India Shining

Highlights

Taxes

· Surcharge of 10% on personal income tax removed

· No change in Corporate taxes

· Increase exemption on personal income tax by Rs 15,000 to Rs 2,40,000 for senior citizens

· Increase exemption on personal income tax by Rs 10,000 to Rs 1,90,000 for women

· Increase in exemption on personal income tax by Rs 10,000 to Rs 1,60,000 for all others

· Surcharge of 10% on personal income tax removed

· Propose to phase out surcharge on Direct Taxes

· To remove Fringe Benefit Tax

· To remove Fringe Benefit Tax

· States agree on basic structure of Goods and Services Tax

· To raise Minimum Alternate Tax(MAT) TO 15 % of book profit

· MAT hiked from 10% to 15%

· Commodity Transaction Tax scrapped

· Carry Forward Tax credit on MAT to 10 year

· To exempt Pension trust from Securities Transaction Tax

· To create Alternate Tax disputes resolution mechanism for foreign companies

· Software Technology Parks of India (STPI) extended by a year

· GST to be a dual regime with Central and state terms

· No Securities Transaction Tax (STT) on sale/purchase of shares by NPT

Reforms, Tax reforms

· To work on Saral 2 form to make income tax procedure simple

· Tax reform system to be completed in 4 years

· Balanced approach to financial de-regulation in justified

· Review and aims of the budget

· It a mandate we accept with humility and will do all we can for the welfare of the nation

· Strong mandate for growth

· Sensitive to the challenges of a young India

· The govt has to sustain a growth of 9% create 12 mn jobs per year

· Reduce poverty levels by half by 2014 infrastructure investment to more than 9% by 2014

· Focus to sustaining momentum in exports

· Strengthen primary healthcare delivery

· Plan to strengthen primary health care

· Broaden inclusive growth agenda

· Our target of agricultural growth at 4%

· Signs of revival of domestic industry

· Fiscal deficit has widened from 2.7 % to 6.2% of GDP

· Institutional reforms to bring the fiscal deficit under control

Challenges

· To get the GDP growth to 9% at the earliest

· To deepen the process of inclusive development

· To reenergise govt, govt must provide service with accountability

· Growth driver in the last 5 yrs has been private investment

· Structure of Indian economy has changes in last 10 yrs

· Now services constitutes more than 50% of GDP

· Increase investment in infrastructure to 9% by 2014

· To focus on infrastructure development

· Growth co-operative effort of Centre and States

· Job growth rate hit by dip in GDP

· Integration of Indian economy with the world has opened up new opportunities and new challenges

· Aim to return to FRBM target at the earliest

For revival

· Govt provided three stimulus package

· RBI took monetary measures to meet the needs of productive sector

· This led to fiscal deficit to rise to 6.2% in 08-09

· We achieved a growth of 6.7% of GDP last fiscal

· Signal of recovery visible in the last few months

· Uncertainty about revival of global economy remains

Infrastructure

· We had set up IFFCL to provide financial assistance to infra companies

· IIFCL will be given greater flexibility

· IIFCL will refinance 60% of bank loans in critical sectors

· IIFCL will evolve a take-out financing schemes for incremental funding in infra

· Fiscal stimulus at 3.5% of GDP helped economy revive

· Sensitive to the needs of young India

· Endeavour to make Budget participatory and ensure continuity

· Significant increase in capital inflows needs

· PPP to be encouraged especially in infrastructure

· Need to improve and strengthen regulatory framework

· To speed up Golden Quadrilateral Project

· Total investment of 100000 CFR in infrastructure

· Need to remove bottlenecks for speedy implementation of infra projects

· Highways allocated 23% more than 08-09

· Rs 15800cr for Railways

· JNURM allocation increased by 80% to Rs 12887 cr

· Basic amenities for urban poor to get more than 3000 cr to make country slum free in 5 yrs

· Provision for housing urban poor at Rs 3973 cr

· Allocation to NHAI increased to 23& Y-O-Y

· Fiscal deficit has widened to 6.7% of GDP

· Target agriculture credit inflows ay Rs 3.25 lakh cr

· · Focus of NCC, Gammon for highway development

· JNNURM to get more than Rs 12000 cr up 87%

· Basic amenities for urban poor to get more than 3000 cr to make country slum free in 5 yrs.

