Union Budget, 2010[Banks papers , Gov jobs , Gk, English ,Reasoning ,Math]

Union Budget, 2010
On February 26, 2010, Finance Minister Pranab Mukherjee presented a Budget that broadly focused on fiscal stabilization. The Union Budget was presented at a time when the Indian economy was on the path of revival and almost all demand indicators had turned significantly positive. Investment and consumption demand was also on a revival mode. The buoyancy in the manufacturing sector and up-tick in import and export were also working well for economic growth prospects. In the current economic scenario, what was required from the Budget was a further push for consumption and investment. The Budget announcements tried to do just that.

Highlights:

• Additional Rs 1,65,000 cr for bank re-capitalisation
• Rs 3000 cr for agricultural impetus
• Farm loan payments to be extended for six months
• Fertilizer subsidy to be reduced
• Rs 100 cr woman farmer fund scheme
• Coal regulatory authority to be set up
• Clean energy fund to be established
• Interest subvention of 2% to be extended for handicrafts and SMEs
• Rs 200 cr for Tamil Nadu textile sector
• Interest subvention for housing loans up to 1 lacs
• Allocation to defence raised to Rs 1.47 lakh cr
• Defence capex raised to Rs 60,000 cr
• Divestment target of Rs 25,000 cr
• Rs 1200 cr assistance for drought in Bundelkhand
• Rs 48000 cr for Bharat Nirman
• NREGA scheme allocation raised to Rs 41,000 cr
• Allocation to health Rs 22,300 cr
• Allocation for school education up from Rs 26,800 cr to Rs 31036 cr
• Allocation to power sector at Rs 5130 cr
• Rs 10,000 cr allocated for Indira Awaas Yojna
• Social Security Fund to have corpus of over Rs 1000 cr
• Rs 2400 cr for MSMEs
• Government to contribute Rs 1000 per month for pension security
• Rs 5400 cr allocated for urban development
• Rs 66100 cr allocated for rural development
• Rs 1900 cr allocated for UID project
• Gross tax receipts Rs 7.46 lakh cr
• Government to set up National Mission for delivery of justice
• 15% rise in planned expenditure
• Fiscal deficit target of 5.5% in FY11
• Excise on all non smoking tobacco raised
• Televisions to be costlier
• Mobile phones to become cheaper
• Cement to be costlier
• Refrigerators to be costlier
• Jewellery to be more expensive
• Monorail granted project import status
• CDs to be cheaper
• Excise duty on CFL halved to 4%
• Bank farm loan target: Rs 3.75,lakh crore
• Nutrient based fertiliser subsidy scheme to come into force from April 1, 2010
• To build 20 km of highway every day
• Income tax on income upto Rs 1.6 lakh: Nil
• Income tax on income above Rs 1.6 lakh and upto Rs. 5 lakh: 10 per cent
• Income tax on income above Rs.5 lakh and upto Rs. 8 lakh: 20 per cent
• Income tax on income above Rs. 8 lakh: 30 per cent

Economic Survey 2010

• Economy likely to grow by up to 8.75 per cent in 2010-11.
• Full recovery; return to 9 per cent growth in 2011-12.
• Broad recovery gives scope for gradual stimulus roll back.
• High double-digit food inflation in 2009-10 major concern.
• Signs of food inflation spreading to other sectors.
• Farm & allied sector production falls 0.2% in 2009-10.
• Need serious policy initiatives for 4% agriculture growth.
• Moots direct food subsidy via food coupons to households.
• Favours making available food in open market.
• Favours monthly ration coupons usable anywhere for poor.
• Gross fiscal deficit pegged at 6.5 pc of GDP in 2009-10.
• India 10th largest gold holding nation at 557.7 tonnes.
• Exports in April-December 2009 down 20.3 per cent.
• Imports in April-December 2009 down 23.6 per cent.
• Trade gap narrowed to USD 76.24 bn in April-December.
• 32.5% savings & 34.9% investment (of GDP in 2008-09) put India in league of world's fastest growing nations.
• Government initiates steps to boost private investment in agriculture.
• Wants credit available at reasonable rates on time for private sector to invest in agriculture.
• Slowdown in infrastructure that began in 2007, arrested.
• Domestic oil production to rise 11 per cent in 2009-10.
• Gas output up 52.8 per cent to 50.2 billion cubic meters with RIL starting production.
• India world's 2nd largest wireless network with 525.1 million mobile users.
• Virtually every second Indian has access to phone.
• Auction for 3G spectrum to provide existing and foreign players to bring in new technology and innovations.