budget speech (2010-11): full text

Budget 2010-
Madam Speaker, 2011 presentation by 2010 Finance Minister Pranab mukherjeemin, I will present the Union budget for 201011.
2009 when I in February submission of the provisional budget and July in August submitted often Budget when India economic face serious of uncertainty.
Growth began to slow and business sentiment was weak.
Due to the general economic slowdown in developed countries, the ability of the economy to maintain high growth is seriously threatened. 2.
We, as well as policy makers in many other countries, do not know how the crisis will eventually develop.
What impact will it have on India\'s growth momentum?
How long can we reverse the fate of our economy?
The global short-term outlook is bleak and it is agreed that 2009 will be the main year of the global crisis. 3.
At home, uncertainty has been increased due to delays and subsidiariesnormal south-
The Western monsoon destroyed the kharif crop in the country.
There is concern about the production and price of food and its possible impact on the growth of rural demand. 4.
Today, as I stand before you, I can say with confidence that we have survived these crises well.
Now India\'s economy is much better than it was a year ago.
This is not to say that today\'s challenge is with the election of UPPA to power and Prime Minister nine months ago under the leadership of Mrs. Sonia Gandhi
Singh formed a government in his second term. 5.
Even today, the three challenges and the medium-term perspectives that I outlined in my last budget statement remain relevant.
They will continue to participate in India\'s policies.
Planners for the next few years. 6.
The first challenge before us is to quickly return to the 9-cent high GDP growth path and then find a way to cross the \"double-digit growth barrier.
This needs to inject new momentum into the impressive growth recovery of the past few months.
In this endeavor, I seek the help of Lord Indra to make the recovery broader
Based on the next few months. 7.
Growth is as important as what it makes us do and why.
The second challenge, therefore, is to use economic growth to consolidate recent gains in making development more inclusive.
Efforts must be made to develop infrastructure in rural areas in order to achieve the desired goals within a fixed time frame. 8.
We must strengthen food security, improve educational opportunities and provide family-level health facilities in rural and urban areas.
These are problems that require a lot of resources, and we have to find them. 9.
The third challenge concerns weaknesses in government systems, structures and institutions at different levels of governance.
In fact, in the years to come, if there is a factor that can prevent us from realizing the potential of a modern country, it is the bottleneck of our public service mechanism.
In this regard, many initiatives have been put forward at different time points in different sectors.
Some of them are effective in reforming the way the government works in these areas.
But we still have a long way to go before we can count on that. 10.
The Union budget is not just a statement of government accounts.
It must reflect the vision of the government and signal future policies. 11.
With the deepening of economic development and reform, the focus of economic activities has
The role of the government as a promoter is more prominent. 12.
An empowered government will not try to provide citizens with everything they need directly.
Instead, it creates a spirit of empowerment that enables individual businesses and creativity to flourish.
The government is committed to providing support and services to vulnerable groups in society. 13.
My speech today is based on a broad conceptual approach to the budget.
Let me first introduce the general situation of the economy.
Overview of economics 14.
Yesterday, I put the economic survey on the table of the house, which analyzed in detail the state\'s economic situation over the past 12 months.
I intend to highlight only a few salient features that constitute the context of this budget. 15.
Fiscal year 2009-
This is a challenging year for the Indian economy.
Sharp deceleration in the second half of 2008-
In 09, the real GDP growth rate fell to 6.
7%, compared with the average of more than 9% in the first three years.
We are one of the first countries in the world to carry out extensive cooperation. based counter-
A circular package of policies addressing the negative effects of the global economic slowdown.
This includes a massive fiscal expansion backed by loose monetary policy. 16.
With the rapid recovery, the effectiveness of these policy measures has become apparent.
Economic stabilization in the first quarter of 2009
When GDP growth reached 6,
1%, and 5.
The fourth quarter of last year was 8%.
In the second quarter, when growth rose to 7, it had a strong rebound. 9 per cent.
According to pre-estimates, the growth rate of 2009 may be-10 at 7.
Our policy position does prove that.
When GDP is estimated to be 2009 in the third and fourth quarters, the final figure may be higher
10 becomes available. 17.
This recovery is very encouraging because, despite negative growth in the agricultural sector, it has emerged.
More importantly, this is the result of the new momentum of manufacturing, marking the rise of manufacturing as a driving force for economic growth.
The growth rate of manufacturing in December 2009 was 18. 5 per cent—
The highest in the past twenty years.
Merchandise exports also showed signs of improvement, with positive growth in November and December 2009 after 12 consecutive months of decline.
Export figures for January were also encouraging.
It can now be expected that a large amount of private investment will provide impetus to maintain a growth of 9 percentage points per year.
Fortunately, I hope that in not-too-
Distant future18.
A major issue in the second half of 2009
Food prices have risen by double digits.
Food prices have risen since the torch broke out
Global commodity prices rose ahead of the 2008 financial crisis, but the agricultural season that began in June 2009 is expected to help ease food inflation.
However, unstable monsoon and drought in most parts of the country have exacerbated supply bottlenecks for some basic commodities.
This triggered inflation expectations.
Since December 2009, there have been signs that the prices of these foods have remained high, and the prices of fuel products have gradually hardened and spread to other non-
And food.
Inflation figures for January seem to confirm the trend. 19.
The government is keenly aware of the situation and, in consultation with the country\'s chief minister, has initiated steps that will reduce inflation in the coming months and ensure better management of food security in the country.
Consolidate growth.
Managing a complex economy is a difficult task, especially when it is a growing economy in a globalized world.
However, choices must be made and they must be healthy --timed. 21.
After successfully coping with the impact of the global economic slowdown, we need to strengthen the domestic macroeconomic environment to help consolidate the rebound in growth and maintain growth in the medium term.
We need to review the stimulus to the economy and move towards the preferred path of fiscal consolidation that will benefit the significant growth of the previous economy
Five years of crisis.
We need to make growth broader.
Based on ensuring supply
Better manage demand imbalances.
Fiscal rectification 2.
The success of fiscal stimulus in supporting domestic demand can be traced back to its composition.
The government\'s approach is to increase the disposable income of people in rural infrastructure by reducing indirect taxes and expanding public spending in programmes such as the National Rural Employment Security plan of the San Xiong Gandhi
Since the recovery has taken root, it is necessary to review public spending, mobilize resources and drive them to increase economic productivity. 23.
