| Finance Minister Pranab Mukherjee presents Union Budget for 2010-11 in the Lok Sabha on Friday amidst high expectations but inflation and rising fiscal deficit remain a matter of concern. Following are the highlights of the Finance Minister's Budget speech -
(Income Tax Relief) Major relief to Income Tax payees; Finance Minister announces broadening of current Tax slabs.Ten percent tax limit for income between Rupees 1.6 and five lakh; 20 % above five lakh while thirty percent limit applicable for income above eight lakhs. (Focus on Agriculture) Agriculture credit for farmers enhanced by Rs fifty thousand Crore; interest subvention of 2 % to farmers; repayment period increased by six months; Rs 400 crore for Green Revolution program in Eastern India. (Hike in Sector Outlays) 46 % plan outlay for Infrastructure; 37 % for Social sector, 25 % to rural infrastructure; outlay for NREGA and Bharat Nirman enhanced; 75 % hike in Swarna Jayanti Shahrai Rojgar outlay; One percent subvention for housing loans up to Rs 20 Lakh to continue. (Partial Roll Back) In a partial rollback of fiscal stimulus package; Central Excise enhanced to 10 percent on non petroleum products; Service Tax rate untouched. (Petrol and Diesel levies) Excise duty of One rupee per liter levied on petrol and diesel; Basic duty of five percent on crude oil levied; 7.5 % on diesel and petrol. (More funds for Backward Regions) Backward Region Grant fund hiked by 26 %, Rs 1200 crore for Bundelkhand region; 700 % jump in plan outlay for Rajiv Awas Yojna. (Boost in Agri and Food Processing) Excise , Customs and Service Tax concessions to seeds & pulses, warehousing, cold storage, mechanized handling , refrigeration units and agricultural machinery to boost agriculture storage, production and processing. (Nutrient Based Fertilizer Policy) New System ensuring direct transfer of subsides to the farmers to be put in place; Nutrient Based Subsidy policy for fertilizer sector. (Hike in outlay for Social Welfare) 50 % increase in plan outlay for Women and Child Development. 80 % hike for Social Justice while 50 % hike for Minority affairs Ministry; 17 % hike school education outlay ; 12 percent hike for health outlay. (Schemes for Un-organised sector) Swavalamban Scheme for encouraging people from un-organised sector to save for their retirement announced; Mahila Kisan Sashaktikaran Pariyojna for women farmers; Rastriya Swasthya Bima Yojna extended to MGNREGA beneficiaries. (Thrust to Power Sector) Plan allocation for power sector doubled; 61 % hike for New & renewable energy Ministry; Clean energy fund to be set up; Excise and customs concessions for power efficient devices. (Accountability and Reforms) Rs 5000 crore for States to improve delivery of justice from present 15 years to an average of three years by 2012; Unique Identification Authority allocated Rs 1900 crore; Technology Advisory Group under Nandan Nilekani set up. (Financial stability) For ensuring financial stability, Centre decides to setup Financial Stability and Development Council; Rs 16,500 crore for capital infusion for PSU Banks. (Reduction in Surcharge) Income Tax Surcharge reduced to 7.5 % on domestic companies ; Minimum Alternative Tax increased to eighteen percent. (Enhancing Audit Limits) In a relief to small businessmen and professionals; Audit limits increased for businessmen till 60lakh while for professionals it is raised to 15 lakh. (Direct Tax Code) Single goods and Services Tax to be rolled out by April 2011; Finance Minister confident of Direct Tax code implementation by April 2011. (Tax savings) In a fillip to savings; deduction of additional amount of Rs 20,000 in long term infrastructure bonds over existing limit of one Lakh allowed. (Budget Impact) Chewing tobacco, luxury cars to be costlier; Toy balloons, digital head end equipments, medical equipments, orthopaedic implnats, environment friendly rickshaw, Rhodium to become cheaper. (Budget Estimates) Total expenditure in 2010-11 pegged at Rs 11, 08,749 crore ; Net revenue gain at Rs 20,500 crore; Fiscal deficit projected at 5.5 %; Revised deficit for current fiscal at 6. 9 %. | 
