The United Nations Development Programme (UNDP) and World Health Organisation (WHO) Tuesday lauded the union budget, saying it would "help achieve millennium development goals".
"We got to recognize that government of India has taken a strong step. We welcome Indian government policy (on social sector)," said UNDP India country director Deirdre Boyd while unveiling the Millennium Development Goal (MDG) report in New Delhi.
"Poverty can be reduced only through economic growth. It (the budget) is a major step. India's track record on poverty eradication is remarkable. At least in the face of crisis, the government has the commitment towards the social sector," Boyd said hailing the budget, which was presented Monday.
Finance Minister Pranab Mukherjee, who has laid a lot of emphasis on health, education and rural infrastructure, has said his budget was dedicated to the "aam aadmi" (the common man).
The health sector has been allocated nearly 23 percent more funds than last year. Similarly, with an allocation of over Rs.44,500 crore, the education sector expenditure has got around 20 percent hike.
Said S.J. Habayeb, the WHO representative to India: "India has done some progress on health front and increased budget allocations for programmes like National Rural Health Mission. I am quite optimistic about these developments."
Added Biswajit Dhar, director general of autonomous think tank Research and Information System for Developing Countries: "Instead of just looking towards the stock exchange, we can see the positives in the budget. The fact that Indian government is taking some real concrete steps is a good sign."
"What we need is sustainable development. The budget is definitely a good one," said Dhar, who is associated in preparing the MDG report.
The UN has eight MDGs for poor and developing countries, including reduction of child and maternal mortality, curbing AIDS, providing universal education and empowerment of women.
Showing posts with label Union Budget 2009. Show all posts
Showing posts with label Union Budget 2009. Show all posts
Tuesday, July 7, 2009
Government probing spurt in deemed universities: Sibal
The government is probing the "spurt" in permissions granted for setting up deemed universities and examining whether they are following the norms laid down for them, Human Resource Development (HRD) Minister Kapil Sibal said Tuesday.
"We have set up a committee. We want to make sure the deemed universities are following the norms. We are carrying out a review," Sibal said during question hour in the Rajya Sabha.
"There has been a spurt (in granting permissions). As and when the report is received, we will proceed further. If there are any shortcomings, we will deal with it," he added.
Responding to a supplementary from K. Malaisamy (AIADMK) on what had prompted the probe, Sibal said: "If something has gone wrong in the past, we must correct it."
Replying to another supplementary from Kalraj Mishra of the Bharatiya Janata Party (BJP), the minister said: "As long as they give excellent education, we have no problem. There is no coloured vision but if something is wrong, we need to do something."
Over 125 deemed universities have been set up in the country since the country's independence in 1947. Of these, 62 have been established in the last five years alone.
On June 4, after a review meeting with officials of the University Grants Commission (UGC), Sibal ordered that the deemed university status awarded to these institutions be reviewed. He also ruled that all pending requests for deemed university status be kept in abeyance.
"The minister has asked the UGC to take up review of the functioning of all the 'deemed-to-be-universities' and report deficiencies within the next three months with respect to maintenance of standards, especially with regard to the availability of the qualified faculty and the infrastructure in the 'deemed-to-be-universities' as well as the sanctity of the admission process for enrolment of students," a statement issued by the HRD ministry said.
"We have set up a committee. We want to make sure the deemed universities are following the norms. We are carrying out a review," Sibal said during question hour in the Rajya Sabha.
"There has been a spurt (in granting permissions). As and when the report is received, we will proceed further. If there are any shortcomings, we will deal with it," he added.
Responding to a supplementary from K. Malaisamy (AIADMK) on what had prompted the probe, Sibal said: "If something has gone wrong in the past, we must correct it."
Replying to another supplementary from Kalraj Mishra of the Bharatiya Janata Party (BJP), the minister said: "As long as they give excellent education, we have no problem. There is no coloured vision but if something is wrong, we need to do something."
Over 125 deemed universities have been set up in the country since the country's independence in 1947. Of these, 62 have been established in the last five years alone.
On June 4, after a review meeting with officials of the University Grants Commission (UGC), Sibal ordered that the deemed university status awarded to these institutions be reviewed. He also ruled that all pending requests for deemed university status be kept in abeyance.
"The minister has asked the UGC to take up review of the functioning of all the 'deemed-to-be-universities' and report deficiencies within the next three months with respect to maintenance of standards, especially with regard to the availability of the qualified faculty and the infrastructure in the 'deemed-to-be-universities' as well as the sanctity of the admission process for enrolment of students," a statement issued by the HRD ministry said.
Budget windfall spurs Asiatic Society's Delhi debut, expansion plans
The 225-year-old Asiatic Society, the pioneering institution promoting Indo-Asian culture, books and heritage in the country, will make its maiden foray into the capital in 2010 from its two-century old Kolkata home.
The Kolkata-based society, set up in 1784 by William Jones, has benefited the most in the 2009-2010 union budget's culture outlay with an allocation of Rs.28.6 crore, logging an increase of Rs.19.34 crore, next to the Archaeological Survey of India, since last year.
"We are scouting for prime land in the capital to set up an extended publication cell of the Asiatic Society, one of the country's oldest heritage publishing houses," a top official of the society told IANS over telephone from Kolkata.
"We hope to acquire it soon. In fact, most of our research papers and the four Asiatic Society journals are picked up by Delhi-centric publishers, who sell them in the capital and in the adjacent states," the official said.
The Asiatic Society, which celebrated its 225th anniversary Jan 15, 2009 with a gala ceremony attended by President Pratibha Patil and Vice President Hamid Ansari, was declared an institute of national importance on its 200th birthday, 25 years ago by then prime minister late Indira Gandhi vide the Asiatic Society Act V (1984).
"Since then, the society has been expanding and recently relocated to a new building from its old 201-year-old headquarters on Park Street. We are in the process of adding two more floors which will cost us Rs.10.5 crore. It will be used from the budget outlay. The plan, which was stuck because of the heritage building of the old Asiatic Society next door, was approved by the ASI and the West Bengal government in April," the official said.
The Asiatic Society is an integral part of the country's British heritage with its collection of 47,000 heritage manuscripts in 26 scripts, 117,000 books, 79,000 journals, 293 old maps, 182 paintings, 2,500 pamphlets and 2,150 photographs.
The earliest printed book preserved in this library is Juli Firmici's "Astronomiconum Libri" published in 1499 AD. The most important historical manuscripts in the possession of the Society include an ancient illustrated Quran and the original text of "Padshanamah (Shahnamah)" bearing Emperor Shah Jahan's signature.
The society's first accession of importance was a gift from the Seringapatnam Committee in 1808 that comprised a collection of books and art works from the palace library of Tipu Sultan.
The society, said the official, will use Rs.3.11 crore from the budget outlay to modernise and digitise its library and manuscript section for "better preservation of books".
"We publish one rare book every month and four annual Asiatic Society journals; but we did not have the money to archive them digitally," the official said.
