Chillin' out till it needs to be funded
Some key FRBM impacting projects and macroeconomic nos. (Budget estimates) and security and justice proposals as highlighted in the Central budget for 2011
Rs 1,900 crore allocated to the Unique Identification Authority of India (UIDAI)
for 2010-11. UIDAI will be able to meet its commitments of issuing the first set of
UID numbers in the coming year
A Technology Advisory Group for Unique Projects (TAGUP) to be set up to look
into various technological and systemic issues for effective tax administration and
Independent Evaluation Office (IEO) chaired by the Deputy Chairman, Planning
Commission to be set up to evaluate the impact of flagship programmes.
Allocation for Defence increased to Rs. 1,47,344 crore including Rs 60,000 crore
for capital expenditure.
About 2,000 youth to be recruited as constables in five Central Para Military Forces
from Jammu and Kashmir in the year 2010.
Planning Commission to prepare an integrated action plan for the thirty-three left
wing extremism affected districts. Adequate funds will be made available to support
the action plan.
Government has approved the setting up of the National Mission for Delivery of
Justice and Legal Reforms to help reduce legal backlog in courts from an average
of 15 years at present to 3 years by 2012.
The Non Tax Revenue Receipts are estimated at Rs. 1,48,118 crore. ( INR 1.48T or $32.2 bn)
The net tax revenue to the Centre as well as the expenditure provisions in 2010-11
have been estimated with reference to the recommendations of the Thirteenth
The total expenditure proposed in the Budget Estimates is Rs. 11,08,749 crore, (INR 11 T or $241bn)
which is an increase of 8.6 per cent over last year.
The Plan and Non Plan expenditures in BE 2010-11 are estimated at Rs. 3,73,092
crore(INR 3.74T or $81bn) and Rs. 7,35,657 crore(INR 7.36T or $159.92 bn respectively. While there is 15 per cent increase in
Plan expenditure, the increase in Non Plan expenditure is only 6 per cent over the
BE of previous year.
Fiscal deficit for BE 2010-11 at 5.5 per cent of GDP, which works out to Rs.3,81,408
crore. ( INR 3.8T or $83bn)
Taking into account the various other financing items for fiscal deficit, the actual
net market borrowing of the Government in 2010-11 would be of the order of
Rs.3,45,010 crore. This would leave enough space to meet the credit needs of the
private sector. The Gross Borrowings are INR 4.59T or $100bn
The rolling targets for fiscal deficit are pegged at 4.8 per cent and 4.1 per cent for
2011-12 and 2012-13, respectively.
Against a fiscal deficit of 7.8 per cent in 2008-09, inclusive of oil and fertilizer
bonds, the comparable fiscal deficit is 6.9 per cent as per the Revised Estimates for
Conscious effort made to avoid issuing bonds to oil and fertilizer companies.
Government would like to continue with this practice of extending Government
subsidy in cash, thereby bringing all subsidy related liabilities into Government’s
PART B TAX PROPOSALS
The Income Tax department has introduced “Sevottam”, a pilot project at Pune,
Kochi and Chandigarh through Aayakar Seva Kendras, which provide a single window
system for registration of all applications including those for redressal of grievances
as well as paper returns. The scheme will be extended to four more cities in the year.
Automation of Central Excise & Service Tax, has already been rolled out throughout
the country this year. Similarly, a Mission Mode Project for computerization of
Commercial Taxes in States has been approved recently.
With an outlay of Rs. 1133 crore of which the Centre’s share is Rs. 800 crore, the project will lay the
foundation for the launch of GST.
The income tax department to notify SARAL-II form for individual salaried
taxpayers for the coming assessment year.
Scope of cases which may be admitted by the Settlement Commission expanded to
include proceedings related to search and seizure cases pending for assessment.
Scope of Settlement Commission also expanded in respect of Central Excise and
Customs to include certain categories of cases that hitherto fell outside its
Bi-lateral discussions commenced to enhance the exchange of bank related and
other information to effectively track tax evasion and identify undisclosed assets
of resident Indians lying abroad.