Union Finance Minister Pranab Minister on Monday presented the Union Budget 2011-12 in the Parliament......
Here are the top highlights of Union Budget 2011-12:
•Income tax exemption raised from Rs 1.6 lakh to Rs 1.8 lakh.
•I-T exemption for senior citizens increased from Rs 2.4 lakh to Rs 2.5 lakh; age bracket reduced from 65 years to 60 years.
•New bracket of 'very senior citizens' created (80 years and above), having an I-T exemption of Rs 5 lakh.
•Sarva Shiksha Abhiyan outlay increased by 40 per cent to Rs 21,000 cr.
•Allocation for education sector hiked to Rs 57,057 cr.
•Rs 8,000 cr allocated for North-East development and Rs 28,000 cr for J&K.
•Rs 200 crore for development of IIT Kharagpur.
•International award of Rs 1 crore instituted for promoting universal brotherhood in memory of Rabindranath Tagore.
•Capital infusion of Rs 20,157 cr in PSU banks.
•Economy to grow at 9 per cent in 2011.
•Direct Tax Code to be effective from April 2012.
•Rs 40,000 crore disinvestment target for 2011-12.
•Rs 58,000 cr allocated for Bharat Nirman projects.
•Credit flow for farmers increased from 3.75 lakh cr to Rs 4.75 lakh cr.
•Some categories of salaried people exempted from filing I-T returns.
•Govt to maintain 51 per cent stake in PSUs.
•FIIs allowed to invest in mutual funds.
•FII limit in corporate bonds raised to $40 million.
•ousing loan limit raised from Rs 20 lakh to Rs 25 lakh from priority sector lending.
•Subvention of 1 per cent on home loans up to Rs 15 lakh.
Monday, February 28, 2011
बजट २०११- मुख्यबिंदु
Here are the top highlights of Union Budget 2011-12:
•Income tax exemption raised from Rs 1.6 lakh to Rs 1.8 lakh.
•I-T exemption for senior citizens increased from Rs 2.4 lakh to Rs 2.5 lakh; age bracket reduced from 65 years to 60 years.
•New bracket of 'very senior citizens' created (80 years and above), having an I-T exemption of Rs 5 lakh.
•Sarva Shiksha Abhiyan outlay increased by 40 per cent to Rs 21,000 cr.
•Allocation for education sector hiked to Rs 57,057 cr.
•Rs 8,000 cr allocated for North-East development and Rs 28,000 cr for J&K.
•Rs 200 crore for development of IIT Kharagpur.
•International award of Rs 1 crore instituted for promoting universal brotherhood in memory of Rabindranath Tagore.
•Capital infusion of Rs 20,157 cr in PSU banks.
•Economy to grow at 9 per cent in 2011.
•Direct Tax Code to be effective from April 2012.
•Rs 40,000 crore disinvestment target for 2011-12.
•Rs 58,000 cr allocated for Bharat Nirman projects.
•Credit flow for farmers increased from 3.75 lakh cr to Rs 4.75 lakh cr.
•Some categories of salaried people exempted from filing I-T returns.
•Govt to maintain 51 per cent stake in PSUs.
•FIIs allowed to invest in mutual funds.
•FII limit in corporate bonds raised to $40 million.
•ousing loan limit raised from Rs 20 lakh to Rs 25 lakh from priority sector lending.
•Subvention of 1 per cent on home loans up to Rs 15 lakh.
•Income tax exemption raised from Rs 1.6 lakh to Rs 1.8 lakh.
•I-T exemption for senior citizens increased from Rs 2.4 lakh to Rs 2.5 lakh; age bracket reduced from 65 years to 60 years.
•New bracket of 'very senior citizens' created (80 years and above), having an I-T exemption of Rs 5 lakh.
•Sarva Shiksha Abhiyan outlay increased by 40 per cent to Rs 21,000 cr.
•Allocation for education sector hiked to Rs 57,057 cr.