Besides, the society will spend Rs.3.6 crore for a new campus in Salt Lake in Kolkata, Rs.1 crore for the modernisation of the existing publication unit, Rs.1.5 crore on international seminars, including one of Darwin, whose original works have been in the Asiatic Society journals and Rs.35 lakh on refurbishing the interiors, the official said.
The Asiatic Society will also set up nine core faculties on Indology and ancient language studies.
"The rest of the money - nearly Rs 8 crore - will be kept as a cushion to tide over the cost escalations," the official said.
The Kolkata-based society, set up in 1784 by William Jones, has benefited the most in the 2009-2010 union budget's culture outlay with an allocation of Rs.28.6 crore, logging an increase of Rs.19.34 crore, next to the Archaeological Survey of India, since last year.
"We are scouting for prime land in the capital to set up an extended publication cell of the Asiatic Society, one of the country's oldest heritage publishing houses," a top official of the society told IANS over telephone from Kolkata.
"We hope to acquire it soon. In fact, most of our research papers and the four Asiatic Society journals are picked up by Delhi-centric publishers, who sell them in the capital and in the adjacent states," the official said.
The Asiatic Society, which celebrated its 225th anniversary Jan 15, 2009 with a gala ceremony attended by President Pratibha Patil and Vice President Hamid Ansari, was declared an institute of national importance on its 200th birthday, 25 years ago by then prime minister late Indira Gandhi vide the Asiatic Society Act V (1984).
"Since then, the society has been expanding and recently relocated to a new building from its old 201-year-old headquarters on Park Street. We are in the process of adding two more floors which will cost us Rs.10.5 crore. It will be used from the budget outlay. The plan, which was stuck because of the heritage building of the old Asiatic Society next door, was approved by the ASI and the West Bengal government in April," the official said.
The Asiatic Society is an integral part of the country's British heritage with its collection of 47,000 heritage manuscripts in 26 scripts, 117,000 books, 79,000 journals, 293 old maps, 182 paintings, 2,500 pamphlets and 2,150 photographs.
The earliest printed book preserved in this library is Juli Firmici's "Astronomiconum Libri" published in 1499 AD. The most important historical manuscripts in the possession of the Society include an ancient illustrated Quran and the original text of "Padshanamah (Shahnamah)" bearing Emperor Shah Jahan's signature.
The society's first accession of importance was a gift from the Seringapatnam Committee in 1808 that comprised a collection of books and art works from the palace library of Tipu Sultan.
The society, said the official, will use Rs.3.11 crore from the budget outlay to modernise and digitise its library and manuscript section for "better preservation of books".
"We publish one rare book every month and four annual Asiatic Society journals; but we did not have the money to archive them digitally," the official said.
Besides, the society will spend Rs.3.6 crore for a new campus in Salt Lake in Kolkata, Rs.1 crore for the modernisation of the existing publication unit, Rs.1.5 crore on international seminars, including one of Darwin, whose original works have been in the Asiatic Society journals and Rs.35 lakh on refurbishing the interiors, the official said.
The Asiatic Society will also set up nine core faculties on Indology and ancient language studies.
"The rest of the money - nearly Rs 8 crore - will be kept as a cushion to tide over the cost escalations," the official said.
Union Budget 2009 | Round Up
Promising to reinstate India's high economic growth, Finance Minister Pranab Mukherjee Monday presented a $204-billion annual budget with more funds for welfare schemes and infrastructure, along with a declared "vision" to reach the fruits of progress to each of the country's 1.17 billion people.
Acknowledging the rising expectations of a restless, young population that played a significant role in voting Prime Minister Manmohan Singh's government back to power, Mukherjee also promised new incentives for farmers and a big hike in funding for projects focusing on rural reconstruction, employment, urban renewal, education, health and other areas of social uplift.
He also sought to put more money in the hands of the average citizen by hiking the income tax exemption limit, while assuring a law soon that will address food security in the country by providing 25 kg of rice or wheat per month to the poor at a subsidised price of Rs.3 per kg.
Dressed in a spotless white bandgala suit, the 73-year-old politician said the new United Progressive Alliance (UPA) government will continue to push its agenda of "inclusive growth and equitable development" while meeting the "rising expectations of a young India".
In his typical no-nonsense style, Mukherjee - who had presented his last budget for the Indira Gandhi government 25 years ago - also resisted the temptation of peppering his 100-minute speech, broadcast live, with quotable quotes like many of his predecessors, restricting himself to two couplets from Kautilya, the famous political strategist of Alexander's era, and Mahatma Gandhi.
"The government recognises the challenges this task entails," said the finance minister, referring to the roadmap ahead of the new government in countering the slowing down of India's growth to 6.7 percent in the past year from over 9 percent in the preceding three.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to 9 percent per annum," he said, setting the tone of his fourth career budget watched by Manmohan Singh and UPA chairperson Sonia Gandhi.
The other challenges, he said, included better governance and ensuring that the fruits of development reached across regions to touch the lives of every citizen - the "aam admi", the current catchphrase denoting the common man.
"The finance minister has done an admirable job," the prime minister said, soon after the budget was presented in the Lok Sabha. "The main aim of the budget is to minimise the impact of global recession," Manmohan Singh added.
"Overall, the strategy of the budget is to ensure that our economy recaptures the rhythm of the accelerated growth process. Simultaneously, it seeks to honour in large measure, the commitments we have made to our people."
India Inc, by and large, welcomed Mukherjee's proposals, given the difficult circumstances. But it had hoped for some more tax sops, while expecting a clear signal in the area of selling government stake in state-run enterprises.
The country's stock markets, however, thought otherwise and gave a thumbs down to the budget. The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), a barometer of investor sentiment, fell by nearly 870 points, or 5.8 percent.
In his various proposals, Mukherjee kept the corporate tax rate unchanged, even as the budget sought to reduce the burden on industry by abolishing commodities transaction tax and the fringe benefit tax, but hiked the minimum alternate tax to 15 percent of book profits from 10 percent.
He also promised a pan-India goods and services tax from April next year and gave 100 percent tax deduction to political donations while assuring both short-term and medium-term steps to counter the negative fallout of global slowdown.
The minister enhanced the customs duty on items like set-top boxes, LCD televisions and premium textile goods to encourage domestic production and value addition. He also reduced the excise duties on large vehicles and trucks.
For individuals, the budget sought to raise the income tax exemption limits for senior citizens by Rs.15,000 and for women and other tax payers by Rs.10,000, while scrapping the 10 percent surcharge on personal taxes.
The proposals on direct taxes, he said, would be revenue neutral, while indirect taxes would yield Rs.2,000 crore for the full fiscal.
Yet, Mukherjee hoped to step up non-plan expenditure by 37 percent to Rs.695,689 crore (Rs.6,956 billion/$140 billion) over 2008-09 and plan expenditure by 34 percent to Rs.3,25,149 crore (Rs.3,251.49 billion/$65 billion).
The total increase in expenditure, thus, is 36 percent, he said, as he kept the total borrowing plan for the government at a high level, that will push up the country's fiscal deficit to 6.8 percent of GDP from 6 percent for 2008-09.
Mukherjee said the government would have to overcome all obstacles and create a brave new India.
