Highlights of union Budget 2009 2010

Highlights of union Budget 2010, Highlights of union Budget 209 , Highlights of union Budget 2009 - 2010

Twenty-five years after he was rated the world's best Finance Minister, Pranab Mukherjee on Monday (July 6) presented the Union Budget in the Parliament. Opening the Budget session in the Parliament, Pranab said, “Prime Minister Manmohan Singh said ‘It is a mandate for continuity, stability and prosperity. It is a mandate for inclusive growth and equitable development.’ We are here to do all that we can for the welfare of this nation. The focus of budget 2009-10 is to create, facilitate and sustain opportunities.”

Spelling the challenges that the government faces, the finance minister said that the main challenge in front of the economy is to return to a 9% growth rate. The second challenge is to broaden inclusive growth agenda. However, highlighting the positives, Pranab added that there has been a strong rise in flow of foreign capital, despite the economic slowdown.

With the West grappling with recession blues, all eyes were on this all important budget. India Incorporation, the Rural and Social sectors and the ‘aam admi’ awaited these reform moves from Pranab and are expecting a much better fiscal year under his agenda.

Highlights of Budget 2009

* Growth rate in 2008-09 dipped to 6.7 per cent from average 9 per cent growth in previous three fiscal years.

* Mukherjee intends to make pre-budget consultations with state finance ministers an annual affair

* Fiscal deficit grew from 2.7 per cent to 6.8 per cent of GDP

* We need institutional reforms to being fiscal deficit down, says the FM.

* Total fiscal stimulus during 2008-09 amounts to Rs 1,86,000 crore.

* To return to FRBM target for fiscal discipline at the earliest, says Mukherjee.

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

Finance allocation

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

* Allocation for Commonwealth Games increased to Rs 3472 crore from Rs 2112 crore.

* I propose to allocate Rs 500 crore for rehabilitation of internally displaced Tamils in Sri Lanka, says Mukherjee.

* Rs 1,000 crore for rebuilding infrastructure damaged by the recent 'Aila' cyclone in West Bengal.

* Total budget expenditure for 2009-10 will Rs 10,28,032 crore, crossing Rs 10 lakh crore mark for the first time since Independence.

* Plan expenditure, for both Centre and States, to go up by Rs 61,000 crore over the interim budget.

* Defence gets Rs 1,41,703 crore for 2009-10, a 34 per cent hike from 2008-09 budgetary allocation of Rs 1,05,600 crore.

Taxes

* 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, says Mukherjee.

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

related tags : Highlights of union Budget 2010, Highlights of union Budget 209 , Highlights of union Budget 2009 - 2010