Budget Highlights - Pdf Download

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5th March 2010 From India, Indore

Key Features of Budget 2010-2011

CHALLENGES

! To quickly revert to the high GDP growth path of 9 per cent and then find the

means to cross the ‘double digit growth barrier’.

! To harness economic growth to consolidate the recent gains in making development

more inclusive.

! To address the weaknesses in government systems, structures and institutions at

different levels of governance.

OVERVIEW OF THE ECONOMY

! India among the first few countries in the world to implement a broad-based

counter-cyclic policy package to respond to the negative fallout of the global

slowdown.

! The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10

pegged at 7.2 per cent. The final figure expected to be higher when the third and

fourth quarter GDP estimates for 2009-10 become available.

! The growth rate in manufacturing sector in December 2009 was 18.5 per cent – the

highest in the past two decades.

! A major concern during the second half of 2009-10 has been the emergence of

double digit food inflation. Government has set in motion steps, in consultation

with the State Chief Ministers, which should bring down the inflation in the next

few months and ensure that there is better management of food security in the

country.

CONSOLIDATING GROWTH

Fiscal Consolidation

! With recovery taking root, there is a need to review public spending, mobilise

resources and gear them towards building the productivity of the economy.

! Fiscal policy shaped with reference to the recommendations of the Thirteenth

Finance Commission, which has recommended a calibrated exit strategy from the

expansionary fiscal stance of last two years.

! It would be for the first time that the Government would target an explicit reduction

in its domestic public debt-GDP ratio.

Government of India: Union Budget and Economic Survey (http://indiabudget.nic.in)

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Government of India: Union Budget and Economic Survey (http://indiabudget.nic.in)

Tax reforms

! On the Direct Tax Code (DTC) the wide-ranging discussions with stakeholders

have been concluded – Government will be in a position to implement the DTC

from April 1, 2011.

! Centre actively engaged with the Empowered Committee of State Finance Ministers

to finalise the structure of Goods and Services Tax (GST) as well as the modalities

of its expeditious implementation. Endeavour to introduce GST by April, 2011

People’s ownership of PSUs

! Ownership has been broad based in Oil India Limited, NHPC, NTPC and Rural

Electrification Corporation while the process is on for National Mineral

Development Corporation and Satluj Jal Vidyut Nigam. This will raise about

Rs 25,000 crore during the current year.

! Higher amount proposed to be raised during the year 2010-11.

Fertiliser subsidy

! A Nutrient Based Subsidy policy for the fertiliser sector has been approved by the

Government and will become effective from April 1, 2010.

! This will lead to an increase in agricultural productivity and better returns for the

farmers, and overtime reduce the volatility in demand for fertiliser subsidy and

contain the subsidy bill.

Petroleum and Diesel pricing policy

! Expert Group to advise the Government on a viable and sustainable system of

pricing of petroleum products has submitted its recommendations.

! Decision on these recommendations will be taken in due course.

Improving Investment Environment

Foreign Direct Investment

! Number of steps taken to simplify the FDI regime.

! Methodology for calculation of indirect foreign investment in Indian companies

has been clearly defined.

! Complete liberalisation of pricing and payment of technology transfer fee and

trademark, brand name and royalty payments.

Financial Stability and Development Council

! An apex level Financial Stability and Development Council to be set up with a

view to strengthen and institutionalise the mechanism for maintaining financial

stability.

! This Council would monitor macro-prudential supervision of the economy,

including the functioning of large financial conglomerates, and address interregulatory

coordination issues.
9th March 2010 From India, Indore

Dear Shushil,Hitanshi,neema, Please find attached as required.
9th March 2010 From India, Indore

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