ID :
108827
Sat, 02/27/2010 - 10:22
Auther :
Shortlink :
https://www.oananews.org//node/108827
The shortlink copeid
FM gives IT sops but hikes excise; rolling back stimulus
New Delhi, Feb 26 (PTI) The Union Budget Friday
proposed major personal income tax sops but effected a two per
cent hike in excise duty across the board while slapping
levies on petrol and diesel, partially rolling back stimulus
measures in the face of economic revival.
Presenting the budget for 2010-11, Indian Finance
Minister Pranab Mukherjee was severe on petroleum products,
slapping customs duty of five per cent on crude, tripling it
to 7.5 per cent on petrol and diesel and doubling it on some
other oil products. This apart, central excise duty on
petrol and diesel was raised by Rs one per litre.
Consequently petrol would cost more by Rs 2.71 a litre
while diesel would be dearer by Rs 2.55 a litre from tonight.
Jet fuel would be costlier by upto Rs 1,500 per kilolitre.
The budget hiked excise duties on non-oil items from
eight per cent to ten percent, a move that would increase
prices of cars, TVs, ACs, tobacco, cigarettes and cement among
other items.
The Opposition dubbed the budget as "highly
inflationary" and staged a rare walkout as Mukherjee read out
proposals on petrol and diesel. The Bhartiya Janata Party has
threatened to move cut motions and oppose the budget in Lok
Sabha.
However, to buoy tax payers, he broadbased Income tax
structure as a result of which income between Rs 1.6 lakh to
Rs 5 lakh would attract a 10 per cent tax, income between Rs.5
and Rs 8 lakh would be levied 20 per cent and income beyond
Rs 8 lakh 30 per cent. The changes would help taxpayers save
upto Rs. 50,000 at higher income levels.
Besides, he offered a deduction on investment upto Rs
20,000 in long term infrastructure bonds over the prevailing
Rs one lakh deduction on savings.
For farmers, the budget proposed a concessional interest
of five percent on timely payment by doubling the subvention
to two per cent, apart from incentives for sector like
housing, and banks.
Mukherjee proposed a total expenditure of Rs 11,08,749
crore including Rs 3,73,092 on planned activities for which he
would raise a non tax and tax revenue of Rs 6,82,212 crore
leaving a deficit of Rs 3,81,408 crore, which would be bridged
by borrowing.
As per the plan allocations announced in the budget, 37
per cent has gone to social sectors, 46 per cent has gone to
infrastructure sector out of which 25 per cent is for rural
infrastructure.
The Plan allocation for school education was raised to Rs
31,036 crore, while outlay for defence was increased by a
paltry four per cent to Rs 1,47,344 crore from last year's Rs
1,41,703 crore.
But despite the borrowings to meet expenditure, the
government would still face a fiscal deficit of 5.5 per cent
of GDP, to cover for which Mukherjee has brought in more areas
like air journeys of all classes and rental into service tax
net, which would help him raise an additional Rs 3000 crore.
In all, net revenue gain is placed at Rs 20,500 crore.
During the year he also proposed to mobilise Rs 40,000
crore through sale of government equity in Public Sector
Undertakings, up from an estimated Rs 25,000 crore this year.
On the decision to raise duties, Mukherjee told reporters
later that "customs duty was withdrawn when the prices of
petroleum reached as high as 122 USD per barrel. Now it is
much softer and there is no reason to continue the same
concession."
Crude oil quoted at USD 78 a barrel in Asian trade Friday
compared to a high of over USD 147 a barrel in July 2008.
Leader of Opposition Sushma Swaraj, who led the walkout
against many of the Budget proposals, alleged that the hike in
the prices of petrol and diesel would have a cascading effect
and hit the common man hard.
At a joint press conference, along with other opposition
veterans, Samajwadi Party leader Mulayam Singh Yadav appealed
to the people to hit the streets in protest against
government's move and sought their support like they did
"during the Emergency".
Mukherjee said he had three considerations while
proposing the budget -- how quickly can the economy come back
nine per cent growth, to achieve fiscal consolidation and
ensure inclusive growth.
The stock market welcomed the Budget, with the benchmark
Sensex putting up a 350 point rally in noon trade. But it
closed higher by 175 points on account of profit booking owing
to a long weekend.
"A job well done" was how Indian Prime Minister Manmohan
Singh summarised Mukherjee's Budget for 2010-11, and said:
"You must look at the total picture emerging from the budget.
