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Sector wise highlights

Here is a look at sector wise highlights presented by Union Finance Minister Pranab Mukherjee on Monday.

business Updated: Jul 06, 2009 17:50 IST

New direct tax code in the next 45 days
Surcharge of 10% on personal income tax removed
No change in Corporate taxes
Commodity Transaction Tax scrapped
Increase exemption on personal income tax by Rs 15,000 to Rs 2,40,000 for senior citizens
Increase exemption on personal income tax by Rs 10,000 to Rs 1,90,000 for women
Increase in exemption on personal income tax by Rs 10,000 to Rs 1,60,000 for all others
Proposal to phase out surcharge on Direct Taxes
To remove Fringe Benefit Tax
To raise Minimum Alternate Tax(MAT) TO 15 % of book profit
MAT hiked from 10% to 15%
Carry Forward Tax credit on MAT to 10 year
Tax benefit under Section 80dd for medical insurance increased from Rs 75,000 to Rs 100,000
Indirect Taxes changes to yield RS 2000 cr in 2009/10
To exempt Pension trust from Securities Transaction Tax
GST to be a dual regime with Central and state terms
GST to be implemented from April 01, 2010

Tax reforms
Tax reform system to be completed in 4 years
To work on Saral 2 form to make income tax procedure simple
Balanced approach to financial de-regulation in justified
Finance commission recommendation on Fiscal likely by Oct

Budget aims:
Total fiscal stimulus in 2008-09 amounts to Rs 1,86,000 cr
Fiscal deficit up from 2.7% to 6.8% of GDP
Target of agricultural growth at 4%
Plan expenditure, for both Centre and States, to go up by Rs 61,000 crore over the interim budget
To sustain a growth momentum of 9%
RBI took monetary measures to meet the needs of productive sector

Financial estimates:
Rs 1020838 cr total budget allocation for 09-10
Out of this more than Rs 6000 cr is planned expenditure while the rest is non-plan
Subsidy outlay at Rs 1.11 trillion in FY10
Increase in non-plan expenditure was due to pay commission and food subsidy
Interest payment consists of 36% of non-plan expenditure
Interest payments for FY10 at Rs 2.25 trillion
Total tax receipts expected at Rs 641079 cr
Non Tax receipts at seen at Rs 1.4 trillion
Revenue deficit is estimated at 4.8% and 4.6 as per provisional account for 09-10
Revenue deficit as percentage of GDP is pegged at 6.8%
To spend Rs 10.20 lakh crore as total expenditure in 2009-10, crossing the Rs 10 lakh mark for the first time in history
Increase in plan expenditure 34 %, non-plan at 37 %
Revenue deficit projected at 4.8% in FY 10
Fiscal deficit projected at 6.8 % in FY 10
Plan expenditure, for both Centre and States, to go up by Rs 61,000 crore over the Interim budget
Indirect taxes changes to yield Rs 2000 cr in 2009/10
Tax proposals on direct taxes are revenue-neutral
To imposes service tax on certain legal services
Fully exempting branded jewellery from excise duty
To restore exemption of duty on goods manufactured at construction sites
Basic customs duty on biodiesel cut to 2.5 % from 7.5 %
Restores 8 % excise duty on manmade fibres

IFFCL set up to provide financial assistance to infrastructural firms
Need to improve and strengthen regulatory framework
To speed up Golden Quadrilateral Project
Total investment of 100000 CFR in infrastructure
Need to remove bottlenecks for speedy implementation of infra projects
Highways allocated 23% more than 08-09
Rs 15800cr for Railways
JNURM allocation increased by 80% to Rs 12887 cr
Basic amenities for urban poor to get more than Rs 3000 cr to make country slum free in 5 yrs
Provision for housing urban poor at Rs 3973 cr
Allocation to NHAI increased to 23& Y-O-Y
Focus of NCC, Gammon for highway development
Fund for the urban mission up 87% to Rs 128.9 bln FY10
FY10 home basic services amenities, allocation hiked to Rs 39.73 bln

