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Background
During 2008-09, the growth rate of GDPof India fell from an average of over 9 % in the previous three fiscal years to 6.7 %.The wholesale price index of India also witnessed large fluctuations between 13% in August 2008 to 0% in March 2009. The fiscal deficitof Indian government had gone up to 6.1% in March 2009.
[1]
The budget was preceded by an interim budget by Pranab Mukherjee on 16 Feb 2009.
[edit
 
] Budget Estimates
The total estimated expenditure for 2009-10 was Rs.10,20,838 crore, of which Rs.6,95,689 crorewas towards Non Plan and Rs.3,25,149 crore towards Plan expenditure. Total estimated revenuewas Rs 6,19,842 crore, including revenue receipts of Rs 6,14,497 and capital receipts of Rs 5345crores, excluding borrowings. The resultingfiscal deficitwas Rs 4,00,996 crore while revenuedeficit was Rs 2,82,735 crore.The gross tax receipts were budgeted at Rs.6,41,079 crore and nontax revenue receipts at Rs.1,40,279.
[2]
[edit] Short term economic revival measures[edit] Infrastructure development
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Allocation of Rs 15,800 crore to National Highways Authority of India.
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Allocation of Rs 12,887 crore toJawaharlal Nehru National Urban Renewal Mission.
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Allocation of Rs.3,973 crore for housing and provision of basic amenities to urban poor.
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Allocation of Rs 500 crore for Brihan Mumbai Storm Water Drainage Project.
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Allocation of Rs 2,080 crore for Accelerated Power Development and ReformProgramme 
[edit
 
] Agriculture development
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Allocation of Rs.411 crore for interest subvention for short term crop loans .
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Extension of time given to the farmers to pay their overdues under Debt Waiver and DebtRelief Scheme to 31 December, 2009.
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Allocation under Accelerated Irrigation Benefit Programme (AIBP) increased by 75 %over B.E. 2008-09.
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Allocation under Rashtriya Krishi Vikas Yojana (RKVY) stepped up by 30 % in B.E.2009-10 over B.E. 2008-09.
[edit] Export growth restoration
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Allocation for Rs.124 crore for Market Development Assistance Scheme
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Extension of deadline for Interest subvention of 2 % on pre-shipment credit for employment oriented export sectors to March 31, 2010.
[edit] Medium term economic revival measures
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Setting up of an expert group to advise on pricing petroleum products in sync with global prices.
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Raising of the threshold for non-promoter public shareholding for listed companies.
 
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Setting up of State Level Bankers Committee for providing banking facilities in under- banked/unbanked areas in the next three years.
[edit] Inclusive development measures
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Allocation of Rs.39,100 crore to National Rural Employment Guarantee Scheme 
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 National Food Security Act to be brought in to ensure entitlement of 25 kilo of rice or wheat per month at Rs.3 per kilo to every family living below the poverty linein rural or urban areas.
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Allocation of Rs.12,000 crore toPradhan Mantri Gram Sadak Yojanaand Rs.7,000 croreto Rajiv Gandhi Grameen Vidyutikaran Yojana.
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Allocation of Rs 8,800 crore toIndira Awaas Yojanaand Rs.2,000 crore toRural Housing Fund 
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Allocation of Rs 100 crore toPradhan Mantri Adarsh Gram Yojana.
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Interest subsidy to poor households to be provided for loans up to Rs.1 lakh.
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Increase of Corpus of Rashtriya Mahila Koshfrom Rs.100 crore to Rs.500
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 National Mission for Female Literacyto be launched with the aim to reduce level of female illiteracy by half in three years.
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Full interest subsidy for student loans during the period of moratorium introduced for approved courses of study in technical and professional streams from recoganisedinstitutions in India
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Plan outlay of Ministry of Minority Affairsenhanced to Rs.1,740 crore.
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Rs 75 corers allocated for establishing three campuses for Aligarh Muslim University 
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Setting up of handloommega clusters inWest BengalandTamil Nadu, powerloommega cluster inRajasthanand mega clusters for carpets inSrinagarand Mirzapur  
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Allocation of Rs.12,070 crore to National Rural Health Mission 
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Launching of eight national missions under  National Action Plan on Climate Change.
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Setting up of  National Ganga River Basin Authorityand allocation of Rs.562 crore for River and Lake Conservation Plans.
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One-time grant of Rs.100 crore for Indian Council of Forestry Research and Education,Dehradun 
[edit] Building Accountable Institutions
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Unique Identification Authority of Indiato set up online data base with identity and biometric details of Indian residents.
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Rs.430 crore provided to modernise police machinery in the States.
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Rs.2,284 crore proposed for construction of fences, roads, flood lights on theinternational borders.
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1 lakh dwelling units for housing of Central Para-military Forcespersonnel to be made.
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Increase of pension for servicemen at a cost of Rs 2,100 crore.
 
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Rs 495 crore allocated to setting up and upgrading of  polytechnics.
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Rs.827 crore allocated for opening one Central University in each uncovered State.
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Rs.50 crore allocated for  Punjab University, Chandigarh 
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Outlay for Commonwealth games2010 increased to Rs 3,472 crore.
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Rs.500 crore allocated for rehabilitation of  Srilankan Tamils.
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Rs.2,113 crore allocated for IITsand NITs 
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Rs.1,000 crore allocated rebuilding the damaged infrastructure caused due tocycloneAilain West Bengal.
[edit] Taxation
The tax proposals on direct taxes were claimed to be revenue neutral while those on indirecttaxes were claimed to yield a net gain of Rs.2,000 crore in a year.
[edit
 
] Direct Taxes
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Increase of personal income tax exemption limit from Rs.2.25 lakh to Rs.2.40 lakh for senior citizens, from Rs.1.80 lakh to Rs.1.90 lakh for women tax payers and from Rs.1.50lakh to Rs.1.60 lakh for all other categories of individual taxpayers.
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Increase of the deduction under section 80-DD to Rs.1 lakh from Rs.75,000.
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Elmination of surcharge of 10 % on personal income tax
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Extension of deduction in respect of export profits under sections 10A and 10B of theIncome-tax Act till 2010-11.
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Abolition of Fringe Benefit Tax 
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Extension of weighted deduction of 150% on in-house R&D expenditure to allmanufacturing businesses.
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Increase of Minimum Alternate Tax from 10% of book profits to 15%.
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Exemption of income of the National Pension Scheme Trustfrom income tax and anydividend paid to this Trust from Dividend Distribution Tax 
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Abolition of Commodity Transaction Taxintroduced in The Finance Act, 2008 .
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Extension of the tax holiday under section 80-IB(9) to profits derived from thecommercial production of mineral oil and natural gas from oil and gas blocks awardedunder the New Exploration Licensing Policy-VIII round of bidding.
[edit
 
] Indirect Taxes
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Imposition of 5% basic customs duty to importedset top boxes 
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Reduction of basic customs duty of LCD panelfrom 10% to 5%.
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Extension of CVD exemption of 4% for components of mobile phones.
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Reduction of customs duty from 10% to 5% for life saving drugs.
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Reduction of customs duty from 7.5% to 5% for life saving devices used in treatment of heart conditions.
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