•Rs 8,000 cr allocated for North-East development and Rs 28,000 cr for J&K.
•Rs 200 crore for development of IIT Kharagpur.
•International award of Rs 1 crore instituted for promoting universal brotherhood in memory of Rabindranath Tagore.
•Capital infusion of Rs 20,157 cr in PSU banks.
•Economy to grow at 9 per cent in 2011.
•Direct Tax Code to be effective from April 2012.
•Rs 40,000 crore disinvestment target for 2011-12.
•Rs 58,000 cr allocated for Bharat Nirman projects.
•Credit flow for farmers increased from 3.75 lakh cr to Rs 4.75 lakh cr.
•Some categories of salaried people exempted from filing I-T returns.
•Govt to maintain 51 per cent stake in PSUs.
•FIIs allowed to invest in mutual funds.
•FII limit in corporate bonds raised to $40 million.
•ousing loan limit raised from Rs 20 lakh to Rs 25 lakh from priority sector lending.
•Subvention of 1 per cent on home loans up to Rs 15 lakh.
Sunday, February 27, 2011
रेल बजट २०११ मुख्यबिंदु
Here are the highlights of the Railway Budget 2011-12, presented by Railways Minister Mamata bannerjee in Parliament.
• No hike in passenger fare and freight rates.
• Highest ever Plan outlay of Rs. 57, 630 crore proposed for Railways.
• Rs. 9,583 crore provided for new lines.
• 1300 km new lines, 867 km doubling of lines and 1017 km gauge conversion targeted in 2011-12.
• 56 new Express Trains, 3 new Shatabdis and 9 Duronto trains to be introduced.
• AC Double Decker services on Jaipur-Delhi and Ahmedabad-Mumbai routes.
• New Super AC Class to be introduced.
• A new portal for e-ticketing to be launched shortly. Booking charges will be cheaper with a charge of only Rs. 10 for AC classes and Rs.5 for others.
• Pan-India multi-purpose smart card "Go India" to be introduced.
• 236 more stations to be upgraded as Adarsh Stations.
• 47 additional suburban services in Mumbai and 50 new suburban services proposed for Kolkata.
• Two new passenger terminals in Kerala and one each in Uttar Pradesh and West Bengal proposed.
• Feasibility study to raise speed of passenger trains to 160-200 kmph to be undertaken.
• A special package of two new trains and two projects for the States managing trouble free run of trains through out the year.
• Anti Collision Devise (ACD) sanctioned to cover 8 zonal railways.
• GPS Based Fog Safe Device to be deployed.
• All unmanned level crossing upto 3000 to be eliminated.
• All India Security Help line on a single number set up.
• All state capitals in the North-East except Sikkim to be connected by Rail in next seven years.
• A Bridge Factory in J & K and a state-of-art Institute for Tunnel and Bridge Engineering is proposed at Jammu.
• A Diesel Locomotive Centre will be set-up in Manipur.
• A Centre of Excellence in Software at Darjeeling proposed under the aegis of CRIS.
• Rail Industrial Parks at Jellingham and New Bongaigaon proposed.
• Additional mechanized laundry units to be set up at Nagpur, Chandhigarh and Bhopal.
• 700 MW gas-based power plant to be set up at Thakurli in Maharashtra.
• 18,000 Wagons to be procured during 2011-12.
• A scheme for socially desirable projects, "Pradhan Mantri Rail Vikas Yojana" with Non-lapsable fund proposed.
• 10,000 shelter units proposed for track side dwellers in Mumbai, Sealdah, Siliguri, Tiruchirapalli on pilot basis.
• Concession to physically handicapped persons to be extended on Rajdhani and Shatabdi trains.
• Concession of 50% to press correspondents with family increased to twice a year.
• Senior Citizens concession to be hiked from 30 % to 40 %.
• Medical facilities extended to dependent parents of the Railway employees.
• Scholarship for Girl child of Group-D railway employees increased to Rs.1200 per month.
• 20 additional hostels for children of railway employees to be set up.
