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Union Budget Highlights

India targets return to 9% growth

Gross Domestic Product dropped from an average of over 9% in the previous three fiscal years to 6.7% during 2008-09.

12 million new jobs each year and reduce poverty by half by 2014.

Income Tax exemption limit for senior citizens by Rs 15,000, for women and others by Rs 10,000 each

 

Whole sale price index rose to nearly 13 per cent in August, 2008 and had an equally sharp fall to zero per cent in March, 2009.

Allocation of railways increased to 15,800cr 

Fiscal stimulus of 1,86,000cr provided 

LNG infrastructure in the country being expanded 

Rs 3937cr for improvement of urban poor 

 Funds for
NHAI stepped up by 23% 

Allocation for Jawaharlal Nehru Urban Renewal Mission raised by 87% to Rs.12,887 crore 

Tax department to work on early introduction of Saral 2 forms 

Stimulus for print media extended from June 13 to Dec 31 

Rs.1,000 crore to accelerate irrigation projects 

Agriculture development fund increased from Rs.2.87 lakh crore to Rs.3.25 lakh crore 

Market development assistance scheme for exporters increased by 148 percent to Rs.124 crore 

Pre-shipment interest subvention set at 2% for textile exporters 

Will make sufficient funds for infrastructure development 

Allocation for urban poor schemes to be raised to Rs.39,730 crore in 2009-10 

Rs 2,000 crore for rural housing fund under National Housing Bank 

For Indira Awas Yojana, allocation to be increased by 63 per cent in 2009-10 to touch Rs 8,800 crore. 

Allocation for flagship Bharat Nirman progamme is being raised by 45 per cent. 

NREGA coverage increased from 3.39 crore households in 2007-08 to 4.74 crore households in 2008-09 

Rashtriya Mahila Kosh corpus to be raised from Rs 100 crore to Rs 500 crore 

National Mission for Female Literacy with emphasis on minorities, Scheduled Castes and Scheduled Tribes to be launched. 

50% of all rural women to be brought into self-help group programmes 

Full interest subsidy for students taking courses in approved institutions. Five lakh students to benefit. 
Modernisation of national exployment exchanges to be carried out. 
Action initiated to provide social security to unorganised sector workers. 

First Unique Identification Card to citizens to roll out in 12-18 months.  Rs 120 crore for the project. 

Under National Action Plan on climate change, eight national missions are being launched. For one of the missions, National Ganga Project, Government proposes to increase allocation to Rs 562 crore. 

Allocation for National Rural Health Mission to be raised by Rs 257 crore over and above the outlay in the interim budget. 

Commonwealth allocation hiked to Rs 16,300 cr 

Rs 2,113 cr for IITs and NITs 

Pension of non-commissioned officers to be hiked 

Commonwealth allocation hiked to Rs 16,300 cr 

Allocation of Rs 50 cr to Chandigrah University 

Rs 500 crore for rehabilitation of internally displaced Tamils in Sri Lanka 

Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram 

Rs 2,113 cr for IITs and NITs 

Pension of non-commissioned officers to be hiked 

Rs 1,000 cr for Aila rehabilitation programme to West Bengal 

One rank, one pension scheme for ex-servicemen approved 

Goods and Services Tax to be introduced from April 1, 2010 

Govt committed to tax reforms 

Total budget expenditure for 2009-10 will Rs 10,28,032 cr 

Plan expenditure, for both Centre and States, to go up by Rs 61,000 cr 

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

Higher public investment in infrastructure 

Defence outlay has gone up 

Direct Tax code to be released in 45 days along with discussion paper 

Share of direct taxes has increased to 56 per cent in 2008-09 over 41 per cent in 2007-08 

Personal income tax exemption limit for senior citizens raised by Rs 15,000. 

No change in corporate tax 

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

IT exemption limit raised; Rs 50,000 for Sr.citizens 

Limit raised by Rs 10,000 for tax payers, including women 

10% surcharge on personal income tax scrapped 

Fringe Benefit Tax abolished 

Minimum Alternate Tax on book profits increased to 15 per cent from 10%. 

Commodities Transaction Tax abolished 

New pension system trust exempted from security transaction tax and dividend distribution tax 

Income tax incentives on education loans expanded to cover vocational studies after schooling 

Customs duty of 5 per cent being levied on import of set-top boxes used under Conditional Access System 

Presumptive Taxation of 8 per cent on businesses of turnover of up to Rs 40 lakh 

Small businesses up to Rs 40 lakh turnover exempted from filing advance tax returns



Union Railway Budget 2009

 

Highlights

The following are the highlights of the Railway Budget:
  • No hike in Passenger and freight rates across board. 
    Aircraft style Vaccum toilets to be introduced
    Net revenue of Railways at Rs 8,121 crores in 2008-09.
  • To pay higher dividend Rs 5,479 crores to Centre in FY'10.
  • Tatkal charges reduced from Rs 150 to Rs 100.
  •  Ladies' specials in suburban trains during peak hours
  • 'Izzat' monthly ticket of Rs 25 for up to 100 km travel.
  •  New coach factory at Kanchrapara in West Bengal.
  •  Cold storages for farmers to store vegetables and fruits.
  •  Talks to take over ailing wagon manufacturing units.
  •  18,000 wagons to be acquired during the current year.
  •  Railway medical colleges along with rail hospitals on PPP

Economic Survey 2008

Thursday, July 2 2009

India's economic growth slowed to 6.7 per cent in 2008-09 after registering over nine per cent during the preceding three years.The exports recorded a negative growth. The industrial sector was badly hit due to the current recession and its contribution to the GDP has declined.The union goverment has increased the fiscal deficit to 6% of the GDP from 2.5% last year.

