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{{use dmy dates|date=February 2016}}
{{use Indian English|date=February 2016}}
{{more citations needed|date=February 2010}}
{{Infobox Government Budget
| title = Union Budget of India
| year = 2010
| country = India
| previous_budget = 2009 Union budget of India
| previous_year = 2009
| next_budget = 2011 Union budget of India
| next_year = 2011
| date_submitted = 26 February 2010
| submitter = [[Pranab Mukherjee]]
| url = {{url|http://indiabudget.nic.in}}
}}

The '''2010 [[Union budget of India]]''' was presented by [[Finance Minister of India|Finance minister]] [[Pranab Mukherjee]] in the [[Lok Sabha]] on Friday, February 26, 2010.<ref>{{cite news |title=Key features of Union Budget 2009-2010|url=http://www.expressindia.com/latest-news/Key-features-of-Union-Budget-20092010/485658/ |publisher=[[Indian Express]] |date=Jul 6, 2009 }}</ref><ref>{{cite news |title=Union Budget 2010: Renewable energy sector earmarked Rs 380 crore more|url=http://economictimes.indiatimes.com/news/economy/policy/Union-Budget-2010-Renewable-energy-sector-earmarked-Rs-380-crore-more/articleshow/5621897.cms |publisher=[[The Economic Times]] |date= 26 Feb 2010}}</ref>