Formulation of fiscal policy in 2010
11. I took action on the recommendation of the 13 th Finance Committee.
It suggested adjusting the exit strategy from the fiscal position of expansion over the past two years.
The committee recommends that the total debt ceiling of the Centre and countries be set at 68 per cent of gross domestic product by 2014 --15. 24.
As part of the fiscal consolidation process, the government will, for the first time, target a clear reduction in domestic public debtGDP ratio.
I intend to come up with a status document in six months, analyze the situation in detail, and propose a road map to cut overall public debt.
An annual report on the subject will then be submitted. Tax reforms25.
I am pleased to inform Members that the construction process of a simple tax system aimed at promoting voluntary compliance with minimum tax exemption and low tax rates is nearing completion.
Questions about direct tax law
Extensive discussions with stakeholders have ended.
I am confident that the government will be able to implement direct tax laws from April 1, 2011. 26.
In terms of goods and services tax, we have been working to reach broad consensus on its design.
On November 2009, the State Minister of Finance authorized the commission to submit the first discussion paper on GST in the public domain.
The Finance Committee also made some important proposals on GST, which would facilitate the ongoing discussion.
We actively engage with the authorization committee to finalize the structure of the GST and the way it is implemented quickly.
I will work with DTC to introduce GST in April 2011.
Ownership of Psus27.
When submitting the 2009 budget
10. I invite people to participate in the government\'s withdrawal plan and share the wealth and prosperity of the central public sector. 28.
Since then, the ownership base of Oil India Limited, NHPC, NTPC and rural electrified company is extensive, while the ownership of National Mineral Development Corporation and Satluj vividyut Nigam
The government will raise about rupees.
Rs 25,000 this year.
Through this process, I propose to raise more funds during 2010. 11.
These proceeds will be used to meet the capital expenditure requirements for the social sector to create new asset plans. 29.
In addition to releasing value for all stakeholders, listing of central public sector enterprises has improved corporate governance
Governments, companies and shareholders.
The market value of five companies listed since October 2004 has increased by three.
8 times the book value of Rs.
From RS 78,841 to RS. 2,98,929 crore. 30.
Effective management of public spending by aligning public spending with government goals is part of the fiscal consolidation process.
This requires the appropriate adjustment of the targets for subsidies and expenditures.
Fertilizer subsidies 31.
In my budget speech on 2009, I announced the government\'s intention to the fertilizer industry.
Since then, the government has approved a nutrition-based fertilizer subsidy policy, which will take effect from April 1, 2010.
It is expected that this policy will promote balanced fertilization through new enhanced products and focus on the promotion services of the fertilizer industry.
This will increase the productivity of agriculture and thus bring better returns to farmers.
Over time, in addition to controlling the subsidy bill, the policy is expected to reduce fluctuations in the demand for fertilizer subsidies.
The government will ensure the price of fertilizer for the transitional year of 2010-
11, will maintain the current popular MRPs.
The new system will directly transfer subsidies to farmers.
Pricing policy for oil and diesel 32.
In the previous budget, an expert group was announced to advise the government on a viable and sustainable oil product pricing system.
The group, led by Shri Kirit Parikh, submitted its proposals to the government.
My colleague, the minister of oil and gas, will make a decision on these proposals in due course. 33.
I am very pleased to inform distinguished members that we have not only complied with the financial roadmap that I proposed last year as part of the budget document, but we have improved it.
In addition to the liabilities due in 2008-
We did not issue oil or fertilizer bonds.
When I mention Budget Estimates later, I will talk about those numbers.
Foreign direct investment to improve investment environment
Foreign direct investment (FDI)
Despite the decline in global capital flows, capital inflows have remained stable this year.
India received $20 in foreign direct investment.
9 billion during April-
Compared to $21, December 2009.
The same period last year was 1 billion. 35.
Some steps have been taken by the government to simplify the FDI regime and make it easier for foreign investors to understand.
For the first time, ownership and control rights were considered to be at the heart of foreign direct investment policies, and the calculation methods of indirect foreign investment by Indian companies were also clearly defined.
A consistent policy has also been formulated for downstream investments.
Another major initiative is the full liberalization of the pricing and payment of technology transfer fees, trademarks, brand names and royalties.
These payments can now be made under automatic routes. 36.
The government also intends to allow foreign direct investment policy users
Be friendly by integrating all previous regulations and guidelines into a comprehensive document.
This will increase the clarity and predictability of our foreign direct investment policies for foreign investors.
Committee on financial stability and development
The financial crisis of 2008
09 fundamentally changed the structure of the World Bank and financial markets.
In order to strengthen and systematize the mechanism for maintaining financial stability, the government decided to establish
Committee on financial stability and development.
Without prejudice to the autonomy of regulators, this Council will monitor the macro-prudential regulation of the economy, including the operation of large financial groups, and deal
Coordination of regulatory issues.
It will also focus on financial knowledge and financial inclusion.
Bank license.
India\'s banking system was intact during the crisis.
In order to meet the needs of the modern economy, we need to ensure that the scale and complexity of the banking system is growing.
In addition, it is necessary to expand the geographical coverage of banks and improve access to banking services.
In this regard, I am pleased to inform the honorable Member that the RBI is considering providing some additional banking licenses to private sector participants.
If non-bank financial companies meet RBI eligibility criteria, they may also be considered.
Capital of public sector banks. During 2008-
09, the government injected Rs.
The first floor is 1900 crore.
I inject capital into four public sector banks to maintain a comfortable level of capital-to-risk weighted asset ratio.
Another Rs.
1200 crore is now being injected.
2010 of the Year-
I propose to provide a rupee.
16,500 crore to ensure that public sector banks are at their lowest level
I will build the capital by March 31, 2011.
Capital restructuring of regional rural banks
Regional village bank (RRBs)
It plays an important role in providing credit to the rural economy.
The funds of these banks are jointly held by the central government, the host Bank and the state government.
The banks were injected in 2006 last time. 07.
I propose to provide more funds to strengthen the banks in rural areas so that they have a sufficient funding base to support increased lending to the rural economy.
Corporate governance 41.
The improvement of corporate governance and supervision is an important part of the investment environment of the whole country.
The government has put forward the company act No. 2009 in Parliament, which will replace the existing company act No. 1956.
