Budget Auro

8/8/2019 Budget Auro

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BUDGET 2010-2011


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Honorable Finance MinisterofINDIA-

Pranab Mukherjee


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Meaning Of BudgetMeaning Of BudgetBudget is an estimate of all anticipated revenue and

expenditure of the government for ensuing

financial year.It is known as THE ANUNAL FINANCIAL

STATEMENT .

OR

The budget of the state is a document containinga preliminary approved plan of public revenue andexpenditures.


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Keyfeatures of the project The Gross Tax Receipts is Rs. 7,46,651 crore.

Thefiscal deficit is Rs. 3,81,408 crores

Non planexpenditure is Rs. 7,35,657 crores The Non Tax Revenue Receipts areestimated

at Rs. 1,48,118 crore.

The totalexpenditure proposed in the BudgetEstimates is

Rs. 11,08,749 crore, which is an increaseof8.6 percentoverlastyear.


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Indirect taxes Standard rateofexcise duty hiked from

8 to 10%.

Excise dutyon dieseland petrol hikedby Re.1/ltr.

Custom dutyoncrudeoilreintroducedat 5%.


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New proposals New direct taxcode tobe introduced from 1st

April 2011.

Implementationofgoods and service taxdeferred by 1 year to 2011-12. Apexbodyforbetterco-ordinationamong

regulatoryagencies such as the RBI, SEBIand IRDR.

More privatebanks tobeopened. A new permanent symbol tobe implemented

for Indiancurrency.


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Tax slabsTax slabsGeneral tax payersUp to Rs1,60,000 NILRs1,60,001 to Rs 5,00,000 10 percentRs 5,00,001 to Rs 8,00,000 20 percentRs 8,00,000 and above 30 percent


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For Woman

Up to Rs1,90,000 Nil Rs 1,90,001 to Rs 5,00,000 10 %

Rs 5,00,001 to Rs 8,00,000 20 %

Rs 8,00,000 and above 30 %


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For Senior citizens

Up to Rs 2,40,000 Nil Rs 2,40,001 to Rs 5,00,000 10 %

Rs 5,00,001 to Rs 8,00,000 20 %

Rs 8,00,000 and above 30 %


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What is costlier Fuel Jewellery Cement steel Tobacco products AC, fridge,TV Microprocessor

Sunglasses Computers Soaps, Detergents Cosmetics


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What is cheaper Mobile accessories Medical equipment CFL lamps Set top boxes CDs & DVDs Toys & books correction glasses

Water filters Supari Imported watches Imported readymade garements.


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SECTORW

ISEALLOCATION


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DefenceDefence The three defence services has been

allocated Rs60,000 crore as capital

expenditure-purchase of equipment.

The capital-expenditure for last year was

Rs54,824 crore.


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EnvironmentEnvironmentThe allocation for ministry of environment

and forest has raised from Rs2,129 core to

Rs2,351 crore.

But the allocation for project Tiger a key

programme to save tigers has been cut by

about Rs30 crore.


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Cntd..Allocationfor thenational programmefor preventionofdiabetes and CVD andstroke havebeen tripled to Rs 90 cr

Countervailing dutyof4 percent with

fullexemptionfrom specialadditionaldutyonall medicalequipment


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CONTD.. Five more megafood parks are planned

tobe set up

Totalallocationforagriculture sector isRs12,308cr

Rs. 300 crore provided to organize

60,000 pulses and oil seed villages


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Health Sector Allocation of budget has increased from Rs 19,534 crore in

2009-10 to Rs 22,300 crore in 2010-11

Focus is specifically on the rural heath

More than 46 lakh BPL families in 18 states and Union

Territories have been issued bio-metric smart cards

Customs duty on 10 specified life saving drugs/vaccine and their

bulk drugs will be reduced from 10 per cent to 5 per cent


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Social Sector Enhanced focus on the social sector

with a shareof37% of the total planoutlay. With significantlyenhancedoutlays ineducation, health and ruraldevelopment.


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Cntd The spending on social sector has been

gradually increased to Rs.1,37,674 crore in

2010-11, which is 37% of the total planoutlay in 2010-11.

Another 25 percentof the planallocationsare devoted to the developmentofrural

infrastructure

AllocationofRs 1270 Crore under the RajivAwaz Yojana


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EducationEducation Government has increased the allocation for

primary school education from Rs22,729

crore to Rs31,036 crore.

