rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Union Budget: What the FM has in store for you

Union Budget: What the FM has in store for you

Last updated on: July 6, 2009 

Union Budget: What the FM has in store for you

     Next

Next

Stating that 'aam aadmi' is the focus of all our programmes and schemes, Finance Minister Pranab Mukherjee proposed the following in Union Budget 2009-10.

  • Personal income tax exemption limit for senior citizens raised by Rs 15,000.

  • The exemption limit for income tax for women raised by Rs 10,000 to Rs 190,000.

  • For all others, exemption limit raised by Rs 10,000 from Rs 150,000.

  • No change in corporate tax.

  • IT returns to be made simpler.

  • Fringe Benefit Tax abolished.

  • Minimum Alternate Tax on book profits increased to 15 per cent from 10 per cent.

  • Commodities Transaction Tax abolished.

  • First Unique Identification Card to citizens to roll out in 12-18 months. FM proposed Rs 120 crore (Rs 1.2 billion) for the project.

  • 100 per cent tax deduction for donations for electoral funds to improve transparency in political funding.

  • Image: Finance Minister Pranab Mukherjee gestures.
    Photographs: B Mathur/Reuters
         Next

    Union Budget: What the FM has in store for you

    Prev     Next
    Prev

    Next
    • Allocations for highways being stepped up by 23 per cent.
    • Indian Infrastructure Financial Corporation Limited to evolve financing mechanism for giving increased support to infrastructure projects.
    • Indian Infrastructure Finance Company Limited will re-finance commercial bank loans upto 60 per cent in critical projects through public private partnership to the tune of Rs 1,00,000 crore (Rs 1,000 billion) to raise investment in the sector.
      • Allocation for urban poor for provision for housing and basic amenities to be raised to Rs 3,973 crore (Rs 39.73 billion) in the current
        year.
      • Allocation for Jawaharlal Nehru Urban Renewal Mission increased by 87 per cent to Rs 12,887 crore (128.87 billion).
      • Central assistance for storm-water drainage project increased to Rs 500 crore (Rs 5 billion) from Rs 200 crore (Rs 2 billion) in the Interim Budget.

      Image: Labourers work at a flyover undergoing construction in Hyderabad.
      Photographs: Krishnendu Halder/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next
      • Target for agriculture credit raised to Rs 3,25,000 crore (Rs 3250 billion) in 2009-10 from Rs 2,87,000 crore.
      • Incentives in interest rates to farmers to pay back agriculture loans in time.
      • Additional allocation of Rs 1,000 crore for accelerated irrigation project.


      Image: Labourers plant paddy saplings in a field on the outskirts of Amritsar.
      Photographs: Munish Sharma/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next
      • Government is committed to provide Rs 100 a day as wages under NREGA, said the FM.
      • Work on National Food Security scheme for providing food at cheaper rates to the poor has begun.
      • An allocation of Rs 39,100 crore (Rs 391 billion) to be made for NREGA in 2009-10, an increase of 144 per cent.
      • NREGA coverage increased from 3.39 crore households in 2007-08 to 4.74 crore households in 2008-09.
      • Allocation for flagship Bharat Nirman progamme is being raised by 45 per cent.
      • For Indira Awas Yojana, allocation to be increased by 63 per cent in 2009-10 to touch Rs 8,800 crore (Rs 88 billion).
      • Rs 2,000 crore (Rs 20 billion) for rural housing fund under National Housing Bank.
      • Rashtriya Mahila Kosh corpus to be raised from Rs 100 crore (Rs 1 billion) to Rs 500 crore (Rs 5 billion).

      Image: Women make incense sticks in a factory on the outskirts of Agartala.
      Photographs: Jayanta Dey/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next
      • Defence gets Rs 141,703 crore (Rs 1,417.03 billion) for 2009-10, a 34 per cent hike from 2008-09 budgetary allocation of Rs 1,05,600 crore (Rs 1,056 billion).

      • New pension benefits for 12 lakh (1.2 million) jawans and Junior Commissioned Officers from July.