The proposed new bill will address issues related to corporate sector regulation in a changing business environment. Exports42.
The government provided 2% interest subsidies.
Shipment export credit for export in certain sectors until March 31, 2010.
I propose to extend the interest allowance for exports including handicrafts, carpets, hand looms and small and medium-sized enterprises for another year.
Special economic zones (SEZs)43.
The special economic zones have attracted a lot of domestic and foreign investment.
Three quarters before 2009
The special economic zone\'s exports grew by 127 over the same period last year.
The government is committed to ensuring sustained growth in the special economic zones, attracting investment and promoting exports and employment.
Agricultural growth 44.
Central agricultural sector
Determination to promote inclusive growth, increase rural incomes and maintain food security.
To stimulate the growth of the industry, the government intends to follow four principles
Cover (a)
Agricultural production; (b)
Reduce the waste of products; (c)
Credit support for farmers; and (d)
Promotion of the food processing department. 45.
The first element of the strategy is to extend the Green Revolution to the eastern part of the country, including the active participation of Bihar state, chatiskar, jakandard, jakandard, with the active participation of Gram Sabhas and agricultural families.
2010 of the Year-
I propose the rupee.
Rs 400 for this initiative. 46.
In 60 years in the Republic, it is proposed to organize 60,000 \"beans and oilseeds villages\" in the rain\"
Federal Reserve region 2010
11 and provide integrated interventions for water collection, watershed management and soil health to improve productivity in dry areas.
I propose to provide Rs.
For this purpose 300 crore.
This initiative will be an integral part of the National Krishi Vikas Yojana program. 47.
What has already been achieved in the green revolution area must be maintained through conservation farming, which includes a simultaneous focus on soil health, water conservation and biodiversity conservation.
I propose to assign Rs.
RS 200 for launching this climate resilient agriculture initiative. 48.
The second element of the strategy involves reducing significant waste in storage and the country\'s existing food supply chain operations.
This problem needs to be solved.
As the prime minister recently said, \"We need greater competition and therefore need to take a firm view of opening up to retail trade.
\"This will help reduce the huge difference between farm gate prices, wholesale prices and retail prices. 49.
Due to the serious shortage of storage capacity of Indian food companies, there is a waste of food purchased for buffer stocks and public distribution systems.
Through the ongoing private sector engagement program to address this deficit in storage capacity, FCI has hired God from the private sector for 5 years.
This period is now extended to seven years. 50.
A third element of the strategy is to increase farmers\' access to credit.
I am pleased to inform Members that the bank has been achieving the goal of agricultural credit flows for the past few years.
2010 of the Year-
11. the target has been raised to Rs.
3,75, 000 crore from Rs.
RS 3, 25, 000 this year. 51.
The debt relief program for farmers is a major initiative of the UPA government.
In view of the recent drought in some states and severe flooding in some other parts of the country, I propose to extend the period for farmers to repay the loan amount from December 31, 2009 to June 30, 2010. 52.
In the previous budget, I provided another interest grant to motivate farmers who were paying back the shortage.
Provide regular crop loans according to schedule.
I propose to raise this grant in order to repay the 2010 crop loan in a timely manner11.
So the real interest rate for these farmers will now be five percentage points per year.
The necessary provisions have been made in the budget. 53.
The fourth part of the loan strategy aims to further promote the development of the food processing industry to provide advancedof-
Art infrastructure.
In addition to the ten major food parks that have already been established, the government has decided to set up five more such parks. 54.
As part of the farm-to-market initiative, external commercial borrowing will be provided for cold storage or cold storage room facilities in the future, including pre-farm level
Cooling for the preservation or storage of agriculture and related products, seafood and meat.
The definition of infrastructure under the ECB policy is changing.
Infrastructure
Accelerating the development of high-quality physical infrastructure such as roads, ports, airports and railways is crucial to maintaining economic growth.
While addressing the policy gap in this sector, I propose to continue to advance the upgrading of infrastructure in rural and urban areas.
Budget for 2010-
I provided the rupee.
1. 73, RS 552, or more than the total amount allocated for the national infrastructure development plan. 56.
In order to have a significant impact in the road sector, the government has targeted the construction of the National Highway (NHs)
At a rate of 20 km per day.
In order to speed up implementation, the policy framework has changed, especially for projects implemented through public-private partnerships (PPPs).
2010 of the Year-
11. I propose to increase the allocation of road transport from the rupee by more than one.
From RS 17,520 to RS. 19,894 crore. 57.
Distinguished members have heard from the minister of railways the significant investment needed to modernize and expand the network.
I provided Rs.
Budget of 16,752-2010
Let the Railway help her.
This is about Rs.
An increase of Rs 950 over last year, when budget support for the railway increased significantly. 58.
As a supplement to the dedicated freight corridor, Delhi-
The Mumbai Industrial Corridor Project has been integrated into regional development.
Preparatory activities for the creation of six eco-industrial investment nodes have been completed
Friendly world-class infrastructure.
Infrastructure Finance India Limited
India Infrastructure Finance Limited (IIFCL)
Provide long-term financial assistance for infrastructure projects.
It is expected that its payment will touch the rupee.
Reach Rs 9,000 by the end of March 2010.
It reached Rs 20,000 by March 2011.
IIFCL is also authorized to refinance bank loans for infrastructure projects.
It has been re-financed.
Rs 3,000 this year and is expected to more than double in 201011. The take-
The out financing plan announced in the previous budget is expected to initially fund about rupee.
It will reach Rs 25,000 in the next three years. Energy60.
The government has given the highest priority to the increase in capacity in the power sector.
The framework for the introduction of ultra-critical technologies by the state thermal power generation company\'s large-capacity power plants is now in place.
The giant power policy has been revised and is now in line with the national power policy 2005 and the tariff policy 2006.
This will help to reduce the cost of power generation and the cost of electricity purchase by distribution companies.
I have more than doubled the planned allocation of the power sector for Rs.
RS 2,230 in 200910 to Rs.
RS 5,130 in 201011.
This does not include the allocation of RGGVY, part of Nirman pogrodo. 61.
Coal is the backbone of India\'s energy sector, and coal is currently the main source of 75 electricity generation.
It is proposed to introduce a competitive tender process to allocate coal blocks for captive mining to ensure greater transparency and increase participation in the production of these blocks. 62.