The allocation for higher education in 2009-

10 was Rs7,952 crore and in 2010-11 is

Rs10,996 crore.


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Telecom Sector The Budget also proposed a tax

concession for mobile accessory

manufacturing in India. The twenty fourpercent import duty oncomponents/raw material imported formanufacture of batteries, chargers andother part and accessories has beenremoved.

Handset imports to be simpler & MobilePhones and accessories to get cheaper


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Infrastructure Sector Rs 1,73,552 Crore allotted for

infrastructure developments, it

accounts to for over 46% of totalbudget.

Priority towards High quality physicalinfrastructure such as Roads, Ports,

Airports and Railways.

Priority for upgrading infrastructure inboth urban and rural areas.


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Rural Development Rural infrastructure remains a high priority area.

Thus provision of Rs.66,100 Crore for RuralDevelopment has been made.

Mahatma Gandhi National Rural EmploymentGuarantee Scheme has been extended to alldistricts covering more than 4.5 Crorehouseholds. The Allocation for the schemestepped up to Rs.40,100 Crore in 2010-11.

Bharat Nirman scheme proposed to be providean amount of Rs.48,000 Crore for ruralinfrastructure programmes.


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cntd Unitcost under Indira Awas Yojana

increased to Rs.45,000 in the plain

areas and Rs.48,500 in the hillyareas.Allocationfor this scheme increased toRs.10,000 Crore.


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Automobile Industry 2% hike in excise duty on large

cars, SUVs and multi utility

vehicles taking the excise dutyfrom 8% to 10%.

Exemptions from central excise

duty provided for electric cars andvehicles


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Cement Industry Excise duty on cement increased

from 8% to 10% (2%) increase in

Excise.

Rise in price of coal and dieselprices likely to affect cement

prices.


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Textile Sector Theextensionof2% interest

subventionon preand post shipment

exportcredit march 31 2011 will helpsmallexporters.

The hike inexcise dutyon man made

fibers and yarns will increase polyesterprices by Rs 1.5 to Rs 2 akg.


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Power Sector Thebudgetaryallocationfor the sector,

has beenraised to Rs 5130 crfrom Rs

2230 cr. The hike in minimum alternatetax to18% would haveaneutral impact,as it would be passed on toend users.

Power tariffs areexpected toriseby 2-3paiseaKWH


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Banking Sector The government has proposed a Rs 16500 cr

Tier-l capital infusion in 2010-11, which issignificantly higher than Rs 1200 cr provided

in 2009-10. this would preserve thegovernment holdings in public sector banks.

Recapitalization of Regional Rural Banks (RRB)Government to provide further capital tostrengthen the RRBs so that they haveadequate capital base to support increasedlending to the rural economy.


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cntd Extension in repayment of the loan under the Debt

Waiver and Debt Relief Scheme for farmers by sixmonths to June 30,2010


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` Micro, Small And Medium

Enterprise Micro, Small and Medium

Enterprises (MSMEs) proposed to

raise the allocation for this sectorfrom Rs.1,794 Crore to Rs.2,400Crore for the year 2010-11.


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PETROLEUM

Customs duty on crude petroleum is being

increased from Nil to 5 per cent

Customs duty on Motor Spirit (petrol) and

HSD (diesel) is being increased from 2.5 per

cent to 7.5 per cent

Customs duty on some other specifiedpetroleum products is being increased from 5

per cent to 10 per cent


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Fast Moving Consumer Goods(FMCG)

Excise duty of 10 per cent levied (earlier Nil) on baby & clinicaldiapers and sanitary napkins

Roll-back in excise duty reduction from 8 per cent to 10 per cent

Excise duty on goods covered under the Medicinal and Toilet

Preparations Act reduced from 16 per cent to 10 per cent

Customs duty of 5 per cent presently available on specifiedmachinery for tea and coffee plantation extended and excise dutyexemption on these items is re-introduced up to 31.03.2011


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CONCLUSION

Over all the Budget was a balanced approach of the

government with less scope and attention being

provided to immediate issues like inflation and pricehikes. The hike in petrol prices and excise duty to

effect the price hike further but with a increase in the

disposable income at the middle class consumer level,

Indian economy to head towards substantial growth in

the near future.


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