Ana Project

8/8/2019 Ana Project

1/83

Finance minister Pranab Mukherjee.

NEW DELHI: A day after the Budget ignited Opposition protests over fuel price hikes,Congress allies Trinamool chief Mamata Banerjee and DMK leader M Karunanidhidemanded the "inflationary" increases be rolled back even as finance minister PranabMukherjee stoutly stood his ground.

The Trinamool took out rallies in Kolkata to protest the price hike while the party chiefwrote to Prime Minister Manmohan Singh and Congress president Sonia Gandhi "toreconsider the hikes in view of hardships faced by the common man".

Karunanidhi also wrote to the PM and Congress leadership, though he said thegovernment should "at least roll back" the increase in diesel prices. While both alliesdashed off letters, they did not indicate how far they were prepared to push theiropposition.

Speaking in the Capital, Mukherjee went on the defensive, saying the inflationary impactof the duty hikes would be minimal, just adding 0.4% to overall inflation. He blamedsupply side constraints and an inefficient public delivery system for shortages and pricerise in food items. "Our PDS is not geared to distribute efficiently...the gap between farmgate and retail is large," he said.

Karunanidhi, in his letter, argued that the increase in fuel prices would only aggravatefood inflation. "You are fully aware that the Centre and states are grappling with highfood inflation...any increase in diesel prices will have a cascading effect on food priocesand those of essential commodities as well." He sought the immediate intervention of the

PM, Mukherjee and Sonia to roll back the diesel hike.

With both Trinamool and DMK facing elections in 2011, their protests have not surprisedthe Congress. But it is felt that the quantum of hike was not so high as to causewidespread disaffection. There had been no hikes for a while and as long as prices did notshoot up steeply, the political fallout could be contained.

The assessment in Congress circles is that the allies, particularly Banerjee, though


2/83

worked up over the fuel hikes due to restoration of custom and excise duties, would notpush their point too far. Congress is fairly confident that DMK is not inclined to up theante at present and in any case, the finance bill was not up for a vote till April.

Senior Congress sources said the Budget provisions would be voted on only after the

Budget Session break when standing committees study the bill. That would give upsetallies enough time to cool off, and, if current trends in wholesale prices continue, foodinflation would also decline.

Ministers did admit that there was no escaping a generalized inflation but pointed out thatduty restoration had been inevitable in view of the need to curb deficits. Allies wouldhave to understand the compulsions that the Centre had to work under and thegovernment could, in the meanwhile, send a stronger signal on anti-inflationarymeasures.

Congress leaders are not insensitive to the political overtones of fuel hikes adding to food

costs, all the more so in the wake of already high inflation in this sector. They wouldcertainly like more initiatives on this front but the decision on fuel prices does not seemto have come as a surprise for the party leadership. There is an expectation that foodprices will cool as the rabi crop progresses well.

The Opposition is expected to keep up its pressure on prices as it looks to milk anobvious political issue. While BJP leaders agree that Mukherjee had few options but torestore excise and customs duties, they felt that the FM had provided them an opening.The decision on hikes, apart from those due to excise, could have been taken after theBudget as well.

History of Indian Budget

India's first Finance Minister Sir R.K. Shanmugham Chetty, presented the first Finance Budget of

independent India on November 26, 1947. Since then, 28 different Union Finance Ministers have beenpresenting the budget year after year. Initially, major attention was paid towards the agriculture sector but as

the economy evolved, the focus shifted from agriculture to other sectors like industrial, financial etc.

During the early the fifties, Indian budget highlights revolved around the public sector and public finance and

hence, back then - taxation, inflation, public savings etc were much talked about topics. This trend continued

till the finance budget 1985-86.


3/83

The change in the approach began with Mr. Manmohan Singh who served as the Union Finance Minister

under the leadership of Mr. P.V. Narsimha Rao. Mr. Singh was instrumental in headstarting the new phase

of economic liberalization. He reduced the control of Government over public sector units through

disinvestment. The liberalization process which he started years back is still followed and is seen in interim

budget and Indian budget announcements every year.

Facts Bite

y First Finance Minister: Shanmugham Chetty

y Number of Finance Minister Since Independence: 28

y Maximum Number of Budgets Presented by: Morarji Desai

y Economic Liberalization Started by: Mr. Manmohan Singh ( Finance Minister 1991)

y Current Finance Minister: Mr. Pranab Mukherjee

Fuel prices likely to go upThe fuel prices are likely to go up very soon. Finance minister Pranab Mukherjee announced in theparliament today that excise duty on petrol and diesel will be raised to Rs 1/litre.He also announced to restore 5% duty on crude petroleum and 7.5% duty on petrol and diesel.With this announcement there was an uproar in the paliament and the oppostion walkout in Lok Sabha

Income Tax Slabs Relaxations and Slab RestructuredThe finance minister of India Mr. Pranab Mukherjee announced the restructuring of Income tax slabs whilepresenting the budget for 2010-11. The new slabs include 30% tax on income above Rs 8 lacs , 20% tax onincome between Rs5 lacs to 8 lacs and 10% tax on income between Rs1.6 lacs to 5 lacs.The relaxation limit under section 80C has been inceased to Rs. 2 lakhs. He also announced that theexemption limit in Income Tax will be enhanced to Rs. 1.6 laks.Besides this, the surcharge has also been withdrawn. Current surcharge on companies has also beenreduced to 7.5%.

The presumptive tax limit has also been raised to Rs 60 lacs.He also announced a deduction of Rs 20000 on investment in infra bonds.

Budget Expectations - 2010-11Economic Survey - Highlights (Continued)

y VAT introduction to boost states' tax revenuesy Favours making available food in open market

y Trade gap narrowed to $76.24 bn in April-December.y Favours monthly ration coupons usable anywhere for poor

y Exports in April-December 2009 down 20.3 per centy Imports in April-December 2009 down 23.6 per cent

y Overall approach is to foster "inclusive and green growth promoting fiscal federalism"y FRBM Act needs to specify the nature of shocks that would require relaxation of the targetsy Commission proposes new Fiscal Responsibility and Budgetary Management (FRBM) Act

y Commission recommends increase in states' share to 32 per cent of Central tax proceeds from thecurrent level of 30.5 per cent.

y Finance Commission has asked the government to adopt a "calibrated" strategy for withdrawingstimulus


4/83

y Supply side pressure on inflation will prevail for the near termy V-shaped recovery seen

y Economic recovery weak, says Surveyy High double-digit food inflation in 200910 a great concern

y India's GDP growth at 7.2 % in 2009-10y Hike in fuel prices will impact inflation

y

Review planned schemes for fiscal consolidationy India's GDP expected to return to 9% growth in 2011-2012

y Necessary to watch recovery in private investment in Q3, Q4y Industrial sector growth seen at 8.2%y Service sector growth seen at 8.7 %

y Recovery creates scope for gradual pullback of stimulusy Credit needed for private investment in agriculture

y Fundamental policy changes needed for tradey FY 10 trade outlook has brightened

y India can become world's fastest growing economy in 4 yrsy Current fuel prices not fiscally sustainable

y India not immune to global financial situationy Medium term prospects of Indian economy really strong

y Investment growth rate still below GDP growth ratey GDP expected to grow around 8.5%

y Exports may again turn negative

2% point excise hike expected in budgetThe Cenvat rate for excise duty is expected to rise by 2 percentage points. Raising the excise duty would bethe first step towards mending the fiscal deficit.

Traders hoping a feed on STT statusThe Day traders in export market are looking forward for an update regarding the Securities Transaction Tax(STT) in the forthcoming Union Budget. As per the government's proposed Direct Tax Code (DTC), STT isvery likely to be abolished.

Tax benefits should not be withdrawn: MF industry

The mutual fund (MF) industry expects the finance ministry to retain the existing tax benefits available toinvestors in MF schemes in the forthcoming Union budget.

Assuring millions of Indians that the worst was over and the nation has emerged as abrave warrior from the mid 08 crisis, Finance Minister of India Pranab Mukherjeeexhibited confidence and optimism in his 5th budget speech presented in the parliamenton February 26, 2010. He quoted that the current scenario is much different from the lasttime he presented the Union Budget as the indicators of financial recovery are morepervasive and unambiguous at present. The speedy recovery according to him wastriggered by three incentive packages that the Government launched one after another inthe previous Budget.

In an endeavor to steadily slide back to the 9% GDP growth path and pave way for GSTwithout damaging the revival process, he announced few Indirect Tax proposals whichwill come into force from the current fiscal year. To improve the standard fee on non-petroleum commodities, the FM reduced the Central Excise tariff to 10% from theprevious 8% along with an increase in the explicit tariff rates valid to Portland cementand cement clinker.


5/83

On the same note, the ad valorem of excise tariff on big cars, MUVs and SUVs was hikedto 22% against the previous 20%. In order to strengthen the petroleum rates in the FY2008, the administration offered full tax exemption from basic customs tariff onpetroleum and removed basic tariff from refined petroleum products but in an attempt tosustain the economic consolidation route, 5% of basic tariff was hiked in petroleum, 10%

on other refined petroleum and 7.5% on diesel.

Other indirect tax proposals include: hike in the excise tariff of tobacco, service taxexemption on agricultural seeds, service tax exemption on news agencies, and hike incustoms tariff of platinum and gold, and silver to Rs 300 and Rs 1500 on every kgrespectively.

