finance Minister Pranab Mukherjee on Friday doubled the plan allocation for the power sector. ANI

Pranab to farmers: Payback loan on time and get two percent subvention
Union Finance Minister Pranab Mukherjee on Friday offered two percent subvention on short-term crop loan. ANI

Plan allocation for Power Sector doubled
The Government on Friday doubled the Plan allocation for the Power Sector to Rs.5,130 crore for 2010-11 from the previous Rs.2,230 crore for 2009-10. ANI

News Agencies to get service tax exemption
Union Minister Pranab Mukherjee on Friday announced news agencies, which fulfil certain criteria, are proposed to be exempted from payment of service tax. ANI

Summary of Union Budget 2010-11
The Union Budget this year has aimed to focus on inclusive growth and ensuring food security. The concerns for aam aadami or common man have gone hand in hand with credible measures for improving investment climate, strengthening infrastructure and fiscal consolidation. ANI

Budget 2010 : Interest subsidy for exporters extended
Union Finance Minister Pranab Mukherjee on Friday proposed to extend the concessional export finance regime for select exporters for one more year till March 31, 2011. ANI

Economic growth to surpass 7.2 percent in current fiscal: Mukherjee
Union Finance Minister Pranab Mukherjee on Friday tabling the General Budget for 2010-2011 in Parliament said the economic growth in the current financial year could go beyond 7.2 percent as projected by the Central Statistical Organisation (CSO). ANI

Defence budget hiked by four percent
The allocation for defence sector has been increased by mere four percent by the Union Government. ANI

India confronted the global meltdown with ease: Pranab Mukherjee
Union Finance Minister Pranab Mukherjee presented the General Budget for 2010-2011 in Parliament on Friday with an assurance that the worst was over for the Indian economy and the days ahead were promising despite being full of challenges. ANI

Highlights of Union Budget 2010-11 (Part-III)
Union Finance Minister Pranab Minister on Friday presented the Union Budget 2010-11 in the Parliament ANI

Highlights of Union Budget 2010-11 (Part-II)
Union Finance Minister Pranab Minister on Friday presented the Union Budget 2010-11 in the Parliament. ANI

Highlights of Union Budget 2010-11
Union Finance Minister Pranab Minister on Friday presented the Union Budget 2010-11 in the Parliament. ANI

Pranab Mukherjee to present Union Budget in Parliament today
Amidst high expectations Union Finance Minister Pranab Mukherjee will on Friday present the General Budget for 2010-11 in Parliament, but inflation and the rising fiscal deficit remains a concern for the government. ANI

Mukherjee to table Economic Survey
Finance Minister Pranab Mukherjee will table the Economic Survey in Parliament today. ANI

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