Finance Minister Pranab Mukherjee, while presenting the Union Budget for 2010-11 in Parliament, said the Indian economy has weathered the financial crisis, but key challenges remain which have to be tackled by the government.

Quickly reverting to the high GDP growth rate of 9 percent and crossing the double-digit growth barrier is a major challenge, said the Finance Minister, hoping that growth will be more broad-based in the coming months.

2010-2011 Budget Highlights

Agriculture

1.) Southwest monsoon undermined kharif crop.
2.) Erratic monsoon and drought reinforced supply side bottlenecks.
3.) Need for better management of food security in the country.
4.) Four-pronged strategy on agriculture.
5.) Extend Green Revolution to eastern side of the country.
6.) Rs 400 crore for this initiative.
7.) 60,000 pulse and oils villages to enhance productivity
8.) Rs 200 cr for the project.
9.) Rs 200 cr for climate resilience agriculture.
10.) To increase credit to farmers; target raised to Rs 375,000 cr.
11.) Five more food parks to be set up.
12.) Banks taking pro-active role to provide loans to farmers.

13.) 375,000 cr credit by banks to farmers raised from Rs 3,25,000 cr.
14.) Repayment period for farm loans extended by 6 months.

Inflation

1.) Fear of food inflation spreading to other items as well.
2.) Consulting states to bring down inflation.
3.) Consulting state governments to control food prices.
4.) Supply-demand imbalance need to be managed.

Tax and Borrowing

1.) Will implement direct tax code from April 1, 2011.
2.) Finalising the structure of GST, planning to implement it by April 2011.
3.) Deadline for repayment of loan extended by six month to June 2010.
4.) Those who repay loans on time can get fresh loans at 5%.
5.) External borrowing allowed four cold storage.
6.) 2% interest subvention for exports extended.

Infrastructure

1.) To maintain thrust in upgrading infrastructure.
2.) 20 km/day of roads to be built.
3.) 13% increase in road allocation to 19894 cr.
4.) Freight corridor – industrial corridors.
5.) IIFCl set up to provide finance to infra projects.
6.) Infrastructure for food processing: 5 more projects.
7.) Doubled plan allocation to power sector to Rs 5200 cr.
8.) Rs 500 cr for power projects in Ladakh.
9.) Coal regulatory authority to be set up.
10.) Rs 1.73 lakh crore for infrastructure development.

Education

1.) Education allocation at Rs 31,000 crore.

Social Schemes

1.) Shaakshar Bharat Mission to make 7 crore adults literate was launched.
2.) Rs 4500 cr for Ministry of Social Justice.
3.) To support the program for target groups like SCs and STs.
4.) Indian Fine Language Research and Development Centre to be set up.
5.) Minority affairs allocation increased to Rs 2600 crore.
6.) 15% target lending for minorities achieved.
7.) Banks for villages with population over 2000.
8.) Health insurance for NREGA beneficiaries.
9.) Rs 1200 crore for drought hit Bundelkahnd.
10.) 30 lakh people to be helped in textiles.
11.) Women and Child Development Ministry to get 50% more funds vis-à-vis last year.

Personal Income Tax

1.) Personal Income Tax slabs widened.
2.) Income up to Rs 1.6 lakh – NIL.
3.) Above Rs 1.6 lakh to 5 lakh – 10%.
4.) Above Rs 5 lakh to 8 lakh – 20%.
5.) Above Rs 8 lakh – 30%.
6.) Income Tax department ready with Saral-2 form for salaried tax-payers.
7.) 2000 Income Tax Returns daily.
7.) Two more centres for tax filing.
8.) Income tax centres in Pune and Cochin – Single window system to address grievances.
9.) Four more cities to get this system.
10.) Revamp needed of internal working system.
11.) System to tackle tax evasion and get black money abroad.

Other Taxes

1.) Minimum Alternative Tax hiked from 15% to 18%.
2.) Corporate Surcharge down from 10% to 7.5%.
3.) Revenue loss from direct taxes to be Rs 26,000 crore.
4.) Research and Development deduction hiked.
5.) Exemptions for two-star and above hotels anywhere in the country.
6.) 5% tax on crude petrol and 7.5% on diesel.
7.) Excise duty hiked on tobacco.
8.) Partial excise on cement, cars.
9.) Central Excise Duty to be hiked by Re 1/litre on petro-products.
10.) Will implement direct tax code from April 1, 2011.
11.) Finalizing the structure of GST, planning to implement it by April 2011.
12.) Deadline for repayment of loan extended by six month to June 2010.
13.) Those who repay loans on time can get fresh loans at 5%.
14.) External borrowing allowed four cold storages.
15.) 2% interest subvention for exports extended.
16.) Tax collections in FY 10 at Rs 746,651 crore.
17.) Non-tax revenue in FY 10 at Rs 148,118 cr.
18.) Net tax revenue estimate as per 11 Finance Commission recommendations.