India Union Budget 2010-2011Railway budget 2010-2011 | Union Budget 2010-2011 | Budget Highlights

Budget Expectation | Budget Survey | Economic Survey 2010-11 Highlights

Budget Tax Proposal

In an attempt to quickly slip back to the high GDP expansion route of 9% and locate effective measures tosupersede the 'double digit growth barrier', the Finance Minister of India Pranab Mukherjee proposed fewinitiative to assist the economic expansion while presenting the India Union Budget 2010-2011 in theparliament on February 26, 2010.

Summation of India Union Budget 2010-2011

The Finance Minister of India began his speech on an impressive note by highlighting the economic growthin various sectors and recommendation of new initiatives for future financial years. Below is the list of theproposals announced by the FM while delivering his budget speech in the parliament -

India Union Budget 2010-2011 General Proposals and Announcements

y Fiscal deficit for the FY 2011 is estimated at 5.5%y 18.9% growth rate registered by manufacturing industry in 2009y Indian Economy is expected to register a 10% GDP growth in the coming yearsy A 7.2% economic growth is estimated to be registered in the current fiscaly The future years are expected to witness gradual segmentation of incentivesy Direct Tax Code and General Sales Tax to be launched in April 2011y A supreme level Fiscal Stability and Development Council to be established by the central

government

y Issue of additional banking licenses by the Reserve Bank of India to private players and non-banking financial organizations

y 6 months extension of the refund term for farmer loans up to June 30th 2011y Undertaking of the introductory development activities for Delhi-Mumbai industrial corridor

y Rs 25000 crores increase by the government via Disinvestment routey Setting up of Technology advisory group under the governance of Nandan Nilekaniy Allocation of Rs 1900 crore for UID authority

India Union Budget 2010-2011 Direct Tax Proposals

y Implementation of Direct tax code from April 1, 2011y Introduction of a simplified 2 page Saral 2 form by Indian Income Tax department for FY 2010-11


6/83

y Loss of Rs 26,000 cr from the initiation of Direct Tax plans and profits of Rs 45,000 from theimplementation of Indirect Tax proposals

y Corporate Tax to continue at the same ratey 3% increase in Minimum Alternate Tax from the previous 15% to 18% on book gainsy Reduction of 10% additional tax on domestic firms to 7.5%y Demand for account assessment of professionals with more than Rs 15 lakh of earnings

India Union Budget 2010-2011 Indirect Tax Proposals

y Service Tax rates to remain constant at 10% in an attempt to include more services under the taxcode

y Increase in the tariff on smoking and non-smoking tobacco commoditiesy 2% increase in Central Excise tariff from the previous 8% to the proposed 10%y Total excise tax exemption on electric carsy Central Customs tariff to remain constant at 10%y Excise tariff of Rs 1 per litre on diesel and petroly Service Tax exemption on News agenciesy Limited reduction in the excise tariff on cementy Service Tax exemption on farming seedsy Hike in the customs tariff on gold and platinum exports from the previous Rs 200 to the proposed

Rs 300

y Hike in Import tax on silver metal to Rs 1500 on every kg

India Union Budget 2010-2011 Individual Tax Proposals

y Individuals earning upto Rs 1.60 lakh will not be levied under Income Tax laws.y Individuals earning from Rs 5 lakh to Rs 8 lakhs will be charged at 10%y Individuals earning above Rs 8 lakh will be taxed at 30%y Tax exemption limit remains constant for Women and Senior Citizens at Rs. 1, 90,000 and Rs. 2,

40,000 respectively.

y Additional deduction of Rs 20,000 will be accessible for making investment in Infrastructure Bonds

India CompanyThe scenario of India Company has incalculably improved in the last few decades. The number of Indiancompanies has increased at a very striking rate. It has been observed that more and more internationalcompanies are willing to have their place of business in India. It is either individually that these foreigncompanies are entering India or through a partnership or with building up a subsidiary of such companies.With more liberalized norms and rules by the Government, more and more companies saw the businessscenario getting better. These have in a way made a positive impact on the India company scenario andaugmented the credibility of the India corporate sector. The future of India Company really looks verypromising indeed.

Alphabetical list of Companies

y Ay By Cy Dy Ey Fy Gy H


7/83

y Iy Jy Ky Ly My N

y Oy Py Ry Sy Ty Uy Vy Wy Y

Highlights of the India Company scenario

1. India has 52 billionaires in 2009 as the Forbes report. This is with all courtesy to the improvementin the India company situation.

2. India has been stated as the world's fastest growing wealth creator, all thanks to a vibrant stockmarket and higher earnings from the strata of Indian companies.

3. The number of top companies in India has outshone their performances in terms of net profit in justsix months of the start of the fiscal year. This depicts a fast growth in corporate earnings.

Amongst all the developments in India, the major one has been in the IT sector. The Indian IT companyscenario has witnessed a fast growth pace and it has in its basket a lot of job opportunities. That is why theIT sector has been considered a prime career option. As a matter of fact, this sector happens to be thefastest growing sectors in the India Company premise.

List of top Indian companies in Forbes

There are 34 top Indian companies that have been listed in the Forbes Global 2000 ranking for 2008. Theleading Indian companies from different sectors are:

WorldRank

Company IndustryRevenue

(billion$)

Profits

(billion$)

Assets

(billion$)

Market

Value(billion $)

193 Reliance Industries Oil & Gas, Petrochemicals 26.07 2.79 30.67 89.29

198Oil and Natural GasCorporation

Oil & Gas Operations 18.90 4.11 33.79 54.11

219 State Bank of India Banking 15.77 1.47 188.56 33.29

303 Indian Oil Corporation Oil & Gas Operations 42.68 1.82 25.39 16.36

374 ICICI Bank Banking 9.84 0.64 91.07 29.85

411 NTPC Electricity generation 7.84 1.60 20.34 41.57

647Steel Authority of IndiaLimited

Steel 7.88 1.45 26.37

738 Tata Steel Steel 5.83 0.97 11.48 14.63

826 Bharti AirtelTelecommunicationsServices

4.26 0.94 6.61 39.16


8/83

846 Reliance CommunicationsTelecommunicationsServices

3.13 0.65 13.08 29.63

927 Tata Consultancy Svcs Software & Services 4.32 0.97 3.03 21.38

949 HDFC Banking 1.49 0.40 16.97 19.07

961 Larsen & Toubro Capital Goods 4.68 0.52 5.72 24.94

967 Bharat Petroleum Oil & Gas Operations 22.77 0.50 8.67 4.161012 Bharat Heavy Electricals Capital Goods 3.99 0.56 5.17 27.92

1040 Infosys Technologies Software & Services 3.21 0.89 3.08 22.09

1093 HDFC Bank Banking 1.96 0.27 21.09 12.87

1102 Wipro Software & Services 3.47 0.68 3.26 15.87

1111 Tata Motors Capital Goods 7.27 0.50 5.77 6.75

1112 Hindustan Petroleum Oil & Gas Operations 20.48 0.39 7.59 2.54

1134 NMDC Materials 0.97 0.54 1.73 34.83

1159 ITC Limited Food Drink & Tobacco 2.98 0.64 3.57 19.01

1166 Punjab National Bank Banking 3.03 0.38 38.42 4.76

1185 DLF Universal Limited Diversified Financials 0.61 0.45 4.19 33.26

1205 Hindalco Industries Materials 4.41 0.62 6.43 6.22

1249 GAIL Utilities 3.83 0.59 5.03 8.93

1305 Canara Bank Banking 3.03 0.35 38.54 2.85

1361 Axis Bank Banking 1.29 0.15 16.91 9.10

1375 Bank of India Banking 2.48 0.26 32.80 4.72

1413Power Grid Corporation ofIndia

Utilities 0.83 0.25 8.50 11.54

1477 Bank of Baroda Banking 2.55 0.26 33.97 3.33

1478National AluminiumCompany

Materials 1.37 0.55 2.20 7.46

1484 Unitech Group Construction 0.76 0.30 3.03 14.57

1527 Grasim Industries Construction 3.24 0.46 3.70 6.62

1597 Reliance Power Utilities 0.00 0.00 0.05 24.32

1737 Indian Overseas Bank Banking 1.43 0.23 19.03 2.25

1744 IDBI Bank Banking 1.70 0.14 24.51 2.14

1753 Power Finance CorporationBusiness Services &Supplies

0.89 0.23 10.80 5.36

1759 Union Bank of India Banking 1.90 0.20 23.76 2.34

1763 Satyam Computer Services Software & Services 1.50 0.33 1.59 7.26

1803 Central Bank of India Banking 1.58 0.12 21.44 1.05

1833 Syndicate Bank Banking 1.54 0.17 20.66 1.28

1919 Mahindra & Mahindra Consumer Durables 4.07 0.35 4.59 4.12

1919 Reliance CapitalBusiness Services &Supplies

0.37 0.16 1.72 11.16

1935 UCO Bank Banking 1.35 0.07 17.32 1.01

1952Oriental Bank ofCommerce

Banking 1.32 0.13 17.05 1.57

1954 Suzlon Energy Utilities 1.85 0.20 2.90 10.52

1996 Allahabad Bank Banking 1.22 0.18 15.68 1.23


9/83

CHALLENGES

To quickly revert to the high GDP growth path of 9 per cent and then find the means tocross the double digit growth barrier.

To harness economic growth to consolidate the recent gains in making developmentmore inclusive.

To address the weaknesses in government systems, structures and institutions atdifferent levels of governance.

