Rajasthan budget 2010 focused more on welfare

On March 9, 2010, Ashok Gehlot, Chief Minister of Rajasthan, presented Rajasthan budget 2010. This is his second tenure and second budget presentation. The Rajasthan budget 2010 focused on the welfare of common people.

Here are some of the key features of Rajasthan budget 2010:

• Rs. 4 billion has been allocated for urban development
• For BPL families, ration has been fixed at Rs.2 per kg.
• The budget also proposed to start AICTE based payment system for Polytechnic College lecturers.
• In Rajasthan budget 2010, Rs.7.77 billion has been allocated for water supply schemes and Rs.120 million has been allocated for securing drinking water.
• One of the major features of the Rajasthan budget 2010 is that it focused on energy development. Rs. 114 billion has been allocated for energy development.
• Developing roads has also been emphasized on Rajasthan budget 2010 as Rs. 18.51 billion has been allocated for road development.
• For the minorities, the budget proposed to build five new ITI and allocated Rs.20 million for the development of Madrasas in the state. The budget also proposed to increase SC/ST hostel to 50 from 25. It also allocated Rs.30 million for building new hostels for women.
• In addition, 25,000 gas connections to schools and 300,000 metric ton DAP for farmers have been proposed in Rajasthan budget 2010.
• Other major issues that had been addressed in the budget are rural development, women-oriented plans, improvement of the agriculture sector etc.
• The Rajasthan budget 2010, proposed to slash prices of movies in theater, solar equipments, marble, Rudraksha, foods in hotels and restaurants, and two wheelers (below 100 cc).
• The budget increased prices of four wheelers (above Rs. 2,50,000), two wheeler (more than 100 cc), urban electricity.
• Pay of NAREGA Sahayak has been increased to Rs. 3500 from Rs. 2500.
• Old persons’ pension has been fixed to Rs. 750 for 75 year and more. People below 75 years would receive Rs.500.

India Budget 2010: Income Tax Rates will Please the Middle Class

It is perhaps a bit difficult to give the definition of the Middle Class in India. However, I am sure that the income tax rates announced in union budget 2010 will please the middle class people. Before anything let me give you the rates of income tax in India from now:

Until 160,000 rupees: 0%

160,000 to 500,000 rupees: 10%

500,000 to 800,000 rupees: 20%

Over 800,000 rupees: 30%

I think that the largest beneficiary will from the income group of 500,000 to 800,000 rupees. The new rates will save them a lot of money each year. The main goal is to encourage people to consume more. Also, Indian government perhaps wants that people feel more encouraged to pay tax and not try to evade it.

Indian economy is gradually coming out of the recession. Now, the companies would want that people try to consume more and this way the economy against gets rolling. The government also wants the same thing.

I am just concerned about the poor people. Most people in India do not earn 160,000 rupees per year. 

India Budget 2010: Fighting against Budget Deficit

Budget for the fiscal year 2010-11 has been announced just a few hours ago. Now, all the news channels in India are discussing about the proposed changes. One of the major goals of Finance Minister Pranab Mukherjee is to fight against budget deficit. There is some good news for income tax. A person who will earn 160,000 rupees will not have to pay any income tax. This will be a welcome relief for the lower middle class and middle class people. I think that more than anyone middle class people will become happy with the proposed changed in income tax.

So, you may wonder how Indian government wants to fight against budget deficit. There has been a significant change in excise duty structure. Excise duty has been increased to 10% from the current rate of 8%. This will increase revenue of the government.

People have a lot of expectations in India from the government. However, to meet the expectations, the government needs enough money. When a government is fighting against alarming budget deficit then it is difficult to satisfy the people.

Related Article

Reuters

India Budget 2010: Agriculture Should Get More Importance

It is time for Indian Budget 2010 and Finance Minister Pranab Mukherjee will announce the budget after few hours in Indian Parliament. There is a lot of hope in the business community because the ruling Congress Party and its allies won a decisive victor in the General Elections of 2009 and they did not need the support of the left parties to form the government in the center. So, the business community is expecting a business friendly budget this time that would help the private sector to flourish. If Pranab Mukherjee does that then there is no problem. However, he must remember that food inflation is becoming the major challenge for Indian economy right now.

In 2006 and 2007, it was high fuel price in International market that was the major problem. Now, the price of food is getting out of control. Most people in India are still farmers and poor. So, the agricultural sector needs all the support from the government now so that production gets increased and this way, price can remain stable. India has a population of over and food security is of vital importance to the country.

Related Article

Market Watch

WSJ