Union budget 2009-10 at a glance

The much hyped big budget of 2009-1010 has finally arrived. One of the reasons for this hype was due to the recession. Many analyst and economist have related this budget to budget cum stimulus package. Many politicians including Prime Minister were happy with this budget and named it as a balanced budget with “Aam Aadmi” on mind. We saw that market went negative by more than eight hundred points (BSE Sensex). Let’s see how “Aam Aadmi” seas this budget.

Please do find the Union budget 2009-10 highlights below.

  • Government plans to bring back the economy to a high growth of 9%
  • GDP growth dipped to 6.7% in FY ’09
  • FM to make pre-budget talks with state FMs an annual affair
  • Fiscal deficit up from 2.7% to 6.8% of GDP
  • Return to fiscal prudence at the earliest
  • "Aam admi" is focus of all programmes and schemes
  • IT exemption limit raised; Rs50,000 for senior citizens
  • Limit raised by Rs10,000 for tax payers, including women
  • 10% surcharge on personal income tax scrapped
  • Fringe Benefit Tax abolished
  • No change in corporate tax
  • Defence gets Rs1,41,703 cr, up 34%
  • Total fiscal stimulus in 2008-09 amounts to Rs1,86,000 crore
  • IIFCL to evolve mechanism for increased infrastructure funding
  • IIFCL to re-finance commercial bank loans up to 60% in critical projects through PPP to the tune of Rs1,00,000 crore
  • Allocations for highways being stepped up by 23%
  • Funds for housing, amenities for urban poor, up Rs3,973 crore
  • Funds for JNNURM up 87% to Rs12,887 crore
  • Assistance for storm-water drainage project up by Rs300 crore
  • Farm credit target up at Rs3,25,000 crore from Rs2,87,000 crore
  • Interest rates incentive to farmers to repay loans on time
  • Additional Rs1,000 crore for accelerated irrigation scheme
  • Export Credit Guarantee scheme extended till March 2010
  • 2% interest subvention (IS) scheme extended till March 2010
  • IS scheme to cover seven job-oriented sectors, including textile, handicrafts and handlooms.
  • Commodity Transaction Tax abolished
  • New pension system trust exempted from STT; DDT
  • Minimum Alternate Tax hiked to 15% from 10%
  • Tax holiday on petroleum sector extended to natural gas
  • 100% tax deduction on political donations
  • Stimulus for print media for another six months
  • Fertiliser subsidy to be nutrient-based, not price-based
  • Expert group to form viable pricing for imported petroleum goods
  • Banks and insurance firms to remain in the public sector
  • Rs100 crore one-time grant to expand banks in unbanked areas
  • Government committed to providing Rs100 per day as wages under NREGA
  • * Allocation of Rs39,100 crore to be made for NREGA
  • NREGA coverage increased to 4.74 crore households in FY ’09
  • Work National Food Security scheme has begun
  • Allocation for Bharat Nirman being raised by 45%
  • Rs2,000-crore rural housing fund under National Housing Bank
  • Mission for female literacy with focus on minorities, SC/STs
  • 50% of all rural women to be brought into SHG programmes
  • Full interest subsidy for students in select institutions. Five lakh students to benefit
  • Modernisation of national exployment exchanges
  • Action for social security to unorganised sector workers
  • New pension benefits for 12 lakh jawans and JCOs from July
  • One lakh dwelling units for paramilitary forces
  • Unique Identification Card to citizens in 12-18 months
  • Provision of Rs120 crore for UIC project
  • Rs2,113 crore allocated for IITs and new IITs
  • Rs3,472 crore for Commonwealth Games, up from Rs2,112 crore
  • Customs, excise and service tax base rates unchanged
  • Allocation for Indira Awas Yojana increased 63%
  • IT returns to be made simpler
  • Eight missions being launched under plan on climate change
  • Allocation for market development assistance scheme up 148%
  • Allocation for Rural Health Mission raised by Rs257 crore above interim budget
  • Rs500 crore for rehabilitation of Sri Lankan Tamils
  • Rs1,000 crore for infrastructure in cyclone-hit area in WB
  • Total expenditure crosses Rs10 lakh crore for the first time
  • Share of direct taxes in revenue increased to 56% in FY ’09

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  • * Budget Estimates provide for a total expenditure of Rs 10,20,838 crore (US$ 211.1 billion) consisting of Rs 695,689 crore (US$ 143.81 billion) under Non-plan and Rs 325,149 crore (US$ 67.31 billion) under Plan registering an increase of 37 per cent in Non-plan expenditure and 34 per cent in Plan expenditure over B.E. 2008-09.
    * Total expenditure in B.E. 2009-10 increased by 36 per cent over B.E. 2008-09.

    Source: http://www.ibef.org

  • * Budget Estimates provide for a total expenditure of Rs 10,20,838 crore (US$ 211.1 billion) consisting of Rs 695,689 crore (US$ 143.81 billion) under Non-plan and Rs 325,149 crore (US$ 67.31 billion) under Plan registering an increase of 37 per cent in Non-plan expenditure and 34 per cent in Plan expenditure over B.E. 2008-09.
    * Total expenditure in B.E. 2009-10 increased by 36 per cent over B.E. 2008-09.

    Source: http://www.ibef.org