General Budget 2010-11

The finance minister Shri Pranab Mukherjee lays emphasis on consolidated growth, improving investment environment, inclusive development and strengthening transparency and public accountability in budget 2010-11.

1. The total expenditure proposed in the budget estimates is rs.11,08,749 crore , an increase of 8.6 per cent over last year.
2. The plan and non-plan expenditure estimated at rs.3,73,092 crore and rs.7,35,657 crore respectively, an increase of 15 percent in plan expenditure and 6 per cent in non-plan expenditure over the be of previous year.
3. Fiscal deficit at 5.5 per cent of gdp works out to be rs. 3,81,408 crore.
4. Rolling targets for fiscal deficit pegged at 4.8 per cent and 4.1 per cent for 2011-12 and 2012-13.
5. Net market borrowing would be of the order of rs. 3,45,010 crore leaving enough space to meet credit needs of private sector.
6. Against a fiscal deficit of 7.8 per cent in 2008-09 , inclusive of oil and fertilizer bonds, the comparable fiscal deficit is 6.9 per cent as per re 2009-10.
7. Gross tax receipts estimated at rs.7,46,651 crore and non-tax receipt estimated at rs. 1,48,118 crore.
8. Status paper giving road map for curtailing the overall public debt to be brought out within 6 months.
9. About rs. 25,000 crores to be raised through disinvestmet programme
10. To simplify the fdi regime, for the first time both ownership & control recognised as central to the fdi policy.
11. Rs. 16,500 crore to be provided to public sector banks to achieve a minimum 8 per cent tier-i
12. Growth of 127 per cent recorded in exports from sezs till december, 2009.
13. A four-pronged strategy to spur the growth in agriculture sector envisaged. Which includes agricultural production, reduction in wastage of produce , credit support to farmers and thrust to the food processing sector.
14. Agriculture credit flow target raised to rs. 3,75,000 crore from rs.3,25,000 crore
15. Subvention for timely repayment of crop loan increased from 1 per cent to 2 per cent.
16. Infrastructure development gets an allocation of rs. 1,73,552 crore, 46 per cent of total plan allocation , an increase of 13 per cent in road transport sector.
17. India infrastructure finance company limited’s disbursements to reach rs. 20,000 crore by march 2011.
18. Allocation for power sector increased by more than doubled to rs. 5,130 crore.
19. New tax incentives announced for infrastructure sector.
20. National clear energy fund for funding research and innovative projects in clean energy technologies to be set up.
21. Spending on social sector to account for 37 per cent of total plan outlay at rs.1,37,674 crore
22. Allocation for rural development enhanced to rs.66,100 crores. Allocation for nrega stepped up to 40,100 crore.
23. Rs. 48,000 crore allocated for bharat nirman programme
24. Backward region grant fund allocation enhanced to rs. 7,300 crore.
25. Rajiv awas yojna for slum dwellers and urban poor to get rs. 1,270 crore , an increase of over 700 per cent
26. National social security fund for unorganised sector workers to be set up with an initial amount of rs. 1,000 crore.
27. Mahila kisan sashaktikaran pariyojna with a provision of rs.100 crore launched
28. 80 per cent increase in the allocation for ministry of social justice & empowerment at rs 4,500 crore.
29. Minority affairs to get rs.2,600 crore, an increase of 50 per cent.
30. To rewrite and clean up the financial sector laws, financial sector legislative reforms commission to be set up.
31. Unique identification authority of india to get an allocation of rs. 1,900 crore. A technology advisory group for unique proect to be set up.
32. Allocation for defence increased to rs.1,47,344 crore
33. National mission for delivery of justice and legal regorms to be set up to provide timely justice to all.
34. Income tax slabs broadened – 10 per cent on income above rs 1.6 lakh to 5.00 lakh, 20 per cent on income above 5.oo lakh to 8.00 lakh , 30 per cent on above rs. 8.00 lakh
35. Additional deduction of rs. 20,000 for investment in infrastructure bonds
36. Surcharge of 10 per cent on domestic companies reduced to 7.5 per cent
37. Mat increased from 15 per cent to 18 per cent
38. Wighted deduction non expenditure incurred on in-house r&d from 150 per cent to 200 per cent
39. Limit of turnover for presumptive taxation of small business enhanced to rs. 60 lakh.
40. Limits of turnover needing audit enhanced to 60 lakh for businesses and rs. 15 lakh for professions.
41. Proposal of direct tax to result in revenue loss of rs. 26,000 crore where as indirect taxes to result in a revenue gain of rs. 46,500 crore.
42. Service tax proposals to result in net revenue gain of rs.3,000 crore.
43. Accredited news agencies which provides news feed online exempted from service tax
44. Saral -ii for individualsalary taxpayers ready for notification
45. Service tax retained at 10 per cent.
46. Certain new services to be brought within service tax purview..
47. Micro-wave ovens, pre-packaged imported goods, mobile phones, watches, readymade garments, toy baloons, long pepper, replaceable household water filter to be cheaper.
48. Infotainmet sector to benefit from concessional custom duty
49. Indian rupee to get a symbol, join the select club of currencies
50. Special duty concessions to promote clean environment clean energy cess @ rs. 50 per tonne on coal
51. Rate reduction in central excise duties partially rolled back ad valorem on non petro products & cars increased by 2 per cent
52. Uniform basic duty of 5 per cent and cvd of 4 per cent on import of medical equipmnet.
53. Scientified inputs for orthopaedic implants exempted from import duty
54. Central excise on petrol & diesel raised by rs. One per litre.
55. Major tax relief to agriculture & related sectors
56. Project import status for the setting up of cold storages
57. Full exemption from excise duty to trailers & semi -trailers.