      • 100,000 dwelling units for paramilitary forces personnel to be constructed. Allocation for Commonwealth Games increased to Rs 3472 crore from Rs 2112 crore (Rs 21.12 billion).

      • I propose to allocate Rs 500 crore (Rs 5 billion) for rehabilitation of internally displaced Tamils in Sri Lanka, said Pranab.

      • Rs 1,000 crore (Rs 10 billion) for rebuilding infrastructure damaged by the recent 'Aila' cyclone in West Bengal.


      Image: Agni III missile.
      Photographs: B Mathur/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next

      • Full interest subsidy for students taking courses in approved institutions. Five lakh students to benefit.

      • Rs 2,113 crore allocated for IITs and new IITs.


      Image: School students pray for rain.
      Photographs: Amit Dave/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next
      • Income tax incentives on education loans expanded to cover vocational studies after schooling.

      • Share of direct taxes has increased to 56 per cent in 2008-09 over 41 per cent in 2007-08.

      • Direct Tax code to be released in 45 days along with discussion paper.

      • To further improve the efficiency of tax system, I propose to set up two authorities for advance ruling, said Pranab.

      • Effort is to improve tax collection by eliminating distortions in tax system and expanding the base.

      • Proposal to incentivise business. I propose to start investment linked tax benefits in areas of agriculture and national grid, said Pranab.

      • Small businesses up to Rs 40 lakh (Rs 4 million) turnover exempted from filing advance tax returns.

      • Customs duty of 5 per cent being levied on import of set-top boxes used under Conditional Access System.

      • Allocation for market development assistance scheme enhanced by 148 per cent.

      • Extension of interest subvension scheme extended upto March 2010 to cover sectors like handicrafts and handlooms.

      • Extension of stimulus package for print media by another six months beyond June 30 in view of the economic downturn.

      • Subsidy regime for fertilisers to change to nutrient-based rather than price-based.

      • An expert committee to be set up to advise on viable and sustainable pricing system for imported petroleum products.

      Image: Pranab fails to cheer tax payers.

      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next
      • Allocation for National Rural Health Mission to be raised by Rs 257 crore over and above the outlay in the Interim Budget.

      • National Mission for Female Literacy with emphasis on minorities, Scheduled Castes and Scheduled Tribes to be launched.

      • Fifty per cent of all rural women to be brought into self-help group programmes.

      • Modernisation of national employment exchanges to be carried out.

      • Action initiated to provide social security to unorganised sector workers.

      Image: Women gather at a village well to draw drinking water.
      Photographs: Amit Dave/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     Next
      Prev

      Next
      • Total budget expenditure for 2009-10 will be Rs 10,28,032 crore (Rs 10,280.32 billion), crossing Rs 10 lakh crore (Rs 1 trillion) mark for the first time since Independence.

      • Plan expenditure, for both Centre and States, to go up by Rs 61,000 crore (Rs 610 billion) over the interim budget.

      • Fiscal deficit in 2009-10 is proposed at 6.8 per cent of GDP.

      • Manufacturing growth, which was negative during last year till March this year, appears to be barely turning the corner.

      • Customs duty on gold and silver import increased.

      • Customs duty to be reduced on drugs for heart treatment.

      Image: People buy vegetable at a village market.
      Photographs: Rupak De Chowdhuri/Reuters
      Prev     Next

      Union Budget: What the FM has in store for you

      Prev     More
      Prev

      More
      Excise duty on fibre for cheaper cloth reduced.

    • Proposal to restore optional 4 per cent CENVAT on cotton textiles beyond fibre stage.

    • Full exemption from excise duty on pre-fabricated concrete slabs to help construction industry.

    • Excise duty on petrol-driven small trucks reduced to ten per cent.

    • Full exemption from excise duty on branded jewellery.

    • Service tax exempted for exporters on select services.

    • Service Tax to be extended to lawyers on technical advice.

    • Indirect Tax will result in net gain of Rs 2000 crore (Rs 20 billion) this year while Direct Tax proposals are revenue neutral.


      • Image: A worker dries saris at a factory in Hyderabad.
        Photographs: Krishnendu Halder/Reuters
        Prev     More