OVERVIEW OF THE ECONOMY

India among the first few countries in the world to implement a broad-basedcounter-cyclic policy package to respond to the negative fallout of the global slowdown.

The Advance Estimates forGross Domestic Product (GDP) growth for 2009-10pegged at 7.2 per cent. The final figure expected to be higher when the third and fourthquarter GDP estimates for 2009-10 become available.

The growth rate in manufacturing sector in December 2009 was 18.5 per cent thehighest in the past two decades.

A major concern during the second half of 2009-10 has been the emergence of doubledigit food inflation. Government has set in motion steps, in consultation with the StateChief Ministers, which should bring down the inflation in the next few months andensure that there is better management of food security in the country.

CONSOLIDATING GROWTH

ORGANIZATION OF DATA

Fiscal Consolidation

With recovery taking root, there is a need to review public spending, mobilise resourcesand gear them towards building the productivity of the economy.


10/83

Fiscal policy shaped with reference to the recommendations of the Thirteenth FinanceCommission, which has recommended a calibrated exit strategy from the expansionaryfiscal 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.

Tax reforms

On the Direct Tax Code (DTC) the wide-ranging discussions with stakeholders havebeen 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 tofinalise the structure of Goods and Services Tax (GST) as well as the modalities of itsexpeditious implementation. Endeavour to introduce GST by April, 2011

Peoples ownership of PSUs

Ownership has been broad based in Oil India Limited, NHPC, NTPC and RuralElectrification Corporation while the process is on for National Mineral DevelopmentCorporation and Satluj Jal Vidyut Nigam. This will raise about Rs 25,000 crore duringthe 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 thefarmers, and overtime reduce the volatility in demand for fertiliser subsidy and containthe subsidy bill.

Petroleum and Diesel pricing policy

Expert Group to advise the Government on a viable and sustainable system of pricing ofpetroleum products has submitted its recommendations.

Decision on these recommendations will be taken in due course. Improving InvestmentEnvironment

Foreign Direct Investment

Number of steps taken to simplify the FDI regime.


11/83

Methodology for calculation of indirect foreign investment in Indian companies hasbeen clearly defined.

Complete liberalisation of pricing and payment of technology transfer fee andtrademark, 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 tostrengthen and institutionalise the mechanism for maintaining financial stability.

This Council would monitor macro-prudential supervision of the economy, includingthe functioning of large financial conglomerates, and address inter-regulatorycoordination issues.

Banking Licences

RBI is considering giving some additional banking licenses to private sector players. Non Banking Financial Companies could also be considered, if they meet the RBIseligibility criteria.

Public Sector Bank Capitalisation

Rs. 16,500 crore provided to ensure that the Public Sector Banks are able to attain aminimum 8 per cent Tier-I capital by March 31, 2011.

Recapitalisation of Regional Rural Banks (RRB)

Government to provide further capital to strengthen the RRBs so that they haveadequate capital base to support increased lending to the rural economy.

Corporate Governance

Government has introduced the Companies Bill, 2009 in the Parliament to replace theexisting Companies Act, 1956, which will address issues related to regulation incorporate sector in the context of the changing business environment.

Exports

Extension of existing interest subvention of 2 per cent for one more year for exportscovering handicrafts, carpets, handlooms and small and medium enterprises.

Agriculture Growth

Government will follow a four-pronged strategy, covering


12/83

(a) Agricultural production

Rs. 400 crore provided to extend the green revolution to the eastern region of thecountry comprising Bihar, Chattisgarh, Jharkhand, Eastern UP, West Bengal and Orissa.

Rs. 300 crore provided to organise 60,000 pulses and oil seed villages in rain-fedareas during 2010-11 and provide an integrated intervention for water harvesting,watershed management and soil health, to enhance the productivity of the dry landfarming areas.

Rs. 200 crore provided for sustaining the gains already made in the green revolutionareas through conservation farming, which involves concurrent attention to soil health,water conservation and preservation of biodiversity.

(b) Reduction in wastage of produce

Government to address the issue of opening up of retail trade. It will help in bringingdown the considerable difference between farm gate, wholesale and retail prices.

Deficit in the storage capacity met through an ongoing scheme for private sector participation FCI to hire godowns from private parties for a guaranteed period of 7years.

(c) Credit support to farmers

Banks have been consistently meeting the targets set for agriculture credit flow in thepast few years. For the year 2010-11, the target has been set at Rs.3,75,000 crore.

In view of the recent drought in some States and the severe floods in some other parts ofthe country, the period for repayment of the loan amount by farmers extended by sixmonths from December 31, 2009 to June 30, 2010 under the Debt Waiver and DebtRelief Scheme for Farmers.

Incentive of additional one per cent interest subvention to farmers who repay short-termcrop loans as per schedule, increased to 2% for 2010-11.

(d) Impetus to the food processing sector

In addition to the ten mega food park projects already being set up, the Government hasdecided to set up five more such parks.

External Commercial Borrowings to be available for cold storage or cold room facility,including for farm level pre-cooling, for preservation or storage of agricultural and alliedproduce, marine products and meat.

Infrastructure


13/83

Rs 1,73,552 crore provided for infrastructure development which accounts for over 46per cent of the total plan allocation.

Allocation for road transport increased by over 13 per cent from Rs. 17,520 crore to Rs19,894 crore.

Rs 16,752 crore provided for Railways, which is about Rs.950 crore more than last year.

India Infrastructure Finance Company Limited (IIFCL)

IIFCLs disbursements are expected to touch Rs 9,000 crore by end March 2010 andreach around Rs 20,000 crore by March 2011.

IIFCL has refinanced bank lending to infrastructure projects of Rs. 3,000 crore during

the current year and is expected to more than double that amount in 2010-11.

The take-out financing scheme announced in the last Budget is expected to initiallyprovide finance for about Rs. 25,000 crore in the next three years.

Energy

Plan allocation for power sector excluding RGGVY doubled from Rs.2230 crore in2009-10 to Rs.5,130 crore in 2010-11.

Government proposes to introduce a competitive bidding process for allocating coal blocks for captive mining to ensure greater transparency and increased participation in

production from these blocks.

A Coal Regulatory Authority to create a level playing field in the coal sectorproposed to be set up.

Plan outlay for the Ministry of New and Renewable Energy increased by 61 per centfrom Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-11.

Solar, small hydro and micro power projects at a cost of about Rs.500 crore to be set upin Ladakh region of Jammu and Kashmir.

Environment and Climate change

National Clean Energy Fund for funding research and innovative projects in cleanenergy technologies to be established.

One-time grant of Rs.200 crore to the Government of Tamil Nadu towards the cost ofinstallation of a zero liquid discharge system at Tirupur to sustain knitwear industry.


14/83

Rs.200 crore provided as a Special Golden Jubilee package for Goa to preserve thenatural resources of the State, including sea beaches and forest cover.

Allocation for National Ganga River Basin Authority (NGRBA) doubled in 2010-11 toRs.500 crore.

Schemes on bank protection works along river Bhagirathi and river Ganga-Padma in parts of Murshidabad and Nadia district of West Bengal included in the CentrallySponsored Flood Management Programme.

A project at Sagar Island to be developed to provide an alternate port facility in WestBengal.

INCLUSIVE DEVELOPMENT

The spending on social sector has been gradually increased to Rs. 1,37,674 crore in

2010-11, which is 37% of the total plan outlay in 2010-11.

Another 25 per cent of the plan allocations are devoted to the development of ruralinfrastructure.

Education

Plan allocation for school education increased by 16 per cent from Rs.2 6,800 crore in2009-10 to Rs.3 1,036 crore in 2010-11.

In addition, States will have access to Rs.3,675 crore for elementary education under the

Thirteenth Finance Commission grants for 2010-11.

Health

An Annual Health Survey to prepare the District Health Profile of all Districts shall beconducted in 2010-11.

Plan allocation to Ministry of Health & Family Welfare increased from Rs 19,534 crorein 2009-10 to Rs 22,300 crore for 2010-11.

Financial Inclusion

Appropriate Banking facilities to be provided to habitations having population in excessof 2000 by March, 2012.

Insurance and other services to be provided using the Business Correspondent model.By this arrangement, it is proposed to cover 60,000 habitations.


15/83

Augmentation of Rs. 100 crore each for the Financial Inclusion Fund (FIF) and theFinancial Inclusion Technology Fund, which shall be contributed by Government ofIndia, RBI and NABARD.

Rural Development

Rs. 66,100 crore provided for Rural Development.

Allocation for Mahatma Gandhi National Rural Employment Guarantee Schemestepped up to Rs.40,100 crore in 2010-11.

An amount of Rs.48,000 crore allocated for rural infrastructure programmes underBharat Nirman.

Unit cost under Indira Awas Yojana increased to Rs.45,000 in the plain areas and toRs.48,500 in the hilly areas. Allocation for this scheme increased to Rs.10,000 crore.

Allocation to Backward Region Grant Fund enhanced by 26 per cent from Rs.5,800crore in 2009-10 to Rs 7,300 crore in 2010-11.

Additional central assistance of Rs 1,200 crore provided for drought mitigation in theBundelkhand region.

Urban Development and Housing

Allocation for urban development increased by more than 75 per cent from Rs.3,060crore to Rs.5,400 crore in 2010-11.

Allocation for Housing and Urban Poverty Alleviation raised from Rs. 850 crore toRs.1,000 crore in 2010-11.

