Major Allocations to Boost Up Economy

Minister of Finance Sh. Pranab Mukherjee has presented Union Budget 2009-10 on July 6, 2009 in the

Lok Sabha. This Budget must be looked at against the larger backdrop of the unprecedented global

economic crisis. Finance minister had to do a fine balancing act between fiscal compulsions and the

need to provide continued stimulus to the economy. In the given circumstances, he has done

reasonably well though clearly he has not been able to meet the expectations of all sections in the

economy. The focus of the Budget has been on infrastructure development, agriculture, exports, the

social sector and education and skill development. The initiatives in these areas are largely aimed at

supporting short-term economic revival. Increased allocation for highways, urban infrastructure,

power and the national gas grid are welcome. However, the relief to exporters could have been more.

The finance minister has proposed medium-term stimulus for the economy through institutional

reforms. We will have to wait for specifics in areas of petroleum product pricing, taxes, disinvestment

and the proposal to raise the threshold for non promoters’ shareholding in listed companies, though.

In the area of direct taxes, finance minister has significantly met the industry’s expectation by

abolishing of surcharge, fringe benefit tax and commodity transaction tax. Extension of tax benefit

under Sections 10A and 10B are also welcome though this could have been for a longer period of

three years, which would have provided more visibility. The industry’s demand for reduction in rates of

corporate tax has unfortunately not been accepted this time. The decision to introduce a full-fledged

GST from April 1, 2010 is perhaps the most notable announcement in the area of indirect taxes.

Besides this however, there is no relief for the struggling medium and heavy commercial vehicle

industry and the automotive component sector. With a time lag, private investment should resume,

marking the return to high economic growth. The worries in this regard are two-fold. Firstly, the

nature of the government’s borrowing programme and its impact on the interest rates and the role of

private investments. The second one arises out of the high quantum of the outlay without an attempt

to extract accountability and efficiency from the implementation machinery. The feel good for the

people comes from lowering of the threshold of personal income tax. Corporate will surely welcome

the abolition of the irritating and unproductive FBT and will not dispute the logic of MAT. A Budget that

is positive for the economy is good for industry. Extension of weighted expenditure deduction for in-

house R&D is welcome.

The government has shown foresight by provisioning to keep the banks and insurance under public

sector control under the present recessionary scenario. The emphasis on the social sector

development is in line with the government’s mantra of inclusive growth. Special emphasis on

education is a welcome step. The provision for the Scheme ‘Mission in Education through ICT’ has
been increased to Rs 900 crore and will create a better talent flow in the years to come. The speed of

progress —in talent assessment, training needs analysis for a range of services sectors including IT

and development of a new technology architecture which would support learner centric education by

connecting campuses, content specialists and the student community will now be possible by the up-

gradation for Polytechnics under the Skill Development Mission for which allocations have also been

increased. The enhancement of overall Plan Budget for higher education by Rs 2,000 crore over

interim budget estimates and allocation of Rs 2,113 crore for IITs and NITs is just one of many

initiatives our country needs—especially in J&K, North East, and other states to reduce digital divide.

New projects such as modernisation of the employment exchanges and unique identification card with

public private partnership also focuses on efficiency of delivery of government programmes and is an

important step in ushering greater transparency in public decision-making process.

Union Budget Speech: In his Budget speech finance minister said that the Just 140 days back, he had

the privilege to present the Interim Budget for 2009-10. It is a rare honour that he has been called

upon to present the regular budget after the new Government assumed office. The Congress-led UPA

Government has come back to power with a renewed mandate. As Prime Minister, Dr. Manmohan

Singh, said recently It is a mandate for continuity, stability and prosperity. It is a mandate for

inclusive growth and equitable development. In the Interim Budget for 2009-10, he had stated that

the new Government would need to anchor its policies for 2009-10, in a medium term perspective that

would have to:

(a) sustain a growth rate of at least 9 per cent per annum over an extended period of time;

(b) strengthen the mechanisms for inclusive growth for creating about 12 million new work

opportunities per year;

(c) reduce the proportion of people living below poverty line to less than half from current levels by

2014;

(d) ensure that Indian agriculture continues to grow at an annual rate of 4 per cent;

(e) increase the investment in infrastructure to more than 9 per cent of GDP by 2014;

(f) support Indian industry to meet the challenge of global competition and sustain the growth

momentum in exports;

(g) strengthen and improve the economic regulatory framework in the country;

(h) expand the range and reach of social safety nets by providing direct assistance to vulnerable

sections;

(i) strengthen the delivery mechanism for primary health care facilities with a view to improve the

preventive and curative health care in the country;

(j) create a competitive, progressive and well regulated education system of global standards that
meets the aspiration of all segments of the society; and

(k) move towards providing energy security by pursuing an Integrated Energy Policy.

