India Finance Minister Pranab Mukherjee presents his annual budget on Friday for the year 2010-2011. Pranab has got the chance to present the budget after a long pause. The last time he presented the budget was at the time of Indira Gandhi.

Following are the highlights of the budget 2010-2011 being presented by Pranab Mukherjee in the Parliament.

Finance Minister says Economy now in far better position than a year ago Need to review stimulus and public spending Challenge to return to 9% growth, then double-digit Final FY10 GDP figure may be higher than estimate of 7.2%

Finance Minister says that we need to move towards fiscal consolidation

Fiscal deficit seen at 6.9 % of GDP in 2009/10

Fiscal deficit seen at 5.5 % of GDP in 2010/11 (Reuters poll 5.6 pct)

Fiscal deficit seen at 4.8 % of GDP in 2011/12, 4.1 % in 2012/13

Total expenditure in 2010/11 11.87 trillion rupees (USD 256.75 billion)
2009/10 revised estimate for tax collection 7.47 trillion rupees (USD 161.58 billion)

Roadmap within six months to cut public debt

Government will be in a position to implement direct tax code from April 2011

Aims to introduce GST in April 2011

Since December have been signs food prices pressures transmitting to non-food items.

Government to simplify FDI policy

New Personal income tax slabs for the year 2010 -2011

Finance Minister Pranab Mukherjee also raised personal income tax slabs. Details are as follows:

Taxable income (in Rs) Rate (%)
Up to 160,000 – Nil
160,001 – 500,000 -10 %
500,001 – 800,000 – 20 %
800,001 upwards – 30 %