Scheme of one per cent interest subvention on housing loan upto Rs. 10 lakh, where thecost of the house does not exceed Rs.20 lakh announced in the last Budget extended up to March 31, 2011. Rs.700 crore provided for this scheme for the year 2010-11.

Rs. 1,270 crore allocated for Rajiv Awas Yojana as compared to Rs. 150 crore last year.

Micro, Small & Medium Enterprises

High Level Council on Micro and Small Enterprises to monitor the implementation ofthe recommendations of High-Level Task Force constituted by Prime Minister.

Allocation for this sector to be increased from Rs. 1,794 crore to Rs.2,400 crore for theyear 2010-11.


16/83

The corpus for Micro-Finance Development and Equity Fund doubled to Rs.400 crorein 2010-11.

Unorganised Sector

National Social Security Fund for unorganised sector workers

National Social Security Fund for unorganised sector workers to be set up with an initialallocation of Rs.1000 crore. This fund will support schemes for weavers, toddy tappers,rickshaw pullers, bidi workers etc.

Rashtriya Swasthya Bima Yojana benefits extended to all such Mahatma Gandhi NREGA beneficiaries who have worked for more than 15 days during the precedingfinancial year.

A new initiative, Swavalamban will be available for persons who join New Pension

Scheme (NPS), with a minimum contribution of Rs. 1,000 and a maximum contributionof Rs.12,000 per annum during the financial year 2010-11, wherein Government willcontribute Rs. 1,000 per year to each NPS account opened in the year 2010-11.Allocation of Rs.100 crore made for this initiative.

Skill development

National Skill Development Corporation has approved three projects worth about Rs 45crore to create 10 lakh skilled manpower at the rate of one lakh per annum.

An extensive skill development programme in the textile and garment sector to be

launched by leveraging the strength of existing institutions and instruments of the TextileMinistry to train 30 lakh persons over 5 years.

Social Welfare

Plan outlay for Women and Child Development stepped up by almost 50 per cent.

The ICDS platform being expanded for effective implementation of the Rajiv GandhiScheme for Adolescent Girls.

Saakshar Bharat to further improve female literacy rate launched with a target of 7

crore non-literate adults which includes 6 crore women.

Mahila Kisan Sashaktikaran Pariyojana to meet the specific needs of women farmers tobe launched with a provision of Rs 100 crore as a sub-component of the National RuralLivelihood Mission.


17/83

Plan outlay of the Ministry of Social Justice and Empowerment enhanced by 80 per centto Rs.4500 crore. With this enhancement, the Ministry will be able to revise rates ofscholarship under its post-matric scholarship schemes for SCs and OBC students.

Plan allocation for the Ministry of Minority Affairs increased by 50 per cent from

Rs.1,740 crore to Rs.2,600 crore for the year 2010-11.

STRENGTHENING TRANSPARENCY & PUBLIC ACCOUNTABILTY

Financial Sector Legislative Reforms Commission to be set up to rewrite and clean upthe financial sector laws to bring them in line with the requirements of the sector.

Rs 1,900 crore allocated to the Unique Identification Authority of India (UIDAI) for2010-11. UIDAI will be able to meet its commitments of issuing the first set of UIDnumbers in the coming year

A Technology Advisory Group for Unique Projects (TAGUP) to be set up to look intovarious technological and systemic issues for effective tax administration and financialgovernance.

Independent Evaluation Office (IEO) chaired by the Deputy Chairman, PlanningCommission to be set up to evaluate the impact of flagship programmes.

BUDGET ESTIMATES 2010-11

The Gross Tax Receipts are estimated at Rs. 7,46,651 crore

The Non Tax Revenue Receipts are estimated at Rs. 1,48,118 crore.

The net tax revenue to the Centre as well as the expenditure provisions in 2010-11 have been estimated with reference to the recommendations of the Thirteenth FinanceCommission.

The total expenditure proposed in the Budget Estimates is Rs. 11,08,749 crore, which isan increase of 8.6 per cent over last year.

The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs. 3,73,092 croreand Rs. 7,35,657 crore respectively. While there is 15 per cent increase in Plan

expenditure, the increase in Non Plan expenditure is only 6 per cent over the BE ofprevious year.

Fiscal deficit for BE 2010-11 at 5.5 per cent of GDP, which works out to Rs.3,8 1,408crore.


18/83

Taking into account the various other financing items for fiscal deficit, the actual netmarket borrowing of the Government in 2010-11 would be of the order of Rs.3 ,45,0 10crore. This would leave enough space to meet the credit needs of the private sector.

The rolling targets for fiscal deficit are pegged at 4.8 per cent and 4.1 per cent for 2011-

12 and 2012-13, respectively.

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 the Revised Estimates for 2009-10.

Conscious effort made to avoid issuing bonds to oil and fertilizer companies.Government would like to continue with this practice of extending Government subsidyin cash, thereby bringing all subsidy related liabilities into Governments fiscalaccounting.

TAX PROPOSALS

The Centralized Processing Centre at Bengaluru is now fully functional and isprocessing around 20,000 returns daily. This initiative will be taken forward by setting uptwo more Centres during the year.

The Income Tax department has introduced Sevottam, a pilot project at Pune, Kochiand Chandigarh through Aayakar Seva Kendras, which provide a single window systemfor registration of all applications including those for redressal of grievances as well aspaper returns. The scheme will be extended to four more cities in the year.

Automation of Central Excise & Service Tax, has already been rolled out throughout

the country this year. Similarly, a Mission Mode Project for computerization ofCommercial Taxes in States has been approved recently. With an outlay of Rs. 1133crore of which the Centres share is Rs. 800 crore, the project will lay the foundation forthe launch of GST.

The income tax department to notify SARAL-II form for individual salaried taxpayersfor the coming assessment year.

Scope of cases which may be admitted by the Settlement Commission expanded toinclude proceedings related to search and seizure cases pending for assessment. Scope ofSettlement Commission also expanded in respect of Central Excise and Customs to

include certain categories of cases that hitherto fell outside its jurisdiction.

Bi-lateral discussions commenced to enhance the exchange of bank related and otherinformation to effectively track tax evasion and identify undisclosed assets of residentIndians lying abroad.

Direct Taxes


19/83

Income tax slabs for individual taxpayers to be as follows

Income upto Rs 1.6 lakh Nil

Income above Rs 1.6 lakh and upto Rs. 5 lakh 10 per cent

Income above Rs.5 lakh and upto Rs. 8 lakh 20 per cent

Income above Rs. 8 lakh 30 per cent

Deduction of an additional amount of Rs. 20,000 allowed, over and above the existinglimit of Rs. 1 lakh on tax savings, for investment in long-term infrastructure bonds asnotified by the Central Government

Besides contributions to health insurance schemes which is currently allowed as adeduction under the Income-tax Act, contributions to the Central Government Health

Scheme also allowed as a deduct ion under the same provision.

Current surcharge of 10 per cent on domestic companies reduced to 7.5 per cent.

Rate of Minimum Alternate Tax (MAT) increased from the current rate of 15 per centto 18 per cent of book profits.

To further encourage R&D across all sectors of the economy, weighted deduction onexpenditure incurred on in-house R&D enhanced from 150 per cent to 200 per cent.Weighted deduction on payments made to National Laboratories, research associations,colleges, universities and other institutions, for scientific research enhanced from 125 per

cent to 175 per cent.

Payment made to an approved association engaged in research in social sciences orstatistical research to be allowed as a weighted deduction of 125 per cent. The income ofsuch approved research association shall be exempt from tax.

Benefit of investment linked deduction under the Act extended to new hotels of two-starcategory and above anywhere in India to boost investment in the tourism sector.

Allow pending projects to be completed within a period of five years instead of fouryears for claiming a deduction of their profits, as a one time interim relief to the housing

and real estate sector. Norms for built-up area of shops and other commercialestablishments in housing projects to be relaxed to enable basic facilities for theirresidents.

Limits for turnover over which accounts need to be audited enhanced to Rs. 60 lakh forbusinesses and to Rs. 15 lakh for professions.


20/83

Limit of turnover for the purpose of presumptive taxation of small businesses enhancedto Rs. 60 lakh.

If tax has been deducted on payment by way of any expense and is paid before the duedate of filing the return, such expenditure to be allowed for deduction. Interest charged on

tax deducted but not deposited by the specified date to be increased from 12 per cent to18 per cent per annum.

To facilitate the conversion of small companies into Limited Liability Partnerships,transfer of assets as a result of such conversion not to be subject to capital gains tax.

The advancement of any other object of general public utility to be considered ascharitable purpose even if it involves carrying on of any activity in the nature of trade,commerce or business provided that the receipts from such activities do not exceed Rs.10lakh in the year .

Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore for theyear.

Indirect Taxes

Rate reduction in Central Excise duties to be partially rolled back and the standard rateon all non-petroleum products enhanced from 8 per cent to 10 per cent ad valorem.

The specific rates of duty applicable to portland cement and cement clinker alsoadjusted upwards proportionately. Similarly, the ad valorem component of excise duty onlarge cars, multi-utility vehicles and sports-utility vehicles increased by 2 percentage

points to 22 per cent.

Restore the basic duty of 5 per cent on crude petroleum; 7.5 per cent on diesel andpetrol and 10 per cent on other refined products. Central Excise duty on petrol and dieselenhanced by Re. 1 per litre each.

Some structural changes in the excise duty on cigarettes, cigars and cigarillos to bemade coupled with some increase in rates. Excise duty on all non-smoking tobacco suchas scented tobacco, snuff, chewing tobacco etc to be enhanced. Compounded levyscheme for chewing tobacco and branded unmanufactured tobacco based on the capacityof pouch packing machines to be introduced.