The Government recognizes the challenges that this task entails, particularly at a time when the world

is still struggling with an unprecedented financial crisis and an economic slowdown that has also

affected India . The first challenge is to lead the economy back to the high GDP growth rate of 9 per

cent per annum at the earliest. Growth of income is important in itself, but it is as important for the

resources that it brings in. These resources provide the means to bridge the critical gaps that remain

in our development efforts, particularly with regard to the welfare of the vulnerable segments of

Indian population. The second challenge is to deepen and broaden the agenda for inclusive

development; and to ensure that no individual, community or region is denied the opportunity to

participate in and benefit from the development process. The third challenge is to re-energize

government and improve delivery mechanisms. Our institutions must provide high quality public

services, security and the rule of law to all citizens with transparency and accountability.

Overview of the Economy: The principal growth driver in this period has been private investment,

which has been predominantly funded by domestic resources. During the year 2008-09, there has

been a dip in the growth rate of GDP from an average of over 9 per cent in the previous three fiscal

year to 6.7 per cent. It has affected the pace of job creation in certain sectors of the economy and the

investment sentiments of the business community. It has also resulted in considerably lower revenue

growth for the government. Another feature of the year 2008-09 was a sharp rise in the wholesale

price index to nearly 13% in August 2008 and an equally sharp fall close to 0% in March 2009.

The structure of India economy has changed rapidly in the last ten years. External trade and external

capital flows are an important part of the economy and so is the contribution of the services sector to

the GDP at well over 50 per cent. The share of merchandise trade (exports plus imports) as a

proportion of GDP has more than doubled over the past decade to 38.9 per cent in 2008-09. Similarly,

trade in goods and services taken together has also doubled to 47 per cent during this period. Gross

capital flows rose to a peak of over 9 per cent of GDP in 2007-08 before falling in the wake of the

global financial crisis. The significant increase in the inflow of foreign capital is important, not so much

for bridging the domestic savings-investment gap, but for facilitating the intermediation of financial

resources to meet the growing needs of the economy.

This growing integration of the Indian economy with the rest of the world has brought new

opportunities and also new challenges. It has made the task of sustaining high growth more complex.

Over the past month, we have critically evaluated Government’s efforts at both short term economic
recovery as well as medium term economic growth. The economic recovery and growth is a

cooperative effort of the Central and State Governments.

Towards Economic Revival

Short-term measures: To counter the negative fallout of the global slowdown on the Indian economy,

the Government responded by providing three focused fiscal stimulus packages in the form of tax

relief to boost demand and increased expenditure on public projects to create employment and public

assets. The RBI took a number of monetary easing and liquidity enhancing measures to facilitate flow

of funds from the financial system to meet the needs of productive sectors. This fiscal accommodation

led to an increase in fiscal deficit from 2.7 per cent in 2007-08 to 6.2 per cent of GDP in 2008-09. The

difference between the actuals of 2007-08 and 2008-09 constituted the total fiscal stimulus. This fiscal

stimulus at 3.5% of GDP at current market prices for 2008-09 amounts to Rs.1,86,000 crore. These

measures were effective in arresting the fall in growth rate of GDP in 2008-09 and we achieved a

growth of 6.7 per cent. There are signs of revival in the domestic industry and the foreign investors

have also returned to the Indian market in the May-jun,2009.

Infrastructure Development

To stimulate public investment in infrastructure, government has set up the India Infrastructure

Finance Company Limited (IIFCL) as a special purpose vehicle for providing long term financial

assistance to infrastructure projects. Government will ensure that IIFCL is given greater flexibility to

aggressively fulfil its mandate.

Highway and Railways: The allocation during the current year to National Highways Authority of India

(NHAI) for the National Highways Development Programme (NHDP) is being stepped up by 23 per

cent over the 2008-09 (BE). Government have also increased the allocation for the Railways from

Rs.10,800 crore made in the Interim Budget for 2009-10 to Rs.15,800 crore.