==Highlights ==
* The Indian economy was facing grave uncertainty. Growth had started decelerating when the interim and full budget for 2009-10 were presented.
* At home there was added uncertainty because of subnormal southwest monsoon.
* Yet, the economy now in a far better position than it was eight years ago.
* India weathered the economic crisis well and emerged from the global slowdown faster than any other country.
* First challenge before the government is to quickly revert to high GDP growth path of 9%.
* Expects 10% economic growth in the near future.
* Second challenge is to harness economic growth to make it more inclusive and consolidate gains.
* Third challenge is to overcome weakness in government's public delivery mechanism; a long way to go in this.
* Impressive recovery in the past few months. Can witness faster recovery in the coming months.
* Food security has been strengthened. But bottleneck of the public delivery mechanism can hold us back.
* Fiscal year 2009-10 was challenging for the economy.
* Focus shifted to non-governmental actors and an enabling government. Government now concentrates on supporting and delivering services to the poorer sections.
* Economy stabilised in the first quarter of 2009 itself.
* 18.5% manufacturing growth in December was the highest in two decades.
* Figures for merchandise exports for January encouraging after turnaround in November and December last year.
* Double digit food inflation last year due to bad monsoon and drought-like conditions.
* Government conscious of the price rise and taking steps to tackle it.
* Erratic monsoon and drought-like conditions forced supply-side bottleneck that fuelled inflation.
* Need to review stimulus imparted to economy last year to overcome the recession.
* Need to ensure that the demand-supply imbalance is managed.
* Need to make growth more broad-based.
* Need to review public spending and mobilise resources.
* Status paper on public debt within six months.
* Government hopes to implement direct tax code from April 2011.
* Earnest endeavour to implement general sales tax in April 2011.
* Government will raise {{Indian Rupee}}25,000 crore from divestment of its stake in state-owned firms.
* Kirit Parekh report on fuel price deregulation will be taken up by petroleum minister Murli Deora in due course.
* Nutrient-based fertiliser subsidy scheme to come into force from April 1 this year.
* Nutrient-based fertiliser subsidy will reduce volatility of subsidy and also reduce it.
* Market capitalisation of five public-sector undertakings listed since October increased by 3.5 times.
* FDI inflows steady during the year. Government has taken series of steps to simplify FDI regime. Intends to make FDI policy user friendly by compiling all guidelines into one document.
* Government has decided to set up apex-level Financial
* Stability and Development Council.
* RBI considering issuing banking licences to private companies. Non-banking finance companies will also be considered if they meet the criteria.
* Government to provide {{Indian Rupee}}16,500 crore to public-sector banks to maintain tier-I capital.
* Government to continue interest subvention of 2% for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.
* Government to provide {{Indian Rupee}}300 crore to organise 60,000 pulse and oilseed villages and provide integrated intervention of watershed and related programmes.
* {{Indian Rupee}}200 crore provided for climate-resilient agriculture initiative.
* Government committed to ensuring continued growth of special economic zones
* Need to take firm view on opening up of the retail sector.
* Deficit in foodgrains storage capacity to be met with private-sector participation.
* Period for repayment of loans by farmers extended by six months to June 30, 2010, in view of the drought and floods in some parts of the country.
* Interest subvention for timely repayment of crop loans raised from 1% to 2%, bringing the effective rate of interest to 5%.
* Road transport allocation raised by 13% to {{Indian Rupee}}19,894 crore.
* Proposal to maintain thrust of upgrading infrastructure in rural and urban areas. IIFCL authorised to refinance infrastructure projects.
* {{Indian Rupee}}1,73,552 crore provided for infrastructure development.
* Allocation for railways fixed at {{Indian Rupee}}16,752 crore, an increase of {{Indian Rupee}}950 crore over the last financial year.
* Government proposes to set up Coal Development Regulatory Authority.
* Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to {{Indian Rupee}}5,130 crore in 2010-11.
* Government favours competitive bidding for coal blocks for captive power plants.
* {{Indian Rupee}}500 crore allocated for solar and hydro projects for the Ladakh region in Jammu & Kashmir.
* Clean Energy Fund to be created for research in new energy sources.
* Allocation for new and renewable energy ministry increased by 61% to {{Indian Rupee}}1,000 crore.
* One-time grant of {{Indian Rupee}}200 crore provided to Tirupur textile cluster in Tamil Nadu.
* Allocation for [[National Ganga River Basin Authority]] doubled to {{Indian Rupee}}500 crore.
* Alternative port to be developed at Sagar Island in West Bengal.
* Draft of Food Security Bill ready, to be placed in the public domain soon.
* Outlay for social sectors pegged at {{Indian Rupee}}1,37,674 crore, accounting for 37% of the total plan allocation.
* Plan allocation for school education raised from {{Indian Rupee}}26,800 crore to {{Indian Rupee}}31,036 crore in 2010-11.
* 25% of plan outlay earmarked for rural infrastructure development.