• Recruitment for 1.75 lakh vacancies of Group C and D including to fill up backlog of SC/ST initiated, 16,000 ex-servicemen to be inducted by March 2011.
• A separate sports cadre to be created.
• 2011-12 declared "Year of Green Energy" for Railways.
• Freight loading of 993 MT and passenger growth of 6.4 % estimated for 2011-12.
• Gross Traffic Receipts at Rs.1,06,239 crore, exceeding one lakh crore mark for the first time estimated.
• Ordinary Working Expenses assessed at Rs. 73,650 crore.
• No hike in passenger fare and freight rates.
• Highest ever Plan outlay of Rs. 57, 630 crore proposed for Railways.
• Rs. 9,583 crore provided for new lines.
• 1300 km new lines, 867 km doubling of lines and 1017 km gauge conversion targeted in 2011-12.
• 56 new Express Trains, 3 new Shatabdis and 9 Duronto trains to be introduced.
• AC Double Decker services on Jaipur-Delhi and Ahmedabad-Mumbai routes.
• New Super AC Class to be introduced.
• A new portal for e-ticketing to be launched shortly. Booking charges will be cheaper with a charge of only Rs. 10 for AC classes and Rs.5 for others.
• Pan-India multi-purpose smart card "Go India" to be introduced.
• 236 more stations to be upgraded as Adarsh Stations.
• 47 additional suburban services in Mumbai and 50 new suburban services proposed for Kolkata.
• Two new passenger terminals in Kerala and one each in Uttar Pradesh and West Bengal proposed.
• Feasibility study to raise speed of passenger trains to 160-200 kmph to be undertaken.
• A special package of two new trains and two projects for the States managing trouble free run of trains through out the year.
• Anti Collision Devise (ACD) sanctioned to cover 8 zonal railways.
• GPS Based Fog Safe Device to be deployed.
• All unmanned level crossing upto 3000 to be eliminated.
• All India Security Help line on a single number set up.
• All state capitals in the North-East except Sikkim to be connected by Rail in next seven years.
• A Bridge Factory in J & K and a state-of-art Institute for Tunnel and Bridge Engineering is proposed at Jammu.
• A Diesel Locomotive Centre will be set-up in Manipur.
• A Centre of Excellence in Software at Darjeeling proposed under the aegis of CRIS.
• Rail Industrial Parks at Jellingham and New Bongaigaon proposed.
• Additional mechanized laundry units to be set up at Nagpur, Chandhigarh and Bhopal.
• 700 MW gas-based power plant to be set up at Thakurli in Maharashtra.
• 18,000 Wagons to be procured during 2011-12.
• A scheme for socially desirable projects, "Pradhan Mantri Rail Vikas Yojana" with Non-lapsable fund proposed.
• 10,000 shelter units proposed for track side dwellers in Mumbai, Sealdah, Siliguri, Tiruchirapalli on pilot basis.
• Concession to physically handicapped persons to be extended on Rajdhani and Shatabdi trains.
• Concession of 50% to press correspondents with family increased to twice a year.
• Senior Citizens concession to be hiked from 30 % to 40 %.
• Medical facilities extended to dependent parents of the Railway employees.
• Scholarship for Girl child of Group-D railway employees increased to Rs.1200 per month.
• 20 additional hostels for children of railway employees to be set up.
• Recruitment for 1.75 lakh vacancies of Group C and D including to fill up backlog of SC/ST initiated, 16,000 ex-servicemen to be inducted by March 2011.
• A separate sports cadre to be created.
• 2011-12 declared "Year of Green Energy" for Railways.
• Freight loading of 993 MT and passenger growth of 6.4 % estimated for 2011-12.
• Gross Traffic Receipts at Rs.1,06,239 crore, exceeding one lakh crore mark for the first time estimated.
• Ordinary Working Expenses assessed at Rs. 73,650 crore.