Urban Infrastructure: The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) has been an

important instrument for refocusing the attention of the State governments on the importance of

urban infrastructure. In recognition of the role of JNNURM, the allocation for this scheme is being

stepped up by 87 per cent to Rs.12,887 crore in the current budget. To improve the lot of the urban

poor, Ministry proposed to enhance the allocation for housing and provision of basic amenities to

urban poor to Rs.3,973 crore in the current years budget. This includes the provision for Rajiv Awas

Yojana (RAY), a new scheme announced in the address of the President of India. This scheme, the

parameters of which are being worked out, is intended to make the country slum free in the five year

period.
Brihan Mumbai Storm Water Drainage Project (BRIMSTOWA)

To address the problem of flooding in Mumbai, Brihan Mumbai Storm Water Drainage Project

(BRIMSTOWA) was initiated in 2007. The entire estimated cost of the project at Rs.1,200 crore is

being funded through Central assistance. A sum of Rs.500 crore has been released for this project

upto 2008-09. Government have enhanced the provision for this project from Rs.200 crore in Interim

BE to Rs.500 crore to expedite the completion of the project.

Power: The Accelerated Power Development and Reform Programme (APDRP) is an important scheme

for reducing the gap between power demand and supply. Government has proposed to increase the

allocation for this scheme to Rs.2,080 crore, a steep increase of 160 per cent above the allocation in

the BE of 2008-09.

Gas: With the recent find of natural gas in the KG Basin on the Eastern offshore of the country, the

indigenous production of Natural Gas is set to double with natural gas emerging as an important

source of energy. LNG infrastructure in the country is also being expanded. Government has proposed

to develop a blueprint for long distance gas highways leading to a National Gas Grid. This would

facilitate transportation of gas across the length and breadth of the country.

Agricultural Development

Agriculture has been the mainstay of Indian economy with 60 per cent of our population deriving their

sustenance from it. In the recent past, the sector has recorded a growth of about 4 per cent per

annum with substantial increase in plan allocations and capital formation in the sector. Agriculture

credit flow was Rs.2,87,000 crore in 2008-09. The target for agriculture credit flow for the year 2009-

10 is being set at Rs.3,25,000 crore. To achieve this, Government has proposed to continue the

interest subvention scheme for short term crop loans to farmers for loans upto Rs.3 lakh per farmer at

the interest rate of 7 per cent per annum. for this year, the Government shall pay an additional

subvention of 1 per cent as an incentive to those farmers who repay their short term crop loans on

schedule. Thus, the interest rate for these farmers will come down to 6 per cent per annum. For this,

government is making an additional Budget provision of Rs.411 crore over Interim BE.

Service tax: It is an international practice to zero-rate exports. To achieve this objective, a scheme

was announced in 2007, granting refund of service tax paid on certain taxable services used after the

clearance of export goods from the factory. For some time now, the exporting community has been

expressing dissatisfaction over the difficulties faced in obtaining such refunds. Several procedural

simplifications attempted in the past have also not yielded satisfactory results. The solution seems to
lie in placing greater trust on the claims filed by the exporters.

Keeping this in view, Government has proposed to make the following changes in the

scheme:

» Services received by exporters from goods transport agents and commission agents, where the

liability to pay service tax is ab initio on the exporter, would be exempted from service tax. Thus,

there would be no need for the exporter to first pay the tax and later claim refund.

» For other services received by exporters, the exemption would be operated through the existing

refund mechanism based on self-certification of the documents where such refund is below 0.25 per

cent of fob value, and certification of documents by a Chartered Accountant for value of refund

exceeding the above limit.

Budget Estimate 2009-10

» Fiscal deficit as a percentage of GDP is projected at 6.8 per cent compared to 2.5 per cent in B.E.

2008-09 and 6.2 per cent as per provisional accounts 2008-09.

» Increase in Non-plan expenditure is mainly due to implementation of Sixth Central Pay Commission

recommendations, increased food subsidy and higher interest payment arising out of larger fiscal

deficit in 2008-09.

» Interest payments estimated at Rs.2,25,511 crore constituting about 36 per cent of Non-plan

revenue expenditure in B.E. 2009-10.

» Subsidies up from Rs.71,431 crore in B.E. 2008-09 to Rs.1,11,276 crore in B.E. 2009-10.

