Budget 2009 India Highlights

Budget 2009 India Highlights are here now as the finance minister Pranab Mukherjee has presented the Union Budget 2009-10 in Lok Sabha. the full text of budget will be available soon but here are the highlights of the budget:

BUDGET HIGHLIGHTS:

Economy

• India targets return to 9% growth
• Total budget expenditure for 2009-10 will Rs 10,28,032 cr
• Plan expenditure, for both Centre and States, to go up by Rs 61,000 cr
• Fiscal deficit in 2009-10 is proposed at 6.8 per cent of GDP

Economic stimuli

• Fiscal stimulus of 1,86,000cr provided
• Stimulus for print media extended from June 13 to Dec 31

Jobs

• 12 million new jobs each year and reduce poverty by half by 2014.
• Modernisation of national exployment exchanges to be carried out.

Social security & UID

• Action initiated to provide social security to unorganised sector workers.
• First Unique Identification Card to citizens to roll out in 12-18 months. Pranab proposes provision of Rs 120 crore for the project.

Railways

• Allocation of railways increased to 15,800cr

Infrastructure

• Higher public investment in infrastructure
• LNG infrastructure in the country being expanded
• Funding to NHAI stepped up by 23%
• Will make sufficient funds for infrastructure development

Programs for Poverty removal / Popular programs – NREGA

• Rs 3937cr for improvement of urban poor
• Allocation for Jawaharlal Nehru Urban Renewal Mission raised by 87% to Rs.12,887 crore
• Allocation for urban poor schemes to be raised to Rs.39,730 crore in 2009-10
• Allocation for flagship Bharat Nirman progamme is being raised by 45 per cent.
• NREGA coverage increased from 3.39 crore households in 2007-08 to 4.74 crore householdsin 2008-09

Housing for Poor

• Rs 2,000 crore for rural housing fund under National Housing Bank
• For Indira Awas Yojana, allocation to be increased by 63 per cent in 2009-10 to touch Rs 8,800 crore.

Indirect tax

• Goods and Services Tax to be introduced from April 1, 2010
• Commodities Transaction Tax abolished
• New pension system trust exempted from security transaction tax and dividend distribution tax
• Customs duty of 5 per cent being levied on import of set-top boxes used under Conditional Access System

Direct tax – corporate

• Direct Tax code to be released in 45 days along with discussion paper
• Share of direct taxes has increased to 56 per cent in 2008-09 over 41 per cent in 2007-08
• No change in corporate tax
• Effort is to improve tax collection by eliminating distortions in tax system and expanding the base
• Fringe Benefit Tax abolished
• Minimum Alternate Tax on book profits increased to 15 per cent from 10%.
• Presumptive Taxation of 8 per cent on businesses of turnover of up to Rs 40 lakh
• Small businesses up to Rs 40 lakh turnover exempted from filing advance tax returns

Direct tax – individual

• Tax department to work on early introduction of Saral 2 forms
• Govt committed to tax reforms
• Personal income tax exemption limit for senior citizens raised by Rs 15,000.
• IT exemption limit raised; Rs 50,000 for Sr.citizens
• Limit raised by Rs 10,000 for tax payers, including women
• 10% surcharge on personal income tax scrapped
• Income tax incentives on education loans expanded to cover vocational studies after schooling

Agriculture

• Rs.1,000 crore to accelerate irrigation projects
• Agriculture development fund increased from Rs.2.87 lakh crore to Rs.3.25 lakh crore

Exports

• Market development assistance scheme for exporters increased by 148 percent to Rs.124 crore
• Pre-shipment interest subvention set at 2% for textile exporters

Women

• Rashtriya Mahila Kosh corpus to be raised from Rs 100 crore to Rs 500 crore
• National Mission for Female Literacy with emphasis on minorities, Scheduled Castes and Scheduled Tribes to be launched.
• 50% of all rural women to be brought into self-help group programmes

Youths & Students

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

Environment

• Under National Action Plan on climate change, eight national missions are being launched.
• For one of the missions, National Ganga Project, Government proposes to increase allocation to Rs 562 crore.

Health

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

Higher Education

• Rs 2,113 cr for IITs and NITs
• Allocation of Rs 50 cr to Chandigrah University
• Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram
• Rs 2,113 cr for IITs and NITs
• Income tax incentives on education loans expanded to cover vocational studies after schooling

Defence / Armed forces

• Defence outlay has gone up
• Pension of non-commissioned officers to be hiked
• One rank, one pension scheme for ex-servicemen approved

Relief and rehabilitation

• Rs 500 crore for rehabilitation of internally displaced Tamils in Sri Lanka
• Rs 1,000 cr for Aila rehabilitation programme to West Bengal

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