BUDGET 2009 HIGHLIGHTS

1. BUDGET 2009 HIGHLIGHTS By AMIT THACKER Alfa Consultancy Services

2. Alfa Consultancy Services • Corporate tax unchanged • Hike in IT exemption to Rs 1,60,000 • Hike in IT exemption to Rs 2,40,000 for senior citizens • Hike in IT exemption for women to Rs 1,90,000 • 10 pc surcharge on personal income tax scrapped • Small businesses exempt from advance tax • Saral-II forms to simplify taxation process • Commodities Transaction Tax to be scrapped • Fringe Benefit Tax to be scrapped • Service tax to be levied on law firms • Excise duty on petrol-driven small trucks down to 10% • Exemption of duty on goods made at construction sites restored • Drugs for heart diseases to become cheaper • Banking network to be expanded • Customs duty on gold and silver import increased • Mobile phone accessories to become cheaper

3. Alfa Consultancy Services • Branded jewellery for women to become cheaper • Customs duty on bio-diesel reduced • Tax holiday extended for textile units • Custom duty on LCD panels halved • Set-top boxes to cost more • Anonymous funds to charitable bodies to get some tax relief • MAT hiked to 15% of book profit • General Sales Tax model will have a Central GST and State GST • GST to come into effect from April 01, 2010 • Goods and Services Tax to be introduced from April 1, 2010 • Unique Identification ID project to roll out in 12-18 months • Unique Identification ID project to tap private talent • New tax code to be set up in 45 days

4. Alfa Consultancy Services • Share of direct taxes has increased to 56 per cent in 2008-09 • Total budget expenditure for 2009-10 will Rs 10,28,032 cr • Plan expenditure, for both Centre and States, to go up by Rs 61,000 cr • Fiscal deficit in 2009-10 is proposed at 6.8 per cent of GDP • Higher public investment in infrastructure • Defence outlay remains unchanged • Rs 1,000 cr for Aila rehabilitation to West Bengal • Rs 25 cr each for AMU campuses in Murshidabad and Mallapuram

5. Alfa Consultancy Services • Rs 2,113 cr for IITs and NITs • Funds for GSI to enhance exploration of minerals • New pension benefits for 12 lakh jawans and JCOs • Pension of non-commissioned officers to be hiked • Allocation for rehab of Lankan Tamils • One lakh dwelling units for paramilitary forces to be built • Commonwealth allocation hiked to Rs 3472 crore • Allocation of Rs 50 cr to Chandigarh University

6. Alfa Consultancy Services • Govt to hike allocation to National Ganga Project to Rs 562 cr • One rank, one pension for ex-servicemen from July 1 • Allowances to para-military forces at par with defence forces • Allocation for NRHM to be raised by Rs 257 cr • National action plan on climate change • Full interest subsidy for students in approved institutions • Modernisation of national employment exchanges • 50% cent of rural women in self-help groups

7. Alfa Consultancy Services • Rural mega clusters in Bengal and Rajasthan • Interest subsidy for home loans up to Rs 1 lakh • Interest subsidy on education loans • Rashtriya Mahila Kosh corpus to be raised to Rs 500 crore • Rs 2,000 cr for rural housing fund under National Housing Bank • Aam Aadmi is the focus of all UPA's schemes • Govt to shift to nutrient based fertiliser subsidy regime • One banking centre in every bloc

8. Alfa Consultancy Services • Banks, insurance to stay with Govt • Raise threshold for non-promoter public listed companies • FM recalls Indira Gandhi's bank nationalisation • Move towards energy security via Integrated Energy Act • An expert panel will look into petroleum product pricing • Domestic oil prices must be in sync with global prices • Fertiliser subsidy to go directly to farmers • Export Credit Guarantee scheme extended till March 2010

9. Alfa Consultancy Services • Incentives in interest rates to farmers to pay back • Print media stimulus package extended by six months • Target for agriculture credit raised to Rs 3,25,000 cr in 2009-10 • FIIs have returned to India in last few months • Storm-water drainage project fund hiked to Rs 500 cr • Blueprint for national gas grid • Additional budget allocation to farmers • Allocation of Rashtriya Krishi Vikas Yojna stepped up by 30%

10. Alfa Consultancy Services • Total fiscal stimulus during '08-09 is Rs 1,86,000 cr • Hike in allocation for Mumbai flood management • Housing allocation hiked under Rajiv Awaas Yojana • Fund allocation for urban poor accommodation is 3,973,000 cr • JNNURM allocation hiked by 87 per cent • NHAI allocation up by 23 per cent • Hike infrastructure investment to over 9% of GDP by 2014 • IIFCL will refinance 60% of commercial bank loans in PPP

11. Alfa Consultancy Services • National Mission for female literacy • NREGA allocation up 144% • Work on National Food Security scheme for subsidised food • Rs 100 cr one-time grant to expand banks in unbanking areas • Indira Awaas Yojna hiked by 63% to Rs 8,883 cr • Allocation for PM Gram Sadak Yojna up by 59 per cent • Rs 39,100 crore allocation for NREGA • NREGA gave employment opportunities to more than 4.47 cr households

12. Alfa Consultancy Services • Rural mega clusters in Bengal and Rajasthan • Interest subsidy for home loans up to Rs 1 lakh • Interest subsidy on education loans • Rashtriya Mahila Kosh corpus to be raised to Rs 500 crore • Rs 2,000 cr for rural housing fund under National Housing Bank • National Mission for female literacy • NREGA allocation up 144% • Work on National Food Security scheme for subsidised food • Rs 100 cr one-time grant to expand banks in unbanking areas

13. Alfa Consultancy Services THANKS