Highlights of Union Budget 2009

Union Budget Highlights: What is in it for you?

Finance Minister Pranab Mukherjee presented Union Budget 2009 in the Parliament. The Minister commenced his speech by stating that the mandate for UPA in the just concluded General Elections is in fact a mandate for inclusive growth and went on to spell out the road ahead for India's growth story.


Highlights of Union Budget 2009:


Impact & outcome


Cheaper: Footwear, LCD TVs, branded jewellery, drugs for heart treatment, bulk drugs, textiles


Dearer: Mobile phones, set-top boxes, gold bars, gold and silver import

Tax slabs raised


Income tax exemption limit for others raised by Rs 10,000 (Rs 1.5 lakh to Rs 1.6 lakh)

Income tax exemption limit for women raised by Rs 10,000 (Rs 1.80 lakh to Rs 1.90 lakh)

Income tax exemption limit for senior citizens raised by Rs 15,000 (Rs 2.25 lakh to Rs 2.40 lakh)

10% surcharge in Direct Taxes scrapped

Individual law consultation not to attract service tax

I-T Saral II form to be introduced

No change in corporate taxation

SEC 80IB benefit extended to natural gas

Investment-linked tax benefits for gas pipelines, cold chains

Sunset clause for Software Technology Parks of India (STPIs) extended by 1 year

Minimum alternate tax increased to 15% from 10% of book profit

Section 80DD to be hiked to Rs 1 lakh

Fringe benefit tax scrapped

What is in it for you?


Govt to spend Rs 120 cr in FY10 on unique ID

Certain pension-related benefits extended to war-hounded

National Web Portal for employer and employee to be launched

Stepped up allocation of funds from Rs 10,800 cr to Rs 15,800 cr for railways

Aila hurricane relief at Rs 1,000 cr

What Young India gets?


Employment exchanges to be modernised

Interest subsidy for educational loans

Plan to cut female illiteracy by half in three yrs

To launch national mission on female literacy

What Agriculture sector gets?


Rashtriya Krishi Vikas Yojna stepped up by 30%

Agri credit for at Rs 3.25 lakh crore for 09-10

Budget makes subvention of 1% to benefit farmers

Proposes to extend deadline to farmers to pay off 75% of loans by six months to December 31, 2009

Ensure 4% agriculture growth

What Rural India gets?


To provide Rs 2000 cr for rural housing

Banking facilities in remote areas in next 3 years

To add handloom clusters in West Bengal and Tamil Nadu

Govt aims to have social security for informal sector

PM's Adarsh Gram Yojana starts with Rs 100 cr funding

NHB refinance to rural housing sector to be raised

Indira Awaas Yojana outlay increased by 63%

Bharat Nirman outlay raised by 59%

Food security to provide rice, wheat at Rs 3 a kg to poor

Allocation for Indira Awaas Yojana to be increased by 63%

Govt. to move food security bill very soon

NREGA outlay increased by 144%

NREGA min wages set at Rs 100/day

Special fund of Rs 4,000 cr from Rural Infra Dev fund to provide cheap loans to MSME

PSUs: Disinvestment on backburner


PSU companies to remain under government control

Govt wants public shareholding in PSUs to go up

PSUs to remain under govt control

Govt to set-up expert committee to advise on petro pricing products

PSU Banks, insurance firms outside disinvestment plan

There are signs of revival in domestic industry

Sops for industry


Construction: Restore full exemption on goods such as pre-fabricated slabs

Branded jewellery exempted from excise duty

Tax holiday on commercial production of mineral oil and natural gas on NELP VIII

MAT hiked to 15% of book profit from 10%

To introduce GST by April 1, 2010

Govt wants public shareholding in PSUs to go up

PSUs to remain under govt control

PSU Banks, insurance firms outside disinvestment plan

Exporters borne the brunt of eco crisis, will provide adj assistance till March 2010

IIFCL and banks in position to support Rs 1,00,000 cr in infrastructure

Infra investment to be over 9% of GDP by 2014

Gross capital flow rose to over 9% over GDP

Financial sector: The road ahead


Budget estimates: Interest payment expected at Rs 2,25,511 cr

8.5% growth in recent past fueled by pvt sector investment

PSU Banks, insurance firms outside disinvestment plan

Turbulence in world markets left Indian financial sector unaffected

Fiscal deficit up to 6.2% from 2.7% fo GDP

IIFCL and banks in position to support Rs 1,00,000 cr in infrastructure

Advantage Infrastructure


Rs 1 lakh crore projects for Infrastructure revival

IIFCL and banks in position to support Rs 1,00,000 cr in infrastructure

Highway and railways: Allocation hiked by 23%

Stepped up allocation of funds from Rs 10,800 cr to Rs 15,800 cr for railways

Govt have some success in attracting investments in certain sectors through PPP

Allocation for Mumbai flood management hiked

Defence Budgets


To spend Rs 1.42 lakh cr on defence

Govt to build 100,000 homes for paramilitary forces

Paramilitary housing project to cost Rs 1,000 cr

Certain Pension related benefits extended to war hounded

Paramilitary housing cost estimated at Rs 1,000 cr

Govt proposes to launch housing for 1 lakh para military forces

Challenges ahead


Fiscal deficit grew from 2.7% to 6.8% of GDP

To lead the economy back to 9% growth

Growth rate in 2008-09 dipped to 6.7% from average 9 % growth in previous 3 fiscal years



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Latest Headlines



Income Tax sops; incentive for farm, exporters

Income tax limit increased, corporate tax unchanged

Fiscal deficit up from Rs 193 lakh cr to Rs 10 lakh cr

Divestment programme revived in General Budget 2009

Stimulus packge for print media extended till Dec 31

Tax structure to be simplified in four years

Sensex soars on hopes of sops from Union Budget

After 25 years, Pranab scores a double first

Budget makes no difference to households, says survey

Roll back stimulus measures: Planning Commission to FM

Budget unlikely to raise cess on petrol, diesel

Govt may extend tax holiday for software firms


Industry wishlist

Dear FM, could you please be our Santa?

What to expect, what not to expect from Pranab's budget?

Simplify taxation process, do away with some Ts?

Own part of a PSU and partner with Mr FM!

How Budgets impact your personal finances


Image Gallery

Pranab Mukherjee's pre-Budget photo call


Watch Videos

Budget 2009 videos: Long road ahead to recovery, say experts


Message board

Will Pranab’s budget take India’s growth story forward?

Will Budget take India’s growth story forward?

Has Pranab done justice to the salaried class?

Will Budget 2009 help fight economic slowdown?

Have the Senior Citizens got a fair deal?

Are the housewives taken for a ride?