"As we begin this five-journey, the road ahead will not be easy. We will have to manage uncertainties and there will be as many problems as there would be solutions."
Acknowledging the rising expectations of a restless, young population that played a significant role in voting Prime Minister Manmohan Singh's government back to power, Mukherjee also promised new incentives for farmers and a big hike in funding for projects focusing on rural reconstruction, employment, urban renewal, education, health and other areas of social uplift.
He also sought to put more money in the hands of the average citizen by hiking the income tax exemption limit, while assuring a law soon that will address food security in the country by providing 25 kg of rice or wheat per month to the poor at a subsidised price of Rs.3 per kg.
Dressed in a spotless white bandgala suit, the 73-year-old politician said the new United Progressive Alliance (UPA) government will continue to push its agenda of "inclusive growth and equitable development" while meeting the "rising expectations of a young India".
In his typical no-nonsense style, Mukherjee - who had presented his last budget for the Indira Gandhi government 25 years ago - also resisted the temptation of peppering his 100-minute speech, broadcast live, with quotable quotes like many of his predecessors, restricting himself to two couplets from Kautilya, the famous political strategist of Alexander's era, and Mahatma Gandhi.
"The government recognises the challenges this task entails," said the finance minister, referring to the roadmap ahead of the new government in countering the slowing down of India's growth to 6.7 percent in the past year from over 9 percent in the preceding three.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to 9 percent per annum," he said, setting the tone of his fourth career budget watched by Manmohan Singh and UPA chairperson Sonia Gandhi.
The other challenges, he said, included better governance and ensuring that the fruits of development reached across regions to touch the lives of every citizen - the "aam admi", the current catchphrase denoting the common man.
"The finance minister has done an admirable job," the prime minister said, soon after the budget was presented in the Lok Sabha. "The main aim of the budget is to minimise the impact of global recession," Manmohan Singh added.
"Overall, the strategy of the budget is to ensure that our economy recaptures the rhythm of the accelerated growth process. Simultaneously, it seeks to honour in large measure, the commitments we have made to our people."
India Inc, by and large, welcomed Mukherjee's proposals, given the difficult circumstances. But it had hoped for some more tax sops, while expecting a clear signal in the area of selling government stake in state-run enterprises.
The country's stock markets, however, thought otherwise and gave a thumbs down to the budget. The sensitive index (Sensex) of the Bombay Stock Exchange (BSE), a barometer of investor sentiment, fell by nearly 870 points, or 5.8 percent.
In his various proposals, Mukherjee kept the corporate tax rate unchanged, even as the budget sought to reduce the burden on industry by abolishing commodities transaction tax and the fringe benefit tax, but hiked the minimum alternate tax to 15 percent of book profits from 10 percent.
He also promised a pan-India goods and services tax from April next year and gave 100 percent tax deduction to political donations while assuring both short-term and medium-term steps to counter the negative fallout of global slowdown.
The minister enhanced the customs duty on items like set-top boxes, LCD televisions and premium textile goods to encourage domestic production and value addition. He also reduced the excise duties on large vehicles and trucks.
For individuals, the budget sought to raise the income tax exemption limits for senior citizens by Rs.15,000 and for women and other tax payers by Rs.10,000, while scrapping the 10 percent surcharge on personal taxes.
The proposals on direct taxes, he said, would be revenue neutral, while indirect taxes would yield Rs.2,000 crore for the full fiscal.
Yet, Mukherjee hoped to step up non-plan expenditure by 37 percent to Rs.695,689 crore (Rs.6,956 billion/$140 billion) over 2008-09 and plan expenditure by 34 percent to Rs.3,25,149 crore (Rs.3,251.49 billion/$65 billion).
The total increase in expenditure, thus, is 36 percent, he said, as he kept the total borrowing plan for the government at a high level, that will push up the country's fiscal deficit to 6.8 percent of GDP from 6 percent for 2008-09.
Mukherjee said the government would have to overcome all obstacles and create a brave new India.
"As we begin this five-journey, the road ahead will not be easy. We will have to manage uncertainties and there will be as many problems as there would be solutions."
Union Budget 2009 | Health Sector
The All India Institute of Medical Sciences (AIIMS), the premier research and education body here that also caters to 8,000 patients every day, topped the list of medical institutes benefiting from the union budget announced Monday.
India's health budget has gone up by nearly Rs.4,000 crore to Rs.21,113.33 crore ($4.35 billion) with Finance Minister Pranab Mukherjee giving special emphasis to rural healthcare.
Of the total health budget, AIIMS got a major chunk as it was allocated Rs.677 crore, up from last fiscal's Rs.573.42 crore.
The Delhi-based institute is among the top 10 medical colleges in the world, and caters mostly to the underprivileged people that flock to it from all over the country. It has over 2,200 beds. The Newsweek magazine described it as an "oasis of the poor".
Among the seven medical institutes receiving budgetary funds, the Safdarjung Hospital, in the heart of Delhi, was allocated Rs.226 crore in 2009-10 as against Rs.238.37 crore in the last fiscal.
The Vardhaman Mahaveer Medical college, which shares its campus with the Safdarjung Hospital, too has received 25 percent less budgetary allocation than the last financial year. It has been allocated Rs.15 crore in 2009-10 as against Rs.20 crore in the previous fiscal.
The Post-Graduate Institute of Medical Education and Research (PGIMER) of Chandigarh has been allotted Rs.385 crore as against Rs.268.04 crore in the last fiscal.
The Delhi-based Ram Manohar Lohia Hospital will get Rs.193.3 crore as compared to Rs.164.61 crore in the last fiscal. The Lady Hardinge College has been allocated Rs.155 crore as against Rs.121.87 crore in the previous year.
The Kalawati Saran hospital, which caters specifically to children, has got Rs.40 crore in budget funds as against Rs.41.27 crore last year.
India's health budget has gone up by nearly Rs.4,000 crore to Rs.21,113.33 crore ($4.35 billion) with Finance Minister Pranab Mukherjee giving special emphasis to rural healthcare.
Of the total health budget, AIIMS got a major chunk as it was allocated Rs.677 crore, up from last fiscal's Rs.573.42 crore.
The Delhi-based institute is among the top 10 medical colleges in the world, and caters mostly to the underprivileged people that flock to it from all over the country. It has over 2,200 beds. The Newsweek magazine described it as an "oasis of the poor".
Among the seven medical institutes receiving budgetary funds, the Safdarjung Hospital, in the heart of Delhi, was allocated Rs.226 crore in 2009-10 as against Rs.238.37 crore in the last fiscal.
The Vardhaman Mahaveer Medical college, which shares its campus with the Safdarjung Hospital, too has received 25 percent less budgetary allocation than the last financial year. It has been allocated Rs.15 crore in 2009-10 as against Rs.20 crore in the previous fiscal.
The Post-Graduate Institute of Medical Education and Research (PGIMER) of Chandigarh has been allotted Rs.385 crore as against Rs.268.04 crore in the last fiscal.
