Pranab Mukherjee presents annual budget

Faced with the task of reducing rising food inflation, Union Finance Minister Pranab Mukherjee has begun presenting the annual budget in Parliament.

The PM earlier entered Parliament with the briefcase that contains the Budget.

Amid expectations that it can be a populist budget, the FM has a tough job since the inflation is going up and liquidity situation is tight.

People are also expecting a tax exemption hike.

The nation is also expected to hear the FM’s views on the black money issue.

Pranab Mukherjee earlier said that direct taxes are now the major resource provider to the Central Government for undertaking developmental work.

The Finance Minister said that direct Taxes collections have grown at an average annual rate of 24 percent in the last five years and has nearly trebled from Rs.1,32,771 crore in financial year 2004-05 to about Rs.3,78,000 crore in financial year 2009-10.

He said that direct taxes? share in GDP has also increased from 4.1 percent to 6.1 percent of the Gross Domestic Product (GDP).