The government has proposed measures to establish a \"coal regulator\" to create a level playing field in the coal industry.
This will help solve problems such as coal economic pricing and benchmark performance standards. 63.
Jawaharlal Nehru National Solar Mission plans to establish India as a global leader in solar energy.
The mission set a grand goal of 20,000 MW solar power generation by 2022.
I propose to increase the planned expenditure of the Ministry of new energy and renewable energy from RS 61.
RS 620 in 200910 to Rs.
Rs 1,000 in 201011. 64.
The Ladakh region of Jammu and Kashmir has a severe climate and a shortage of energy.
To address this issue, it is recommended to establish solar, small hydro and micro-power projects at a cost of about Rs. 500 crore.
Environmental and Climate Change 65.
In order to mitigate the negative environmental consequences and the increase in levels of pollution from industrialisation and urbanization, I propose to take some proactive steps in the 2010 budget11.
National Clean Energy Fund (NCEF)66.
In many parts of the country, the level of pollution has reached an alarming level.
We must ensure that the \"paid for by polluters\" principle remains the basic guiding standard for pollution management, and must also actively promote the development of clean energy.
I propose to set up a national clean energy fund to fund research and innovation projects in clean energy technologies.
I will outline the funding model for this initiative in Part B of my presentation.
Sewage treatment plant, Tirupur67.
The knitwear textile cluster in Tirupur, Tamil Nadu is a major contributor to the country\'s knitwear exports.
I propose to provide
Time allowance for Rs
Payment of Rs 200 to the Tamil Nadu government for the cost of installing a zero liquid discharge system in tirumble to maintain the industry, which, without damaging the environment
Special Golden Jubilee package for Goa68.
I propose to provide a rupee.
200 crore is a special Golden Jubilee package in Goa that protects the country\'s natural resources by restoring vulnerable Goa beaches and increasing its green coverage through sustainable forestry.
State Administration of the Gana Basin (NGRBA)69.
The \"clean Ganjia 2020 task\" under the State Administration of Ganjia River Basin \"(NGRBA)
The goal is not yet to start discharging untreated urban sewage or industrial wastewater into national rivers.
I propose to double the allocation of NGRBA in 2010. 11 to Rs. 500 crore. 70.
I am pleased to inform the honorable Members that the plan for the shore protection is carried out along the bakirashi River and the jiangga River --
Padma in parts of Murshidabad and Nadia districts in West Bengal has been incorporated into the central sponsored flood management programme.
I also propose budget support for Kaliaghai\'s drainage plan
General Planning of Kapaleswari Baghai basin and Kandi submarine in Purba and Paschim Midnapore area
Division of Murshidabad, West Bengal state. 71.
Recognizing the need to develop an alternative port facility in West Bengal state, it is proposed to develop a project in Sagar Island.
The necessary funds will be provided in due course.
Inclusive development 72.
Inclusive development is an act of faith for the Umpa government.
Over the past five years, our government has created legal guarantees for the right to information and work of individuals.
This has been tracked.
With the promulgation of the right to education in 2009 --10.
As a next step, we are now ready for the draft food security bill, which will be submitted to the public domain soon.
In order to meet these commitments, expenditure in the social sector has gradually increased to RS.
1, 37, 674 rupees, currently accounting for 37 of the total planned expenditure in 2010-11.
The other half of the plan\'s allocation is for the development of rural infrastructure.
We hope to further strengthen the inclusive development process as growth and the opportunities it presents. Education73.
The children\'s right to free Compulsory Education Act, 2009 creates a legal rights framework for access to quality education for all children in the age group 6 to 14 years, based on the principles of fairness and unfairnessdiscrimination.
In recent years, Sasha Abyan (SSA)
Significant contributions have been made in improving enrolment and infrastructure in basic education.
Now, approximately the residence is covered by primary schools.
I propose to increase the planned allocation for school education from Rs.
RS 26,800 in 200910 to Rs.
RS 31,036 in 201011.
In addition, Rs will be available to states.
3,675 finance committee grants for Basic Education 2010-year11. Health74.
Annual health surveys should be conducted in 2010 to prepare district health profiles in each district11.
The results of this survey should be of great benefit to major public health initiatives, in particular the National Rural Health Mission, which has successfully addressed the gaps in the delivery of key health services in rural areas. 75.
I propose to increase the planned allocation to the Ministry of Health and Family Welfare from Rs.
From RS 19,534 to RS.
RS 22,300-201011.
Financial Inclusion
In order to provide the benefits of banking services to \"aam aadmi\", the Reserve Bank of India has set up a senior committee on the lead bank plan.
After careful evaluation of the committee\'s recommendation and further consultation with RBI, it was decided to provide appropriate banking facilities for residences with a population of more than 2000 by March 2012.
It is also proposed to provide insurance and other services to the target beneficiary.
These services will be provided using business agents and other models and the appropriate technology will be backed up.
Under this arrangement, it is proposed to cover 60,000 residences.
Financial inclusive fund (FIF)
Financial inclusive technology fund. In 2007-
The government has set up a Financial Inclusion Fund and a financial inclusion technology fund in NABARD to provide banking services to areas that have not been deposited in banks.
In order to accelerate the pace of financial inclusion, I propose to increase Rs.
Each of these funds is 100 rupees, provided by the Indian government, the Reserve Bank of India and NABARD.
78 rural development.
In the words of Gandhi, \"just as the universe is contained in the self, India is also included in the village \".
The development of rural infrastructure remains a high priority for the government.
2010 of the Year-
I propose the rupee.
66,100 rupees in rural development. 79.
The National Rural Employment Guarantee Program for Gandhi has been implemented for four years and has been extended to more than four regions.
5 households.
The allocation for NREGA has increased to RS.
RS 40,100 in 201011.
Bharat Nirman has contributed significantly to the upgrading of rural infrastructure through its various programmes.
2010 of the Year-
11. I propose to allocate an Rs.
The cost of these programmes is Rs 48,000. 80.
Indira Awas Yojana is a popular rural housing program for vulnerable groups.
Taking into account the increase in construction costs, I propose to increase the unit cost under the scheme to RS.
The plain area and Rs area are 45,000 kilometers.
48,500 kilometers in hilly areas.