· Provision for housing urban poor at Rs 3973 cr

· Allocation to NHAI increased to 23& Y-O-Y

· Fiscal deficit has widened to 6.7% of GDP

· Target agri credit inflows ay Rs 3.25 lakh cr

· Focus of NCC, Gammon for highway development

· Rural electrification allocation up 27%

Agriculture

· Interest subvention scheme for agriculture loans to continue

· 60% population depended on agri

· Sustained increased in plan allocation

· Target credit flow Rs 325000 cr

· Loans upto 3 lakh at 7% per annum

· Those who pay their loans in time will get loans at 6%

· Task force set up to look into farmer suicides in Maharashtra

· Rajiv Gandhi Krishi Vikas Yojana allocation up by 30%

· Fertilizer subsidy to go to farmers directly

· To move towards Nutrient based subsidy regime

· Additional allocation of Rs 1,000 crore for accelerated irrigation project

· Central assistance for storm-water drainage project increased to Rs 500 crore from Rs 200 crore in the interim Budget

Exports

· Market development assistance schemes allocation up by 180% to 124 cr

· Interest subvention extended to march 2010 for employment extensive export sector

· Special fund for small industries development bank of Rs 400 cr

· Focus to sustain momentum in exports

· 2% Interest subvention for exporters

· Extension of interest subvention scheme extended upto March 2010 to cover sectors like handicrafts and handlooms

· Allocation for market development assistance scheme enhanced by 148 per cent

· To set up handloom mega clusters in Rajasthan, West Bengal and Tamil Nadu

· Export Credit Guarantee scheme extended till March 2010

Oil and gas

· Domestic oil prices should be in sync with global crude

· National gas grid to be set up

· Outlay for Assam Gas Project increased

· Effective interest rate is 8% for farmers with foreclosures

· Expert group to be set up petro product pricing

· Domestic oil prices should be in syncy with global crude

· To develop National Gas Grid

PSUs, banks and Insurance

· To hike promoter shareholding in PSUs

· Encourage people participation in disinvestment

· Banks and insurance will remain in public sector and will get all support

· Banking network to be expanded

· One banking centre in every block planned

· 160% hike in ADPRP

· Capital in fusion in PSU banks to keep them competitive

Inclusive development

· Creating entitlements backed by legal authority to provide basic facility to the aam aadmi

· NREGA gave employment to 4.4 cr household

· Reserve wage of RS 100 per day as an entitlement under NREGA

· Rs 39100 cr for 09-10 for NREGA an increase of 140%

· NREGA allocation increase at 144%

· New scheme PMAGY for integrated development of under developed villages

Pilot project this year

· Poverty eradication goal by 2014-15

· Interest subsidy to poor families for loans upto Rs 1 lakhs

Pension

· Substantially improve pension for armymen

· Pension benefit extended to war wounded being liberalised

· One Rank One Pension committee recommendations accepted

National Food Security

· BPL entitled by law for Rs 25 kg of rice/wheat at Rs 3 kilo

· Bharat Niraman allocation up 45%

· PM Gram Sadak Yojana allocation up to Rs 12000 cr

· Indira Gandhi Awas Yojana allocation up by 63%

Women and child development

· Focus on women self help groups

· 22 lakhs such groups of women active today, aim to link such self help groups to banks

· Corpus for such schemes to be raised to Rs 500 cr in this fiscal

· Aim to reduce female literacy by half in 3 years

· New scheme to give interest subsidy to poor students pursue any recognised course

Climate change

· Rs 562 cr for national river and lakes conservation

To build accountable institutions:

· RTI act an important step in ushering in accountability

· Unique ID project is major step in this regard: it also marks a beginning of the private involvement in projects of national importance

Police and security

· Rs 430 cr for police modernisation

· 1 lakh housing units for central paramilitary forces

· Borders: 2284 cr for strengthening of borders

Education

· Rs 50 crore for Chandigarh University

· Interest subsidy on loans for higher education

· Rs 2130 crore to set upto more IITs and IIMs

· Spending on higher education raised to Rs 2010 crore

Minorities

· Allocation hiked from Rs 1000 cr to 1700 cr in 09-10

· Scholarships for minorities

· AMU to get Rs 25 cr for each of its new campuses

· Rs 1740 crore outlay for minorities

Budget estimates

· Rs 1020838 cr total budget allocation for 09-10

· Out this more than Rs 6000 cr is planned expenditure while the rest is non-plan