The Delhi-based Ram Manohar Lohia Hospital will get Rs.193.3 crore as compared to Rs.164.61 crore in the last fiscal. The Lady Hardinge College has been allocated Rs.155 crore as against Rs.121.87 crore in the previous year.
The Kalawati Saran hospital, which caters specifically to children, has got Rs.40 crore in budget funds as against Rs.41.27 crore last year.
Union Budget 2009 | Education
India Monday pegged its expenditure outlay at Rs.44,528 crore (Rs.445.28 billion) for both school and higher education which is around 20 percent more than the last fiscal.
According to the union budget 2009-10 proposals, while school education gets over Rs.29,099 crore (Rs.290.99 billion), the higher education bags Rs.15,429 crore (Rs.154.29 billion). The figures include both planned and unplanned outlay. Last fiscal, the total budget outlay for education was Rs.37,366 crore.
Finance Minister Pranab Mukherjee presenting the budget in parliament said the human resource development ministry has been provided an allocation of Rs.36,400 crore (planned outlay). This includes an estimated receipt of Rs.12,784.87 crore by way of proceeds from education cess. The fund will be spent mainly for Sarva Shiksha Abhiyan and Midday Meal schemes.
While budget hails both the schemes and allocates more money for strengthening them, it also has made provision of Rs.350 crore to set up 6,000 model schools as benchmark of excellence.
An outlay of Rs.750 crore has been kept for disbursing 100,000 scholarships for students in class 11-12 under the national means-cum-merit scholarship scheme.
Keeping its promise to boost higher education, the government allocated the sector over Rs.40 billion more than the last fiscal, including a package of over Rs.10 billion for the implementation of quota for other backward castes (OBCs).
The higher education budget for the current fiscal has been pegged at Rs.15,429 crore (Rs.154.29 billion), including a planned allocation of Rs.9,600 crore. During the last financial year, the total allocation was Rs.11,340 crore.
"The demographic advantage India has, in terms of large percentage of young population, needs to be converted into a dynamic economic advantage by providing them the right education and skills," the finance minister said.
However, Sushil Kumar, a former professor at IIM-Lucknow, is not impressed even as he hoped that higher education infrastructure will be improved.
"I believe the government has a mandate to increase education budget to six percent of the GDP but looking at the present budget it is still too less than the target. The government needs to do more to improve educational situation in the country," said Kumar, now dean of academics of the Gautam Budhha University in Noida.
He was referring to the last UPA government's promise to allocate six percent of the GDP to improve education in the country.
"But I believe the budget allocation for higher education institutes like IITs and IIMs will improve the infrastructural bottlenecks in the existing and upcoming ones," Kumar said.
The University Grant Commission (UGC) has been provided an allocation of Rs.4,374.95 crore, which includes expenditure for both central and deemed universities.
"The government shall take forward its intent of having one central university in each uncovered state and for this purpose I am allocating Rs.827 crore," the minister announced in his budget speech.
Clarifying the expenditure for implementation of 27 percent quota for the OBC students, the budget underlined that "the allocation for central universities includes a provision of Rs.1,033 crore for implementation of oversight committee recommendations on implementations of the reservation for OBC communities."
The provision for the scheme Mission in Education through ICT has been substantially increased to Rs.900 crore. Similarly the provision for setting up and upgradating polytechnics under the skill development mission has been increased to Rs.495 crore.
Announcing a special package for the Panjab University, Mukherjee said: "The facilities at the Panjab University, Chandigarh, need to be improved. I therefore, propose to make an allocation of Rs.50 crore for this university."
The budget has also allocated Rs.90 crore for Indira Gandhi National Open University (IGNOU) and state open universities to promote distance education. The budget further underlined that there is a provision of Rs.3,902 crore for technical education that includes provision towards assistance to IITs, IIMs and NITs.
According to the union budget 2009-10 proposals, while school education gets over Rs.29,099 crore (Rs.290.99 billion), the higher education bags Rs.15,429 crore (Rs.154.29 billion). The figures include both planned and unplanned outlay. Last fiscal, the total budget outlay for education was Rs.37,366 crore.
Finance Minister Pranab Mukherjee presenting the budget in parliament said the human resource development ministry has been provided an allocation of Rs.36,400 crore (planned outlay). This includes an estimated receipt of Rs.12,784.87 crore by way of proceeds from education cess. The fund will be spent mainly for Sarva Shiksha Abhiyan and Midday Meal schemes.
While budget hails both the schemes and allocates more money for strengthening them, it also has made provision of Rs.350 crore to set up 6,000 model schools as benchmark of excellence.
An outlay of Rs.750 crore has been kept for disbursing 100,000 scholarships for students in class 11-12 under the national means-cum-merit scholarship scheme.
Keeping its promise to boost higher education, the government allocated the sector over Rs.40 billion more than the last fiscal, including a package of over Rs.10 billion for the implementation of quota for other backward castes (OBCs).
The higher education budget for the current fiscal has been pegged at Rs.15,429 crore (Rs.154.29 billion), including a planned allocation of Rs.9,600 crore. During the last financial year, the total allocation was Rs.11,340 crore.
"The demographic advantage India has, in terms of large percentage of young population, needs to be converted into a dynamic economic advantage by providing them the right education and skills," the finance minister said.
However, Sushil Kumar, a former professor at IIM-Lucknow, is not impressed even as he hoped that higher education infrastructure will be improved.
"I believe the government has a mandate to increase education budget to six percent of the GDP but looking at the present budget it is still too less than the target. The government needs to do more to improve educational situation in the country," said Kumar, now dean of academics of the Gautam Budhha University in Noida.
He was referring to the last UPA government's promise to allocate six percent of the GDP to improve education in the country.
"But I believe the budget allocation for higher education institutes like IITs and IIMs will improve the infrastructural bottlenecks in the existing and upcoming ones," Kumar said.
The University Grant Commission (UGC) has been provided an allocation of Rs.4,374.95 crore, which includes expenditure for both central and deemed universities.
"The government shall take forward its intent of having one central university in each uncovered state and for this purpose I am allocating Rs.827 crore," the minister announced in his budget speech.
Clarifying the expenditure for implementation of 27 percent quota for the OBC students, the budget underlined that "the allocation for central universities includes a provision of Rs.1,033 crore for implementation of oversight committee recommendations on implementations of the reservation for OBC communities."
The provision for the scheme Mission in Education through ICT has been substantially increased to Rs.900 crore. Similarly the provision for setting up and upgradating polytechnics under the skill development mission has been increased to Rs.495 crore.
Announcing a special package for the Panjab University, Mukherjee said: "The facilities at the Panjab University, Chandigarh, need to be improved. I therefore, propose to make an allocation of Rs.50 crore for this university."
The budget has also allocated Rs.90 crore for Indira Gandhi National Open University (IGNOU) and state open universities to promote distance education. The budget further underlined that there is a provision of Rs.3,902 crore for technical education that includes provision towards assistance to IITs, IIMs and NITs.
Union Budget 2009 | CBI
inance Minister Pranab Mukherjee Monday gave the country's elite investigating agency, the Central Bureau of Investigation (CBI), a Rs.330 crore (Rs.3.3 billion) support in the financial budget for its modernization.