2010 of the Year-
11. the allocation for this plan has increased to RS. 10,000 crore. 81.
As part of a strategy to bridge the infrastructure gap in the country\'s backward regions, the Backward Regions Grant Fund has proven to be an effective tool.
I propose an increase of 26 to the fund from the rupee.
RS 5,800 in 200910 to Rs.
RS 7,300 in 201011.
I also provided additional central assistance for Rs.
Rs 1,200 in the budget is used for drought relief in the Bundelkhand area.
Urban development and housing.
The \"Swarna Jayanti Shahari Rozgar Yojana\", which aims to provide employment opportunities in urban areas, has been strengthened with a focus on community engagement, skills development and self-employment support structures.
2010 of the Year-
11. I propose to increase the allocation for urban development by more than 75 from the rupee.
From RS 3,060 to RS. 5,400 crore.
In addition, the allocation for housing and urban poverty alleviation has also increased from Rs. From Rs 850 to RS.
Rs 1,000 in 201011. 83.
When submitting the Union budget for 2009
10. I have announced a scheme of interest subsidy for housing loans up to Rs.
The cost of the house is no more than 10 lakhs of RS. 20 lakhs.
I propose to extend this plan to March 31, 2011.
I therefore propose to provide a rupee.
700 crore of the plan in 2010-11. 84.
Rajiv rajawas Yojana (RAY)
Last year it announced support to countries willing to provide property rights to slum dwellers.
The plan can begin now.
I propose to assign Rs.
RS 1,270-2010
Compared to Rs is 11.
It was Rs 150 last year.
This marks a growth rate of more than 700.
The government\'s efforts in implementing RAY will be to encourage states to create an India without slums as early as possible.
Small and medium-sized enterprises 85.
Small and medium-sized enterprises (MSMEs)
Accounting for the country\'s GDP, accounting for 45 of manufacturing output, accounting for 40 of China\'s exports.
They offer employment through 2 for about 6 crore people.
There are 6 Crore enterprises.
To address some of the issues affecting the growth of this sector, the prime minister raised
Detailed discussions were held with all stakeholders and a level 1 task force on the action agenda was developed.
The high-level council on micro and small enterprises will monitor the implementation of the recommendation and action agenda.
I propose to increase the allocation to this sector from Rs.
From RS 1,794 to RS.
Rs 2,400 in 201011. 86.
December 22 India government and, Asia Development Bank signed the 0. 15 billion beauty yuan of loan agreement 2009 dollars for implementation comprehensive of Hardy reform programme.
The programme will cover 300 selected Hadi institutions. Micro Finance 87.
The plan to link the self-help group (SHGs)
With the emergence of the banking system
Financial initiatives in the country. It was re-
Designated as \"micro
Financial development and stock fund in 2005
06 there is a Rs corpus. 200 crore.
The fund\'s corpus doubled to RS.
Rs 400 in 201011.
National Social Security Fund for unorganized sector staff.
Recognizing the need to provide social security for workers in the unorganized sector and as a follow-up to the unorganized sector workers\' Social Security Act No. 2008, it has been decided to set up a national social security fund for unorganized sector workers with a preliminary allocation of RS. 1,000 crore.
The fund will support plans such as knitting workers, todilla workers, rickshaw drivers, and bidi workers. 89.
The government launched Rashtriya swastya Bima Yojana in October 1, 2007 to provide health insurance for workers and their families below the poverty line.
The program, which began operations in April 1, 2008, has so far issued more than one crore smart card under the program.
In view of the success of the plan, it is now proposed to extend its benefits to all the beneficiaries of Gandhi enrega, who worked for more than 15 days in the previous financial year. 90.
Encourage unorganized people to voluntarily save for retirement and reduce the operating costs of the new pension plan (NPS)
The government will provide Rs for these users.
Each NPS account opened in 2010 is £ 1,000 per year11.
This initiative, called \"Swavalamban\", will be available to those who join NPS, with a minimum contribution of Rs.
The greatest contributions of 1,000 and Rs.
Fiscal year 2010 12,000 per year-11.
The plan will be implemented for another three years.
So I am assigning Rs.
Rs 100 in 201011.
It will benefit approximately 10 lakh NPS users in the unorganized sector.
The plan will be under the supervision and management of the interim pension fund. 91.
I also call on the state government to provide similar amounts to the program and to participate in the provision of social security to socially vulnerable groups.
Skills Development 92.
The Prime Minister\'s National Skills Development Commission has developed core management principles for skills development operations strategies.
The council\'s mission is to create more than 50 skilled workers by 2022.
Among them, the National Skills Development Company, which has been operating since October 2009, has a target of Rs 15.
Completed a comprehensive skills gap study in 21 high growth industries and approved 3 projects with a value of approximately Rs.
45 crore, creating 10 lakh skilled labor at a rate of 1 lakh per year.
Other items are under consideration. 93.
It is proposed to use the strength of the existing institutions and tools of the Ministry of Textiles to launch a wide range of skills development programmes in the textile and garment sector.
Resources from the private sector will also inspire training through an outcome --based approach.
Through these tools, the Ministry of Textiles has set an ambitious goal of training 30 Lao people within five years.
Social welfare 94
I propose to increase the funding for the development plan for women and children by nearly half.
Several new initiatives launched in 2009
It is now ready for implementation.
A mandate for women\'s empowerment is being set up.
The ICDS platform is being expanded in order to effectively implement the Rajiv Gandhi teen girl program. 95.
In order to further improve the female literacy rate, the government has re-designated the earlier national literacy mission as a new programme \"Saakshar Bharat.
It was launched in September 2009 with a target of 7 crore non
Adults with a culture, including 6 women. 96.
To meet the specific needs of female farmers, a Mahila Kisan Sashaktikaran Pariyojana is being launched.
I provided Rs.
100 crore of this initiative as a subsidiary
Part of the national rural people\'s livelihood mission. 97.
I am pleased to inform Members that I propose to increase the planned expenditure of the ministry of social justice and empowerment on Rs. 4500 crore.
This figure increased by 80 compared to 200910.
This will support programmes implemented for target population groups, including scheduled castes, Other Backward Classes, disabled persons, elderly citizens and victims of alcohol and substance abuse.
With this increase, the department will be able to revise the rates for subsequent scholarships
Matric Scholarship Program for SCs and OBC students who have been in arrears for a long time. 98.