The country’s largest carmaker Maruti Suzuki India is recalling about one lakh units of its flagship export model ‘A-Star’ to replace a faulty fuel pump part.

According to sources, the company is replacing a faulty rubber gasket in about one lakh cars manufactured before August 2009 and sold in domestic as well as overseas markets, to prevent any possible fuel leakage.

The problem was discovered in an internal survey by the company and no complaint has been received so far, they added.

When contacted, a company spokesperson said: “At Maruti Suzuki, we constantly monitor quality of our products through feedback and internal analysis. In one such exercise in November, 2009, we came across an anomaly reported in the fuel tank in some of the vehicles and by December, 2009, we started contacting the customers through letters.”

The company started replacing the gasket from December, 2009, and has so far changed the part in about 50,000 units.

Maruti Suzuki India (MSI) had launched its fifth global model A-Star on November 19, 2008. The 998cc K10B petrol engined car is manufactured only in India at its Manesar facility.

The recalled vehicles belong to a lot made till August 22 last year, the spokesperson said.

“No problem has been reported by customers. However, as a proactive step, we decided to check all vehicles from the lot, around one lakh units including those exported overseas. We are changing fuel pump gasket and ‘O’ ring at no cost to customer,” he added.

The final cost for this replacement would be shared with the supplier partner after completion of the entire exercise.

A-Star is currently exported to about 70 countries and is sold as Suzuki Alto in Europe, South Africa, Australia and New Zealand. Besides, some of the other major markets are Chile, Angola, Saudi Arabia, Morocco, Algeria and UAE, where it is sold as Suzuki Celerio.

Japanese car major Nissan also sells A-Star in the European market under a contract manufacturing agreement with MSI’s parent Suzuki. Nissan sells the model as Pixo.

In December last year, A-Star had crossed one lakh mark of overseas shipments in less than a year of selling the car in the global markets. It started the export of the car since January, 2009. The company is expecting to double its export this fiscal on the back of robust demand from A-Star, as against 70,023 units in 2008-09.

Last month, Japanese auto major Honda recalled 8,532 units of its sedan City in India due to defective power window switch as part of a global recall initiative. The company’s Indian subsidiary, Honda Siel Cars India, would call back the lot of the 2nd Generation City, manufactured in 2007, for a preventive part replacement.

After spending over five decades in exile in India, Tibet’s spiritual leader, the Dalai Lama, says he feels at home in the country where his body is being “supported by Indian rice and Indian dollar”. The 14th Dalai Lama, who escaped from Tibet in 1959 after an abortive uprising against the Chinese rule in his Himalayan homeland, says he occasionally conjures up memories of his childhood in Tibet.

But after more than 50 years in India, “my body (is) supported by Indian rice and Indian dollar,” the 74-year-old Buddhist monk told CNN’s ‘Larry King Live’. China calls the Nobel Peace Prize laureate a “separatist” and accuses him of aiming to sever Tibet from China. Asked whether he has love for the Chinese, he answered, “Certainly. We have to practise that.” At the same time, he admitted to “some irritation” with the Chinese hardliners, but insisted they are “small moments.”

Though China claims Tibetans were “very happy” now, the Dalai Lama said his Tibetan government-in-exile has received information indicating “suppression … or restrictions” culturally and religiously of the Tibetan people. He said that Tibetans “are not seeking independence.” “That’s why we are called ‘middle way’,” he said. “We complain (about) the presence of policy in Tibet. It is actually very much damaging. … But (on the) other hand, we also do not want separation from China because … Tibet (is a) landlocked country, materially backward. Every Tibetan want modernised Tibet, so for that reason, (we) remain within the People’s Republic of China.”