UNION BUGET 2009-10
WHAT IT MEANS FOR INDIA?
Finance Minister shows his benevolence on rural India.Spending on Job
guarantee and Bharat Nirman to rise by 144% and 45% respectively.
Farmers to benefit from Rs.38,000-crore credit flow.Subsidised 7% interest
schemes for crop loans to continue and incentives for regular payers, loan @6%.
Big boost to Rural healthcare and skill development.
Major tax breaks for agro-processing Industry.
WHAT IT MEANS FOR ECONOMY?
Sharp 13% increase in spending to continue to provide stimulus to economy.
Boost to Infrastructure and leg up to consumption through tax rebates and
increased social spending.
Fiscal deficit tobe 6.8% of GDP. Half of it tobe met through market
borrowings, the rest via printing notes.
WHAT IT MEANS FOR TAXPAYERS?
Savings on personal Income Tax as Eemption limit hiked by Rs.10K,15K for
senior citizens.
The 10% surcharge on individual income on excess of Rs.10 lakh goes.
Employees to pay tax on perquisites such as Esops and contribution to super
annuation funds.
WHAT IT MEANS FOR BUSINESS?
Tax burden on economy comes down to 10.9% of GDP, from 11.6% of GDP.
Major tax holidays for future Oil and gas producers.
Tax exemption to IT sector and EOU'S extended for one more year and service
tax issues sorted out.
Stimulus to benefit FMCG and Consumer durable Companies.
Simple deemed income regime for small and micro enterprises.
WHAT IT MEANS FOR INVESTOR?
Commodities transaction tax goes.
For markets, budget puts a "buy" on fundamentals.
WHAT IT MEANS FOR CONSUMER?
Rs.3 per Kg rice & wheat for poor.
Higher disposable income for consumers after tax recast.
LCD TV'S, branded jewellery, and luxury cars cheaper.
Set-top boxes, cotton apparel and branded fuel turn dearer.
Rural India can now go the distance.
Total subsidy bill for 2009-10 is Rs.111273 Crore.
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