Friday, March 14, 2008

Union Budget 2008-09 Features

FARMER FRIENDLY DECISIONS


New scheme of debt-waiver and debt relief for farmers

All agriculture loans disbursed by PSU banks, co-operatives till March 2007 waiting recovery to be covered under scheme

Complete waiver of loans for small and marginal farmers holding upto 2 hectares of land

One-time settlement scheme for “all other” farmers

Agricultural loans restructured by banks through special packages. All such loans will also be eligible for waiver under the scheme

Implementation of loan waiver scheme to be completed by June 30, 2008

Farmers will also be eligible for fresh loans

Govt to allocate 60,000 crore for this scheme

Four crore farmers expected to benefit
CHEAPER vs DEARER


Cheaper: Small cars, motorcycles and scooters, dairy products, washing machine and ACs, set-top box, gems and jewellery, water purifiers, three and four star hotel tarrif, all pharma products, imported life-saving drugs

Dearer: Mobiles, non filter cigarettes, packaged softwares , stock and commodity exchange services

All agriculture loans disbursed by PSU banks, co-operatives till March 2007 waiting recovery to be covered under scheme

TACKLING TAXES


Threshold exemption limit increased from 1,10,000 to 1,50,000

Income Tax exemption limit for women hiked from Rs 1,45,000 to 1,80,000

Senior citizens' exemption limit hiked from Rs 1,95,000 to 2,25,000

New tax slabs — 1.5 lakh to 3 lakh: 10%; 3 lakh to 5 lakh: 20%: 5 lakh and above: 30%

No change in corporate tax; no change in surcharge

Duty on two wheelers reduced from 16 to 12 %

Excise duty slashed to 8% on water purification items

Duty withdrawn on naptha for production of polymers

Central Sales Tax up from 2% to 5%

Introduction of commodity transaction tax

Short-term capital gains tax hiked to 15%

Securities Transactions Tax unchanged

Banking Transaction Tax withdrawn
BALANCE SHEET


GDP increased by 8.8% during first 3 years of UPA govt

Growth to be 8.7% this fiscal

Manufacturing growth at 9.4%

Services growth at 10.7%

Agriculture growth pegged at 2.4%

Govt to monitor and moderate capital inflow to ensure stock market stability

AGRICULTURE


Agriculture sector has grown by 2.4%

Agri credit doubled during UPA government’s tenure

Record food grain production at 290 mn tonnes

Record rice production at 98.04 million tonnes

Record maize production at 16.7 million tones

75-78% of total credit by PSU banks

Target for credit to farmers in 2008-09 is at Rs 280,000 crore

Additional irrigation potential to be developed for 5 lakh hectares

Rs 500 crore for rain-fed area development programme to be launched in new areas

World Bank aiding many states in agriculture

14 national agricultural projects approved

New financial institution IWRFC to be launched with an initial allocation of Rs 100 crore to mobilise funds for agriculture

500 soil testing labs to start via PPP

Rs 175 crore for mobile soil testing units in 200 districts by March 2009

Rs 20 crore to Tea Research Institute

National agricultural insurance scheme to continue for Kharif, Rabi crops

Fertiliser subsidy to continue

New nutrient based fertiliser subsidy regime to be launched

Prof Vaidyanathan Committee recommendations on micro-credit to be implemented

INFRASTRUCTURE AND INDUSTRY


Power generation on target for 11th Plan

Allocation of Rs 5,000 crore for rural electrification

Rs 12,966 crore for highways

96.48% of Golden Quadrilateral completed

26.36% of East-West, North-South Corridor completed

Rs 380 crore for oil and gas exploration

New coal regulator to be appointed

Rs 1,680 crore for IT Ministry

One lakh broadband centres to be set up in rural areas

All 30 integrated textile parks have been approved

Clasuter Approach for handloom has been a success

17 lakh weavers to be covered under insurance scheme

SIDBI to reduce guarantee fee

EDUCATION


Education outlay increased by 20% to Rs 34,400 crore

Mid-day meal scheme to be extended to all govt and govt-aided schools

410 new Kasturba Gandhi Balika Vidayalaya to be set up

New model school programme to be started

New Navodaya Vidyalaya to be set up in 20 backward districts

1 lakh new scholarships to be granted

Nehru Yuva Kendras to be set up in all districts

Central Universities for all states; 16 central universities this year

Three new IITs in Andhra Pradesh, Bihar and Rajasthan

Two Schools of Planning and Architecture in Bhopal and Vijaywada

Ministry of Science and Technology to start a new scholarship scheme

Rs 100 crore to build National Knowledge Network to connect all knowledge centres via broadband

HEALTH


Health outlay increased by 15% to Rs 16,543 crore

Rs 16,000 crore for National Rural Emplyoment Guarantee Scheme

National Rural Employment Guarantee Scheme to be extended to all districts

46,200 Asha workers have been trained

Anganwadi workers remuneration increased to Rs 1,500

More than 300 district hospitals to be upgraded

Rs 12,050 crore for National Rural Health Mission

Rs 900 crore for combating AIDS

Rashtrya Health Bima Yojna to be launched in Delhi, Haryana, Rajasthan on April 1

Integrated Child Development Scheme allocation increased to Rs 6,000 crore

FOR SENIOR CITIZENS


Two national institutes of ageing

New national programme for the elderly


No change in peak rates of customs duty

DEFENCE


Budget increased by 10% to to Rs 1,05,600 crore

Rate of attrition high in defence forces

MISCELLANEOUS


Special fund of Rs 500 crore for Arunachal Pradesh

Rs 12,155 crore to Ministry for North East Development

Rs 200 crore for clean water to school children

Rs 1,000 crore for Ministry for Minorities

Rs 75 crore for Rajiv Gandhi National Fellowship Programme

Rs 60 crore to enhance the corpus fund of Maulana Azad programme

Rs 11,460 crore for 100% women specific scheme

Rs 45.5 crore to modernise madrasas

Rs 288 crore for nationalised banks in minorities areas

Allocation of Rs 1,200 crore for sanitation programmes

More minority recruitments in central para-military forces

ICDS allocation hiked to Rs 6,300 cr

Rs 300 cr for desalination plant near Chennai

National Handicap Development Corp to get Rs 9 crore

LIC 'Janashree Yojana' for women self-helf groups

Target of Rs 2,80,000 for credit in agriculture

Rs 300 crore for rain affected areas

USD 730 million World Bank agreement for water storage development programme

Rs 500 crore for development of border areas

Rs 1,100 core for National Horticulture Mission

500 new labs for soil testing

Rs 500 crore to Centre of Development Studies, Tiruvananthapuram

CHIDAMBARAM SPEAK


2008 should be a year of consolidation

UPA wants to make growth inclusive

We can do better and we should; Budget 08-09 is about doing more

India determined to become self sufficient in agriculture

Finance Minister confident of 8.8% this fiscal

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