The CBI received Rs.71 crore (Rs.710 million) more than the last fiscal when it got Rs.259 crore (Rs.2.59 billion).
The CBI deals with investigation and prosecution in corruption cases against public servants, private persons, firms and other cases of heinous and serious crimes.
The support includes provision for modernization of training centre of CBI, e-governance, construction of office building, purchase of land and construction of office and residence complex for CBI.
The CBI received Rs.71 crore (Rs.710 million) more than the last fiscal when it got Rs.259 crore (Rs.2.59 billion).
The CBI deals with investigation and prosecution in corruption cases against public servants, private persons, firms and other cases of heinous and serious crimes.
The support includes provision for modernization of training centre of CBI, e-governance, construction of office building, purchase of land and construction of office and residence complex for CBI.
Union Budget 2009 | Commentry
Finance Minister Pranab Mukherjee has pleased the "aam aadmi" (common man) but made the "khaas aadmi" (the elite) unhappy in his 2009-10 budget proposals. Constrained by the global recession and domestic economic strains, he has provided a much awaited further stimulus to the economy by raising plan expenditure by as much as 25 per cent in real terms.
Much of these funds will go to the social sector schemes that have been so successful in propelling the Congress party back to power like those guaranteeing 100 days of work for each rural family and Bharat Nirman, the grand national reconstruction programme.
But the stock markets - the "khaas aadmi" - have given him a resounding thumbs down by forcing a key index to crash by a whopping 900 points during the day. The meltdown was mainly the result of unrealistically high expectations from investors, who had led an initial surge in markets.
The abolition of much-criticised fringe benefit tax and commodities transaction tax had little impact on a market that complained about the lack of a clear road map on divestment, fears of the impact of the huge fiscal deficit and the absence of any bold policy announcements on foreign direct investment - like their entry into the insurance and retail sectors. The increase in the minimum alternate tax from 10 percent to 15 percent of book profits added fuel to the fire.
The extreme reaction of the stock markets is in line with the equally extreme rise in the key, sensitive index (Sensex) as soon as elections results were announced. The anticipation was that a United Progressive Alliance (UPA) government minus the Left parties to prop it up would mean all stalled economic reforms would be back on track.
The Economic Survey's outline of a road map for this process added further to these expectations. But the fact is that these days the government does not always present all its policies in the budget.
Petrol and diesel prices, for instance, were hiked just before the budget. Similarly, finance ministry officials already clarified that a road map for disinvestment was being finalised and would gradually be unveiled during the year. There is no doubt that the exchequer would need to raise more funds to meet its expenditure given the low revenue accruals expected from direct taxes this year. It, therefore, has to seek funds from the disinvestment route and the 3G spectrum auctions later this year.
The finance minister's effort to provide sops to the hard-pressed middle class by removing the 10 percent surcharge on personal income tax and marginally raising the exemption limit for all categories of tax payers is unlikely to enthuse this segment. The exemption limit needed to be enhanced significantly to provide some more relief to the salaried segment of society.
His proposals, however, aim at a larger constituency in both urban and rural areas by targeting the creation of 12 million jobs annually. The outlay on flagship schemes like the rural job guarantee scheme and Bharat Nirman have been raised substantially in recognition of their impact on the electorate.
Similarly, the election promise of providing 25 kilograms of foodgrains at Rs.3 per kg to those below the poverty line is being fulfilled by launching work on the Food Security Bill. It has often been said that the budget is as much about politics as economics and this year's budget proposals are a clear reflection of this statement as the UPA tries to show the people that they will not forget their election promises.
As for infrastructure, Mukherjee has once again not mentioned the amount that will be made available for this crucial sector. He has, however, made it clear that there will be no shortfall in funds, while highlighting the fact that infrastructure financing agency and banks can support projects with a cost of Rs. 100,000 crore ($.20 billion).
The big question in this budget, however, is the huge fiscal deficit of 6.8 percent as compared to 2.5 percent in the budget estimates of 2008-09 and 6.2 per cent in the revised estimates. The finance minister has clearly voted in favour of growth rather than looking at retaining the fiscal responsibility targets of the past.
He has opted to live with the high fiscal deficit as have many other crisis-hit economies in the past year, in order to provide sufficient public spending to spur growth. The total expenditure in 2009-10 has crossed the threshold of Rs.10 lakh crores ($200 billion) for the first time since independence.
The resulting huge deficit has been left as a Rubicon to be crossed later as Mukherjee has opted to aim for higher growth this year. This is clearly the right course of action in an economy battered by the hurricane of global recessionary trends, even if the stock markets are taking a contrary view.
Much of these funds will go to the social sector schemes that have been so successful in propelling the Congress party back to power like those guaranteeing 100 days of work for each rural family and Bharat Nirman, the grand national reconstruction programme.
But the stock markets - the "khaas aadmi" - have given him a resounding thumbs down by forcing a key index to crash by a whopping 900 points during the day. The meltdown was mainly the result of unrealistically high expectations from investors, who had led an initial surge in markets.
The abolition of much-criticised fringe benefit tax and commodities transaction tax had little impact on a market that complained about the lack of a clear road map on divestment, fears of the impact of the huge fiscal deficit and the absence of any bold policy announcements on foreign direct investment - like their entry into the insurance and retail sectors. The increase in the minimum alternate tax from 10 percent to 15 percent of book profits added fuel to the fire.
The extreme reaction of the stock markets is in line with the equally extreme rise in the key, sensitive index (Sensex) as soon as elections results were announced. The anticipation was that a United Progressive Alliance (UPA) government minus the Left parties to prop it up would mean all stalled economic reforms would be back on track.
The Economic Survey's outline of a road map for this process added further to these expectations. But the fact is that these days the government does not always present all its policies in the budget.
Petrol and diesel prices, for instance, were hiked just before the budget. Similarly, finance ministry officials already clarified that a road map for disinvestment was being finalised and would gradually be unveiled during the year. There is no doubt that the exchequer would need to raise more funds to meet its expenditure given the low revenue accruals expected from direct taxes this year. It, therefore, has to seek funds from the disinvestment route and the 3G spectrum auctions later this year.
The finance minister's effort to provide sops to the hard-pressed middle class by removing the 10 percent surcharge on personal income tax and marginally raising the exemption limit for all categories of tax payers is unlikely to enthuse this segment. The exemption limit needed to be enhanced significantly to provide some more relief to the salaried segment of society.
His proposals, however, aim at a larger constituency in both urban and rural areas by targeting the creation of 12 million jobs annually. The outlay on flagship schemes like the rural job guarantee scheme and Bharat Nirman have been raised substantially in recognition of their impact on the electorate.
Similarly, the election promise of providing 25 kilograms of foodgrains at Rs.3 per kg to those below the poverty line is being fulfilled by launching work on the Food Security Bill. It has often been said that the budget is as much about politics as economics and this year's budget proposals are a clear reflection of this statement as the UPA tries to show the people that they will not forget their election promises.
