Budget 2009-10 Highlights

• Fringe Benefit Tax and Commodity Transaction Tax abolished.
• Personal income tax exemption hiked by Rs 10,000. No surcharge of 10% on personal income tax.
• Centralised processing center at Bengalooru to streamline taxation.
• No change in corporate tax.
• Increase in exemption slab for senior citizens by Rs 15,000.
• Fiscal deficit at 6.8% of GDP.
• Proposes Rs 500 cr for rehabilation of displaced persons of northern and eastern areas of Sri Lanka.
• Aila Relief proposed at Rs 1,000 crore.
• Increased allocation for higher education. New IITs to be set up. Rs 2,113 cr for IITs and NITs.
• Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram.
• Defence outlay goes up. One lakh dwelling units for paramilitary forces personnel to be constructed.
• Allowances to para-military forces at par with defence forces. One rank, one pension for ex-servicemen.
• One rank, one pension for ex-servicemen.
• Allocation for Commonwealth Games to be raised to Rs 3472 crore
• Online job exchange to be started with private partnership.
• Unique ID plan to roll out in 12-18 months.
• Top people from private sector to be given responsibility of vital national projects.
• Interest subsidy for home loans up to Rs 1 lakh.
• All BPL families to be bought under one smart card program.
• 50% of all rural women to be brought into self-help group programmes.
• Rural mega clusters in Bengal and Rajasthan.
• To add handloom clusters in West Bengal and Tamil Nadu.
• 75% hike in irrigation projects.
• Rural Housing: Allocation to Indira Awaas Yojna hiked by 63% to Rs 8,883 cr. Rs 7000 crores for rural electrification scheme.
• Rs 31,100 crore allocation for NREGA. NREGA gave employment opportunities to more than 4.479 cr households.
• Rs 100 cr one-time grant to expand banks in non-banking areas.
• Banks, insurance to stay with Govt. Banking network to be expanded.
• Expert panel to look into petroleum product pricing. Domestic oil prices must be in sync with global prices.
• 'Aam Admi' is the focus of all our programmes and schemes: Pranab
• Tax system should be such that it shold encourage voluntary compliance.
• Income Tax forms to be made user-friendly. Saral-II forms to simplify taxation process.
• Export Credit Guarantee scheme extended till March 2010.
• Stimulus package to print media extended till December 31.
• Farmers loan interest to come down to 6%. Interest subvention scheme for farm loans to be manitained.
• Additional budget allocation for farmers.
• IIFCL will refinance 60% of commercial bank loans in PPP. IIFCL to look at infrastructure needs.
• Mumbai flood management allocation hiked to Rs 500 cr.
• 87% rise in urban renewal mission. Housing allocation hiked.
• Fiscal stimulus at 3.5% of GDP
• Allocation for NHAI up 23%
• Trade in goods and services doubled in 2008
• Job creation hit due to economic slowdown: Pranab
• Govt took 3 stimulus packages so far. Two worst quarters of the global economic crisis is now behind us: Pranab
• One budget can not solve all problems: Pranab
• Foreign capital inflow is important
• Increased focus on growth and encourage nation's development
• Sustain growth rate of 9% for a longer period. Farm sector growth at 4%
• Union Finance Minsiter begins his speech. This is Pranab Mukherjee's 4th budget.
• Cabinet approves Union Budget.

How the Budget could hit your stocks

The Budget is expected to contain measures to accelerate growth while being fiscally prudent.

The Union Budget 2009-10, to be presented on July 6, will be notable in more ways than one.

With the United Progressive Alliance getting a reasonably strong mandate in the May 2009 elections and the absence of major opposition from alliance partners, the market is expecting the Budget to announce bold measures to enhance economic growth in an 'inclusive' manner as well as introduce structural reforms.