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Highlights of Union Budget 2010


  • 25% tax savings for people who are earning upto Rs 1 lakh pm
  • Service tax unchanged at 10%
  • Online news agencies to attract tax
  • Account editing for companies with income above Rs 15 lakhs
  • More services to be taxed
  • Peak custom duty unchanged at 10%
  • 5% custom duty on crude petrol back
  • Minimum alternate tax hiked from 15% to 18%
  • Corporate surcharge down from 10% to 7. 5%
Tax slabs
  • Upto 1.6 lakhs- Nil
  • Above 1.6 lakhs to Rs 5 lakhs- 10%
  • Above 5 lakhs to 8 lakh: 20%
  • Above 8 lakhs 30%
  • R&D deduction hiked
What cost more
  • Petro products to cost more
  • Cement to cost more
  • Large cars, SUVs to cost more
  • Cigarettes, non-smoking, chewing tobacco to cost more
  • Gross Tax Receipts Rs 7. 46 Lakh crore
  • Fuel price hike in due course
What cost less
  • Custom duty on gold to be reduced; Gold cheaper
  • Rationalisation of custom duty on gaming software; gaming software to cost less
  • Mobile phones to be cheaper
Reactions & Budget impact
  • Budget a right mix, says PM
  • Dictatorship of Congress government will not work: Lalu
  • Pranab had no choice on fuel price hike: PM
  • Markets happy, Sensex jumps 300 points as FM concludes Budget speech
Govt. expenditure
  • Fiscal stimulus to be partially rolled back
  • Defence allocation up by 6000 cr
  • 15% rise in plan expenditure
  • Fiscal deficit 5.5% for FY 11
  • Fiscal deficit 4.8% for FY 12
  • Special allocation for unorganized labour sector
IT- sector
  • Technology Advisory Group to function under Nandan Nilekani
Banking & Finance
  • Rs 16,500 cr allocated to public sector banks
  • Divestment proceedings to be spent on social sector
  • Double digit food inflation a worry
  • RBI considering giving banking licenses to more private players
  • Medium term growth plan to cross double-digit figure
  • Private investment can sustain 9% growth
  • Need to review fiscal stimulus
  • GDP to reach 10% soon
  • Efforts on to reduce inflation in two months
Urban Development
  • Slum free India at the earliest
  • Bharat Nirman outlay Rs 48,000 cr
  • NREGA allocation Rs 40,100 cr
  • Banks in all villages with over 2000 population
  • Subsidy for affordable housing increased
  • Increase in allocation for school education
  • Plan allocation to renewable energy ministry hiked
  • Coal regulatory authority to be set up
  • National clean energy fund to be set up
  • Plan allocation doubled for power sector
  • To construct 20 km highway everyday
  • 13% rise in allocation for transport sector
  • 5 mega food parks to be set up
  • Infrastructure thrust to be maintained in rural and urban areas
  • Govt. committed to SEZ growth
Agriculture sector
  • Budget gives strong focus to boost agri production
  • Rashtriya Krishi Vikas Yojna to get Rs 300 cr
  • Four pronged strategy to boost agri production
  • Repayment of loans to be extended to 6 months in drought and flood hit areas
  • Fertilizer subsidy to be reduced
  • Failure in agriculture sector compensated by good show in manufacturing sector
  • 2% interest subvention for exports extended
  • Interest subvention to benefit handicraft, jewellery and gem exports
  • One-time 200 cr for allotment to Tripura Textile sector in Tamil Nadu
Social and welfare sector
  • New pension scheme for unorganized sector
  • Exclusive skill development programme for textile sector
  • Plan outlay increase for women and child welfare
  • Plan outlay increase for ministry of social justice and women empowerment
  • Outlay for Ministry of minority welfare increased
  • Rs 1,900 cr for Unique Identity Authority (UIDA)