India Budget 2008 - Highlights

Budget 2008 Highlights

 

NEW DELHI - Finance Minister Palaniappan Chidambaram presented the union budget for 2008/09 on Friday, the fifth and final full one of the administration before elections due by May 2009.

 

  • Banking cash transaction tax withdrawn from April 1, 2009
  • Indirect tax proposals to result in loss of Rs 5,000 cr
  • Direct tax proposals to be revenue neutral
  • Dividend of subsidiary company exempt from DDT
  • Reduce central sales tax to 2%
  • Increase in short term capital gains tax to 15%
  • 5-yr tax holiday for setting up hospitals in tier-II, tier III regions
  • Excise duty of Rs 1.35/litre on unbranded petrol
  • Excise duty of Rs 4.6/litre on unbranded diesel
  • Commodities Transactions Tax to be introduced
  • Securities Transaction Tax to be treated like deductible expenditure
  • 5-yr tax holiday to 2,3,4-star hotels in UNESCO's heritage sites
  • NO FBT on creche, employee sports, guest houses facilities
  • No change in corporate income tax rate
  • No change in corporate surcharge tax
  • Duty on two wheelers reduced from 16 to 12 pc
  • Tax slab for Rs 3-5 lakh is 20%, above 5 lakhs 30%
  • Senior citizens' exemption hiked from Rs 1,95,000 to 2,25,000
  • Women exemption threshold hiked from Rs 1,45,000 to 1,80,000
  • Tax exemption hiked from Rs 1,10,000 to Rs 1,50,000
  • Duty on non filter cigarettes to be raised
  • Excise duty slashed to 8% on water purification items
  • Duty withdrawn on naptha for production of polymers
  • Reduce excise duties on anti-AIDS drugs
  • Tax-GDP ratio up at 12.5%
  • Excise on paper and paper products reduced
  • Excise duties on buses, chassis slashed
  • Excise on small cars to 14%
  • Excise on pharma goods slashed to 14%
  • General CENVAT rate on all goods from 16% to 14%
  • Customs duty on few bulk drugs cut to 5%
  • Customs duties on crude sulphur reduced to 2%
  • Exempt on duties on coral
  • Duties on convergence products slashed to 5%
  • Fully exempt duties on Set top boxes
  • Reduce duties on steel melting scrap, aluminum scrap
  • No change in peak rate of customs duties
  • Revenue Deficit will be 1.4 % agt Budget Estimate of 1.5%
  • Planning Commission to evaluate major schemes
  • Sixth central pay commission to submit report by March 31, 2008
  • Grant of Rs 50 cr to Natl Tiger Conservation Authority
  • Rs 75 cr to ICCR for cultural development
  • Defence allocation hiked by 10% to Rs 1,05,600 cr
  • Rs 32,676 crore as subsidy to PDS
  • Smart-card based PDS system in Haryana, Chandigarh
  • Allocation of Rs 44 cr to 22 Sainik schools each
  • Rs 75 cr to Agri Ministry for soil testing labs in 250 districts
  • Rs 15,000 cr for non-profit body for skilled dev programme
  • Launch a world-class skilled development programme
  • PAN requirement for all securities transactions
  • To start a forex derivative market
  • More transparency in the derivative market
  • Risk Capital Fund to be set up in SIDBI
  • National Highway Dev programme gets Rs 12,966 cr
  • Accelerated power development programmes to get Rs 8,000 cr
  • Ultra mega power project at Tilana shortly
  • Rs 12,956 Cr for NHDP
  • Banks to be encouraged to embrace total financial inclusion
  • Foreign invt up to $8 bn expected for oil block exploration
  • Coal regulator to be set up
  • 17 lakh families of weavers under Health Insurance
  • State data centres scheme approved and get Rs 275 cr
  • 1 lakh broadband-enabled common service centres in villages
  • Enhance allocation of NHDP programme
  • Rs 800 cr for power reforms
  • Manufacturing growth rate to be taken to double digit
  • RIDF corpus to be hiked to Rs 14,000 cr
  • Total estimate of loans being waived is Rs 50,000 cr
  • Implementation of debt waiver scheme to end by June 30
  • Waiver amounts to 4% of total bank loans
  • Rescheduled farm loans eligible for waiver
  • Sensex down 210 points
  • Speaker calls for silence
  • Din in House over PC's relief plans to farmers
  • Marginal, small farmers to get full waiver on all loans
  • 500 soil testing labs to be set up in the country
  • Scheme of debt waiver and debt relief for farmers
  • Allocation for NRHM increased to Rs 12,050 cr
  • National Horticulture Mission gets Rs 1,100 cr
