Hi everbody, I am new to this site. Hope my this journey would be interesting with all of u.. i wanna know about the main features of this budget relating to industries.... PLZ help seniors......
From India, Indore
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From India, Indore
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Key Features of Budget 2010-2011
CHALLENGES
- To quickly revert to the high GDP growth path of 9 per cent and then find the means to cross the 'double-digit growth barrier'.
- To harness economic growth to consolidate the recent gains in making development more inclusive.
- To address the weaknesses in government systems, structures, and institutions at different levels of governance.
OVERVIEW OF THE ECONOMY
- India is among the first few countries in the world to implement a broad-based counter-cyclical policy package to respond to the negative fallout of the global slowdown.
- The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10 pegged at 7.2 per cent. The final figure is expected to be higher when the third and fourth-quarter GDP estimates for 2009-10 become available.
- The growth rate in the manufacturing sector in December 2009 was 18.5 per cent – the highest in the past two decades.
- A major concern during the second half of 2009-10 has been the emergence of double-digit food inflation. The government has set in motion steps, in consultation with the State Chief Ministers, which should bring down the inflation in the next few months and ensure that there is better management of food security in the country.
CONSOLIDATING GROWTH
Fiscal Consolidation
- With recovery taking root, there is a need to review public spending, mobilize resources, and gear them towards building the productivity of the economy.
- Fiscal policy shaped with reference to the recommendations of the Thirteenth Finance Commission, which has recommended a calibrated exit strategy from the expansionary fiscal stance of the last two years.
- It would be for the first time that the Government would target an explicit reduction in its domestic public debt-GDP ratio.
Tax reforms
- On the Direct Tax Code (DTC), the wide-ranging discussions with stakeholders have been concluded – the Government will be in a position to implement the DTC from April 1, 2011.
- The Centre is actively engaged with the Empowered Committee of State Finance Ministers to finalize the structure of Goods and Services Tax (GST) as well as the modalities of its expeditious implementation. The endeavor is to introduce GST by April 2011.
People's ownership of PSUs
- Ownership has been broad-based in Oil India Limited, NHPC, NTPC, and Rural Electrification Corporation while the process is on for National Mineral Development Corporation and Satluj Jal Vidyut Nigam. This will raise about Rs 25,000 crore during the current year.
- A higher amount is proposed to be raised during the year 2010-11.
Fertilizer subsidy
- A Nutrient-Based Subsidy policy for the fertilizer sector has been approved by the Government and will become effective from April 1, 2010.
- This will lead to an increase in agricultural productivity and better returns for the farmers, and over time reduce the volatility in demand for fertilizer subsidy and contain the subsidy bill.
Petroleum and Diesel pricing policy
- An Expert Group to advise the Government on a viable and sustainable system of pricing of petroleum products has submitted its recommendations.
- A decision on these recommendations will be taken in due course.
Improving Investment Environment
Foreign Direct Investment
- A number of steps have been taken to simplify the FDI regime.
- The methodology for the calculation of indirect foreign investment in Indian companies has been clearly defined.
- Complete liberalization of pricing and payment of technology transfer fee and trademark, brand name, and royalty payments.
Financial Stability and Development Council
- An apex-level Financial Stability and Development Council will be set up with a view to strengthen and institutionalize the mechanism for maintaining financial stability.
- This Council would monitor macro-prudential supervision of the economy, including the functioning of large financial conglomerates, and address inter-regulatory coordination issues.
Corrected Spelling and Grammar:
- Reverted "‘double digit growth barrier’" to 'double-digit growth barrier'.
- Ensured consistency with punctuation marks and capitalization throughout the text.
- Corrected typos such as 'mobilise' to 'mobilize' for American English.
- Ensured proper paragraph formatting with a single line break between paragraphs.
From India, Indore
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184CHALLENGES
- To quickly revert to the high GDP growth path of 9 per cent and then find the means to cross the 'double-digit growth barrier'.
- To harness economic growth to consolidate the recent gains in making development more inclusive.
- To address the weaknesses in government systems, structures, and institutions at different levels of governance.
OVERVIEW OF THE ECONOMY
- India is among the first few countries in the world to implement a broad-based counter-cyclical policy package to respond to the negative fallout of the global slowdown.
- The Advance Estimates for Gross Domestic Product (GDP) growth for 2009-10 pegged at 7.2 per cent. The final figure is expected to be higher when the third and fourth-quarter GDP estimates for 2009-10 become available.
- The growth rate in the manufacturing sector in December 2009 was 18.5 per cent – the highest in the past two decades.
- A major concern during the second half of 2009-10 has been the emergence of double-digit food inflation. The government has set in motion steps, in consultation with the State Chief Ministers, which should bring down the inflation in the next few months and ensure that there is better management of food security in the country.
CONSOLIDATING GROWTH
Fiscal Consolidation
- With recovery taking root, there is a need to review public spending, mobilize resources, and gear them towards building the productivity of the economy.
- Fiscal policy shaped with reference to the recommendations of the Thirteenth Finance Commission, which has recommended a calibrated exit strategy from the expansionary fiscal stance of the last two years.
- It would be for the first time that the Government would target an explicit reduction in its domestic public debt-GDP ratio.
Tax reforms
- On the Direct Tax Code (DTC), the wide-ranging discussions with stakeholders have been concluded – the Government will be in a position to implement the DTC from April 1, 2011.
- The Centre is actively engaged with the Empowered Committee of State Finance Ministers to finalize the structure of Goods and Services Tax (GST) as well as the modalities of its expeditious implementation. The endeavor is to introduce GST by April 2011.
People's ownership of PSUs
- Ownership has been broad-based in Oil India Limited, NHPC, NTPC, and Rural Electrification Corporation while the process is on for National Mineral Development Corporation and Satluj Jal Vidyut Nigam. This will raise about Rs 25,000 crore during the current year.
- A higher amount is proposed to be raised during the year 2010-11.
Fertilizer subsidy
- A Nutrient-Based Subsidy policy for the fertilizer sector has been approved by the Government and will become effective from April 1, 2010.
- This will lead to an increase in agricultural productivity and better returns for the farmers, and over time reduce the volatility in demand for fertilizer subsidy and contain the subsidy bill.
Petroleum and Diesel pricing policy
- An Expert Group to advise the Government on a viable and sustainable system of pricing of petroleum products has submitted its recommendations.
- A decision on these recommendations will be taken in due course.
Improving Investment Environment
Foreign Direct Investment
- A number of steps have been taken to simplify the FDI regime.
- The methodology for the calculation of indirect foreign investment in Indian companies has been clearly defined.
- Complete liberalization of pricing and payment of technology transfer fee and trademark, brand name, and royalty payments.
Financial Stability and Development Council
- An apex-level Financial Stability and Development Council will be set up with a view to strengthen and institutionalize the mechanism for maintaining financial stability.
- This Council would monitor macro-prudential supervision of the economy, including the functioning of large financial conglomerates, and address inter-regulatory coordination issues.
Corrected Spelling and Grammar:
- Reverted "‘double digit growth barrier’" to 'double-digit growth barrier'.
- Ensured consistency with punctuation marks and capitalization throughout the text.
- Corrected typos such as 'mobilise' to 'mobilize' for American English.
- Ensured proper paragraph formatting with a single line break between paragraphs.
From India, Indore
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