As for infrastructure, Mukherjee has once again not mentioned the amount that will be made available for this crucial sector. He has, however, made it clear that there will be no shortfall in funds, while highlighting the fact that infrastructure financing agency and banks can support projects with a cost of Rs. 100,000 crore ($.20 billion).
The big question in this budget, however, is the huge fiscal deficit of 6.8 percent as compared to 2.5 percent in the budget estimates of 2008-09 and 6.2 per cent in the revised estimates. The finance minister has clearly voted in favour of growth rather than looking at retaining the fiscal responsibility targets of the past.
He has opted to live with the high fiscal deficit as have many other crisis-hit economies in the past year, in order to provide sufficient public spending to spur growth. The total expenditure in 2009-10 has crossed the threshold of Rs.10 lakh crores ($200 billion) for the first time since independence.
The resulting huge deficit has been left as a Rubicon to be crossed later as Mukherjee has opted to aim for higher growth this year. This is clearly the right course of action in an economy battered by the hurricane of global recessionary trends, even if the stock markets are taking a contrary view.
Union Budget 2009 | IT/Software Sector
India's software sector Monday welcomed the extension of tax holiday on export profits to 2010-11 from this fiscal, rationalisation of multiplicity of taxes on packaged software and abolition of fringe benefit tax (FBT) but felt that the increase in minimum alternate tax (MAT) would have adverse impact.
According to the National Association of Software and Services Companies (Nasscom), the industry's lobby, the budget had recognised the contribution of the IT-BPO (information technology and business process outsourcing) industry to the country's economic progress and had provided measures to boost it.
"The finance minister's decision to extend fiscal benefits available to the industry under section 10A/10B for one year will help the industry mitigate the impact of the current economic environment and help India retain its competitiveness," Nasscom president Som Mittal said in a statement.
In his budget speech, Finance Minister Pranab Mukherjee proposed to extend the sunset clauses for tax holidays under sections 10A and 10B of the Income Tax Act, 1961, by one more year to 2010-11 to tide over the slowdown in exports.
Though the 10-year tax holiday expired by the end of fiscal 2008-09, former finance minister P. Chidambaram extended the benefit to this fiscal in his budget proposals for fiscal 2008-09.
B.V.R. Mohan Reddy, chairman Confederation of Indian Industry (CII), southern region, said the extension was a welcome step but felt that it should have been done for two years.
"The companies can't do planning in one year," said Reddy, who is also the chairman and managing director of Infotech Enterprises. Vinay Deshpande, who heads the IT committee of the Confederation of Indian Industry (CII), Karnataka chapter, said small and medium enterprises (SMEs) in the IT industry would benefit by the tax holiday.
However, Infosys Technologies chief executive S. Gopalakrishnan said the extension of 10A/10B for the IT industry was more emotional than of actual benefit, as most software technology parks, including export-oriented firms, would have come out of the tax holidays anyway.
"At the same time, the government's focus on IT investment for enhanced governance is encouraging. The move to increase investment in higher education, especially in the IITs and NITs, will greatly benefit the industry in the medium and long term," Gopalakrishnan said.
The IT sector also welcomed the rationalisation of multiplicity of taxes on packaged software. ?There was tremendous amount confusion about software products, excise duties leviable on them and service charges etc. There is some clarity on it in the budget. The finance minister has done well in removing some of the pinpricks for the industry," said Mohan Reddy.
Hyderabad Software Exporters Association (HYSEA), however, felt that increase in MAT from 10 to 15 percent would have an adverse impact on the industry.
"Steps like the increase in MAT from 10 to 15 percent are going to have an adverse impact on the industry in the short run and this is something we could have avoided,? said HYSEA president M. Narsimha Rao.
Nasscom chairman Pramod Bhasin said the IT-BPO industry would play a key role in many of the budget initiatives aimed at promoting inclusive growth and creating substantial job opportunities.
"The industry will be keen to partner with the government in expanding e-governance initiatives, including modernisation of employment exchanges, the unique identification card project and smart cards for healthcare services so as to achieve enhanced governance," Bhasin, who is also the chief executive of the leading BPO firm Genpact, said.
"Increased capital outlays on the education and infrastructure sector will also address growth challenges that the country has faced," Bhasin noted.
Nasscom thanked the government for addressing some of the industry's concerns relating to multiplicity of taxes on packaged software, creating a dispute resolution mechanism on transfer pricing, abolishing fringe benefit tax (FBT) and issues on service tax refund.
"The combined effect of these proposals will facilitate the industry and its two-million workforce to compete effectively and sustain India's advantage," Mittal said.
According to the National Association of Software and Services Companies (Nasscom), the industry's lobby, the budget had recognised the contribution of the IT-BPO (information technology and business process outsourcing) industry to the country's economic progress and had provided measures to boost it.
"The finance minister's decision to extend fiscal benefits available to the industry under section 10A/10B for one year will help the industry mitigate the impact of the current economic environment and help India retain its competitiveness," Nasscom president Som Mittal said in a statement.
In his budget speech, Finance Minister Pranab Mukherjee proposed to extend the sunset clauses for tax holidays under sections 10A and 10B of the Income Tax Act, 1961, by one more year to 2010-11 to tide over the slowdown in exports.
Though the 10-year tax holiday expired by the end of fiscal 2008-09, former finance minister P. Chidambaram extended the benefit to this fiscal in his budget proposals for fiscal 2008-09.
B.V.R. Mohan Reddy, chairman Confederation of Indian Industry (CII), southern region, said the extension was a welcome step but felt that it should have been done for two years.
"The companies can't do planning in one year," said Reddy, who is also the chairman and managing director of Infotech Enterprises. Vinay Deshpande, who heads the IT committee of the Confederation of Indian Industry (CII), Karnataka chapter, said small and medium enterprises (SMEs) in the IT industry would benefit by the tax holiday.
However, Infosys Technologies chief executive S. Gopalakrishnan said the extension of 10A/10B for the IT industry was more emotional than of actual benefit, as most software technology parks, including export-oriented firms, would have come out of the tax holidays anyway.
"At the same time, the government's focus on IT investment for enhanced governance is encouraging. The move to increase investment in higher education, especially in the IITs and NITs, will greatly benefit the industry in the medium and long term," Gopalakrishnan said.
The IT sector also welcomed the rationalisation of multiplicity of taxes on packaged software. ?There was tremendous amount confusion about software products, excise duties leviable on them and service charges etc. There is some clarity on it in the budget. The finance minister has done well in removing some of the pinpricks for the industry," said Mohan Reddy.
Hyderabad Software Exporters Association (HYSEA), however, felt that increase in MAT from 10 to 15 percent would have an adverse impact on the industry.
"Steps like the increase in MAT from 10 to 15 percent are going to have an adverse impact on the industry in the short run and this is something we could have avoided,? said HYSEA president M. Narsimha Rao.
Nasscom chairman Pramod Bhasin said the IT-BPO industry would play a key role in many of the budget initiatives aimed at promoting inclusive growth and creating substantial job opportunities.