» Outlay for Defence up from Rs.1,05,600 crore in B.E. 2008-09 to Rs.1,41,703 crore in B.E. 2009-10.

» Gross Budgetary Support for Annual Plan 2009-10 enhanced by Rs.40,000 crore over Interim B.E.

2009-10..

» State Governments to be permitted to borrow additional 0.5 per cent of their GSDP by relaxing the

fiscal deficit target under FRBM from 3.5 per cent to 4 per cent of their GSDP. This will enable the

States to borrow Rs.21,000 crore additionally over Interim B.E. 2009-10.

» Gross tax receipts budgeted at Rs.6,41,079 crore in B.E. 2009-10 compared to Rs.6,87,715 crore in
B.E. 2008-09.

» Non-tax revenue receipts estimated at Rs.1,40,279 crore in B.E. 2009-10 compared to Rs.95,785

crore in B.E. 2008-09.

» Revenue deficit projected at 4.8 per cent of GDP in B.E. 2009-10 compared to 1 per cent in B.E.

2008-09 and 4.6 per cent as per provisional accounts of 2008-09

Union Budget Main Features

» Total budget expenditure for 2009-10 will be Rs 10,28,032 cr

» Exemption limit for income tax raised by Rs 10,000

» Hike in IT exemption for women to Rs 1,90,000

» Hike in IT exemption to Rs 2,40,000 for senior citizens

» No change in corporate tax

» Eliminate surcharge on personal Income Tax by 10 pct

» Service tax exempted for exporters on select services

» Defence gets Rs 1,41,703 crore for 2009-10, a 34 pct hike from 2008-09 budgetary allocation

» Service tax imposed on certain legal services

» Customs duty to be reduced on drugs for heart treatment

» Mobile phone accessories to become cheaper

» Branded jewellery to become cheaper

» Customs duty on bio-diesel reduced

» Tax holiday textile units extended

» Customs duty on gold and silver import increased

» Custom duty on gold re-imposed

» Small businesses exempt from advance tax

» Overall customs and excise duty structure maintained

» To impose 5 pct customs duty on set top boxes

» Custom duty on LCD panels halved

» Tax holiday to natural gas extended

» Anonymous funds to charitable bodies get tax relief

» MAT rate hiked to 15% of book profit

» Commodities Transaction Tax to be abolished

» Effort is to improve tax collection by eliminating distortions in tax system and expanding the base

» Direct Tax code to be released in 45 days along with discussion paper

» Share of direct taxes has increased to 56 pct in 2008-09 over 41 pct in 2007-08
» Tax holiday for exporters extended until 2012

» Fringe Benefit Tax to be abolished

» Income tax incentives on education loans expanded to cover vocational studies after schooling

» Goods and Services Tax to be introduced from April 1, 2010

» New tax code to be set up in 45 days

» Govt committed to tax reforms

» Plan expenditure, for Centre and States, to go up by Rs 61,000 cr

» Fiscal deficit seen at 6.8 pct

» Higher public investment in infrastructure

» Rs 500 crore allocated for rehabilitation of internally displaced Tamils in Sri Lanka

» Rs 1,000 crore for rebuilding infrastructure damaged by 'Aila' in West Bengal

» Rs 25 cr allocated each for AMU campuses in » Murshidabad, Mallapuram

» One lakh dwelling units for paramilitary forces personnel to be constructed

» Pension of non-commissioned officers to be hiked

» One rank, one pension for ex-servicemen from July 1,2009

» Rs 2,113 cr for IITs and NITs

» Allocation of Rs 50 cr to Chandigarh University

» Commonwealth allocation hiked to Rs 16,300 cr

» Govt to hike allocation to National Ganga Project to Rs 562 cr

» First Unique ID to citizens to roll out in 12-18 months; Rs 120 crore proposed for the project

» Allocation for National Rural Health Mission to be raised by Rs 257 cr

» National action plan on climate change

» Allowances to para-military forces at par with defence forces

» Modernisation of national employment exchanges to be carried out

» Action initiated to provide social security to unorganised sector workers

» Full interest subsidy for students taking courses in approved institutions; five lakh students to

benefit

» To add handloom cluster in Tamil Nadu and West Bengal

» 50 pct of all rural women to be brought into self-help group programmes

» Rashtriya Mahila Kosh allocation to be raised to Rs 500 cr

» National Mission for Female Literacy with emphasis on minorities, SC/ST to be launched