Thursday, February 25, 2010
Rail Budget 2010
The Railway Budget 2010-11 carries the agenda forward from the last Budget presented by the Hon’ble Railways Minister. Mamata Banerjee has made the most encouraging announcements in terms of involvement of the Private sector in the development of Railways, particularly in the vision that has been laid out in the 2020 document.
The budget gives a positive short term statement of optimism. It clearly reinforces the plans unveiled in July 2009 budget. Lack of progress in select areas (Public Private Partnership) has been duly recognized and attempts to simplify policy guidelines have been underlined. Finally, from the Industry perspective of efficient (time & cost) execution of projects has been reinforced in the various pronouncements. The budget has addressed various segments of society & industry in adequate manner creating opportunities for the Private sector. There is an underlying flavour of inclusiveness in the budget statement. Overall it’s an industry friendly budget, said Rajeev Jyoti, President & Managing Director, Bombardier Transportation India.
Reiterated focus on Railway Infrastructure up gradation like ambitious plans of 1000 route kms of track in the next one year, capacity expansion of CLW from 200 to 275 electric locomotives, 5 new Wagon factories, modernization of ICF, a new axle factory at New Jalpaiguri, 10 auto auxiliary hubs etc.
The minister reinforced commitment to Public Private Partnership underlining the need for a win-win situation for Private Sector and Indian Railways. The project definition would be based on strong “business” case of the project.
To reduce delays in processing Public Private Partnership Proposals, setting up “Special Task Force” and committing to clear projects in less than 100 days reflects her recognition of her challenge under the PPP model. She has reiterated the need to focus on Fast track approvals.
The Minister has recognized the delicate balancing that she would need to perform wherein on one side she has stated that Indian Railways needs to stick to its core competencies of “Operations & Management” and this area will not be privatized while on the other hand involving Private Sector to facilitate fast movement of strategic projects. Her action of involving Unions early on is indeed a positive step to make the process succeed.
Large numbers of areas for PPP have been identified including new manufacturing units, new high speed trains, multi function complexes, station upgrades etc.
Unlocking of land value and similar innovative ideas have been generated to achieve the growth plans to generate earnings from Non Core activities.
Technology Up gradation
"The need to leverage high technology has been underlined in multiple areas. Specific reference to safety has been made with the clearance of 4 projects covering 824 route kms. for “Train Protection & Warning System (TPWS)”. TPWS is the state of the art system that provides continuous supervision of train speed and automatic braking enabling prevention of accidents. Similar direction is seen through introduction of new generation of Electric Locomotives for Madhepura project and Diesel Locomotives for Marhowra project," said Rajeev Jyoti.
Countering Competition with Road / Air Sector
Freight :
Freight targets have been enhanced reflecting growth in economy. Dedicated Freight Corridor project has been underlined as a priority project with a focus from the Prime Minister. With the implementation of this project, Indian Railways will increase its capability to carry freight effectively and counter challenge from Roads with the ever expanding Road Network.
Passenger:
High Speed Passenger corridor with International Cooperation underlines the action to counter competition from low cost airlines for short distance connectivity. Creation of “National High Speed Rail Authority” could support this initiative.
The budget gives a positive short term statement of optimism. It clearly reinforces the plans unveiled in July 2009 budget. Lack of progress in select areas (Public Private Partnership) has been duly recognized and attempts to simplify policy guidelines have been underlined. Finally, from the Industry perspective of efficient (time & cost) execution of projects has been reinforced in the various pronouncements. The budget has addressed various segments of society & industry in adequate manner creating opportunities for the Private sector. There is an underlying flavour of inclusiveness in the budget statement. Overall it’s an industry friendly budget, said Rajeev Jyoti, President & Managing Director, Bombardier Transportation India.
Reiterated focus on Railway Infrastructure up gradation like ambitious plans of 1000 route kms of track in the next one year, capacity expansion of CLW from 200 to 275 electric locomotives, 5 new Wagon factories, modernization of ICF, a new axle factory at New Jalpaiguri, 10 auto auxiliary hubs etc.