* Plan allocation for health and family welfare increased to {{Indian Rupee}}22,300 crore from {{Indian Rupee}}19,534 crore.
* For rural development, {{Indian Rupee}}66,100 crore have been allocated.
* Allocation for National Rural Employment Guarantee Authority stepped up to {{Indian Rupee}}40,100 crore in 2010-11.
* Indira Awas Yojana's unit cost raised to {{Indian Rupee}}45,000 in the plains and {{Indian Rupee}}48,500 in hilly areas.
* Allocation for urban development increased by 75% to {{Indian Rupee}}5,400 crore in 2010-11.
* 1% interest subvention loan for houses costing up to {{Indian Rupee}}20 lakh extended to March 31, 2011; {{Indian Rupee}}700 crore provided.
* Allocation for development of micro and small-scale sector raised from {{Indian Rupee}}1,794 crore to {{Indian Rupee}}2,400 crore.
* {{Indian Rupee}}1,270 crore provided for slum development programme, marking an increase of 700%.
* Government to set up National Social Security Fund with initial allocation of {{Indian Rupee}}1,000 crore to provide social security to workers in the unorganised sector.
* Government to contribute {{Indian Rupee}}1,000 per annum to each account holder under the new pension scheme.
* Exclusive skill development programme to be launched for textile and garment-sector employees.
* Allocation for woman and child development increased by 80%
* Plan outlay for the social justice ministry raised by 80% to {{Indian Rupee}}4,500 crore.
* Plan allocation for minority affairs ministry raised from {{Indian Rupee}}1,740 crore to {{Indian Rupee}}2,600 crore.
* Financial-Sector Legislative Reforms Committee to be set up.
* {{Indian Rupee}}1,900 crore allocated for Unique Identification Authority of India.
* A unique identity symbol will be provided to the rupee in line with the US dollar, British pound sterling, euro and Japanese yen.
* Defence allocation pegged at {{Indian Rupee}}1,47,344 crore in 2010-11 against {{Indian Rupee}}1,41,703 crore in the previous year. Of this, capital expenditure would account for {{Indian Rupee}}60,000 crore.
* Planning Commission to prepare integrated action plan for
* Naxal-affected areas to encourage "misguided elements" to eschew violence and join the mainstream.
* Gross tax receipts pegged at {{Indian Rupee}}7,46,656 crore for 2010-11, [[non-tax revenue]]s at {{Indian Rupee}}1,48,118 crore.
* Total expenditure pegged at {{Indian Rupee}}11.8 lakh crore, an increase of 8.6%.
* Fiscal deficit at 5.5%.
* Fiscal deficit seen at 4.8% and 4.1% in 2011-12 and 2012–13, respectively.
* Non-plan expenditure pegged at {{Indian Rupee}}37,392 crore and plan expenditure at {{Indian Rupee}}7,35,657 crore in budget estimates. Proposed increase of 15% in plan expenditure and 6% in non-plan expenditure.
* Cash subsidy for fuel and fertiliser instead of previous practice of bonds to continue.
* Fiscal deficit pegged at 6.9% in 2009-10 as against 7.8% in the previous fiscal.
* Government's net borrowing to be {{Indian Rupee}}3,45,010 crore for 2010-11.
* Income-tax department ready with two-page Saral-2 returns form for individual salaried assesses.
* Personal income-ax rates pruned:
** Income up to {{Indian Rupee}}1.6 lakh — nil
** Income above {{Indian Rupee}}1.6 lakh and up to {{Indian Rupee}}5 lakh — 10%
** Income above {{Indian Rupee}}5 lakh and up to {{Indian Rupee}}8 lakh — 20%
** Income above {{Indian Rupee}}8 lakh — 30%
* Additional deduction of {{Indian Rupee}}20,000 allowed on long-term infrastructure bonds for income-tax payers; this is above {{Indian Rupee}}1 lakh on savings instruments allowed already.
* Investment-linked tax deductions to be allowed to two-star hotels anywhere in the country.
* Weighted deduction of 125% for payments to approved associations doing social and statistical research.
* One-time interim relief to housing and real-estate sector.
* Businesses with a turnover of up to {{Indian Rupee}}60 lakh and professionals earning up to {{Indian Rupee}}15 lakh to be exempted from the obligation to audit their accounts.
* Housing projects allowed to be completed in five years instead of four to avail of tax breaks.
* Revenue loss of {{Indian Rupee}}26,000 crore on direct tax proposals.
* Central excise duty on all non-petroleum products raised to 10% from 8%.
* FM increases customs duty on crude oil to 5%, on diesel and petrol to 7.5%, and on other petroleum products to 10%.
* Structural changes in excise duties on cigarettes, cigars, and cigarillos.
* Clean energy cess of {{Indian Rupee}}50 per ton to be levied on coal produced in India.
* Concessional excise duty of 4% on solar [[cycle rickshaw]]s.
* Balloons exempted from central excise duty.
* Customs and central excise proposals to result in a net revenue gain of {{Indian Rupee}}43,500 crore.
* More services to be brought under the service tax net.
* Certain accredited news agencies exempted from payment of service tax.
* Net revenue gain from tax proposals pegged at {{Indian Rupee}}20,500 crore.

==See also==
*[[Dream Budget]]

==References==
<references/>

==External links==
* [https://web.archive.org/web/20180115045004/http://indiabudget.nic.in/ Government of India: Union Budget and Economic Survey, Official website]
* [http://budgetlive.nic.in/ Union Budget of India 2010 : Budget Speech of Hon'ble Finance Minister, Official website]
* [http://asiasociety.org/video/business-economics/2010-indian-union-budget-complete Video: Panel discuss the 2010 Indian Union Budget], Asia Society, New York, March 2, 2010

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2010 Union budget of India - Revision history

MetaBOT at 17:28, 8 July 2023