Agriculture & Related Sectors

Provide project import status with a concessional import duty of 5 per cent for thesetting up of mechanised handling systems and pallet racking systems in mandis orwarehouses for food grains and sugar as well as full exemption from service tax for theinstallation and commissioning of such equipment.


21/83

Provide project import status at a concessional customs duty of 5 per cent with fullexemption from service tax to the initial setting up and expansion of

Cold storage, cold room including farm pre-coolers for preservation or storage ofagriculture and related sectors produce ; and Processing units for such produce.

Provide full exemption from customs duty to refrigeration units required for themanufacture of refrigerated vans or trucks.

Provide concessional customs duty of 5 per cent to specified agricultural machinery notmanufactured in India;

Provide central excise exemption to specified equipment for preservation, storage and processing of agriculture and related sectors and exemption from service tax to thestorage and warehousing of their produce; and

Provide full exemption from excise duty to trailers and semi-trailers used in agriculture.

Concessional import duty to specified machinery for use in the plantation sector to be,extended up to March 31, 2011 along with a CVD exemption.

To exempt the testing and certification of agricultural seeds from service tax.

The transportation by road of cereals, and pulses to be exempted from service tax.Transportation by rail to remain exempt.

To ease the cash flow position for small-scale manufacturers, they would be permitted

to take full credit of Central Excise duty paid on capital goods in a single installment inthe year of their receipt. Secondly, they would be permitted to pay Central Excise duty ona quarterly, rather than monthly, basis.

Environment

To build the corpus of the National Clean Energy Fund, clean energy cess on coalproduced in India at a nominal rate of Rs.50 per tonne to be levied. This cess will alsoapply on imported coal.

Provide a concessional customs duty of 5 per cent to machinery, instruments, equipment

and appliances etc. required for the initial setting up of photovoltaic and solar thermalpower generating units and also exempt them from Central Excise duty. Ground sourceheat pumps used to tap geo-thermal energy to be exempted from basic customs duty andspecial additional duty.

Exempt a few more specified inputs required for the manufacture of rotor blades forwind energy generators from Central Excise duty.


22/83

Central Excise duty on LED lights reduced from 8 per cent to 4 per cent at par withCompact Fluorescent Lamps.

To remedy the difficulty faced by manufacturers of electric cars and vehicles inneutralising the duty paid on their inputs and components, a nominal duty of 4 per cent

on such vehicles imposed. Some critical parts or sub-assemblies of such vehiclesexempted from basic customs duty and special additional duty subject to actual usercondition. These parts would also enjoy a concessional CVD of 4 per cent.

A concessional excise duty of 4 per cent provided to soleckshaw, a product developed by CSIR to replace manually-operated rickshaws. Its key parts and components to beexempted from customs duty.

Import of compostable polymer exempted from basic customs duty. Infrastructure

Project import status to Monorail projects for urban transport at a concessional basic

duty of 5 per cent granted.

To allow resale of specified machinery for road construction projects on payment ofimport duty at depreciated value.

To encourage the domestic manufacture of mobile phones accessories, exemptions from basic, CVD and special additional duties are now being extended to parts of batterychargers and hands-free headphones. The validity of the exemption from specialadditional duty is being extended till March 31, 2011.

Medical Sector

Uniform, concessional basic duty of 5 per cent, CVD of 4 per cent with full exemptionfrom special additional duty prescribed on all medical equipments. A concessional basicduty of 5 per cent is being prescribed on parts and accessories for the manufacture ofsuch equipment while they would be exempt from CVD and special additional duty.

Full exemption currently available to medical equipment and devices such as assistivedevices, rehabilitation aids etc. retained. The concession available to Governmenthospitals or hospitals set up under a statute also retained.

Specified inputs for the manufacture of orthopaedic implants exempted from import

duty.

Infotainment

To address the difficulties experienced by film industry in importing digital masters offilms for duplication or distribution loaded on electronic medium vis-a-vis those importedon cinematographic film, owing to a differential customs duty structure, customs duty tobe charged only on the value of the carrier medium. The same dispensation would apply


23/83

to music and gaming software imported for duplication. In all such cases the valuerepresenting the transfer of intellectual property rights would be subjected to service tax.

Provide project import status at a concessional customs duty of 5 per cent with fullexemption from special additional duty to the initial setting up Digital Head End

equipment by multi-service operators.

Precious Metals

Rates on precious metals indexed as follows:

On gold and platinum from Rs.200 per 10 grams to Rs.300 per 10 grams

On silver from Rs.1,000 per kg to Rs.1,500 per kg.

Basic customs on Rhodium a precious metal used for polishing jewellery reduced to 2

per cent.

Basic customs duty on gold ore and concentrates reduced from 2 per cent ad valorem toa specific duty of Rs.140 per 10 grams of gold content with full exemption from specialadditional duty. Further, the excise duty on refined gold made from such ore orconcentrate reduced from 8 per cent to a specific duty of Rs.280 per 10 grams.

Other Proposals

Full exemption from import duty available to specified inputs or raw materials requiredfor the manufacture of sports goods expanded to cover a few more items.

Basic customs duty on one of key components in production of micro-wave ovens,namely magnetrons, reduced from 10 per cent to 5 per cent.

Value limit of Rs. 1 lakh per annum on duty-free import of commercial samples aspersonal baggage enhanced to Rs. 3 lakh per annum.

Outright exemption from special additional duty provided to goods imported in a pre-packaged form for retail sale. This would also cover mobile phones, watches and ready-made garments even when they are not imported in pre-packaged form. The refund-basedexemption is also being retained for cases not covered by the new dispensation.

Toy balloons fully exempted from Central Excise duty.

Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent;

Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent;


24/83

Reduction in central excise duty on replaceable kits for household type water filtersother than those based on RO technology to 4 per cent;

Reduction in central excise duty on corrugated boxes and cartons from 8 per cent to 4per cent;

Reduction in central excise duty on latex rubber thread from 8 per cent to 4 per cent;and

Reduction in excise duty on goods covered under the Medicinal and Toilet PreparationsAct from 16 per cent to 10 per cent.

Proposals relating to customs and central excise are estimated to result in a net revenuegain of Rs. 43,500 crore for the year.

Service Tax

Rate of tax on services retained at 10 per cent to pave the way forward for GST.

Certain services, hitherto untaxed, to be brought within the purview of the service taxlevy. These to be notified separately.

Process of refund of accumulated credit to exporters of services, especially in the areaof Information Technology and Business Process Outsourcing, made easy by makingnecessary changes in the definition of export of services and procedures.

Accredited news agencies which provide news feed online that meet certain criteria,

exempted from service tax.

Proposals relating to service tax are estimated to result in a net revenue gain of Rs 3,000crore for the year.

Proposals on direct taxes estimated to result in a revenue loss of Rs. 26,000 crore for theyear. Proposals relating to Indirect Taxes estimated to result in a net revenue gain ofRs.46,500 crore for the year. Taking into account the concessions being given in the taxproposals and measures taken to mobilise additional resources, the net revenue gain isestimated to be Rs. 20,500 crore for the year.

Read more: http://www.taxguru.in/budget-2010/major-highlights-of-union-budget-2010-11.html#ixzz0idHWof6Y


25/83

Finance minister Pranab Mukherjee began presenting the Union budget for2010-11 in the Lok Sabha today after the Cabinet approved the document.Here are some of the highlights of his budget speech.

Union Budget 2010

y

The Indian economy was facing grave uncertainty. Growth had starteddecelerating when the interim and full budget for 2009-10 were presented.

yAt home there was added uncertainty because of subnormal southwestmonsoon.

yYet, the economy now in a far better position than it was

eight years ago.

yIndia weathered the economic crisis well.

yFirst challenge before the government is to quickly revert tohigh GDP growth path of 9%.

yExpects 10% economic growth in the near future.

ySecond challenge is to harness economic growth to make it more

inclusive and consolidate gains.

yThird challenge is to overcome weakness in government's public

delivery mechanism; a long way to go in this.

yImpressive recovery in the past few months. Can witnessfaster recovery in the coming months.

yFood security has been strengthened.

yBut bottleneck of the public delivery mechanism can hold us back.

yFiscal year 2009-10 was challenging for the economy.

yFocus shifted to non-governmental actors and an enabling government.

Government now concentrates on supporting and delivering services to thepoorer sections.

yEconomy stabilised in the first quarter of 2009 itself.

y18.5% manufacturing growth in December was the highest in two

decades.

yFigures for merchandise exports for January encouraging

after turnaround in November and December last year.

yDouble digit food inflation last year due to bad monsoonand drought-like conditions.

yGovernment conscious of the price rise and taking steps to tackle it.

yErratic monsoon and drought-like conditions forced supply-sidebottleneck that fuelled inflation.