Target credit flow Rs 325000 cr
Loans upto 3 lakh at 7% per annum
Loan payment on time leads to reduction in inetrest rate @ 6%
Farm debt waiver scheme extended by 6 months to Dec 31
Interest subvention scheme for agriculture loans to continue
Interest subvention of 1% more for farmers repaying loans
Task force set up to look into farmer suicides in Maharashtra
Rajiv Gandhi Krishi Vikas Yojana allocation up by 30%
Fertilizer subsidy to go to farmers directly
Target Agricultural credit inflows at Rs 3.25 lakh cr

Tax holiday to exporters extended to 2011
Sops given to exporters in Dec '08 extended to March 2010
Market development assistance schemes allocation up by 180% to 124 cr
2% Interest subvention for exporters
Special fund for small industries development bank of Rs 400 cr
Allocation for market development assistance scheme enhanced by 148 per cent
Export Credit Guarantee scheme extended till March 2010
To set up handloom mega clusters in Rajasthan, West Bengal and Tamil Nadu
To set up mega clusters for carpet in Srinagar, Mirzapur

Banking and Insurance
To hike promoter shareholding in PSUs
Encourage people participation in disinvestment
Banks and insurance will remain in public sector and will get all support
Banking network to be expanded
One banking centre in every block planned
Capital in fusion in PSU banks to keep them competitive
160% hike in ADPRP
Scheduled commercial banks can set up offsite ATMs
33 mln new bank accounts due to inclusive banking
Threshold for non public promoter share holding to be raised
Rs 1 bln grant to ensure banking in unbanked sectors

Social sector schemes
Bharat Niraman allocation up 45%
PM Gram Sadak Yojana allocation up to Rs 12000 cr
Indira Gandhi Awas Yojana allocation up by 63%
Social spending at Rs 3.75 tn
Rs 10 bn to rebuild AILA hit areas
NREGA gave employment to 4.4 cr household
Reserve wage of RS 100 per day as an entitlement under NREGA
Rs 39100 cr for 09-10 for NREGA an increase of 140%
NREGA allocation increase at 144%
New scheme PMAGY for integrated development of under developed villages
Interest subsidy to poor families for loans upto Rs 1 lakhs
BPL entitled by law for Rs 25 kg of rice/wheat at Rs 3 kilo
Draft food security bill to be made public for debate
Rs 20 bln for rural homes from banks priority sector
Interest subsidy of Rs 100,000 for poor women
To launch mission for female literacy
Rural health plan to get Rs 2.5 bln above interim fund
4.6 mln BPL families to be covered under new insurance scheme
Rural electrification allocation up 27% to Rs 70 bln

One Rank One Pension committee recommendations accepted
Pension benefit extended to war wounded being liberalised

Women and child development
Corpus for Women self help schemes to be raised to Rs 500 cr in this fiscal
Aim to reduce female literacy by half in 3 years
New scheme to give interest subsidy to poor students pursue any recognised course

Defence and security
Defence outlay up from Rs 105600 cr in 08-09 to 104703 cr in 09-10
2284 cr for border security
1 lakh housing units for central paramilitary forces
Rs 430 cr for police modernisation

Rs 50 crore for Chandigarh University
Interest subsidy on loans for higher education
Rs 2130 crore to set upto more IITs and IIMs
Spending on higher education raised to Rs 2010 crore
Rs 8.27 bn for central university in uncovered states
Rs 500 mn for Punjab University in FY 10

Commonwealth games allocation up at Rs 34.72 bn
Stimulus package for print media extended to Dec 31
Total expenditure at Rs 10.21 trillion
DEPB scheme for print media extended
Rehabilitation of those effected by cylone Alia
More allocated for management of Mumbai floods
Project for modernisation of employment exchange under PPP, new website
Sri Lankan Tamils to get Rs 500 cr for the rehabilitation