The Great Indian Union Budget 2010-2011

On February 26, 2010, the entire Indian subcontinent was eager to watch the Indian Finance Minister, Mr. Pranab Mukherjee, present the Union Budget 2010-2011. Everyone has been praying for the budget to be a balanced bag and questions about what will be hiked were bubbling in everyone’s minds! Will the minister sense the public needs and offer them what they want? Well, as the finance budget is before us now, let us have a look at its provisions.

Highlights of the Union Budget 2010-2011

The budget projects considerable optimism about the country’s growth and focuses on lowering the country’s deficits to manageable levels.

Besides, this is what the budget India 2010-11 focused on:

• Plans to revert to the high GDP growth rate of 9%
• Leverage economic growth for greater inclusiveness and gaining consolidation
• Faster economic recovery
• Promises for better management of demand and supply
• Reports achievement of enhanced food security, and the highest manufacturing growth (18.5%) in December 2010 (the highest ever in the last two decades).  

Union Budget: Tax 2010-11

Here are the personal income tax rates for 2010-11:

• Tax for incomes up to Rs. 1.6 lakh – Nil
• For incomes between Rs.1.6 lakh and Rs.5 lakh – 10%
• Incomes between Rs. 5 lakh and Rs.8 lakh – 20%
• Income above 8 lakh – 30%

Further deduction of Rs. 20000/- announced for tax payers investing in long-term infrastructure bonds. This is besides the Rs.1 lakh relief that is offered on saving instruments.

Finance Budget India 2010-11: Infrastructure and Education

• Road transport allocation – Rs. 19, 894 crore; Railways – Rs. 16, 752 crore
• School education plan allocation - Rs. 31, 036 crore
• Ladakh solar and hydro projects allocation – Rs. 500 crore
• National Ganga River Basin Authority allocation – Rs. 500 crore
• New and renewable energy ministry allocation – Rs. 1000 crore

The minister blamed erratic monsoon and drought-like conditions for food inflation in 2009, and promised steps to combat the situation.

Import/Export and Excise/Custom Duty

• Central excise duty on non-petroleum products raised to 10%
• Customs duty on diesel and petrol is 7.5%
• Reduction of customs duty on gold, removal of excise duty on toys
• Mobile phones will also be cheaper
• Excise duty hiked on tobacco and oil products were hiked

This is only a fleeting glimpse of the comprehensive Union Budget 2010-2011. The budget also promises to focus more on social reforms.