Union Budget Highlights of 2010

Rs 1,73,552 crore has been provided for infrastructure development, which accounts for over 46% of the total plan allocation. Allocation for road transport has been increased by over 13% from Rs 17,520 crore to Rs 19,894 crore

The Plan and Non-Plan expenditures in BE 2010-11 are estimated at Rs 3,73,092 crore and Rs 7,35,657 crore, respectively. While there is a 15% increase in Plan expenditure, the increase in Non-Plan expenditure is only 6% over the BE of the previous year.

Income up to Rs 1.6 lakh - N

Income above Rs 1.6 lakh and up to Rs 5 lakh - 10%

Income above Rs 5 lakh and up to Rs 8 lakh - 20%

Income above Rs 8 lakh - 30%

Deduction of an additional amount of Rs 20,000 allowed, over and above the existing limit of Rs 1 lakh on tax savings, for investment in long-term infrastructure bonds as notified by the Central Government.

Government's net borrowing to be Rs 3,45,010 crore for 2010-11.

Additional deduction of Rs 20,000 allowed on long term infrastructure bonds for income tax payers; this is above Rs one lakh on saving instruments allowed already

A unique identity symbol would be provided to the Indian Rupee in line with US Dollar, British Pound Sterling, Euro and Japanese Yen

Fiscal deficit seen at 4.8 per cent and 4.1 per cent in 2011-12 and 2012-13 respectively.

Total expenditure pegged at Rs 11.8 lakh crore, an increase of 8.6 per cent.

Gross tax receipts pegged at Rs 7,46,656 crore for 2010-11, non-tax revenues at Rs 1,48,118 crore.

Planning Commission to prepare integrated action plan for Naxal-affected areas.

Defence allocation pegged at Rs 1,47,344 crore in 2010-11 against Rs 1,41,703 crore in the previous year. Of this, capital expenditure would account for Rs 60,000 crore.

Finance Minister to continue giving cash subsidy for fuel and fertiliser instead of previous practice of bonds.

Non-plan expenditure pegged at Rs 37,392 crore and Plan expenditure at Rs 7,35,657 crore in budget estimates. 15 per cent increase in plan expenditure and six per cent in non-plan expenditure.

Repayment of loan by farmers extended by six months to June 30, 2010 in view of drought and floods in some part of the country.

One-time grant of Rs 200 crore provided to Tirupur textile cluster in Tamil Nadu.

Clean Energy Fund to be created for research in new energy sources.

Rs 500 crore allocated for solar and hydro projects for Ladakh region.

Allocation for National Ganga River Basin Authority doubled to Rs 500 crore.

Government for competitive bidding for coal blocks for captive power plants.

Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to Rs 5,130 crore in 2010-11.

Government proposes to set Coal Development Regulatory Authority.

Propose to maintain thrust of upgrading infrastructure in rural and urban areas. IIFCL authorised to refinance infrastructure projects.

Interest subvention for timely repayment of crop loans raised from one per cent to two per cent, bringing the effective rate of interest to five per cent.

Rs 200 crore provided for climate resilient agriculture initiative.

Government to provide Rs 16,500 crore to public sector banks to maintain tier-I capital.

Allocation for women and child development hiked by 80 per cent.

Government decides to set up National Social Security Fund with initial allocation of Rs 1000 crore to provide social security to workers in unorganised sector.

Rs 1,270 crore provided for slum development programme, marking an increase of 700 per cent.

Allocation for development of micro and small scale sector raised from Rs 1,794 crore to Rs 2,400 crore.

One per cent interest subvention loan for houses costing up to Rs 20 lakh extended to March 31, 2011; Rs 700 crore provided.

25 per cent of plan outlay earmarked for rural infrastructure development

Road transport allocation raised by 13 per cent to Rs 19,894 crore, says FM.

Allocation for urban development increased by 75 per cent to Rs 5,400 crore in 2010-11.

Indira Awas Yojana scheme's unit cost raised to Rs 45,000 in plain area and Rs 48,500 in hilly areas.

Allocation for NREGA stepped up to Rs 40,100 crore in 2010-11.

For rural development, Rs 66,100 crore have been allocated.

Plan allocation for health and family welfare increased to Rs 22,300 crore from Rs 19,534 crore.

Plan allocation for school education raised from Rs 26,800 crore to Rs 31,036 crore in 2010-11.

eficit in foodgrains storage capacity to be met by private sector participation.

Exclusive skill development programme to be launched for textile and garment sector employees.

Plan allocation for Ministry of Minority Affairs raised from Rs 1,740 crore to Rs 2,600 crore.

Plan outlay for Ministry of Social Justice raised by 80 per cent to Rs 4,500 crore.

FDI inflows steady during the year. Government has taken series of steps to simplify FDI regime

Government will raise Rs 25,000 crore from disinvestment of its stake in state-owned firms.