» Interest subsidy for home loans hiked to Rs 1 lakh

» Allocation for Bharat Nirman programme raised by 45 pct

» Full interest subsidy for poor students for higher education

» Rs 100 cr one-time grant to expand banks in unbanking areas

» Work on National Food Security scheme for providing food at cheaper rates to the poor has begun
» Indira Awaas Yojna hiked by 63 pct to Rs 8,883 cr

» Rs 31,100 crore allocated to NREGA

» NREGA gave employment opportunities to more than 4.479 cr households in last fiscal

» To return to FRBM target for fiscal discipline at the earliest

» Subsidy regime for fertilisers to change to nutrient-based rather than price-based

» Banking network to be expanded

» Banks and insurance firms to remain in public sector

» Threshold for non-promoter public listed companies raised

» Saral-II forms to simplify taxation process

» Move towards energy security via Integrated Energy Act

» An expert group to look into petroleum product pricing

» Export Credit Guarantee scheme extended till March 2010

» Print media stimulus package extended by 6 months

» Target for agriculture credit raised to Rs 3,25,000 cr in FY10

» Allocation of Rashtriya Krishi Vikas Yojna stepped up by 30 pct

» Will create close to 12 million jobs

» Farmers loan interest to come down to 6 pct

» Total fiscal stimulus during FY09 is Rs 1,86,000 cr

» Fund allocation for urban poor accommodation is 3,973,000 cr

» Housing allocation hiked under Rajiv Awaas Yojana

» Mumbai flood management allocation hiked to Rs 500 cr

» IIFCL will re-finance 60 pct of commercial bank loans in PPP

» Share of trade has doubled to 38 % of GDP

» Uncertainties of global economy remain

» IIFCL to be given greater flexibility

» Govt took 3 stimulus packages to fight slowdown

» Trade in goods and services doubled in 2008

» Significant hike in foreign capital

» Infra investment to exceed 9% of GDP by 2014

» Policy target to revive agriculture and industrial growth

» Ensure 4 pct growth for agriculture

» Increase investment in infrastructure

» Growth Target at 9 pct per annum

Budget Aims At Inclusive Growth

National Food Security Act:

» 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 line in rural or urban areas. Food

Security Bill to be put on the website of the Department of Food and Public Distribution for public

debate.

National Rural Employment Guarantee Scheme (NREGS)

» Allocation under NREGS increased by 144 per cent to Rs.39,100 crore in B.E. 2009-10 over B.E.

2008-09.

» To increase productivity of assets and resources under NREGA, convergence with other schemes

relating to agriculture, forests, water resources, land resources, rural roads initiated. In the first stage

115 pilot districts selected for convergence.

Pradhan Mantri Adarsh Gram Yojana (PMAGY)

» New scheme Pradhan Mantri Adarsh Gram Yojana (PMAGY) with an allocation of Rs.100 crore

launched on pilot basis for integrated development of 1000 villages having population of scheduled

castes above 50 per cent.

Welfare of Minorities:

» Rs.25 crore each allocated for establishing new campuses at Murshidabad in West Bengal and

Malappuram in Kerala by Aligarh Muslim University.

» Allocations made for the new schemes of National Fellowship for Students from minority community

and Grants-in-aid to Central Wakf Council for computerization of records of State Wakf Boards.

» Plan outlay of Ministry of Minority Affairs enhanced from Rs.1,000 crore in B.E. 2008-09 to Rs.1,740

crore in 2009-10 registering an increase of 74 per cent. This includes Rs.990 crore for Multi-Sectoral

Development Programme for Minorities, Grants-in-aid to Maulana Azad Education Foundation, National

Minorities Development and Finance Corporation and pre and post matric scholarship for minorities.

Education:

» Provision for the scheme Mission in Education through ICT substantially increased to Rs.900 crore

and the provision for setting up and up-gradation of Polytechnics under the Skill Development Mission

enhanced to Rs.495 crore.

» Rs.50 crore allocated for Punjab University, Chandigarh. Plan allocation for Chandigarh to be suitably

enhanced during the year to provide better infrastructure to the people of Chandigarh.

» Rs.2,113 crore allocated for IITs and NITs which includes a provision of Rs.450 crore for new IITs

and NITs.

» Rs.827 crore allocated for opening one Central University in each uncovered State.