26/83

yNeed to review stimulus imparted to economy last year to overcome

the recession.

yNeed to ensure that the demand-supply imbalance is managed.

yNeed to make growth more broad-based.

yNeed to review public spending and mobilise resources.

yStatus paper on public debt within six months.

yGovernment hopes to implement direct tax code from April 2011.

yEarnest endeavour to implement general sales tax in April 2011.

yGovernment will raise Rs25,000 crore from divestment of its stake in

state-owned firms.

yKirit Parekh report on fuel price deregulation will be taken up by

petroleum minister Murli Deora in due course.

yNutrient-based fertiliser subsidy scheme to come into force from April1 this year.

yNutrient-based fertiliser subsidy will reduce volatility of subsidy and

also reduce it.

yMarket capitalisation of five public-sector undertakings listed since

October increased by 3.5 times.

yFDI inflows steady during the year. Government has takenseries of steps to simplify FDI regime. Intends to make FDI policy userfriendly by compling all guidelines into one document.

yGovernment has decided to set up apex-level FinancialStability and Development Council.

yRBI considering issuing banking licences to private companies. Non-

banking finance companies will also be considered if they meet the criteria.

yGovernment to provide Rs16,500 crore to public-sector

banks to maintain tier-I capital.

yGovernment to continue interest subvention of 2% for one more yearfor exports covering handicrafts, carpets,handlooms and small and medium enterprises.

yGovernment to provide Rs300 crore to organise 60,000 pulse andoilseed villages and provide integrated intervention of watershed andrelated programmes.

yRs200 crore provided for climate-resilient agricultureinitiative.

yGovernment committed to ensuring continued growth of

special economic zones.


27/83

yNeed to take firm view on opening up of the retail sector.

yDeficit in foodgrains storage capacity to be met with private-sector

participation.

yPeriod for repayment of loans by farmers extended by six months to

June 30, 2010, in view of the drought and floods in some parts of thecountry.

yInterest subvention for timely repayment of crop loans raised from 1%

to 2%, bringing the effective rate of interest to 5%.

yRoad transport allocation raised by 13% to Rs19,894 crore.

yProposal to maintain thrust of upgrading infrastructure in rural and

urban areas. IIFCL authorised to refinance infrastructure projects.

yRs1,73,552 crore provided for infrastructure development.

yAllocation for railways fixed at Rs16,752 crore, an increase of Rs950

crore over the last financial year.

yGovernment proposes to set up Coal Development Regulatory

Authority.

yMega power plant policy modified to lower cost of generation;

allocation to power sector more than doubled to Rs5,130 crore in 2010-11.

yGovernment favours competitive bidding for coal blocks for captivepower plants.

yRs500 crore allocated for solar and hydro projects for the Ladakh

region in Jammu & Kashmir.

yClean Energy Fund to be created for research in new energy sources.

yAllocation for new and renewable energy ministry increased by 61% to

Rs1,000 crore.

yOne-time grant of Rs200 crore provided to Tirupur textile cluster in

Tamil Nadu.

yAllocation for National Ganga River Basin Authority doubled to Rs500crore.

yAlternative port to be developed at Sagar Island in West Bengal.

yDraft of Food Security Bill ready, to be placed in the public domainsoon.

yOutlay for social sectors pegged at Rs1,37,674 crore, accounting for

37% of the total plan allocation.

yPlan allocation for school education raised from Rs26,800 crore to

Rs31,036 crore in 2010-11.


28/83

y25% of plan outlay earmarked for rural infrastructure development.

yPlan allocation for health and family welfare increased to Rs22,300

crore from Rs19,534 crore.

yFor rural development, Rs66,100 crore have been allocated.

yAllocation for National Rural Employment Guarantee Authority stepped

up to Rs40,100 crore in 2010-11.

yIndira Awas Yojana's unit cost raised to Rs45,000 in the plains and

Rs48,500 in hilly areas.

yAllocation for urban development increased by 75% to Rs5,400 crore

in 2010-11.

y1% interest subvention loan for houses costing up to Rs20 lakh

extended to March 31, 2011; Rs700 crore provided.

yAllocation for development of micro and small-scale sector raised from

Rs1,794 crore to Rs2,400 crore.

yRs1,270 crore provided for slum development programme, marking an

increase of 700%.

yGovernment to set up National Social Security Fund with initial

allocation of Rs1,000 crore to provide social security to workers in theunorganised sector.

yGovernment to contribute Rs1,000 per annum to each

account holder under the new pension scheme.

yExclusive skill development programme to be launched for textile and

garment-sector employees.

yAllocation for woman and child development increased by 80%

yPlan outlay for the social justice ministry raised by 80% to Rs4,500crore.

yPlan allocation for minority affairs ministry raised from Rs1,740 crore

to Rs2,600 crore.

yFinancial-Sector Legislative Reforms Committee to be set

up.

yRs1,900 crore allocated for Unique Identification Authority of India.

yA unique identity symbol will be provided to the rupee in line with the

US dollar, British pound sterling, euro and Japanese yen.

yDefence allocation pegged at Rs1,47,344 crore in 2010-11against Rs1,41,703 crore in the previous year. Of this, capital expenditurewould account for Rs60,000 crore.


29/83

yPlanning Commission to prepare integrated action plan for

Naxal-affected areas to encourage "misguided elements" to eschewviolence and join the mainstream.

yGross tax receipts pegged at Rs7,46,656 crore for 2010-11, non-tax

revenues at Rs1,48,118 crore.

yTotal expenditure pegged at Rs11.8 lakh crore, an increase of 8.6%.

yFiscal deficit at 5.5%.

yFiscal deficit seen at 4.8% and 4.1% in 2011-12 and 2012-13,

respectively.

yNon-plan expenditure pegged at Rs37,392 crore and plan expenditure

at Rs7,35,657 crore in budget estimates. Proposed increase of 15% in planexpenditure and 6% in non-plan expenditure.

yCash subsidy for fuel and fertiliser instead of previous practice of

bonds to continue.

yFiscal deficit pegged at 6.9% in 2009-10 as against 7.8% in the

previous fiscal.

yGovernment's net borrowing to be Rs3,45,010 crore for 2010-11.

yIncome-tax department ready with two-page Saral-2 returns

form for individual salaried assesses.

yPersonal income-ax rates pruned:

Income up to Rs1.6 lakh nilIncome above Rs1.6 lakh and up to Rs5 lakh 10%Income above Rs5 lakh and up to Rs8 lakh 20%

Income above Rs8 lakh 30%

yAdditional deduction of Rs20,000 allowed on long-term

infrastructure bonds for income-tax payers; this is above Rs1 lakh onsavings instruments allowed already.

yInvestment-linked tax deductions to be allowed to two-star hotels

anywhere in the country.

yInvestment-linked tax deductions to be allowed to two-star hotels anywhere in thecountry.

Weighted deduction of 125% for payments to approved associations

doing social and statistical research.

yOne-time interim relief to housing and real-estate sector.

yBusinesses with a turnover of up to Rs60 lakh and professionals

earning up to Rs15 lakh to be exempted from the obligation to audit theiraccounts.

yHousing projects allowed to be completed in five years instead of four

to avail of tax breaks.


30/83

yRevenue loss of Rs26,000 crore on direct tax proposals.

yCentral excise duty on all non-petroleum products raised to 10% from

8%.

UNION BUDGET 2010-11

y Opposition walkout during budget first in history

y BJP lambasts Govt for fuel price hike

y Net gain from indirect taxes Rs 46500 Crs

y Direct tax relief to result in loss of Rs 26000 Crs

y Net revenue from tax proposals Rs 20500 Crs

y Pranab has exercised modernation, says PM

y Section 80c investment limit hiked by Rs 20000y Excise duty on solar panels waived

y Accreditted news agencies exempted from service tax

y Sensex shoots up 391 pts after tax slabs announced

y Online news agencies to attract service tax

y Service Tax rates unchanged

y Account auditing for all income above Rs 15 lacs

y More services to be brought under tax net

y Rationalisation of customs duty on gaming softwarey Toys exempted from excise duty, to become cheaper

y Jewellery to be more expensive

y Monorail granted project import status

y CDs to be cheaper

y Excise duty on CFL halved to 4%

y Customs duty on Gold and Platinum hiked

y Refrigerators to be costlier

y

Televisions to be costliery Mobile phones to become cheaper

y Peak customs duty unchanged at 10%

y Cement to be costlier

y Air conditioners to be costlier

y Oppostion walkout in Lok Sabha


31/83

y Uproar in Parliament over hike in fuel prices

y Excise on all non smoking tobacco raised

y 7.5% duty on petrol and diesel restored

y 5% duty on crude petroleum restored

y Fuel prices likely to go up

y Excise duty on petrol and diesel raised to Rs 1/litre

y Cigarettes to be costlier

y Excise on large cars,SUVs, MUV raised to 22%

y Partial rollback in Excise Duty from 10% to 8%

y Excise on large cars,SUVs, MUV raised to 22%

y Presumptive tax limit raised to Rs 60 lacs

y Investment linked deduction benefit for 2 Star hotels

y Deduction of Rs 20000 on investment in infra bonds

y Weighted deduction on R&D raised to 200% from 150%

y No tax on Income up to Rs 1.6 lacs

y Current surcharge on companies reduced to 7.5%

y Minimum Alternate tax hiked to 18%

y 30% tax on income above Rs 8 lacs

y 20% tax on income between Rs 5 lacs to 8 lacs

y 10% tax on income between Rs 1.6 lacs to 5 lacs

y IT tax slabs broadened

y IT dept to notify Saral 2 form for individual tax payers

y IT exemption limit enhanced, surcharge withdrawn

y FY11 net market borrowings pegged at Rs 3.45 lac Crs

y 20 Kms of highway to be constructed everyday

y FY10 budget deficit seen at 6.9% of GDP

y FY12 fiscal deficit target at 4.8%

y FY13 fiscal deficit target at 4.1%

y More than 50% increase in funds for minority welfarey Fiscal deficit target of 5.5% in FY11