The allocation will also help to establish an Indian Sign Language Research and Training Center for hearing impaired persons.
District disability rehabilitation centres have been set up in 50 other districts, and there are also two integrated regional centres for persons with disabilities. 99.
I also propose to increase the planned allocation to the Ministry of Minority Affairs from Rs.
From RS 1,740 to RS.
Rs 2,600 in 201011.
This figure has increased by nearly 50.
I am pleased to inform Members that we are about to achieve our goal of providing 15% priority sector loans to minorities this year.
This will continue in the next three years.
Increased transparency and public accounting
The UPA government has worked hard to create an environment that supports transparency and accountability in the work of public institutions in the country.
Members are aware that some legislative and administrative measures have been taken in this regard.
Committee on legislative reform of the financial sector
Most of our legislation on the financial sector is old.
Numerous amendments to these bills at different points of time also add to the ambiguity and complexity.
The government proposes to set up a legislative reform committee for the financial sector to rewrite and clean up the laws of the financial sector so that they meet the requirements of the sector.
Administrative reform commission
The administrative reform commission, formed by the UPA government during its first term, submitted 15 reports, of which 10 were reviewed by the government.
Of the 800 implementation proposals identified so far, 350 have been implemented and 450 are being implemented.
The only accreditation authority in India (UIDAI)103.
In my last Budget speech, I announced the Constitution of the sole identification agency in India, its broad working principles and the timeline for the delivery of the first UID number.
I am pleased to report that the authority has been established and it will be able to fulfill its commitment to release the first group of UID numbers in the coming year.
It will provide an effective platform for financial inclusion and targeted subsidy payment.
Since UIDAI will now be in the operational phase, I will assign Rs.
RS 1,900-2010 to the authority11.
Technical Advisory Group for unique projects (TAGUP)104.
An effective system of tax administration and financial governance requires the creation of reliable, secure and efficient IT projects.
IT projects such as tax information network, new pension plan, Treasury Management Agency, expenditure information network, commodity and service tax are at different launch stages.
In order to study various technical and systemic issues, I propose the establishment of a unique project technical advisory group chaired by Shri Nandan Nilekani.
Office of Independent Assessment (IEO)105.
The government has announced the setup-
An independent evaluation office was set up to conduct a fair and objective assessment of various public programmes and to improve the effectiveness of public interventions.
It has been decided that it will be an independent entity, chaired by the deputy chairman of the planning committee.
IEO will assess the impact of the flagship project and put the findings in the public domain.
It will be funded by the Planning Commission.
Symbol of rupe123, India.
In the coming year, we intend to formalize the symbol of the Indian rupee, which reflects and captures the spirit and culture of India.
With this, the Indian rupee will join currency clubs with a clear distinction between the US dollar, the pound, the euro and the yen.
Security and Justice
The security of the border and the safety of life and property to promote development.
I propose to increase the defense allocation for Rs. 1,47,344 crore.
This will include Rs.
Capital expenditure is Rs 60,000.
Needless to say, any additional requirements will be provided for national security. 108. In 2009-
10. The overall domestic security and security situation in the country is still largely under control.
The government has taken several new measures to strengthen national security institutions.
These measures include the operation of the State Investigation Agency (NIA)
Establishment of four NSG centres to strengthen the intelligence sector and its multiple partiesAgency Centre. 109.
Violence in Jammu and Kashmir decreased in 2009.
We have taken some confidence-building measures.
Another measure is the government\'s proposal to recruit some 2,000 young people as police officers of five central military forces in 2010. 110.
To address development issues in areas affected by 33 left-wing extremism, a task force led by Cabinet secretaries was set up to facilitate coordinated efforts on a range of development and security measures.
It has been decided that the planning committee will develop an integrated action plan for the affected areas.
Sufficient funds will be provided to support the action plan.
I call on people who are misled to avoid violence and join the development process.
National Mission on justice and legal reform 11.
In order to provide timely judicial services to all, the government approved the establishment of a national justice and legal reform mission.
The mission aims to help reduce the court\'s legal backlog from the current average of 15 years to three in 2012.
This will also help improve the business legal environment.
The fiscal commission provided grants totalling Rs.
5,000 crore was provided to countries to improve their justice efforts, including strengthening alternative dispute resolution mechanisms.
Budget estimate 2010-
11I now transfers to budget estimates of 2010-11. 112.
Total tax revenue is estimated to be rupees. 7,46,651 crore.
Non-tax income is estimated to be rupees. 1,48,118 crore.
Net income of the center and expenditure allocation for 2010-
11 were estimated on the recommendation of the fiscal commission. 113.
Total expenditures proposed in the annual budget estimates for 201011 is Rs.
11, 08, 749 crore, an increase of 8.
Accounted for in BE\'s total expenditure in 200910.
Planned and unplanned expenditures in BE 2010-
An estimated 11 rupees.
3,73, 092 crore and Rs.
7, 35, 657 crore, respectively.
While Planned expenditure increased by 15 percentage points, non-planned expenditure increased by only 6 percentage points over the previous year.
With this level of planned expenditure, I believe that the total amount of planned expenditure will be very close to 100 of the projected expenditure in the 11 th Five-Year Plan. 114.
Members will agree that fiscal policy must be guided by the necessary framework for prudent finance.
In the medium-term fiscal policy statement submitted with the 2009-budget
I have a roadmap for the fiscal deficit.
I am pleased to report that, as per my commitment, I have been able to submit the 2010 budget --
The deficit is 5. 5 per cent.
In the medium-term fiscal policy statement submitted to the House today, as well as other budget documents, the rolling target of the fiscal deficit is set at 4.
8% and 4.
2011-1%12 and 2012-
They are 13.
These projections were made on the recommendation of the 13 th Finance Committee. 115.
When submitting the 2009 budget
10. I have expressed concern about the high fiscal deficit.
I also said that the government will take this issue seriously and return to the path of fiscal consolidation as soon as possible.
I am happy to report this with a fiscal deficit of 7.
8 percentage points in 2008
In 09, the comparable fiscal deficit, including oil and fertilizer bonds, was 6.
Revised estimates for 200910.
Both deficit figures are based on revised GDP figures published by the Central Statistical Organization, including the items mentioned earlier.
This marks an improvement of about 1 percentage point in the fiscal deficit this year.