"The industry will be keen to partner with the government in expanding e-governance initiatives, including modernisation of employment exchanges, the unique identification card project and smart cards for healthcare services so as to achieve enhanced governance," Bhasin, who is also the chief executive of the leading BPO firm Genpact, said.
"Increased capital outlays on the education and infrastructure sector will also address growth challenges that the country has faced," Bhasin noted.
Nasscom thanked the government for addressing some of the industry's concerns relating to multiplicity of taxes on packaged software, creating a dispute resolution mechanism on transfer pricing, abolishing fringe benefit tax (FBT) and issues on service tax refund.
"The combined effect of these proposals will facilitate the industry and its two-million workforce to compete effectively and sustain India's advantage," Mittal said.
Monday, July 6, 2009
Tax sops, more funds for welfare, infrastructure in India's budget
Promising to halve poverty by 2014 and add 12 million jobs each year, Finance Minister Pranab Mukherjee presented India's budget for this fiscal that hikes income tax exemption limit and steps up allocations for welfare schemes and infrastructure, while assuring high growth for the $1.2 trillion economy once again.
The income tax exemption limit for senior citizens was sought to be hiked by Rs.15,000, while that for women and others was stepped up by Rs.10,000. The 10 percent surcharge on personal income tax also was sought to be removed in Mukherjee's budget presented in the Lok Sabha.
New incentives to farmers, 45 percent jump in funds for Bharat Nirman, India's flagship rural reconstruction programme, higher spending on urban development, fresh impetus on energy security and revival of the divestment programme were among the highlights of the 100-minute Mukherjee's budget.
He also announced that the national food security act will be enacted soon promising 25 kg of rice or wheat per month to the poor at Rs.3 per kg, while announcing a new health insurance scheme for those below the poverty line.
For India Inc, the corporate tax rate was kept unchanged, even as the finance minister sought to reduce the burden on industry by abolishing the commodities transaction tax, but hiked the minimum alternate tax to 15 percent of book profits.
Mukherjee also promised to scrap the fringe benefit tax to please corporates, introduce a pan-India goods and services tax from April next year and gave 100 percent tax deductions to political donations.
Dressed in a smart white bandgala suit, the 73-year-old politician - who had presented his last budget as finance minister in the government of prime minister Indira Gandhi 25 years ago - said the United Progressive Alliance (UPA) government would push forward an agenda that will ensure 12 million new jobs each year and reduce poverty by half by 2014.
"The government also recognises the challenges," he said, referring to the global slowdown and the decline in India's high growth rate in the past year to 6.7 percent from over 9 percent in the preceding three years.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to over 9 percent per annum," he said, setting the tone of what is his fourth career budget watched by Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.
He said the other challenges included better governance and to ensure that the fruits of development reached across regions to touch the lives of every citizen - the 'aam admi' (the common man) as he called them.
Mukherjee said infrastructure would also be a priority, especially in areas like roads, highways and energy. "I, on my part, will ensure that sufficient funds are made available to these sectors."
The finance minister also said the unique identification plan, approved by the previous UPA government will be operational in 12-18 months and the process begin to hand over biometric smart cards to 1.17 billion citizens.
He said the total central government expenditure for the current fiscal year had been stepped up to Rs.10,20,800 crore, and compared it with Rs.193 crore that was set aside in the country's first budget over six decades ago.
Mukherjee said with industry still under the grip of global recession, the finance minister said he was providing additional incentives in the form of both direct and indirect taxes.
He enhanced the customs duty on items like set-top boxes, LCD televisions and premium textile goods to encourage domestic production and value addition.
The income tax exemption limit for senior citizens was sought to be hiked by Rs.15,000, while that for women and others was stepped up by Rs.10,000. The 10 percent surcharge on personal income tax also was sought to be removed in Mukherjee's budget presented in the Lok Sabha.
New incentives to farmers, 45 percent jump in funds for Bharat Nirman, India's flagship rural reconstruction programme, higher spending on urban development, fresh impetus on energy security and revival of the divestment programme were among the highlights of the 100-minute Mukherjee's budget.
He also announced that the national food security act will be enacted soon promising 25 kg of rice or wheat per month to the poor at Rs.3 per kg, while announcing a new health insurance scheme for those below the poverty line.
For India Inc, the corporate tax rate was kept unchanged, even as the finance minister sought to reduce the burden on industry by abolishing the commodities transaction tax, but hiked the minimum alternate tax to 15 percent of book profits.
Mukherjee also promised to scrap the fringe benefit tax to please corporates, introduce a pan-India goods and services tax from April next year and gave 100 percent tax deductions to political donations.
Dressed in a smart white bandgala suit, the 73-year-old politician - who had presented his last budget as finance minister in the government of prime minister Indira Gandhi 25 years ago - said the United Progressive Alliance (UPA) government would push forward an agenda that will ensure 12 million new jobs each year and reduce poverty by half by 2014.
"The government also recognises the challenges," he said, referring to the global slowdown and the decline in India's high growth rate in the past year to 6.7 percent from over 9 percent in the preceding three years.
"The first challenge is to bring back the GDP (gross domestic product) growth rate to over 9 percent per annum," he said, setting the tone of what is his fourth career budget watched by Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi.
He said the other challenges included better governance and to ensure that the fruits of development reached across regions to touch the lives of every citizen - the 'aam admi' (the common man) as he called them.
Mukherjee said infrastructure would also be a priority, especially in areas like roads, highways and energy. "I, on my part, will ensure that sufficient funds are made available to these sectors."
The finance minister also said the unique identification plan, approved by the previous UPA government will be operational in 12-18 months and the process begin to hand over biometric smart cards to 1.17 billion citizens.
He said the total central government expenditure for the current fiscal year had been stepped up to Rs.10,20,800 crore, and compared it with Rs.193 crore that was set aside in the country's first budget over six decades ago.
Mukherjee said with industry still under the grip of global recession, the finance minister said he was providing additional incentives in the form of both direct and indirect taxes.
He enhanced the customs duty on items like set-top boxes, LCD televisions and premium textile goods to encourage domestic production and value addition.
Relief for media: Hike in ad rates to continue
The government Monday came to the rescue of a recession-hit media by extending the hike in government advertisement rates for print media by another six months.
Since the print media is still reeling under recession, the government has decided to extend the hike in advertisement rates by another six months, Finance Minister Pranab Mukherjee said Monday while presenting the budget for fiscal 2009-10.
In February, the government had hiked the Directorate of Advertising and Visual Publicity (DAVP) advertisement rates by 10 percent and waived off the 15 percent agency commission till June 30.
The relief is subject to documentary proof of loss of revenue in non-governmental advertisements as compared to the same period last year.
The hikes were announced after some media barons and leaders met then minister of state for information and broadcasting Anand Sharma and sought the government's help to bail them out of the financial crunch due to recession.
Since the new government took charge, top industry representatives met the new information and broadcasting minister, Ambika Soni, and sought a further hike in advertisement rates. The DAVP rate structuring committee finally decided to extend the current special relief package, sources said.
Since the print media is still reeling under recession, the government has decided to extend the hike in advertisement rates by another six months, Finance Minister Pranab Mukherjee said Monday while presenting the budget for fiscal 2009-10.