y 15% rise in planned expenditure

y Govt to set up National Mission for delivery of justice

y Gross tax receipts Rs 7.46 lac Crs

y Rs 950 cr more for Railways


32/83

y Defence capex raised to Rs 60000 Crs

y Allocation to defence raised to Rs 1.47 lac Crs

y Pvt sector to meet food grain storage deficit

y Rs 100 Cr woman farmer fund scheme

y Rs 1900 Crs allocated for UID project

y Skill development programme for textile sector

y Home loans up to Rs 20 lacs to get intrest subvention of 1% up to March 11

y Government to contribute Rs 1000 per month for pension security

y Rs 5400 Crs allocated for urban development

y Rs 66100 Crs allocated for rural development

y Rs 2400 Crs allocated for MSMEs

y Social Security Fund to have corpus of over Rs 1000 Crs

y National Social Security fund for unorganised workers

y Intrest subvention for housing loans up to 1 lacs

y Rs 10,000 Crs allocated for Indira Awas Yojna

y Rs 1200 Crs assistance for drought in Bundelkhand

y Rs 48000 Crs for Bharat Nirman

y NREGA scheme allocation raised to Rs 41000 Crs

y Allocation to health Rs 22,300 Crs

y 25% of plan allocation for rural infrastructure

y Social sector spending seen at Rs 1.38 lakh Crs

y Allocation for school education up from Rs 26800 Crs to Rs 31036 Crs

y Allocation to power sector at Rs 5130 Crs

y Rs 200 Crs for Tamilnadu textile sector

y One time grant for Tirupur exports

y Draft food security Bill ready

y Clean energy fund to be established

y Allotment for renewable energy hiked by 61%

y Coal regulatory authority to be set upy Road development hiked to Rs 19894 Crs

y Rs 1.73 lakh Crs, which is 46% of total plan outlay, reserved for infrastructure

development

y 2% loan subsidy to farmers

y Farm credit targets to be increased to Rs 3.75 lakh Crs


33/83

y Farm loan payments to be extended for six months

y Interest subvention of 2% to be extended for handicrafts and SMEs

y Rs 300 Crs for agricultural impetus

y Additional Rs 1,65,000 Crs for bank re-capitalisation

y Intrest subvention for exports to extended for one year

y RBI may give banking licenses to Pvt cos and NBFCs

y FDI policy to be made more user-friendly

y Indian Rupee to get unique identity and symbol

y To discuss Kirit Parikh report in due course

y Fertiliser subsidy to be reduced

y Divestment target of Rs 25,000 Crs

y GST to be implemented from 2011

y Hope to implement Direct Tax Code from April 2011

y Calibrated exit strategy for fiscal stimulus

y Need to review stimulus, go back to fiscal prudence

y Significant private investment inflow expected to boost GDP

y Economy can achieve GDP growth of 10%

y India faces a challenge of reverting to double digit growth

y FY 2009-10 was a challenging year

y Need to improve food security and healthcare systems

y Indian economy in far better position than last year, says Pranab

y Pranab Mukherjee starts Budget speech

y Pranab Mukherjee arrives in Parliament

y Parliament to convene at 11 am

y All eyes on stimulus rollback

y Pranab Mukherjee reaches North Block

Indian BudgetIndia's Budget - India'spublic financesystem follows the British pattern. TheIndian constitution establishes thesupremacy of the bicameral Parliament--specifically the Lok Sabha (House of thePeople)--in financial matters. No central


34/83

government taxes are levied and nogovernment expenditure from publicfunds disbursed without an act ofParliament, which also scrutinizes andaudits all government accounts to ensure

that expenditures are legally authorizedand properly spent. Proposals fortaxation or expenditures, however, maybe initiated only within the Council ofMinisters--specifically by the minister offinance. The minister of finance isrequired to submit to Parliament, usuallyon the last day of February, a financialstatement detailing the estimatedreceipts and expenditures of the centralgovernment for the forthcoming fiscal

year and a financial review of the currentfiscal year.

The Lok Sabha has one month to review and modify the government's budgetproposals. If by April 1, the beginning of the fiscal year, the parliamentarydiscussion of the budget has not been completed, the budget as proposed by theminister of finance goes into effect, subject to retroactive modifications after theparliamentary review. On completion of its budget discussions, the Lok Sabhapasses the annual appropriations act, authorizing the executive to spend money,and the finance act, authorizing the executive to impose and collect taxes.Supplemental requests for funds are presented during the course of the fiscal

year to cover emergencies, such as war or other catastrophes. The bills areforwarded to the Rajya Sabha (Council of States--the upper house of Parliament)for comment. The Lok Sabha, however, is not bound by the comments, and theRajya Sabha cannot delay passage of money bills. When signed by thepresident, the bills become law. The Lok Sabha cannot increase the request forfunds submitted by the executive, nor can it authorize new expenditures. Taxespassed by Parliament may be retroactive.

Each state government in India maintains its own budget, prepared by the state'sminister of finance in consultation with appropriate officials of the centralgovernment. Primary control over state finances rests with the state legislature in

the same manner as at the central government level. State finances aresupervised by the central government, however, through the comptroller and theauditor general; the latter reviews state government accounts annually andreports the findings to the appropriate state governor for submission to the state'slegislature. The central and state budgets consist of a budget for currentexpenditures, known as the budget on revenue account, and a capital budget foreconomic and social development expenditures.


35/83

The national railroad (Indian Railways), the largest public-sector enterprise, andthe Department of Posts and Telegraph have their own budgets, funds, andaccounts (see Railroads; Telecommunications, this ch.). The appropriations anddisbursements under their budgets are subject to the same form of parliamentaryand audit control as other government revenues and expenditures. Dividends

accrue to the central government, and deficits are subsidized by it, a pattern thatholds true also, directly or indirectly, for other government enterprises.

During the eighth plan, the states were expected to spend nearly Rs1.9 trillion, or42.9 percent of the public outlay. Because of its greater revenue sources, thecentral government shared with the states its receipts from personal incometaxes and certain excise taxes. It also collected other minor taxes, the totalproceeds of which were transferred to the states. The division of the sharedtaxes is determined by financial commissions established by the president,usually at five-year intervals. In the early 1990s, the states received 75 percent ofthe revenue collected from income taxes and around 43 percent of the excise

taxes. The central government also provided the states with grants to meet theircommitments. In FY 1991, these grants and the states' share of taxes collectedby the central government amounted to 40.9 percent of the total revenue of stategovernments.

The states' share of total public revenue collected declined from 48 percent in FY1955 to about 42 percent in the late 1970s, and to about 33 percent in the early1990s. An important cause of the decline was the diminished importance of theland revenue tax, which traditionally had been the main direct tax on agriculture.This tax declined from 8 percent of all state and central tax revenues in FY 1950to less than 1 percent in the 1980s and early 1990s. The states have jurisdiction

over taxes levied on land and agricultural income, and vested interests exertedpressure on the states not to raise agricultural taxation. As a result, in the 1980sand early 1990s agriculture largely escaped significant taxation, although therehas long been nationwide discussion about increasing land taxes or institutingsome sort of tax on incomes of the richer portion of the farm community. Theshare of direct taxes in GDP increased from 2.1 percent in FY 1991 to 2.8percent in FY 1994.

TAXATION

Since independence government has favored more politically palatable indirecttaxes--customs and excise duties--over direct taxes. In the 1980s and early1990s, indirect taxes accounted for around 75 percent of all tax revenuecollected by the central government. State governments relied heavily on salestaxes. Overall, indirect taxes accounted for 84.1 percent of all government taxrevenues in FY 1990. Total government tax revenues amounted to 17.1 percentof GDP in that year, up from 9.0 percent in FY 1960, 11.5 percent in FY 1970,


36/83

and 14.9 percent in FY 1980. In FY 1990, the share of the public sector in GDPwas 26.4 percent. In terms of rupees (in current prices), total government incomerose from Rs259.8 billion in FY 1981 to Rs1.3 trillion in FY 1992 (see table 18,

Appendix).

Comprehensive tax reforms were implemented with the FY 1985 budget.Corporate tax was cut, income taxes simplified and lowered for high-incomegroups, and wealth taxes reduced. Tax receipts in FY 1985 rose by 20 percentover FY 1984 as a result of tightened enforcement, and taxpayers responded tolower taxes with greater compliance. In FY 1986, another major change wasmade with the launching of a long-term program of tax reform designed toeliminate annual changes, which had produced uncertainty. However, in FY1987, when the monsoon failed, the government raised taxes on higher incomegroups. The emergency budget of FY 1991, designed to cope with the nation's1990 balance of payments crisis, increased indirect and corporate taxes, but thebudgets for FY 1992 and FY 1993 reflected the policy of economic liberalization.

They reduced and simplified direct taxes, removed the wealth tax from financialinvestments, and indexed the capital gains tax. The highest marginal rate ofpersonal income tax was 42.5 percent in FY 1992.

Indian Budget 1995 loc data.

Union Budget > Budget Speech

Union Budget 2008-2009

Budget Speech

Budget 2008-2009

Speech of

P. Chidambaram

Minister of Finance


37/83

Mr. Speaker, Sir

I rise to present the Budget for 2008-09. This House and the United Progressive Alliance Government havebestowed upon me the honour of presenting all five Budgets on behalf of a Government - a rare honour th

I have the privilege to share with only one of my distinguished predecessors, Dr. Manmohan Singh.

