Union Budget 2009 - Highlights
2009-07-06 09:49:47
Last Updated: 2009-07-06 12:55:36
Sensex down 717 points as Pranab ends speech
Indirect taxes changes to yield 20 bln rupees in 2009/10
Anonymous funds to charitable bodies to get some tax relief
Small businesses exempt from advance tax
Rs 500 cr for rehabilitation of Sri Lankan Tamils
Drugs for heart diseases to become cheaper
Service tax on legal services imposed
Tax proposals on direct taxes are revenue-neutralNo new taxes on edible oil
No service tax on Consultancy provided by CA and CS
Excise duty on branded jewellery reduced
8% excise duty on manmade fibres
Custom duty on Bio-diesel reduced
4% Excise duty on cotton textiles restored
Custom duty on gold bars raised
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% One central university in each uncovered state
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 abolished10% 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 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 missions being launched under Plan on climate change Missions being launched under Plan on climate change 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 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%
' One Budget cannot solve all issues' To ensure agricultural growth @ 4% Strengthen primary healthcare delivery Strong mandate for growth 'We will do all we can for the welfare of nation' Pranab Mukherjee begins Budget speech Sensex off to a bright start @ 10:31 hrs Pranab Mukherjee arrives at Parliament
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