The minister reinforced commitment to Public Private Partnership underlining the need for a win-win situation for Private Sector and Indian Railways. The project definition would be based on strong “business” case of the project.
To reduce delays in processing Public Private Partnership Proposals, setting up “Special Task Force” and committing to clear projects in less than 100 days reflects her recognition of her challenge under the PPP model. She has reiterated the need to focus on Fast track approvals.
The Minister has recognized the delicate balancing that she would need to perform wherein on one side she has stated that Indian Railways needs to stick to its core competencies of “Operations & Management” and this area will not be privatized while on the other hand involving Private Sector to facilitate fast movement of strategic projects. Her action of involving Unions early on is indeed a positive step to make the process succeed.
Large numbers of areas for PPP have been identified including new manufacturing units, new high speed trains, multi function complexes, station upgrades etc.
Unlocking of land value and similar innovative ideas have been generated to achieve the growth plans to generate earnings from Non Core activities.
Technology Up gradation
"The need to leverage high technology has been underlined in multiple areas. Specific reference to safety has been made with the clearance of 4 projects covering 824 route kms. for “Train Protection & Warning System (TPWS)”. TPWS is the state of the art system that provides continuous supervision of train speed and automatic braking enabling prevention of accidents. Similar direction is seen through introduction of new generation of Electric Locomotives for Madhepura project and Diesel Locomotives for Marhowra project," said Rajeev Jyoti.
Countering Competition with Road / Air Sector
Freight :
Freight targets have been enhanced reflecting growth in economy. Dedicated Freight Corridor project has been underlined as a priority project with a focus from the Prime Minister. With the implementation of this project, Indian Railways will increase its capability to carry freight effectively and counter challenge from Roads with the ever expanding Road Network.
Passenger:
High Speed Passenger corridor with International Cooperation underlines the action to counter competition from low cost airlines for short distance connectivity. Creation of “National High Speed Rail Authority” could support this initiative.
Wednesday, July 15, 2009
Union Budget
Union Budget 2009-10 Highlights• Budget spells out the target for the UPA: To bring back the 9% growth
• Commodities Transaction Tax (CTT) to be scrapped
• 10% surcharge on personal Income tax scrapped
• Fringe Benefit Tax (FBT) to be scrapped
• IT exemption limit for Women hiked to Rs 190,000
• IT exemption limit for Senior Citizens hiked to Rs 240,000
• Rs 12000 crore earmarked for expenditure on rural roads in FY 2010
• Drugs related to heart diseases to be cheaper
• Service Tax to be now apllicable on law firms
• Bio-diesel custom duty lowered
• Customs Duty on import of Gold and Silver increased
• Branded women's jewellery to be cheaper
• Rs 16300 Crore to be set aside for the upcoming Commonwealth Games
• IITs and NITs to get Rs 2113 crore
• Corporate Tax unchanged
• One rank-one pension scheme to be in place for Ex-Servicemen
• National Ganga Project allocation to go up to Rs 562 Crore
• Unique Identification (UID) project under Nandan M. Nilekani to be out in 12-18 months
• NRHM allocation to be raised by Rs 257 crore
• A national level action plan in place for climate change
• National Employment Exchanges to be modernised
• Interest subsidy for home loans up to 1 lakh
• Indira Awaas Yojna bolstered up by 63% to Rs 8883 crore
• Saral 2 forms to simply tax filing process
• Emphasis on fertiliser subsidy reaching out directly to farmers
• Petroleum price expert panel to set petroleum prices which would be in sync with the global levels
• Rashtriya Krishi Vikas Yojna allocation increased by 30%
• IIFCL, a new company would look into the infrastructure needs
• Extension of farm loan waiver scheme by 6 months
• Allocation of National Highway Authority of India (NHAI) increased by 23%
• Fiscal stimulus at 3.5% pf the GDP
• Small scale businesses to be exempted from advance tax
• 50% reduction in the Custom Duty on LCD panels
• Set top boxes to be costlier
• Goods and Services Tax (GST) to be in effect from April, 2010
• Textile units to enjoy continued tax holidays
• Pranab praises the 3 stimulus packages which were rolled out by the UPA to fight the global economic meltdown
• Signals of revival in the domestic market: Pranab Mukherjee
• GDP increased by 7.5, 9.5, 9.7 and 9 percent in the first four years from fiscal 04-05 to 07-08 reflecting a sustained progression of more than 9 % for three successive years.