I. THE ECONOMY: AN OVERVIEW

2. Honourable Members! The India growth story, so far, has been an absorbing and inspiring tale. BeginninJanuary 1, 2005, the economy has recorded a growth rate of over 8 per cent in 12 successive quarters up December 31, 2007. In the first three years of the UPA Government, the Gross Domestic Product (GDP)increased by 7.5 per cent, 9.4 per cent and 9.6 per cent, resulting in an unprecedented average growth ratof 8.8 per cent. In the current year too, according to the Advance Estimates by the Central StatisticalOrganisation (CSO), the growth rate will be 8.7 per cent - although I am confident that we will maintain th

average of 8.8 per cent. The drivers of growth continue to be "services" and "manufacturing", which areestimated to grow at 10.7 per cent and 9.4 per cent, respectively.

3. Nevertheless, 2007-08 has been the most challenging of the last four years. At the beginning of the yeathe outlook for the global economy was benign. Our economy, thanks to our own policies as well asglobalisation, was poised to record another year of high growth: in fact, the first half of 2007-08 returned agrowth of 9.1 per cent. However, since August 2007, the financial markets in the developed countries havewitnessed considerable turbulence that has not yet abated. The consequences for developing countries arealso not yet clear.

4. Moreover, agriculture has struck a disappointing note. Despite a fine start in the first half of 2007-08, thgrowth rate for the whole year in agriculture is estimated at only 2.6 per cent.

5. There are other downside risks too. World prices of crude oil, commodities and food grains have risensharply in the period April 2007 to January 2008. The position of crude oil is well known to this House.Among commodities, the prices of iron ore, copper, lead, tin, urea etc are elevated. The prices of wheat anrice have increased in the world market by 88 per cent and 15 per cent, respectively. All these trends areinflationary, and there is pressure on domestic prices, especially on the prices of food articles.Consequently, the management of the supply side of food articles will be the most crucial task in theensuing year.

6. We have also witnessed capital inflows that are far in excess of the current account deficit. This poses achallenge to monetary management. The solution lies in increasing the absorptive capacity of the economyin the medium term. In the short term, it is our responsibility to manage the flows more actively.Government will, in consultation with the RBI, continue to monitor the situation closely and take suchtemporary measures as may be necessary to moderate the capital flows consistent with the objective ofmonetary and financial stability.

7. Keeping inflation under check is one of the cornerstones of our policy. Recently, the Prime Ministerdeclared, "I think no Government in our country can be oblivious to the objective of ensuring reasonableprice stability without hurting the growth process." There can be no clearer enunciation of policy. However,since the downside risks have increased worldwide, we must be vigilant and prepared to make swift


38/83

adjustments in our policies to achieve the goal of growth with price stability.

8. Let me first deal with agriculture, briefly for the present, and at some length later. The Ministry ofAgriculture has estimated that the total output of food grains in 2007-08 will be 219.32 million tonnes andthat will be an all time record. In particular, production of rice is estimated at 94.08 million tonnes; maize 16.78 million tonnes; soya bean at 9.45 million tonnes; and cotton at 23.38 million bales (of 170 kg each)

and each of these will be an all time record. Government is conscious that while a lot has been done, a lotmore needs to be done. Since the last Budget, Government has formulated and announced the NationalPolicy for Farmers. Besides, Government has launched the Rashtriya Krishi Vikas Yojana with an outlay ofRs.25,000 crore and the National Food Security Mission with an outlay of Rs.4,882 crore. Both schemes wilbe implemented during the Eleventh Five Year Plan period. We are determined to become self-sufficient infood grains. Presently, I shall place before this House a number of new initiatives in the agriculture sector.

The Growth Story: Faster and more inclusive

9. To return to the India growth story, I am of the firm belief that we owe our sustained progress to the

policy of economic reforms first ushered in by a Congress Government and now carried forward by the UPAGovernment.

10. If 1984 and 1991 were turning points in the history of India's economy, 2004 was another turning poinConfident that high growth was sustainable, the UPA Government had declared in the National CommonMinimum Programme its intention to make growth more inclusive. Sir, I ask this House, respectfully, tojudge our record on inclusive growth from the following sample of facts:

agricultural credit doubled in the first two years of this Government and is poised to reach a level ofRs.240,000 crore by March 2008.

the National Rural Employment Guarantee Scheme has proved to be a historic measure of empowerment

of Scheduled Castes and Scheduled Tribes and, especially, of women.

the Mid Day Meal Scheme is the largest school lunch programme in the world covering 11.4 crore childre

the National Rural Health Mission has taken improved health care to rural India by strengthening theprimary health centres of which 8,756 have been made 24 x 7.

the Kasturba Gandhi Balika Vidyalaya Scheme has enrolled 182,000 girls in residential schools, thushelping to bridge the gender gap in education.

Bharat Nirman

11. Bharat Nirman has made impressive progress in 2007-08. This ambitious programme is now over 1,00days old. At the current pace, on each day of the year 290 habitations are provided with drinking water an17 habitations are connected through an all weather road. On each day of the year 52 villages are providedwith telephones and 42 villages are electrified. On each day of the year 4,113 rural houses are completed.

12. Mr. Speaker, just as I sat down to write this speech, I received a slim volume titled "Indira Gandhi -Selected Sayings". Within minutes, I found this gem and I quote, "The more one does, the more one


39/83

attempts, the more one is capable of doing". What I have narrated so far is indeed proof of more inclusivegrowth, but if you ask me "can we do better?", my answer would be "we can and we should." Budget 200809 is about raising our sights and doing more and doing better.

II. THE ELEVENTH FIVE YEAR PLAN:

THE CRUCIAL SECOND YEAR

13. The Eleventh Plan has started on a note of robust growth. Never before did we start a Plan with a firstyear growth rate of 8.7 per cent. Government regards the second year of the Plan as extremely critical tothe success of the Plan. 2008-09 should be a year of consolidation; of securing the ongoing programmes ofirm financial foundations; of close monitoring of implementation and enforcing accountability; and ofmeasuring the outcomes in terms of the targets achieved as well as their quality. The Plan documentsassumed that the Gross Budgetary Support (GBS) in the second year would be Rs.228,725 crore. In ourview, that will not be enough. Hence, I propose to increase the GBS to Rs.243,386 crore, which willrepresent an increase of Rs.38,286 crore over the allocation in 2007-08.

14. Out of the GBS, the allocation for the Central Plan will be Rs.179,954 crore, marking an increase of 16per cent over 2007-08.

15. Let me assure the House that all ongoing programmes will receive ample funds.

16. For Bharat Nirman, I propose to provide Rs.31,280 crore [including the North Eastern Region (NER)component] as against Rs.24,603 crore in 2007-08.

Education: Sarva Shiksha Abhiyan

17. Education and health are the twin pillars on which rests the edifice of social sector reforms. The totalallocation for the education sector (including NER) will be increased by 20 per cent from Rs.28,674 crore in2007-08 to Rs.34,400 crore in 2008-09.

18. Of this, Sarva Shiksha Abhiyan (SSA) will be provided Rs.13,100 crore; the Mid-day Meal Scheme willbe provided Rs.8,000 crore; and secondary education will be provided Rs.4,554 crore.

19. The focus of SSA will shift from access and infrastructure at the primary level to enhancing retention;improving quality of learning; and ensuring access to upper primary classes.

20. A Model School programme, with the aim of establishing 6,000 high quality model schools, will be

started in 2008-09. I propose to provide Rs.650 crore for the new scheme.

Jawahar Navodaya Vidyalaya

21. Jawahar Navodaya Vidyalayas are quality schools. In order to make such schools more accessible to SCand ST students, Government plans to establish Navodaya Vidyalayas in 20 districts that have a large


40/83

concentration of Scheduled Castes and Scheduled Tribes. I propose to set apart Rs.130 crore in 2008-09 fothis purpose.

Kasturba Gandhi Balika Vidyalaya

22. Kasturba Gandhi Balika Vidyalayas were set up to address the issue of equity in the education of girlsbelonging to SC, ST, OBC and minority communities. So far, 1,754 vidyalayas have been started, and Ipropose to allocate funds (as part of SSA) to set up an additional 410 vidyalayas in educationally backwardblocks. I also propose to provide a sum of Rs.80 crore to set up new or upgrade existing hostels attached tthe Balika Vidyalayas.

National Means-cum-Merit Scholarship

23. Last year, I had announced the National Means-cum-Merit Scholarship Scheme to enable students to

continue their education beyond class VIII and up to class XII. I had provided Rs.750 crore with the promisto add a like amount every year for three more years. The Scheme will be implemented by award of100,000 scholarships beginning 2008-09. I intend to keep my promise and earmark another sum of Rs.750crore so that a corpus of Rs.3,000 crore will be built up in four years.

Nehru Yuva Kendra

24. 123 districts do not have a Nehru Yuva Kendra. I propose to allocate Rs.10 crore in 2008-09 to set up Kendra in each of these districts and to cover the recurring expenditure in the first year.

Mid-day Meal Scheme

25. The Mid-day Meal Scheme has been extended to upper primary classes in 3,479 educationally backwarblocks. The scheme will now be extended to upper primary classes in Government and Government-aidedschools in all blocks in the country. This will benefit an additional 2.5 crore children, taking the total numbeof children covered under the Scheme to 13.9 crore.

Institutes of Higher Education

26. Knowledge is power. It is knowledge that will drive success in the 21st ce

Ana Project

Documents

Transcript of Ana Project