UNION BUDGET OF INDIA 2009-10 HIGHLIGHTS

[B. Karthick]

* Mobile phones to be costlier
* LCD, Footwear, set-top boxes to be cheaper
* Tax holiday extended for production of natural gas
* Custom duty on set-top boxes at 5%
* Political funding to get 100% tax deduction
* Tax holiday for exporters extended to 2011
* Personal tax exemptions up to 1.6 lakh
* National Pension Scheme exempted from STT
* MAT tax credit extended from 7 to 10 years
* Minimum alternate tax increased to 15% of book profits
* Commodity Transaction Tax abolished
* 10% surcharge on personal tax removed
* Fringe benefit tax scrapped
* IT exemption for women up by Rs.10,000
* IT exemption for senior citizens up by Rs.15,000
* No change in corporate tax
* New Direct Tax Code in 45 days
* Share of direct taxes increased to 56%
* To introduce GST by April 1, 2010
* GST will be dual in nature
* Centralised tax processing centre at Bangalore
* Tax distortions to be eliminated
* Plan expenditure raised by 34%
* Govt to spend Rs. 1.42lakh cr for Defence
* Total expenditure crosses Rs. 10 lakh cr
* Rs. 120cr allocated for unique id projects
* 46 lakh BPL families under rural insurance plan
* Rs.50cr allocation for Punjab University
* Hike in allocation for minority ministry
* Interest subsidy for home loans upto Rs. 1 lakh
* Rs. 2113 cr for IITs, NITs
* One central university in each uncovered state

* More IITs on cards
* Hike in allocation for Commonwealth Games
* Pension of non-commissioned officers hiked
* One rank one pension for ex-servicemen
* Sensex nosedives 220 points
* Biometric smart cards in 12 to 18 months
* Employment exchanges to be modernised
* Female literacy to be doubled in three years
* Rs.350cr allocation for BPL families
* National literacy mission for women to be launched
* Full interest subsidy for education loans
* Govt to move food security bill soon
* Indira Awaaz Yojana outlay raised by 63%
* Food security to provide rice and wheat at Rs.3 per Kg for poor
* Banks, Insurance companies outside divestment plan
* NREGA allocation up at Rs.39, 100cr in 09
* PSUs to remain under Govt control
* To hike public ownership of all listed companies
* One banking centre in every block in next three years
* Fertiliser subsidy to reach farmers directly
* Stimulus package to print media extended to Dec 31
* Expert committee on petroleum products to be set up
* More funds SIDBI for SMEs

* Work on Saral II form to be taken
* Farmer loan waiver period extended by 6 months
* Allocation for schemes for the urban poor to be raised to Rs.39,730
crore in 2009-10

* Local production of natural gas to double
* Interest subvention to exporters extended to March 2010
* 75% hike for accelerated irrigation
* Agricultural credit target: Rs. 3.25 lakh cr
* Allocation to Railways up from Rs. 10,800 cr to Rs. 15,800cr
* Additional Budget allocation to farmers
* Hike in allocation for Mumbai flood management
* Blueprint for national gas grid
* Housing allocation hiked under Rajiv Awaaz Yojana
* 87% hike to urban renewal mission
* NHAI allocation up by 23%

* Government successful in attracting private investment
* IIFCL to be given greater flexibility.
* Increase investments in infrastructure to 9% of GDP by 2010
* Signs of revival in domestic industry
* Achieved growth of 6.7%
* Move towards energy security via Integrated Energy Act
* Foreign capital inflow must increase
* Focus to sustain momentum in exports
* Lead economy to 9%

B.KARTHICK
Research Analyst