I made a conscious effort to avoid issuing bonds to oil and fertilizer companies.
I would like to continue this practice of expanding government subsidies in cash to include all subsidies-related liabilities in our accounting. 116.
Fiscal deficit 5.
Gross domestic product (GDP) in 2010
Calculate it to Rs. 3,81,408 crore.
Taking into account the various other financing items of the fiscal deficit, the government\'s actual net market lending in 2010
11 is the order of Rs. 3,45,010 crore.
There will be enough room to meet the credit needs of the private sector.
The government will negotiate with the Reserve Bank of India to plan a loan plan. PART -
Madam Speaker, I am making my tax proposal now. 117.
In formulating these principles, I followed the sound principles of tax administration, which are reflected in the following sentences in cortilia: \"Therefore, the wise general collector will be responsible for the tax work. . . .
Production and consumption should not be adversely affected. . . .
Financial prosperity depends on public prosperity, bumper harvests and business prosperity. \"118.
I said last year that tax reform is a process, not an event.
The process I outlined in the area of direct tax is to issue a draft code of direct tax and a discussion paper.
In the field of indirect taxes, the reform initiative is to introduce GST.
In the \"a\" section of my statement, I introduced the development of these two reform initiatives. 119.
We continue to computerize the core areas of direct tax administration service delivery.
This will reduce the physical interface between taxpayers and tax administration and speed up procedures and processes.
The central processing center in Bengaluru is now fully operational and handles about 20,000 returns per day.
Two more centres will be set up this year to advance the initiative. 120.
As part of the government\'s initiative to move towards citizen-centric governance, the income tax department has launched \"Sevottam\" through Aayakar Seva Kendras, which is one in Pune,
These systems provide a single window system for the registration of all applications, including the registration of complaints and paper returns.
The plan will expand to four other cities this year. 121.
Implement scrolling-
By April 2011, the center and the state\'s indirect tax authorities needed to reform their internal work processes based on the use of information technology.
I am pleased to inform members of the ACES program-
This year, the automation of the central consumption tax and service tax has been promoted nationwide.
This will increase the transparency of tax administration and improve the provision of taxpayer services.
Similarly, a task model project has recently been approved for computerized use of state business taxes.
Expenditure on Rs.
The center\'s share is RS 1133.
800 crore, the project will lay the foundation for the launch of GST. 122.
I mentioned last year that the income tax return should be simple and convenient for users.
The income tax department is now ready to notify SARAL-
The form for individual payees for the next assessment year.
This form will enable individuals to enter relevant details in a simple format only in two pages. 123.
In order to resolve the dispute with the taxpayer quickly, I propose to expand the scope of the cases that the conciliation commission may accept, to include procedures relating to search and seizure cases, pending an assessment.
I also propose to expand the scope of the central cargo tax and customs Settlement Commission in order to be able to accept certain categories of cases that so far fall outside of its jurisdiction. 124.
Last year, amendments to the regulation enabled the government to sign tax treaties with specific territories other than sovereign states.
We started double.
Strengthen horizontal discussions on bank-related information and other information exchanges to effectively track tax evasion and identify undisclosed assets of Indians living abroad.
Direct taxes will now deal with direct taxes. 125.
Last year, I provided relief to individual taxpayers by raising the tax exemption limit for all taxpayers and removing the personal income tax surcharge.
Taxpayers responded positively to these offers by paying higher taxes.
There is a compelling reason for further relief by expanding the current tax standard I propose: income up to Rs. 1.
Income above rupee. 1.
Lakh and up Rs.
Per capita income of Rs 5 or more is Rs 10.
RS 5 and up to Rs.
Per capita income above Rs 8.
8 lakh 30 per cent126.
The proposed expansion of the tax scope would provide substantial relief to a large number of taxpayers. 127.
In order to facilitate savings and to ensure that they are utilized in the main areas of infrastructure, I propose to allow for the deduction of the rupee.
20,000 long-term investment-
Regular infrastructure bonds notified by the central government.
This will exceed the existing limit of Rs.
Opinions on tax savings.
I am sure that the relief will put more money in the hands of individual taxpayers for consumption and savings. 128.
In addition to the contribution to the health insurance plan, the contribution is currently allowed to be deducted under income --
I propose that contributions to the central government\'s health plan be allowed also as a deduction under the same clause. 129.
Following the initiative to gradually remove the surcharge, I propose to reduce the current surcharge for domestic companies by 10 cents to 7. 5 per cent.
At the same time, I suggest raising the minimum alternative tax rate (MAT)
From 15 to 18 per cent of the current book profit.
This will further promote international
Se rights of corporate taxpayers. 130.
In a speech to parliament on June 2009, the president declared the decade an innovation decade.
Last year, I expanded the range of weighted deductions for internal expenditures
Housing Research and Development (R&D)
This is true for all manufacturing companies except for a small negative list.
To further encourage R & D in various sectors of the economy, I now propose to strengthen the weighted deduction of internal expenditures
Housing Research and development increased from 150 to 200.
I also propose to increase the weighted deduction of scientific research fees paid to national laboratories, research associations, colleges, universities and other institutions from 125 to 175. 131.
Currently, any payments made to the approved scientific research association are eligible for a weighted deduction.
Income tax exemption for approved scientific research associations.
I propose that payments to accredited associations engaged in social science research or statistical research will be allowed to be weighted off 125.
The income of approved research associations shall be exempt from tax. 132.
In my budget speech last year, I said that profit-related deductions are inherently inefficient and easily abused.
To motivate businesses in priority areas, I have introduced investment-linked deductions as an alternative to profit-linked deductions.
To facilitate investment in the tourism sector with high employment potential, I propose to extend the benefits of investment-related deductions under the Act to two new hotels
Above stars anywhere in India. 133.
Providing a one-time interim relief to the housing and real estate sector affected by the global recession, I propose to allow pending projects to be completed within five years, rather than four years, as they require a deduction of profits.
I also recommend relaxing the building code
Increase the area of shops and other commercial institutions in housing projects to provide basic facilities for residents. 134.
All businesses with turnover exceeding rupee.
At present, 40 lakh are required to conduct an audit of their accounts.
Similar provisions apply to all occupations with incomes exceeding rupees. 10 lakh.
As Minister of Finance, I put forward these restrictions in my budget for 1984.
