domain-b.com : FM presents Union Budget 2009-10

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	FM presents Union Budget 2009-10 news

	06 July 2009

	Budget 2009 highlights Agriculture Agriculture credit target set at Rs3,25,000 crore Allocation for irrigation projects raised by Rs1,000 crore from interim budget Farm debt waiver scheme extended by 6 months Farmers to get direct subsidy Fertiliser subsidy to be nutrient-based One per cent discount on interest rate to farmers who pay short-term farm loans on schedule Direct Taxation Alternate tax disputes resolution mechanism proposed for foreign companies Carry forward tax credit on MAT to 10 years Direct tax proposals are revenue-neutral Fringe benefits tax to be removed No changes in corporate tax rate Personal income tax exemption for senior citizens to go up by Rs15,000 Personal income tax exemption raised by Rs10,000 for all other categories Surcharge on direct taxes to go Ten per cent surcharge on personal income tax to go To raise minimum alternate tax rate to 15 per cent of book profit Economy Budget links growth to inflow of foreign capital Defence spending in 2009-10 to rise to Rs1,42,000 crore Fiscal deficit seen at 6.8 per cent of GDP against target of 5.5 per cent Fiscal deficit target to be closer to 3 per cent of GDP by FY11-12 (assuming global recovery) Fiscal expansion to support growth Fiscical stimulus measures to continue Food subsidy bill to go up to Rs52,490 crore in FY10 Fy10 service tax reciepts seen at Rs65,000 crore; customs receipts at Rs98000 crore; excise receipts at Rs1,06,000 crore; corporate tax receipts at Rs2,57,000 crore. Government expects Rs49,750 crore dividend From PSUs Interest outgo in 2009-10 seen at Rs226,000 crore Plan expenditures to increase 34 per cent; non-plan spending to go up 37 per cent Plans institutional reforms to control fiscal deficit Projects GDP growth of 8.0 per cent in FY11 and 9.0 per cent in FY12 Subsidy bill in current fiscal to go up to Rs1,11,000 crore Financial sector Government's net market borrowings seen at Rs3,98,000 crore in 2009-10 Rs38,700 crore buy-back of market stbilisation scheme bonds planned in 2009-20 State control on banks to remain Yield on 10-year bonds rises to 6.92 per cent Allocation for rural roads scheme raised by 59 per cent Government to ensure more flexibility to infrastructure finance IFCL to facilitate "take out" financing of infrastructure projects LNG infrastructure to be expanded Mumbai flood control project to get Rs500 crore National highway projects to get higher allocation Panel to review domestic fuel prices States to ensure that bottlenecks on infrastrcture projects are removed Indirect Taxation Basic customs duty on biodiesel cut to 2.5 per cent from 7.5 per cent Certain legal services to attract service tax Commodities transaction tax to be scrapped Duties on gold bars to be raised Duty exemption on goods manufactured at construction sites to be restored Eight per cent excise duty on manmade fibres to be restored Full excise duty exemption for branded jewellery Import duty on LCD panels to be halved to 5 per cent Indirect tax changes to yield an additional Rs2,000 crore Natural gas to get an extended tax holiday Overall customs and excise duty structure to remain unchanged To impose 5 per cent customs duty on set top boxes