Finance Minister Pranab Mukherjee presented the Union Budget for 2010-11 in the Lok Sabha.
Indian economy was facing grave uncertainty. Growth had started decelerating when interim and full budget for 2009-10 were presented, the Finance Minister said.
At home there was added uncertainty because of subnormal southwest monsoon. Indian economy now in a far better position than it was eight years ago, he added.
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India weathered economic crisis well, said Mukherjee, adding, the first challenge before the Government is to quickly revert to high GDP growth path of 9 per cent.
"Second challenge is to harness economic growth to make it more inclusive and consolidate gains. We have seen impressive recovery in the past few months and can witness faster recovery in the coming months," Mukherjee said.
The Finance Minister added the focus shifted to non-governmental actors, enabling the government to concentrate on supporting and delivering services to the economically backward sections.
Admitting that financial year 2009-10 was challenging for the Indian economy, Mukherjee said 18.5 per cent manufacturing growth in December was the highest in two decades.
He said figures for merchandise exports for January are encouraging after turnaround in November and December last year.
Reasoning the double digit food inflation last year, the minister said it was due to bad monsoon and drought-like conditions, though "we have strengthened food security".
Erratic monsoon and drought-like conditions forced supply-side bottleneck that fuelled inflation, Mukherjee added.
He said the government is conscious of the situation of price rise and is taking steps to tackle it. The Finance Minister also said there is need to review stimulus imparted to the econony.
Analysing the price rise situation in the country, Mukherjee said there's a need to ensure that the demand-supply imbalance is managed and stressed on the need to make growth more broad-based.
Public spending and mobilising resources need to be reviewed, said Mukherjee.
The government hopes to implement direct tax code and General Sales Tax from April 2011, Mukherjee said.
Other highlights include:
Government will raise Rs 25,000 cr from disinvestment in PSUs.
Market cap of five PSUs listed since October, up 3.5 times.
Fuel price deregulation proposal will be taken up.
Nutrient-based fertiliser subsidy from April 1.
FDI inflows steady; government simplifying FDI regime.
To set up Financial Stability and Development Council.
2% interest subvention on handicraft exports for 1 more year.
Rs 200 crore for climate resilient agriculture initiative.
Committed to growth of Special Economic Zones.
Need for firm view on opening up retail sector.
Farm loan repayment eased by 6 months till June 30.
Crop loan interest subsidy for timely payment raised to 2%.
IIFCL authorised to refinance infrastructure projects while Rs 1,73,552 crore provided for infrastructure development
Railways allocation increased by Rs 950 crore to Rs 16,752 crore.
Government proposes to set up Coal Development Regulatory Authority.
Mega power plant policy modified to lower generation cost while allocation to power sector more than doubled to Rs 5,130 crore.
Rs 500 crore for solar and hydro projects in Ladakh region.
New Clean Energy Fund for research in new energy sources and Renewable Energy Ministry allocation up 61% to Rs 1000 crore.
Rs 200 crore one-time grant to Tirupur textile cluster in Tamil Nadu.
Outlay for Ganga River Basin Authority doubled to Rs 500 crore.
Alternative port at Sagar Island in West Bengal.
Draft of Food Security Bill ready; in public domain soon.
Outlay for social sectors pegged at Rs 1,37,674 crore.
Social sector outlay 37 per cent of total plan allocation.
Planned allocation for school education at Rs 31,036 crore.
Allocation for health and family welfare at Rs 22,300 crore.
Allocation for rural development at Rs 66,100 crore.
Indira Awas Yojana unit cost raised to Rs 45,000 in plains & Rs 48,500 in hilly areas.
Allocation for urban development raised 75% to Rs 5,400 crore.
1% loan interest subsdiy for houses upto Rs 20 lakh.
Outlay for micro & small scale sector raised to Rs 2,400 crore.
Rs 1,270 crore for slum development programme, up 700%.
National Social Security Fund with Rs 1000 crore outlay.
Allocation for women and child development hiked 80%.
Rs 1,000/yr to account holders under New Pension Scheme.
Outlay for Minority Affairs Ministry raised to Rs 2,600 crore.
Rs 1,900 crore for Unique Identification Authority of India
Details awaited