In February, the government had hiked the Directorate of Advertising and Visual Publicity (DAVP) advertisement rates by 10 percent and waived off the 15 percent agency commission till June 30.
The relief is subject to documentary proof of loss of revenue in non-governmental advertisements as compared to the same period last year.
The hikes were announced after some media barons and leaders met then minister of state for information and broadcasting Anand Sharma and sought the government's help to bail them out of the financial crunch due to recession.
Since the new government took charge, top industry representatives met the new information and broadcasting minister, Ambika Soni, and sought a further hike in advertisement rates. The DAVP rate structuring committee finally decided to extend the current special relief package, sources said.
BJP calls budget 'routine', CPI 'inconsequential'
The main opposition Bharatiya Janata Party (BJP) Monday described the 2009-10 budget presented by Finance Minister Pranab Mukherjee as "routine" while the Communist Party of India (CPI) termed it as "inconsequential" and not addressing the real economic issues.
"It is a routine budget. There is no suggestion to meet the global economic recession," BJP president Rajnath Singh told reporters.
He, however, welcomed the government's decision to implement one-rank-one-pension scheme for ex-servicemen and for lifting the fringe benefit tax.
CPI leader Gurudas Dasgupta said: "It is an inconsequential budget. It does not address the main problem that our economy is facing. It does not appear realistic."
"It is a routine budget. There is no suggestion to meet the global economic recession," BJP president Rajnath Singh told reporters.
He, however, welcomed the government's decision to implement one-rank-one-pension scheme for ex-servicemen and for lifting the fringe benefit tax.
CPI leader Gurudas Dasgupta said: "It is an inconsequential budget. It does not address the main problem that our economy is facing. It does not appear realistic."
Union Budget 2009 | Government to hold majority stake in state-owned banks
The government will continue to hold at least 51 percent stake in the banks and insurance companies it owns, Finance Minister Pranab Mukherjee said while presenting the union budget for 2009-10 in the Lok Sabha Monday.
However, citing the average public float in listed entities - which is less than 15 percent - the finance minister said the government proposed to increase the non-promoter holding in listed companies.
Mukherjee also praised the late prime minister Indira Gandhi for nationalising bank and insurance companies, which insulated the Indian financial sector from the recent global slowdown.
However, citing the average public float in listed entities - which is less than 15 percent - the finance minister said the government proposed to increase the non-promoter holding in listed companies.
Mukherjee also praised the late prime minister Indira Gandhi for nationalising bank and insurance companies, which insulated the Indian financial sector from the recent global slowdown.
Union Budget 2009 | Fringe benefit tax abolished
Bowing to the long standing demand of India Inc, Finance Minister Pranab Mukherjee has abolished the fringe benefit tax and commodity transaction tax.
However, Minimum Allocation Tax (MAT) on book profits has been increased from 10 percent to 15 percent, but with a provision of carrying forward the tax credit on MAT to 10 years from the current seven years.
However, Minimum Allocation Tax (MAT) on book profits has been increased from 10 percent to 15 percent, but with a provision of carrying forward the tax credit on MAT to 10 years from the current seven years.
Union Budget 2009 | Income tax exemption limit increased
Finance Minister Pranab Mukherjee Monday proposed to increase the income tax exemption limit for senior citizens by Rs.15,000, for women and others by Rs.10,000 each, while keeping the corporate tax rate unchanged.
The exemption limit will now be Rs.240,000 for senior citizens, Rs.190,000 for women and Rs.160,000 for others.
The exemption limit will now be Rs.240,000 for senior citizens, Rs.190,000 for women and Rs.160,000 for others.
Urban development allocation increased 87 percent
The allocation for the Jawaharlal Nehru National Urban Renewal Mission has been increased by 87 percent to Rs.12,887 crore, Finance Minister Pranab Mukherjee said while presenting the union budget in parliament Monday.
Additionally, the Indira Awas Yojna, a housing programme for the poor, has been allocated Rs.2,000 crore, while a Rs.2,000-crore special fund has been set up to finance rural housing projects.
Mukherjee also announced a Rs.3,973-crore allocation for urban poor.
Additionally, the Indira Awas Yojna, a housing programme for the poor, has been allocated Rs.2,000 crore, while a Rs.2,000-crore special fund has been set up to finance rural housing projects.
Mukherjee also announced a Rs.3,973-crore allocation for urban poor.
Union Budget 2009 | More money to clean rivers, lakes
The government will raise the the allocation for cleaning India's rivers and lakes to Rs.562 crore ($110 million) in fiscal 2009-10 from Rs.335 crore last fiscal, Finance Minister Pranab Mukherjee announced Monday while presenting the union budget in parliament.
Mentioning that the government had unveiled its National Action Plan on Climate Change last year and that eight national missions under it were being finalised, Mukherjee committed that the government would provide "necessary funds" for all the missions.
The annual economic survey had estimated that India is now spending over 2.6 percent of its GDP in having to adapt to climate change, which is affecting farm output, making droughts, storms and floods more frequent and more severe, and raising the sea level.
The minister also announced special allocations for the Indian Council for Foresty Research and Education, the Botanical Survey of India and the Zoological Survey of India.
Mentioning that the government had unveiled its National Action Plan on Climate Change last year and that eight national missions under it were being finalised, Mukherjee committed that the government would provide "necessary funds" for all the missions.
The annual economic survey had estimated that India is now spending over 2.6 percent of its GDP in having to adapt to climate change, which is affecting farm output, making droughts, storms and floods more frequent and more severe, and raising the sea level.
The minister also announced special allocations for the Indian Council for Foresty Research and Education, the Botanical Survey of India and the Zoological Survey of India.
Union Budget 2009 | Mega industrial clusters be set up
The government will set up mega industrial clusters to support textile and power industries, Finance Minister Pranab Mukherjee said Monday while presenting the union budget for 2009-10 in the Lok Sabha.
"We will set up handloom mega clusters in Tamil Nadu and a power mega cluster in Rajasthan," Mukherjee said.
"We will set up handloom mega clusters in Tamil Nadu and a power mega cluster in Rajasthan," Mukherjee said.
Union Budget 2009 | Pensions for Ex-servicemen
The government Monday announced enhanced pensions for soldiers and junior commissioned officers that will entail additional expenditure of Rs.2,100 crores per year.
"The decision will benefit 12 lakh pensioners. The allowances for the war wounded and disabled is also being liberalised," Finance Minister Pranab Mukherjee said while presenting the budget for 2009-10 in the Lok Sabha.
"The decision will benefit 12 lakh pensioners. The allowances for the war wounded and disabled is also being liberalised," Finance Minister Pranab Mukherjee said while presenting the budget for 2009-10 in the Lok Sabha.
Union Budget 2009 | Commonwealth Allocation
The government has increased the allocation for the 2010 Commonwealth Games to Rs.3,472 crore from Rs.2,112 crore in the interim budget, Finance Minister Pranab Mukherjee announced Monday while presenting the union budget for fiscal 2009-10 in parliament.
Subscribe to:
Posts (Atom)
