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Highlights of Union Budget 2009-2010 Research Team | Posted On Tuesday, July 07,2009, 01:05 PM

Highlights of Union Budget 2009-2010



The Budget 2009 - 2010 has announced a slew of tax concession including an additional Rs 10,000 personal income tax exemption and elimination of 10 per cent surcharge. In action with the poll promises made by the Congress and reflecting the pressures of the global financial crisis, Finance Minister Pranab Mukherjee presented the Budget for 2009-10 that containing a series of measures. Following are the major highlights of Union Budget 2009 – 2010.

See Also: Effects Of Union Budget

  • Excise duty on patrol cars reduced
  • Branded jewellery will become cheaper
  • Customs duty on bio-diesel reduced
  • 4% excise duty on Cotton textiles restored
  • 8% excise duty on man-made fibre restored
  • Exemption of duty on goods made at construction sites restored
  • Drugs for heart diseases will become cheaper
  • Footwear will become cheaper
  • Custom duty on gold bars increased
  • Small businesses exempt from Advance Tax
  • Tax holiday extended for Textile units
  • LCD TV sets to be cheaper
  • Mobile phones to will become more expensive
  • Set-top boxes to cost more, custom duty 5% more
  • Political funding will get 100% tax reduction
  • Tax holiday for exporters extended to 2011
  • Minimum Alternate Tax (MAT) increased to 15% of book profit
  • Anonymous funds to charitable bodies will get some tax relief
  • New Pension Scheme introduced
  • Commodity transaction tax (CTT) to be cancelled
  • Fringe Benefit Tax (FBT) removed
  • Eliminated surcharge of 10% on personal income tax
  • Personal tax limit raised to Rs 1.6 lakh
  • IT exemption by Rs 15000 for senior citizens
  • Hike in IT exemption for women to Rs 1,90,000
  • No change in Corporate tax
  • General Sales Tax model will have a Central GST (Goods & Service Tax) and State GST
  • Goods and Services Tax (GST) to be introduced on April 1, 2010
  • Federal taxGDP ratio is 11.5 per cent
  • Share of direct taxes increased by 56
  • Fiscal deficit estimated at 6.8 per cent
  • Total budget expenditure for 2009-10 will Rs 10,28,032 crore
  • Planned expenditure raised by 34%
  • Expenditure has crossed Rs 10 lakh crore mark
  • Non planned expenditure estimated at 3.9 lakh
  • Huge public investment in infrastructure
  • Biometric smart cards in 12-18 months
  • Rs 1,000 crore for Aila rehabilitation program to West Bengal
  • Pension of non-commissioned officers to be hiked
  • New pension benefits for 12 lakh Jawans and JCOs
  • 1 Lakh dwelling units for paramilitary forces to be built
  • Rs 25 crore each for AMU (Aligarh Muslim University) campuses in Murshidabad and Malapuram
  • Rs 2,113 crore for IITs and NITs
  • 500 Cr for internally displaced Sri Lankan Tamils
  • Commonwealth allocation hiked to Rs 16,300 crores
  • Allocation of Rs 50 crore to Chandigarh University
  • 50 per cent of rural women in self-help groups
  • Unique Identification ID project to tap pvt talent
  • Govt. to hike allocation to National Ganga Project to Rs 562 crore
  • Employment exchanges to be modernized
  • One rank, one pension for ex-servicemen from July 1
  • Allowances to Para-military forces at par with defence forces
  • Rs 350 crore allocation for BPL (Below Poverty Line) families
  • Rural mega clusters in Bengal and Rajasthan
  • Rashtriya Mahila Kosh corpus to be raised to Rs 500 crore
  • Interest subsidy for home loans up to Rs 1 lakh
  • Rs 2,000 crore for rural housing fund
  • Full interest subsidy for educational loans
  • National Rural Employment Guarantee Scheme (NREGA) outlay increased by 144%
  • Govt. to move Food Security Bill soon
  • Rice, wheat at Rs 3 per kg to the poor
  • Rs 100 crore one-time grant to expand banks in unbanking areas
  • Indira Awaas Yojna hiked by 63% to Rs 8,883 cr
  • Real wage of Rs.100/day provided under NREGA
  • PSUs will remain under Govt. control
  • Banking network to be expanded; Banks & insurance to stay with Govt.
  • Raise entry for non-promoter public listed companies
  • Domestic oil prices must be in sync with global prices
  • IT return forms to be more user friendly
  • Saral-II forms to simplify taxation process
  • Incentives in interest rates to farmers to pay back
  • Print media stimulus package extended by 6 months
  • Export Credit Guarantee scheme extended till March 2010
  • Storm-water drainage project fund hiked to Rs 500 crore
  • Rashtriya Krishi Vikas Yojna stepped up by 30%
  • Target for agriculture credit raised to Rs 3,25,000 crore in 2009-10
  • Hike in allocation for Mumbai flood management
  • 23% hike in fund allocation for highway development
  • IIFCL will refinance 60% of commercial bank loans
  • Fund allocation for urban poor accommodation is 3,973,000 cr
  • JNNURM allocation hiked by 87 %
  • Integration of Indian economy with rest of the world
  • New company IIFCL to look at infrastructure needs
  • Strengthen the delivery mechanism for healthcare
  • Total fiscal stimulus during '08-09 is Rs 1,86,000 crore
  • Govt. took 3 stimulus packages to fight slowdown
  • Challenge before UPA to return to 9% growth by 2014

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