Indian Budget 2010: India is coming out of deficit

Pranab Mukherjee, Finance Minister of India has been proposing Central Budget of India for year 2010-11 while writing this hub. This is to quickly update readers with Indian budget. I will write salient features of the budget right now and will edit this hub after the complete proposal is analyzed

Pranab Mukherjee. Union Finance Minister, India has proposed a budget which is addressing both the common men and business and industries. The budget is aimed towards the common men of India as well as internal and international commitments of Indian government.

He has addressed this budget growth oriented and aiming toward double digit growth in Indian economy. The budget is mirror of government policies on economy and finance. India is leading the world in economic sector since a decade and this budget is aiming towards the ambitious plan to be world leader in economy. India has the potential of surpassing China in growth rate and the budget India has shown the will to do so.

He told that he is removing stimulus packages gradually as Indian economy has entered in to normalcy and get out of crises period.

The Finance Minister of India has clarified his intention in the first fifteen minutes of his budget speech. He declared goals and policies of Indian government. It will positively impact on Indian economy.

He has put higher emphasize on infrastructure and enhanced budgetary support to infrastructure sector.

Looking into international commitment of the Indian government in Climate change conference in Copenhagen, the finance minister has increased budget for clean energy by 61 percent. He has announced a policy of producing 20000 MW of solar energy by 2022.

He could keep fiscal deficit with in control by limiting it to 5.50 percent. The finance minister has promised to bring fiscal deficit down to 4.8 percent next year and to 4.1 percent by the fiscal year 2012-13.

He has simplified much awaited income tax act and reduced income tax slab significantly.Form "Saral" is re introduced. It will significantly simplify income tax process for individuals.

Income upto 1.60 lakh will be exempted from income tax and income between 1.60 lakh to 5.00 lakh will be taxed only ten percent. It menas a person with income of Rs. 5.00 lakh will pay tax only Rs. 34 thousands. Income tax will be charged with 20 percent between Rs. 5.00 lakh to rs. 8.00 lakh. Income tax payment will be reduced by Rs. 54 thousands from the previous one for the income slab of rs. 8 lakh.

Government revenue will be reduced by Rs. 26 thousand crores or 260 B from direct taxes but it will be increased by Rs. 46 thousand crores or 460 B from indirect taxes. However, he did not change in the service tax sector significantly.

The finance minister has announced major benefits to workers in unorganized sectors and females.

He has proposed major budgetary support to education sector and core sectors. Policy of opening banking sector to private entities is another bold step.

Import duty on gold and platinum is increased to Rs. 300 per ten gram but import duty is reduced to two percent from ten percent on rhodium to provide major relief to Jewelry industry.

Business community has responded to the budget as positive and stock markets have gone high. BSE sensex has increased by about 300 points during budget speech despite hike in MAT from 15 percent to 18 percent.

Pranab Mukherjee, has provided budgetary support for research and development in Indian budget 2010.

He announced plan of unique ID card provided to Indian citizens. This is a long awaited reform.

The opposition has protested price hike in petroleum products in the parliament. Prices of both petrol and diesel will go up by about Rs. 2.50 per liter after revoking 5 percent duty on petroleum products.