Pranab Mukherjee tables the Union Budget 2009-10

New Delhi, Jul 6: The Union Budget 2009-10 that was tabled by the Finance Minister, Pranab Mukherjee had its share of pros and cons.

While scrapping of FBT, CTT and other tax reforms, along with allocation of funds for NREGA and positive proposals to ease the troubles of the farmers were well received; other reforms or lack of it in the divestment front, fuel prices and FDI policy was received with a frown.

Read the Full Budget 2009-10 Speech by the Finance Minister, Pranab Mukherjee

The Finance Mister who introduced his budget's theme based on Manmohan Singh's ideology of 'inclusive growth and stability' revealed breaks for exports, defense personnel, senior citizens, along with farmers. And the primary aim was to get the growth rate back up to 9 per cent.

The markets slipped constantly and quickly as the inflated expectations from the budget were not met.

It was natural that there would be a fiscal deficit as the government tries to revive the economy in times of recession, but the experts believe that a mention of the revival period would have been helpful.

The highlights of the Finance Minister's speech are given below:

- The Finance Minister winds up after quoting Mahatma Gandhi
12: 49 AM

- Mobile phone accessories along with the Drugs for heart diseases to become cheaper

- Customs duty on gold and silver import increased

- Customs duty on bio-diesel axed

- Full exemption on branded jewelry excise
12: 35 PM

- Tax holiday extended for Textile units

- Markets: All sectors in red
12: 31 PM

- 5 pc custom duty on set top boxes

- Custom duty on LCD panel reduced by half

- Small businesses exempted from advance tax
12: 29 PM

- Surcharge of 10 per cent in the Personal income tax removed

Charities to enjoy some tax exemptions

Sensex falls 527 pnts
12:25 PM

- No surcharge on direct taxes

General Sales Tax model will have a Central GST and State GST

Fringe Benefit Tax (FBT) abolished

New pension scheme

Commodity transaction tax done away with

MAT hiked by 15 per cent
12: 20 PM

- GST by Apr 2010

No change in Corporate tax

Increase in exemption slab for senior citizens

Markets continue to slip
12: 10 PM

- Tax reforms have given out impressive results. Govt to continue with the tax reforms
- New Direct Tax code in 45 days
12: 07 PM

- Rs 1 crore allotted for Aila rehabilitation

- Rs 2,100 cr allotted for higher pension of Jawans

- Higher public investment in infrastructure

- Online employment through private partnership

- Defence and Army gets more

- New IITs to be set up

- Higher spend on subsidies

- Fiscal deficit at 6.8 pc
12: 04 PM

- Markets not happy with the budget. Sensex plunges 300 pnts

- Estimated expenditure above Rs 10 lakh crore.
11: 59 AM

- One central university in each uncovered area, gets an allocation of Rs 8 cr

- All BPL families will be under smart card project

- One rank, one pension for ex servicemen

- Rs 2313 cr allocation for IITs NIITs

- Enhanced allocation for the Commonwealth Games
11: 54 AM

- National action plan on climate change

- Rashtriya Mahila Kosh capital to be hiked to Rs 500 crore

- Food Security bill for public debate

- Unique Identification ID plan will roll out in 12 to 18 months and will tap private talent

- Rs 2,000 crore for rural housing fund under National Housing Bank
11: 50 AM

- Hike of 63 pc in Indira Awaas Yogana

- National mission for female literacy

- Interest subsidy for home loans up to 1 Lakh

- Interest subsidy on Education loans
11: 45 AM

- Allocation for NREGA hiked to Rs 31,100 crore

- Tax filing to be simplified in next 4 years

- Hike in social schemes

- Funds for housing and Infrastructure

- One banking centre in every block in 3 years

- Gram Sadak Yogan gets a hike of 59 per cent

- Rs 7000 crore in rural electrification scheme
11: 42 AM

- Banks insurance to stay with the government

- To hike promoter shareholding for PSUs

- Expansion of Banking networks

- ADPRP get 160 per cent hike

- Raise threshold for non-promoter public listed companies
11: 37 AM

- Domestic oil prices must be in sync with global prices

- Saral form II to be introduced

- NHDP allocation hiked

- Allotment to nation highway project development hiked by 23 pc

- Effective interest rate at 6 pc for farmers

- Fertilizer subsidy to go directly to farmers.
11: 32 AM

- Need for a tax system that generates revenue in a consistent way

- Farmer loan waiver scheme extended by 6 months

- JNNURM allocation hiked

- 75 pc hike for accelerated irrigation

- Allocation for railways up

- Set up of an expert group to advise on Fuel price hikes
11: 29 AM

- Stimulus for Print Media extended by 6 months

- Interest Subvention to exporters extended to Mar 2010

- Blueprint for national gas grid

- Govt assistance for storm-water drainage project hiked to Rs 500 cr

- Allocation of Rashtriya Krishi Vikas Yojna hiked by 30 pc
11: 26 AM

- Budget allocations for farmer

- Efforts to sustain export growth

- Markets continue to surge. Sensex gains 152 points
11: 22 AM

- Housing allocation hiked under Rajiv Awaaz Yojana

- NHAI allocation hiked

- Further stimulus needed

- Global economic condition is still uncertain

- Increment in the infrastructure by 9 pc

- 87 pc hike in urban renewal project

- Hike in funds for Mumbai floods management
11: 19 AM

- Endeavor to make the process of budget more participatory

- IIFCL to look into infrastructure needs.

- Infrastructure is critical for Nations growth

- IIFCl to look at incremental lending by banks

- After recession broke out in Sept 2008, two critical quarters have passed
11: 15 AM

- To ensure the agriculture continues to grows at 4 pc

- To Re-energise government and reinstitutionalise development

- Foreign capital inflow is important

- Tax relief, boost demand and improve public spending are goals

- Fiscal Stimulus gave economy a growth
11:11 AM

- Notes 3 Challenges:

1. To return to 9 pc growth rate at the earliest
2. Ensure inclusive development. To make sure no section is left out
3. All institutions must provide for the growth to be achieved

11:08 AM

- Pranab Mukherjee starts of the speech reminding the parliament, what manmohan Singh said after winning the election, "This is a mandate for stability, prosperity and inclusive growth"

- Cabinet approves Budget

Reminds that a single budget speech can not solve all problems
11:03 AM

- The Markets open strong ahead of the Budget.
10:40 AM

- The Finance Minister, Pranab Mukherjee has arrived at the Parliament and is expected to present the Budget at 11 am.
9: 50 AM

Pranab Mukherjee will be presenting the Union Budget 2009-10 on Jul 6. This will prove to be the first test of the UPA government. While a part of the country will wait to see if the newly elected government will keep up the promises, others will await some economic relief from the effects of recession. The economic survey that was presented by the Finance minister was optimistic on the growth and recovery of the country.

The major areas on which are expectations are built on prior to the presentation of the Budget are taxes, stimulus packages, disinvestment, and other measures to revive the economy and relieve the commoner of the financial troubles with sops on social reforms.

9: 30 AM