  • Weather-based crop insurance scheme to get Rs 50 cr
  • Rs 20,000 cr for irrigation projects under AIPB
  • Special grant of Rs 20 cr to Tea Research Association
  • Rs 500 cr to be allocated for micro irrigation schemes
  • More funds for cardamom, coffee growing
  • Rashtriya Krishi Vikas Yojana to get Rs 2,80,000 cr
  • 53 minor irrigation programmes to be implemented
  • Target of Rs 2.80 lakh cr for agri-credit in 2008-09
  • Ministry of Woman and Child Dev gets Rs 7,200 cr
  • 24% increase in allocation for child development
  • Rs 500 cr for development of border areas
  • Rs 1,042 cr for anti-Polio drive
  • Jawaharlal Nehru Urban Renewal Mission to get Rs 6,865cr
  • Growth of agri-credit impressive
  • Allocation for ICDS increased to Rs 6,300 cr
  • Minority Affairs Ministry fund doubled to Rs 1,000 cr
  • 288 PSU bank branches in minority districts
  • LIC to cover all women Self-help Groups linked to banks
  • Rs 200 crore for potable water in schools
  • Rs 12,050 cr for strengthening rural health services
  • Sanitation programmes to get Rs 1200 cr
  • More minority recruitments in central para-military forces
  • ICDS allocation hiked to Rs 6,300 cr
  • Rs 300 cr for desalination plant near Chennai
  • Rs 75 cr for Rajiv Gandhi Natl Fellowship Prog
  • Natl Handicap Development Corp to get Rs 9 cr
  • Natl Minorities Development Corp to get Rs 75 cr
  • Allocation for NE schemes up from 14,365 cr to 16,400 cr
  • Rajiv Gandhi Drinking Water mission allocation hiked
  • NREG scheme to be rolled out in 596 districts
  • National Rural Health Mission allocation hiked by 15%
  • Remuneration of Anganwadi helpers hiked to Rs 750
  • Remuneration of Anganwadi workers hiked to Rs 1,500
  • 3 IIScs in Bhopal and Trivandrum
  • National Programme for the Elderly to be set up
  • Rs 30,000 health cover for every worker in unorganised sector
  • 2 schools of Planning and Architecture
  • Secondary education Scheme Rs 4,554 crore
  • Rs 100 cr to Ministry of Science and tech for Natl Knowledge Network
  • All knowledge bodies to be connected via broadband
  • Rs 85 crore to building a knowledge society
  • Scholarships for science and research
  • Education and Health allocation up 20%
  • Service Sector to grow at 10.7%
  • 3 IITs in AP, Bihar and Rajasthan
  • 16 central universities to be set up
  • Mid-day meal scheme extended to upper primary classes
  • Budgetary allocation for mid-day meal scheme Rs 8,000
  • Rs 10 cr for Nehru Kendras in 110 districts
  • Rs 34,400 cr budgetary allocation for education
  • Sarva Shiksha Abhiyaan gets Rs 13,100 cr
  • Bharat Nirman Programme gets allocation of Rs 31,280 cr
  • 410 Vidyalayas in villages
  • Navodiya Vidyalayas in 6,0-00 districts
  • 6,000 model high schools to be set up
  • Agricultural growth rate at 2.6%
  • Education, health pillars of social sector reforms
  • 2008-09 will be a year of consolidation
  • Budget 08-09 about raising our sights, doing better
  • Capital inflows in excess of economic deficit
  • Confident of maintaining 8% growth
  • Impact of global mkts on local mkts unclear
  • Govt, RBI to jointly work to check capital inflow
  • Govt will monitor foreign fund inflow
  • Check foreign inflow to stabilise Indian mkts
  • Capital Inflow needs to be managed more actively
  • Agri credit doubled in first 2 years of UPA rule
  • Global markets are weak
  • Inflation will be checked
  • Sustained progress thanks to economic reforms
  • Launched Rashtriya Krishi Vikas Yojna
  • All time record for food grain output in 2007
  • Total output of food grains 219.32 mn tonnes
  • We must be vigilant for downside risk
  • Crude oil down significantly
  • Agriculture was disappointing
  • Capital inflow poses a challenge to monetary management
  • Growth rate is 8.8%
  • Service sector is the driver of Budget
  • Since Aug 2007 financial economies witnessed turmoil
  • 2007-08 has been a challenging year
  • Finance Minister P Chidambaram begins addressing Parliament
  • Pandemonium in the House as Oppn holds up speech
  • This is PC's seventh Budget, UPA government's last before it goes to poll next year
  • The next Union Budget will be a vote-on-account because of general elections

Source- IBNLive- TV 18

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