The Economic Survey,  is tabled by the Union Finance Minister before the presentation of the Budget, provides the government's assessment of the economy, outlines the problems facing the country and suggests measures for dealing with them.

Highlights of Economic Survey 2008-2009

 

 

 
1.    Fiscal deficit in 2008-09  rises to over 6 per cent from 2.7 per cent in 2007-08
2.    New Economic Reforms – Simplify taxation , phase out cesses, surcharges and transaction taxes (such as commodities transaction tax, securities transaction tax and Fringe Benefit Tax)
3.    Introduce new Income Tax Code that results in neutral corporate tax regime
4.    Target: 7-7.5% growth possible in 2009-10
5.    Allow 49% FDI in defence and insurance; permit FDI in multi-format retail starting with food
6.    Proposes another round of fiscal stimulus including tax cuts and increase in expenditure
7.    Decontrol petrol and diesel prices; end Govt monopoly in railways, coal and nuclear energy
8.    Lift all bans on future contracts to restore price discovery; decontrol sugar and fertiliser
9.    Revitalise disinvestment programme to generate Rs 25,000 crore annually, list all PSUs and auction those beyond revival
10.Economic growth decelerated in 2008-09 to 6.7 per cent from nine per cent in 2007-08.
11.Survey indicates FRBM-II to get back to path of fiscal consolidation
12.Complete the process of selling 5-10 per cent equity in identified profit-making non-'Navratna' PSUs
13.List all unlisted PSUs and sell a minimum 10 per cent equity to public.
14.Auction all loss-making PSUs that cannot be revived
15.In PSUs with zero networth, allow negative bidding in the form of debt write-off
16.Auction 3G spectrum
17.The auctioned spectrum must be freely tradable, with capital gains on spectrum to be taxed under the Income Tax Act
18.Rationalise Dividend Distribution Tax to ensure full single taxation of returns to capital in the hands of the receiver
19.Reform petroleum (LPG, Kerosene), fertiliser and food subsidies to reduce leakages and ensure targeting
20.Limit LPG subsidy to a maximum of 6-8 cylinders per annum per household
21.Phase out kerosene supply-subsidy by ensuring that every rural household has a solar cooker and solar lantern
22.Review customs duty exemptions and move to a uniform duty structure to eliminate inverted duties
23.Implement GST from April 1, 2010
24.Rapid operationalization of UID Authority within 3 months
25.Agriculture growth fell sharply to 1.6 per cent in 2008-09 from 4.9 per cent
26.Exports grew at 3.4 per cent to 168 billion dollar in 2008-09 from 163 billion dollar in previous fiscal
27.Imports grew at 14.3 per cent to $287.75 bn from $251.65 bn

28.Trade balance deteriorated to $119.05 bn from $88.52 bn.

For full text of the economic survey

Mailto: radian.coimbatore@gmail.com

 

 

 

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Highlights Economic Survey 2007-2008
  • Economy retards to 8.7% in the year 2007-08
  • Agricultural growth at 2.6 pc in 2007-08 from 3.8 pc in 2006-07
  • It appears difficult to sustain 9% rate of economic growth
  • Inflation recorded to be 4.4 pc in 2007-08
  • Retardation this year was expected
  • Government plans an aim of 9 pc GDP growth during 11th Five Year Plan (2007-2012)
  • Investment climate "full of optimism"
  • It has been observed that labor force is rising at a greater pace than the employment growth
  • 3 manufacturing sector to rise at 9.4 pc in present financial year which is less from 12 pc in 2006-07
  • Unemployment rate rises by 1pc in five years to 2005
  • Subsidies might see an increment by Rs 6,550 cr over Budget Estimate
  • Fuel and power constitute the main subscriber to inflation
  • The Budget figured for subsidies was Rs 51,247 cr
  • Inflation primarily decided by chief non-food items
  • Losses over off-Budget subsidies
  • Inflation was found to be less than 5.6 pc last year
 

 

 

1.2 cr BPL families without any food subsidy cards'

About 1.2 crore Below Poverty Line (BPL) families across the country are unidentified and donot hold food subdsiy cards, according to a report by economic think tank NCAER.

"Unidentified families without having any card aggregated to 1.2 crore at the all India level," National Council for Applied Economic Research (NCAER) said in a study.

NCAER, said in its report, that the total number of excess cards issued at all-India level were more than 2 crore.

The study was done to examine the extent to which foodgrain disbursed through ration shops were actually reaching the BPL and AAY (Antodaya Anna Yojna) categories and to identify irregularities in the public distribution system.

NCAER, however, pointed out that the inclusion of non- poor in the subsidised food was a much more severe problem and the incidence was found in almost all states.

_ PTI