Government to provide Rs 300 crore to organise 60,000 pulse and oilseed villages and provide integrated intervention of watershed and related programme.

Government to continue interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.

If 1991 budget of economic liberisation initiated by late PM P.V.Narsimha rao and then then FM and present PM Dr Manmohan Singh has given a resilience economy for India with in 19 years then this 2010 budget will push India to a total development with more no of people's benifit with a thrust on Rural economy .more than 60 % alocation of fund towards Rural economy and infra will definately fuel tremendous economic activities and which will lead to development of more no of villages instead of cities .I always want 50000 developed villages rather cities to push economy to further height of 10 to 12 % annual growth .I am sure Dr Manmohan and Pranavda will be remembered forever for this success .The opposition to this land mark budget will be remembered as narrow thinkers of India and their representative politicall bosses are no longer required to remain in India and days are numbered for them .We dont need any more lalu,Bhulu ,Mulayam ,Yutury but we need more like Rahul Gandhi,Nitish Kumar,Narendra Modi ,Raman Sigh ,Budhadev Bhattacherjee like of people.

The Union Budget 2010 has been bullish for the healthcare sector. The government increased the outlay to the healthcare sector to Rs. 22,300 crore from Rs. 19,534 crore.

Vishal Bali, CEO, Fortis Hospitals, said that in a budget that provides 46% of plan allocation for infrastructure, not finding healthcare on the agenda of the finance minister takes another year away in bridging the affordability and accessibility gap in the sector. An increase of 14% in the overall outlay for the Health Ministry does not really pave the way for a 1-2% increase in GDP spend by the government on healthcare.

The annual rural health survey for effective spend under the NRHM scheme and the convergence of NREGA with wider health insurance coverage through Rashtriya Swasth Bima Yojana is an innovative step to increase healthcare cover for rural India. The only positive step to help indigenous manufacture of consumables and implants is the import duty waiver for manufacture of orthopaedic implants. It is ironical that the budget provides for investment linked deductions to the tourism sector but does not provide for any impetus for investments made in setting up new hospitals. The call to reform the Indian Healthcare Agenda goes unanswered again in Budget 2010, Bali said.

“The Union Budget for 2010-2011 is a budget in the positive direction. The impressive growth of the manufacturing sector in the third quarter of current year has reinforced that the economy is reviving but we need to move ahead with caution. With the continued support from Government on stimulating the economic recovery, the industry will be able to strengthen itself further. The Technology Advisory Group for Unique Projects (TAGUP) is a recommendable initiative of the Government and a step closer towards e-governance. In addition. For MNC’s, simplifying the FDI policy would help to improve the overall investment environment. For the common man, the reduction of customs duty, central excise duty and special additional duty in certain goods and commodities critical to SME’s and SMBs’ will be beneficial for the Indian household. The tax slab for the personal income and investment will also give a boost to the average mid level income group. Overall, the budget has a vision to globalise India.

Pranab Da has presented a budget strong in character and more longterm in view. Though the immediate price hike in fuels might have been unnecessary, looking into future this would consolidate fiscal deficit; which may be help our economy. The creation of new tax slabs and SARAL 2 will benefit the regular tax payers immensely. Tax cuts on environment friendly technology like LED / CFL lamps / electric cars is a welcome step as it would incentivise their usage. Service tax has been left untouched spelling relief for the huge services sector which was already reeling under the onslaught of global recession.
The FM could have been bolder with reforms with no immediate elections in the offing.

To facilitate the conversion of small companies into Limited Liability Partnership, transfer of assets as a result of such conversion will not be subject to capital gains. While presenting the Union Budget 2010-11, FM announced that the corpus for the Micro-Finance Development and Equity Fund is being doubled to Rs. 400 crore in 2010-11. While commenting on the budget for SME sector, Group Chairman of Assam Co. Ltd., Krishna K. Jajodia told SME Times, "I would say a very good attempt has been made, but this is not at all sufficient. The role of small and medium enterprises (SMEs) has now to be recognized at large number of major industrial units. The government requires the directed study in terms of providing and facilitating and assisting the growth. The government needs to maximize the focus on small and medium enterprises."

The income of the companies engaged in infrastructure projects by way of debt or equity was exempted from tax under Section 10(23G) which was removed. It was being believed the exemption would be re-introduced. This would bring down the interest cost of the funds for the infrastructure companies as the lending institutions may pass on the benefit or otherwise improve the interest in funding for infra projects. Section 80-IA of Income-Tax Act provides for tax exemption on profits for 10 consecutive years to companies in the infrastructure sector which will expire on March 2010. The market expected the Section 80-IA benefit to be extended for another 10 years. The Indian infrastructure industry plays a vital role in the economy. Experts are of the view that for India to revert to a GDP growth rate of 9% and to sustain it in the future, due attention should be given to the infrastructure sector.