- Fiscal Deficit for 2010-11 – 5.5 % of GDP ( to be brought down to 4.8 % and 4.1 % in next two fiscal years. Revised Estimate for Fiscal Deficit for 2009-10 is 6.9%
- GDP growth expected to be at 7.2 % and could be higher when Q3 and Q4 are taken into account
- Disinvestment to fetch Rs. 25,000 Cr
- Challenges before the Government
- Quickly revert to 9 % GDP growth and then aim for double digit growth
- Make growth inclusive
- Strengthen food security
- Overcome weakness in government’s public delivery system.
- Corporate Sector
- MAT rate increased from 15% to 18 %
- Surcharge rates reduced from 10% to 7.5 % on Corporate income tax
- Threshold limits for TDS to be rationalised
- Personal Taxation –
- Tax Slabs Broadened
- Exemption limit retained at Rs 1.6 Lakh
- Income from Rs. 1.6 Lakh to Rs. 5 Lakh to be taxed @ 10 percent ( currently it is up to Rs. 3 Lakh)
- Income from Rs. 5 Lakh to Rs. 8 Lakh to be taxed @ 20% percent( currently it is from Rs. 3 Lakh to Rs. 5 Lakh)
- Income above Rs. 8 Lakh to be taxed @ 30 percent ( currently it is Rs. 5 Lakh)
- Additional Rs.20,000 deduction for investment in infrastructure bonds
- Tax Slabs Broadened
- Simplified Tax Administration
- Direct Tax Code to be implemented from 1st April 2011
- GST also planned to be implemented from April 2011
- IT returns forms for individual tax payers to be further simplified
- Two more Central Tax Procession Centres to be set up ( in addition to present one at Bangalore)
- Excise Duty
- General Excise Duty raised from 8 % to 10%
- Higher Excise Duty on – Large Cars, SUVs, MUVs, Smoking and non-smoking tobacco
- Custom Duty
- Peak custom duty remains at 10 percent
- Cut on import duty on photovoltaic units
- Lower import duty on – select road project equipments, LED Lights,
- Service Tax
- Service Tax remains unchanged
- New services brought under service tax net
- News Agencies exempted from service tax
- Infrastructure Sector
- 46% of Plan Expenditure allocation in 2010-11 will be for infrastructure development.
- Power & Energy
- Coal Regulatory Authority to be set up. Competitive bidding for Coal Blocs.
- National Clean Energy Fund to be established.
- Kirit Parekh Report on Fuel Price deregulation to be taken up by the Ministry of Petroleum in due course
- Exports
- Government to continue interest subvention of 2% for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.
- Agriculture
- Draft Food Security Bill prepared and will be put in the public domain
- Participation of private sector in grain storage to continue for another 2 years
- New Fertilizer Policy from April 2010 which will to improved productivity and farm income
- Five more Mega Food Procession Projects in addition to 10 existing ones
- ECB available for cold storage
- Rural Economy
- Debt Repayment period extended to June 2010.
- Banking & Financial Sector
- Banking facilities to be provided to all habitations with a population of 2000 and more
- Apex Level Financial Stability Council to be set up for Banking Sector
- Additional banking licenses to be given to private players / NBFCs
- Further capital to Region Rural Banks to be provided.
- Further capital infusion in PSU banks to maintain Tier –I Capital Adequacy Ration
- Social Security
- National Social Security Fund to be created in unorganised sector with allocation of Rs. 1000 Cr.
- Govt to contribute Rs. 1000 /- for each National Pension Scheme Account opened by workers in the unorganised sector
- Tourism
- Rs. 200 Cr special package to Goa to prevent soil erosion and increase green cover on Goa Beaches
- Investment linked tax deductions