2009-07-07 05:38:16 - Commonwealth games in Delhi gets Rs 3472 Cr,but Sheila Dikshit unsatisfied needs more funds for the games.With global alarming fiscal meltdown no few slews but frustrated PSU disinestment thorugh stock market an option by the finaance Minister.Corporate gets no attention and rural India gets better attention,thus an aam aadmi budget provided delivery of budget trickle down to ultimate consumer,possible impossible task for government eddifice.
Finance Minister Mr. Pranab Mukherjee raised personal income tax exemption by at least 10,000 rupees, abolish IT surcharge and Fringe Benefit Tax, and focusing on jobs, cheap food for poor and loans for farmers.A budget that fulfils a number of Congress manifesto promises while battling the pressures of global slowdown, Mr. Mukherjee focused on infrastructure and agriculture sector to push
economic growth to nine per cent. He raised the personal income tax exemption by 15,000 rupees for senior citizens above 65 years and by 10,000 for others including women.He abolished FBT that would help employers in giving more benefits to employees.
Union budget, providing for an expenditure of 10.20 lakh crore rupees, kept the corporate tax, customs, excise and service tax rates unchanged but changes in specific duties would make gold, silver and textile products costly, while making LCD TV and branded jewellery cheaper. It also provides for 25 kg rice and wheat for poor at three rupees a kg, a guaranteed minimum 100 rupee a day rural job, a national electronic job exchange and over 71,000 crore rupee provision for social sector scheme.
While mentioning that work has begun on enacting a National Food Security law, Mr. Mukherjee also extended by six months the farmers' debt waiver programme. The 71,000 crore rupee scheme, which covered four crore farmers, had ended in June 2009.
Though concerned that the fiscal deficit would shoot to 6.8 per cent this year from 2.7 per cent last year on account of three stimulus packages, Mr.Mukherjee said that efforts would be made to set it right immediately after the effects of global slowdown wane. Announcing a slew of measures, both short term and medium term to spur the economy and at the same time bring fiscal deficit in line with the Fiscal Responsibility Budget Managment Act at the earliest, he said additional resources would be mobilised through disinvestment.
The Budget was also clear that the government would retain control in its banks and insurance entities and not allow its stake to go below 51 per cent in other entities. It set in motion a mechansim to decontrol petro-fuel prices and an expert group would advice how to synchronise the domestic fuel prices with global level. The Finance Minister, also proposed a new scheme called Prime Minister's Adarsh Gram Yojana for integrated development of villages, under which, ten lakh rupees will be provided per village over and above the allocation under the rural development and poverty alleviation schemes. Necessary provisions will be made for the implementation to ensure social security for unorganised sections. A one per cent incentive of subvention is proposed for farmers, who pay back their short-term loan. Stimulus package offered to print media has been extended till 31st of December this year.
However, the General Budget 2009-10 has evoked mixed reactions. The partners of UPA government welcomed the budget while BJP, Left parties and Samajwadi party criticized it. The Congress spokesperson Manish Tiwari described the budget as progressive, inclusive and growth oriented.
The Home Minister Mr. P Chidambram, who held Finance portfolio in the last UPA government, has welcomed the budget saying it has been prepared with great skill and wisdom with the objective of stimulating the economy and returning to the high growth path.
Senior BJP leader and former Finance Minister Yashwant Sinha while criticising the budget said that it was timid and tepid.
The budget is full of contradictions was the view of CPI(M). While the CPI leader Gurdasdas Gupta said the budget was inconsequential and failed to address the issues of job losses and economic slow down. Samajwadi party leader Mulayam Singh Yadav was of the opinion that there is nothing in the budget for the farmers and villagers. Former Railway Minister and RJD Chief, Mr Lalu Prasad said the Union Budget is a balanced one.
Industry bodies hailed the abolition of the Fringe Benefit Tax and FICCI Chairman Harshpati Singhania welcomed the commitment of the government for the introduction of Goods and Services Tax from April next year.The National Secretary of CITU Soudesh Deb Roy said the Budget has disappointed them .Renowned agriculture scientist Prof M S Swaminathan has hailed the Union budget. Speaking to AIR, he said, the budget is an important one as it has addressed the problem of credit to farmers.Army personnel welcomed the introduction of one-rank one-pension for Armed Forces.The housewives and service class were not quite satisfied with the exemption limit on Income Tax.
Salient features:
1 Income Tax exemption limit hiked Rs. 10K for general; Rs. 15K for senior citizens.
2 Fringe Benefit Tax and surcharge on Income Tax abolished,
3 No change in corporate tax; No Tax on Commodity Transactions,
4 Goods and Services tax from April, next year,
5 Loans to farmers and students to continue,
6 Rs.39 thousand crore allocated for rural jobs,
7 100 per cent exemption to donations to electoral trusts.
8 Minimum Alternate Tax up by 5 per cent.
9 LCD Televisions, mobile phones, life saving drugs, heart devices, tea, coffee, rubber, corals and bio-diesel become cheaper.
10 Petrol driven Trucks, Large cars, utility vehicles and branded jewellery to cost less; Gold, Silver and set top Box become dearer.