The net revenue gain for the Finance Minister is only Rs
20,000 crore. In an economy as large as India, this resource
mobilisation effort and balance should not trigger any
inflationary expectation." PTI TEAM
KAB
proposed major personal income tax sops but effected a two per
cent hike in excise duty across the board while slapping
levies on petrol and diesel, partially rolling back stimulus
measures in the face of economic revival.
Presenting the budget for 2010-11, Indian Finance
Minister Pranab Mukherjee was severe on petroleum products,
slapping customs duty of five per cent on crude, tripling it
to 7.5 per cent on petrol and diesel and doubling it on some
other oil products. This apart, central excise duty on
petrol and diesel was raised by Rs one per litre.
Consequently petrol would cost more by Rs 2.71 a litre
while diesel would be dearer by Rs 2.55 a litre from tonight.
Jet fuel would be costlier by upto Rs 1,500 per kilolitre.
The budget hiked excise duties on non-oil items from
eight per cent to ten percent, a move that would increase
prices of cars, TVs, ACs, tobacco, cigarettes and cement among
other items.
The Opposition dubbed the budget as "highly
inflationary" and staged a rare walkout as Mukherjee read out
proposals on petrol and diesel. The Bhartiya Janata Party has
threatened to move cut motions and oppose the budget in Lok
Sabha.
However, to buoy tax payers, he broadbased Income tax
structure as a result of which income between Rs 1.6 lakh to
Rs 5 lakh would attract a 10 per cent tax, income between Rs.5
and Rs 8 lakh would be levied 20 per cent and income beyond
Rs 8 lakh 30 per cent. The changes would help taxpayers save
upto Rs. 50,000 at higher income levels.
Besides, he offered a deduction on investment upto Rs
20,000 in long term infrastructure bonds over the prevailing
Rs one lakh deduction on savings.
For farmers, the budget proposed a concessional interest
of five percent on timely payment by doubling the subvention
to two per cent, apart from incentives for sector like
housing, and banks.
Mukherjee proposed a total expenditure of Rs 11,08,749
crore including Rs 3,73,092 on planned activities for which he
would raise a non tax and tax revenue of Rs 6,82,212 crore
leaving a deficit of Rs 3,81,408 crore, which would be bridged
by borrowing.
As per the plan allocations announced in the budget, 37
per cent has gone to social sectors, 46 per cent has gone to
infrastructure sector out of which 25 per cent is for rural
infrastructure.
The Plan allocation for school education was raised to Rs
31,036 crore, while outlay for defence was increased by a
paltry four per cent to Rs 1,47,344 crore from last year's Rs
1,41,703 crore.
But despite the borrowings to meet expenditure, the
government would still face a fiscal deficit of 5.5 per cent
of GDP, to cover for which Mukherjee has brought in more areas
like air journeys of all classes and rental into service tax
net, which would help him raise an additional Rs 3000 crore.
In all, net revenue gain is placed at Rs 20,500 crore.
During the year he also proposed to mobilise Rs 40,000
crore through sale of government equity in Public Sector
Undertakings, up from an estimated Rs 25,000 crore this year.
On the decision to raise duties, Mukherjee told reporters
later that "customs duty was withdrawn when the prices of
petroleum reached as high as 122 USD per barrel. Now it is
much softer and there is no reason to continue the same
concession."
Crude oil quoted at USD 78 a barrel in Asian trade Friday
compared to a high of over USD 147 a barrel in July 2008.
Leader of Opposition Sushma Swaraj, who led the walkout
against many of the Budget proposals, alleged that the hike in
the prices of petrol and diesel would have a cascading effect
and hit the common man hard.
At a joint press conference, along with other opposition
veterans, Samajwadi Party leader Mulayam Singh Yadav appealed
to the people to hit the streets in protest against
government's move and sought their support like they did
"during the Emergency".
Mukherjee said he had three considerations while
proposing the budget -- how quickly can the economy come back
nine per cent growth, to achieve fiscal consolidation and
ensure inclusive growth.
The stock market welcomed the Budget, with the benchmark
Sensex putting up a 350 point rally in noon trade. But it
closed higher by 175 points on account of profit booking owing
to a long weekend.
"A job well done" was how Indian Prime Minister Manmohan
Singh summarised Mukherjee's Budget for 2010-11, and said:
"You must look at the total picture emerging from the budget.
The net revenue gain for the Finance Minister is only Rs
20,000 crore. In an economy as large as India, this resource
mobilisation effort and balance should not trigger any
inflationary expectation." PTI TEAM
KAB