Direct Taxes:

» Scope of presumptive taxation to be extended to all small businesses with a turnover upto Rs. 40

lakh. All such taxpayers to have option to declare their income from business at the rate of 8 percent

of their turnover and simultaneously enjoy exemption from the compliance burden of maintaining

books of accounts. As a procedural simplification, they are also to be exempted from advance tax and

allowed to pay their entire tax liability from business at the time of filing their return. This new scheme

to come into effect from the financial year 2010-11.

» Deduction under section 80E of the Income-tax Act allowed in respect of interest on loans taken for

pursuing higher education in specified fields of study to be extended to cover all fields of study,

including vocational studies, pursued after completion of schooling.

» Donations to electoral trusts to be allowed as a 100 percent deduction in the computation of the

income of the donor.

» Commodity Transaction Tax (CTT) to be scrapped.

Alternative dispute resolution mechanism to be created within the Income Tax Department for the

resolution of transfer pricing disputes. Minimum Alternate Tax (MAT) to be increased to 15 per cent of

book profits from 10 per cent. The period allowed to carry forward the tax credit under MAT to be

extended from seven years to ten years.

Indirect Taxes:

» Proposals on indirect taxes to seek to achieve stable framework by maintaining the overall rate

structure for customs and central excise duties as well as service tax.

» Full exemption from 4% special CVD on parts for manufacture of mobile phones and accessories to

be reintroduced for one year.

» Customs duty of 5% to be imposed on Set Top Box for television broadcasting.

» Customs duty on bio-diesel to be reduced from 7.5% to 2.5%.

» Concessional customs duty of 5% on specified machinery for tea, coffee and rubber plantations to

be reintroduced for one year, upto 06.07.2010.

Excise duty on Special Boiling Point spirits to be reduced to 14%.

» Excise duty on manmade fibre and yarn to be increased from 4% to 8%.

» Full exemption from excise duty to be provided on goods of Chapter 68 of Central Excise Tariff

manufactured at the site of construction for use in construction work at such site.

» Export Promotion Councils and the Federation of Indian Export Organizations (FIEO) to be exempt

from service tax on the membership and other fees collected by them till 31st March 2010.

Union Budget 2009-10 Highlights

» Budget spells out the target for the UPA: To bring back the 9% growth

» Commodities Transaction Tax (CTT) to be scrapped

» 10% surcharge on personal Income tax scrapped

» Fringe Benefit Tax (FBT) to be scrapped

» IT exemption limit for Women hiked to Rs 190,000

» IT exemption limit for Senior Citizens hiked to Rs 240,000

» Rs 12000 crore earmarked for expenditure on rural roads in FY 2010

» Drugs related to heart diseases to be cheaper

» Service Tax to be now applicable on law firms

» Bio-diesel custom duty lowered

» Customs Duty on import of Gold and Silver increased

» Branded women's jewellery to be cheaper

» Rs 16300 Crore to be set aside for the upcoming Commonwealth Games

» IITs and NITs to get Rs 2113 crore

» Corporate Tax unchanged

» One rank-one pension scheme to be in place for Ex-Servicemen

» National Ganga Project allocation to go up to Rs 562 Crore

» Unique Identification (UID) project under Nandan M. Nilekani to be out in 12-18 months

» NRHM allocation to be raised by Rs 257 crore

» A national level action plan in place for climate change

» National Employment Exchanges to be modernised

» Interest subsidy for home loans up to 1 lakh

» Indira Awaas Yojna bolstered up by 63% to Rs 8883 crore

» Saral 2 forms to simply tax filing process

» Emphasis on fertiliser subsidy reaching out directly to farmers

» Petroleum price expert panel to set petroleum prices which would be in sync with the global levels

» Rashtriya Krishi Vikas Yojna allocation increased by 30%

» IIFCL, a new company would look into the infrastructure needs

» Extension of farm loan waiver scheme by 6 months

» Allocation of National Highway Authority of India (NHAI) increased by 23%

» Fiscal stimulus at 3.5% pf the GDP

» Small scale businesses to be exempted from advance tax

» 50% reduction in the Custom Duty on LCD panels

» Set top boxes to be costlier

» Goods and Services Tax (GST) to be in effect from April, 2010

» Textile units to enjoy continued tax holidays

» Government has praised the 3 stimulus packages which were rolled out by the UPA to fight the

global economic meltdown