11 Defence outlay hiked by over Rs.36 thousand crore.
12 One Rank-One Pension to benefit 12 lakh ex-servicemen
13 Employment Exchanges to be modernised
14 Higher outlay for Commonwealth Games.
>> Fiscal deficit estimated at 6.8%
>> Budget to further boost to growth process :PM
>> Sensex nosedives 900 points in trade.
Finance Minister Mr. Pranab Mukherjee raised personal income tax exemption by at least 10,000 rupees, abolish IT surcharge and Fringe Benefit Tax, and focusing on jobs, cheap food for poor and loans for farmers.A budget that fulfils a number of Congress manifesto promises while battling the pressures of global slowdown, Mr. Mukherjee focused on infrastructure and agriculture sector to push
economic growth to nine per cent. He raised the personal income tax exemption by 15,000 rupees for senior citizens above 65 years and by 10,000 for others including women.He abolished FBT that would help employers in giving more benefits to employees.
Union budget, providing for an expenditure of 10.20 lakh crore rupees, kept the corporate tax, customs, excise and service tax rates unchanged but changes in specific duties would make gold, silver and textile products costly, while making LCD TV and branded jewellery cheaper. It also provides for 25 kg rice and wheat for poor at three rupees a kg, a guaranteed minimum 100 rupee a day rural job, a national electronic job exchange and over 71,000 crore rupee provision for social sector scheme.
While mentioning that work has begun on enacting a National Food Security law, Mr. Mukherjee also extended by six months the farmers' debt waiver programme. The 71,000 crore rupee scheme, which covered four crore farmers, had ended in June 2009.
Though concerned that the fiscal deficit would shoot to 6.8 per cent this year from 2.7 per cent last year on account of three stimulus packages, Mr.Mukherjee said that efforts would be made to set it right immediately after the effects of global slowdown wane. Announcing a slew of measures, both short term and medium term to spur the economy and at the same time bring fiscal deficit in line with the Fiscal Responsibility Budget Managment Act at the earliest, he said additional resources would be mobilised through disinvestment.
The Budget was also clear that the government would retain control in its banks and insurance entities and not allow its stake to go below 51 per cent in other entities. It set in motion a mechansim to decontrol petro-fuel prices and an expert group would advice how to synchronise the domestic fuel prices with global level. The Finance Minister, also proposed a new scheme called Prime Minister's Adarsh Gram Yojana for integrated development of villages, under which, ten lakh rupees will be provided per village over and above the allocation under the rural development and poverty alleviation schemes. Necessary provisions will be made for the implementation to ensure social security for unorganised sections. A one per cent incentive of subvention is proposed for farmers, who pay back their short-term loan. Stimulus package offered to print media has been extended till 31st of December this year.
However, the General Budget 2009-10 has evoked mixed reactions. The partners of UPA government welcomed the budget while BJP, Left parties and Samajwadi party criticized it. The Congress spokesperson Manish Tiwari described the budget as progressive, inclusive and growth oriented.
The Home Minister Mr. P Chidambram, who held Finance portfolio in the last UPA government, has welcomed the budget saying it has been prepared with great skill and wisdom with the objective of stimulating the economy and returning to the high growth path.
Senior BJP leader and former Finance Minister Yashwant Sinha while criticising the budget said that it was timid and tepid.
The budget is full of contradictions was the view of CPI(M). While the CPI leader Gurdasdas Gupta said the budget was inconsequential and failed to address the issues of job losses and economic slow down. Samajwadi party leader Mulayam Singh Yadav was of the opinion that there is nothing in the budget for the farmers and villagers. Former Railway Minister and RJD Chief, Mr Lalu Prasad said the Union Budget is a balanced one.
Industry bodies hailed the abolition of the Fringe Benefit Tax and FICCI Chairman Harshpati Singhania welcomed the commitment of the government for the introduction of Goods and Services Tax from April next year.The National Secretary of CITU Soudesh Deb Roy said the Budget has disappointed them .Renowned agriculture scientist Prof M S Swaminathan has hailed the Union budget. Speaking to AIR, he said, the budget is an important one as it has addressed the problem of credit to farmers.Army personnel welcomed the introduction of one-rank one-pension for Armed Forces.The housewives and service class were not quite satisfied with the exemption limit on Income Tax.
Salient features:
1 Income Tax exemption limit hiked Rs. 10K for general; Rs. 15K for senior citizens.
2 Fringe Benefit Tax and surcharge on Income Tax abolished,
3 No change in corporate tax; No Tax on Commodity Transactions,
4 Goods and Services tax from April, next year,
5 Loans to farmers and students to continue,
6 Rs.39 thousand crore allocated for rural jobs,
7 100 per cent exemption to donations to electoral trusts.
8 Minimum Alternate Tax up by 5 per cent.
9 LCD Televisions, mobile phones, life saving drugs, heart devices, tea, coffee, rubber, corals and bio-diesel become cheaper.
10 Petrol driven Trucks, Large cars, utility vehicles and branded jewellery to cost less; Gold, Silver and set top Box become dearer.
11 Defence outlay hiked by over Rs.36 thousand crore.
12 One Rank-One Pension to benefit 12 lakh ex-servicemen
13 Employment Exchanges to be modernised
14 Higher outlay for Commonwealth Games.
>> Fiscal deficit estimated at 6.8%
>> Budget to further boost to growth process :PM
>> Sensex nosedives 900 points in trade.
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