It\'s time to ease the compliance burden on small taxpayers.
I therefore propose to strengthen these restrictions on Rs.
60 lakh for businesses and Rs.
In terms of occupation, it is lakh. 135.
To facilitate the operation of the small taxpayer\'s business, I extend the scope of the presumption of taxation to all small businesses with turnover of Rs. 40 lakh.
To further ease the compliance burden on small taxpayers, I am now proposing to raise this restriction to Rs. 60 lakh. 136.
For a long time, the payment threshold below the source tax non-deductible has remained unchanged.
I propose to rationalize these thresholds. 137.
Relaxing the current provisions on non-allowable expenditures, I propose to allow the deduction of these expenditures if the tax is deducted at any time of the fiscal year and paid before the declared due date.
This will allow most deductibles to have more time before September of the next fiscal year.
In the meantime, I propose to increase the tax interest deducted but not deposited before the specified date from 12 cents per year to 18 cents. 138.
Last year, I provided tax for the newly introduced limited liability partnership (LLP)
Like a general partnership.
To facilitate the transition of small companies to LLPs, I propose not to impose a capital gains tax. 139.
Under the current provisions of the act, \"to advance any other objective of general utilities\", where any activity of a trade, commercial or commercial nature is involved, cannot be considered as a \"charitable purpose \".
I have received statements from many organizations and would like to have some relaxation in this limitation.
I suggest that this limit will not apply if the income of these activities does not exceed Rs.
10 lakh in a year. 140.
My advice on direct taxes is estimated to result in loss of income for the rupee.
Rs 26,000 a year.
Indirect Tax 14.
The main objective of guiding me in the development of indirect tax proposals is the need to achieve some degree of fiscal integration on the road not to compromise the recovery process and to advance GST. 142.
Unlike when I submitted my budget last time, the symptoms of economic recovery are more common and obvious --cut now.
The government\'s three successive fiscal stimulus packages have helped a lot in the recovery process.
Despite the need for caution in the global situation, improvements in our economic performance have encouraged fiscal correction.
Therefore, I propose to partially reduce the rate of the central excise tax and increase the standard rate of all non-central excise taxes
In terms of price, oil products range from 8 cents to 10 cents.
The specific tax rate applicable to Portland cement and cement clinker is also adjusted proportionally.
Similarly, the price tax part of the consumption tax for large cars, more
Bus and sporting goods
As part of the first stimulus plan, utility vehicles are increasing by 2 percentage points to 22. 143.
After rising oil prices, the government completely exempted the basic tariffs on crude oil and reduced the basic tariffs on refined oil products in June 2008 proportionally.
Compared with India\'s international crude oil price of $112 a barrel at the time, the current price is much weaker.
In view of the urgent need to return to the path of fiscal consolidation, I propose to restore the basic tariff of 5% on crude oil; 7.
Diesel and gasoline accounted for 5 per cent, and other refined products accounted for 10 per cent.
I also propose to increase the central consumption tax on gasoline and diesel through Re.
1 per liter. 144.
Since I quit smoking many years ago, I would also urge others to do the same because smoking is harmful to health.
To this end, I am making some structural changes to the consumption tax on cigarettes, cigars and cigarillos and raising the tax rate.
I also propose to strengthen
Smoke cigarettes, nose cigarettes, chewing cigarettes and other tobacco.
In addition, I propose to launch a compound tax scheme for chewing tobacco and branded unprocessed tobacco based on the capacity of the bag packaging machine. 145.
Let me talk now --
Incentives are needed in key areas of sustainable growth and development.
Agriculture and related departments
In support of the agricultural development strategy outlined in my previous statement, I propose to address several key areas that require focused attention. These are:(i)
Establish a strong supply chain for the rapid arrival of perishable agricultural products to consumption and processing centers; (ii)
Infrastructure and technology that translate these products into valueadded products; and(iii)
Increase investment in technology in agricultural production. 147.
Similar attention needs to be given to relevant departments such as beekeeping farms, gardening, dairy products, poultry, meat, marine and aquaculture. 148.
In order to achieve these objectives, I propose to provide: Project import status with a preferential import tax of 5% for the establishment of a mechanized treatment system and pallet shelf system in \"warehouses\" or food grain and sugar warehouses, and completely exempt from the installation and commissioning tax on services for such equipment.
Item import status with preferential tariff of 5%, completely exempt from service tax to initially establish and expand cold storage, cold storage room, including pre-Farm
A cooler for the preservation or storage of products in agriculture and related sectors;
The processing unit of this product.
Full tariff exemption for refrigeration equipment required to manufacture refrigerated trucks or trucks. 149.
I also propose to impose a preferential tariff of 5% on specific agricultural machinery not manufactured in India;
The central consumption tax exempts specific equipment used for the preservation, storage and processing of agriculture and related departments, as well as for the storage and storage of their products from the service tax;
Full exemption from consumption tax on trailers and semi-trailers
Trailer for agriculture. 150.
In 2003, preferential import duties were provided to specific machinery used in the plantation sector.
This exemption will expire on July 2010.
The modernization of this labor
Intensive industries have not yet reached the expected level.
Therefore, I propose to extend it with the CVD exemption until March 31, 2011.
I hope this will provide the department with enough time to achieve the desired goals. 151.
One of the prerequisites for agricultural productivity is to obtain good quality and diseaseResistant seeds.
I propose to waive the tax on testing and certification services for agricultural seeds. 152.
I also propose to waive taxes on grain and bean road transport services.
Their rail transport is still tax free. 153.
I have proposed two measures under the central consumption tax act to alleviate the cash flow situation of small businesses
Manufacturers of scale hit hard by the economic slowdown.
First, they will be allowed to deduct the central excise tax paid on capital goods in full at one time for the year after receiving the goods.
Second, they are allowed to pay the central excise tax quarterly rather than monthly.
These measures, which came into effect on April 1, 2010, will provide them with considerable relief. Environment154.
Reducing reliance on fossil fuels using renewable energy is now considered a reliable strategy to tackle global warming and climate change.
In order to establish a corpus of the National Clean Energy Fund announced earlier, I propose a clean energy tax on coal produced in India with a nominal tax rate of Rs. 50 per tonne.
This success will also be achieved in importing coal. 155.
In accordance with the government\'s determination t