P. Chidambaran presents his 7th Union budget and puts down the following points:
BASICS
GDP at present- 8.8%
Concern throughout- Inflation in Cheack is the cornerstone of the policy .
Capital Inflow needs to be managed
Govt, RBI to jointly take temporary steps to manage capital inflows
Capital inflows in excess of Economic Deficit.
Gross Budgetary Support F/y-09 Rs.2.4 Lakh crores
Education and Health:
Education,health allocation up by 20%
IIts to be set up in bihar,andhra pradesh and rajasthan
Health outlay up by 15%
3 IIsc’s to be set up in
Education 34,400 crore
Bharat nirman 31,281 crores
Sarva siksha 13,100 crores
Mid day meal 8,000 crores
Health outlay up by 15%
16 central universities to be set up
National rural health mission allocation up by 15%
2 national institutes for ageing
2 schools of planning and architecture.
Others:
Rajeev gandhi drinking water mission-7,300 crores
NREGS to be extended to all districts-16,000 crores
Planned Additional Rs.10,000/- Crore Capital expenditure.
Allocation of 100 crores to it ministry
ICDS allocation hiked to 6,300 crores
Minority outlay doubled
RS 540 crores for minority dominated districts
288 PSU branches to be set up in backward areas
RS 11,460 crores for women development schemes
Rs 500 crores for development of border areas
Urban renewal allocation plan up by 25%
Subvention payment to nuetralize -ve for PSU banks.
NELP-VII to attract $8bn investment
30 integrated textile parks to be set up
Provision for textile parks Rs.450/- crores
National highway Develpoment programme Rs.12,966 cr.
To introduce more reforms in coal sector
Rs. 800 bln for accelerated power reform.
PAN required for all financial markets
To start forex derivative markets
Rs.75 cr to Indian Cultural sector to uplift its presentation.
Defence allocation Rs. 1,05,000/- crore
Rs.50 cr tiger conservation authority.
Rs.624 cr for commonwealth games.
Fiscal Deficit-2.5%
Agriculture
Agricultural credit target at 2,80,000 crores
750 irrigation in fy-09 and 20 major projects
20 crores to tea research industry
north-east to get 15% more funds
Irrigation outlay up by 80%
For marginal farmers and small farmers upto 2 hectares complete loan waiver.
One time settlement scheme for all other farmers
Waiver amounts to Rs. 60,000/- crore
Agricultural loans restructured earlier will also be legible for complete waiver or relief as the case may be.
Loan waiver amounts to 4% of the total bank loans.
Waiver to benefit 4cr farmers-waiver to be completed by june 08.
INDIRECT TAXES
Customs:
Peak rate of custom duty stays at 10%
Few Bulk drugs custom duty down to 5%
Custom on steel scrap made 0.
Few IT hardware components exempted from customs duty
Excise
Pharmaceuticals to 8%
Buses 16% to 12%
Small cars 16% to 12%
2 wheelers- 16% to 12%
Excise duty slashed to 8% on water purification items
Direct taxes:
Personal taxes
Individual
upto 150000-nil
150001-300000-10%
300,001-500,000-20%
above 500,001-30%
Women:
upto 180,000-nil
Senior citizen:
upto 225,000- nil
No change in Corporate tax
No change in surcharge
Additional Rs.15,000/-deduction for 80 D in case an individual pays on behalf of his parent/parents medical insurance
Senior Citizen Saving Scheme 2004 and the Post Office Time Deposit Account
added to the basket of saving instruments under Section 80C of the Income Tax
Act.
STCG increases to 15%
Duty on non filter cigarettes to be raised
Introduction of commodity transaction tax
Five year tax holiday for hospitals from April 2008 - March 2013
Income Tax Act to be amended to provide that reverse mortgage would not amount
to "transfer"; and the stream of revenue received by the senior citizen would not be
"income".
Tax income arising from saplings or seedlings grown in a nursery exempted.
Business of production of seeds and manufacture of agricultural implements added
to the list of companies allowed weighted deduction of 150 per cent on any
expenditure on in-house scientific research.
Benefit of amortisation of certain preliminary expenses under Section 35D allowed
to assessees in the services sector.
Corporate debt instruments issued in demat form and listed on recognised stock
exchanges exempted from TDS.
Crèche facilities, sponsorship of an employee-sportsperson, organising sports events
for employees and guest houses excluded from the purview of FBT.
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