• Fiscal deficit down to 2.7% in 07-08 as compared to 4.5% in 03-04.
• Gross capital formation in agriculture as a proportion of agriculture GDP increased from 11.1% to 14.2% in 03-04 and 07-08 respectively.
• Tax to GDP ratio increased from 9.2% in 03-04 to 12.5% in 07-08.
• Annual growth of agriculture rose to 3.7% during 03-04 and 07-08.
• Exports grew at an annual average growth rate of 26.4% (USD terms) in the period 04-05 to 07-08.
• Manufacturing sector recorded a growth of 9.5% between the period 04-05 to 07-08.
• Communication and construction sector grew at the rate of 26 and 13.5 percent respectively.
• Domestic Investment rate as a proportion of GDP increased from 27.6% to 39% in 03-04 and 07-08 respectively.
Rs. 1,41,703 cr for Defence Sector:
Mr. Mukherjee, in his union budget speech announced the allocation of Rs. 1,41,703 for the defence sector. He justified this allocation by saying that increase had to be made considering the present security situation around the country especially in the wake of the Mumbai terror attacks.
The Finance Minister increased Plan expenditure for Defence this year to Rs 86,879 crore. Last years Plan expenditure was only Rs 73,600 crore, which contributed to an increase of Rs 13,279 crore this year.
India's Fiscal Deficits:
It was brought to the knowledge of the parliament that the revenue deficit has outgrown four-fold as a result of extension of stimulus package provided to lot of industries in the light of the global economic meltdown.
No Alteration to Tax Rates:
In his effort towards battling the on-going recession Mr. Mukherjee, allocated Rs. 30,100 cr to the rural development program of the government. He refrained from making any alteration in the tax and duty rates.
• Tax collections in 08-09 to race ahead of the ones in 07-08.
• Rs. 6705 cr to be put in to child development schemes.
• Infrastructure investment to be hiked to 9% of the GDP by 2014.
• 109 maiden vessels sanctioned for the customs department.
• Per capita income increased 7.4% p.a. during the tenure of the U.P.A. government.
• Export industry subsidy extended for some sectors.
• Rs. 8,300 cr earmarked for mid-day meal scheme.
• No tax changes in the budget speech.
• Rs. 1200 cr for Total Sanitation Program.
• The defence sector allocation has been set at Rs. 141703 crore.
• Subsidies to food, petroleum and fertiliser to go up.
• Export rate in the first nine months of the fiscal year has fallen to 17.1 %.