· Increase in non-plan expenditure was due to pay commission and food subsidy

· Interest payment consists of 36% of non-plan expenditure

· Defence outlay up from Rs 105600 cr in 08-09 to 104703 cr in 09-10

· Total tax receipts expected at Rs 641079 cr

· Revenue deficit is estimated at 4.8% and 4.6 as per provisional account for 09-10

· Revenue deficit as percentage of GDP is pegged at 6.8%

· To spend Rs 10.20 lakh crore as total expenditure in 2009-10, crossing the Rs 10 lakh mark for the first time in history

· Increase in plan expenditure 34 %, non-plan at 37 %

· Revenue deficit projected at 4.8% in FY 10

· Fiscal deficit projected at 6.8 % in FY 10

Others

· DEPB scheme for print media extended

· Stimulus package for print media extended to Dec 31

· Hike in allocation for management of Mumbai Floods

· New project for modernisation of employment exchange

· A national web portal for the same

· New programme for rehabilitation of those effected by cylone Alia

What?
It will be a permanent identification number -- from birth to death -- aimed at eliminating the need for multiple identifications. Photographs and biometric data will be included to make the identification perfect.

Who?
It will cover all citizens, including those below 18 years of age. To start with, the unique IDs will be given to those on electoral rolls.

Why?
It will help in establishing citizenship, reduce identity related frauds, address security issues and ensure that benefits of schemes reach the people.

New Delhi: The centre on Thursday appointed Infosys co-founder Nandan Nilekani as chairman of the Unique Identification Authority of India (UIDAI), an agency that will provide unique identity cards to citizens to ensure that the benefits of the government's flagship schemes reach the people.

As chairman of the UIDAI, Nilekani will enjoy the rank of a cabinet minister with a task force of 1,400 people.

Nilekani, 54, has resigned as co-chairman of the Indian software giant to lead the authority, which has been created under the aegis of the Planning Commission. Nilekani's resignation would be effective from July 9, Infosys said in a statement.
Nilekani described the appointment as "humbling". It had been a tough decision to quit "a company that I've been part of for 30 years" and the appointment was a chance to do something for the country, he told a TV news channel in New Delhi.

He is the personal choice of prime minister Manmohan Singh, who is keen on inducting talented professionals in managerial and decision-making positions in the government. Though the PM failed to get Montek Singh Ahluwalia and former RBI governor C Rangarajan inducted into the finance ministry, he had his way this time.

Singh had been keen to get Nilekani on board for some time now, but the former Infosys chairman took his time to make up his mind. According to senior government sources, Nilekani insisted on a position and status that was in keeping with his expertise and experience, besides a certain amount of functional autonomy. He agreed to head the authority only after his demands were addressed, sources said.

His appointment was ratified by the Union cabinet at its meeting on Thursday.
Infosys chairman and mentor NR Narayana Murthy said: "We are glad that an extraordinary individual like Nandan has got an opportunity to add value to India through this position. As a company that has always put the interest of society ahead of itself, Infosys will accept his absence with a sense of duty to a larger cause."

In November 2008, an empowered group of ministers had approved setting up UIDAI with an initial core team.

Under Nilekani, the new authority "shall lay down plans and policies to implement the unique identification (UID) scheme, shall own and operate the unique identification number database and be responsible for its updation and maintenance on an ongoing basis," information and broadcasting minister Ambika Soni told reporters.

The authority will identify the targeted groups for various flagship programmes of the UPA government, such as the National Rural Employment Guarantee Scheme, Sarva Shiksha Abhiyaan, National Rural Health Mission and Bharat Nirman.

The Centre also plans to set up state units of UIDAI, headed by state UID commissioners.

The government plans to implement the project in three years. Finance minister Pranab Mukherjee had set aside Rs100 crore for the unique identity project in the interim budget presented before the Lok Sabha election in February.