• Mr. Mukherjee acknowledged that the global economic conditions are not encouraging
• Commodities Transaction Tax (CTT) to be scrapped
• 10% surcharge on personal Income tax scrapped
• Fringe Benefit Tax (FBT) to be scrapped
• IT exemption limit for Women hiked to Rs 190,000
• IT exemption limit for Senior Citizens hiked to Rs 240,000
• Rs 12000 crore earmarked for expenditure on rural roads in FY 2010
• Drugs related to heart diseases to be cheaper
• Service Tax to be now apllicable on law firms
• Bio-diesel custom duty lowered
• Customs Duty on import of Gold and Silver increased
• Branded women's jewellery to be cheaper
• Rs 16300 Crore to be set aside for the upcoming Commonwealth Games
• IITs and NITs to get Rs 2113 crore
• Corporate Tax unchanged
• One rank-one pension scheme to be in place for Ex-Servicemen
• National Ganga Project allocation to go up to Rs 562 Crore
• Unique Identification (UID) project under Nandan M. Nilekani to be out in 12-18 months
• NRHM allocation to be raised by Rs 257 crore
• A national level action plan in place for climate change
• National Employment Exchanges to be modernised
• Interest subsidy for home loans up to 1 lakh
• Indira Awaas Yojna bolstered up by 63% to Rs 8883 crore
• Saral 2 forms to simply tax filing process
• Emphasis on fertiliser subsidy reaching out directly to farmers
• Petroleum price expert panel to set petroleum prices which would be in sync with the global levels
• Rashtriya Krishi Vikas Yojna allocation increased by 30%
• IIFCL, a new company would look into the infrastructure needs
• Extension of farm loan waiver scheme by 6 months
• Allocation of National Highway Authority of India (NHAI) increased by 23%
• Fiscal stimulus at 3.5% pf the GDP
• Small scale businesses to be exempted from advance tax
• 50% reduction in the Custom Duty on LCD panels
• Set top boxes to be costlier
• Goods and Services Tax (GST) to be in effect from April, 2010
• Textile units to enjoy continued tax holidays
• Pranab praises the 3 stimulus packages which were rolled out by the UPA to fight the global economic meltdown
• Signals of revival in the domestic market: Pranab Mukherjee
• GDP increased by 7.5, 9.5, 9.7 and 9 percent in the first four years from fiscal 04-05 to 07-08 reflecting a sustained progression of more than 9 % for three successive years.
• Fiscal deficit down to 2.7% in 07-08 as compared to 4.5% in 03-04.
• Gross capital formation in agriculture as a proportion of agriculture GDP increased from 11.1% to 14.2% in 03-04 and 07-08 respectively.
• Tax to GDP ratio increased from 9.2% in 03-04 to 12.5% in 07-08.
• Annual growth of agriculture rose to 3.7% during 03-04 and 07-08.
• Exports grew at an annual average growth rate of 26.4% (USD terms) in the period 04-05 to 07-08.
• Manufacturing sector recorded a growth of 9.5% between the period 04-05 to 07-08.
• Communication and construction sector grew at the rate of 26 and 13.5 percent respectively.
• Domestic Investment rate as a proportion of GDP increased from 27.6% to 39% in 03-04 and 07-08 respectively.
Rs. 1,41,703 cr for Defence Sector:
Mr. Mukherjee, in his union budget speech announced the allocation of Rs. 1,41,703 for the defence sector. He justified this allocation by saying that increase had to be made considering the present security situation around the country especially in the wake of the Mumbai terror attacks.
The Finance Minister increased Plan expenditure for Defence this year to Rs 86,879 crore. Last years Plan expenditure was only Rs 73,600 crore, which contributed to an increase of Rs 13,279 crore this year.
India's Fiscal Deficits:
It was brought to the knowledge of the parliament that the revenue deficit has outgrown four-fold as a result of extension of stimulus package provided to lot of industries in the light of the global economic meltdown.
No Alteration to Tax Rates:
In his effort towards battling the on-going recession Mr. Mukherjee, allocated Rs. 30,100 cr to the rural development program of the government. He refrained from making any alteration in the tax and duty rates.
• Tax collections in 08-09 to race ahead of the ones in 07-08.
• Rs. 6705 cr to be put in to child development schemes.
• Infrastructure investment to be hiked to 9% of the GDP by 2014.
• 109 maiden vessels sanctioned for the customs department.
• Per capita income increased 7.4% p.a. during the tenure of the U.P.A. government.
• Export industry subsidy extended for some sectors.
• Rs. 8,300 cr earmarked for mid-day meal scheme.
• No tax changes in the budget speech.
• Rs. 1200 cr for Total Sanitation Program.
• The defence sector allocation has been set at Rs. 141703 crore.
• Subsidies to food, petroleum and fertiliser to go up.
• Export rate in the first nine months of the fiscal year has fallen to 17.1 %.
• Mr. Mukherjee acknowledged that the global economic conditions are not encouraging
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