Finance Minister P. Chidambaram came up with a budget which had a slew of sops for the general public. He gifted farmers with farm loan waivers, helped the industry with reduction in customs and excise duties and concession on the income tax to please the middle class. Chidambaram announced massive programmes which, by his own tally, would benefit about 200 million people. Surfindia is presenting here a detailed summary of the FM's budget proposals.
|
|
| For Males | |
| Upto Rs 150000 | None |
| Rs. 1,50,001/- to Rs. 3,00,000/- | 10% |
| Rs. 3,00,001/- to Rs. 5,00,000 | 20% |
| Rs. 5,00,000/- Plus | 30% |
| For Females | |
| Upto Rs. 1,80,000/- | None |
| Rs. 1,80,001/- to Rs. 3,00,000/- | 10% |
| Rs. 3,00,001/- to Rs. 5,00,000/- | 20% |
| Rs. 5,00,000/- Plus | 30% |
| For Elders (Above 65 yrs) | |
| Upto Rs. 2,25,000/- | None |
| Rs. 2,25,001/- to Rs. 3,00,000/- | 10% |
| Rs. 3,00,001/- to Rs. 5,00,000 | 20% |
| Rs. 5,00,000/- Plus | 30% |
| What is Cheaper | What is Dearer |
| Small cars, two wheelers, bus chasis | Mobiles |
| Bulk drugs, anti-AIDS drugs, other pharma goods | Packaged software |
| Refrigerators, washing machines | Unbranded petrol and diesel |
| Naptha | Non filter cigarettes |
| Paper and related products | ULIP |
| Water purifier | Bulk cement |
| Dairy products | |
| Set top box | |
| Tea & coffee | |
| Fertilisers | |
| Jewelery | |
| Shampoo | |
| Packaged water |
• Banking transaction tax withdrawn
• Securities transacation tax unchanged
• Corporate tax unchanged
• Short term capital tax gains upped to 15%
• Central Sales Tax hiked from 2% to 5%
• Peak rate stands unaltered.
• Customs duty on Project Imports downed from 7.5 per cent to 5 per
cent
• Special customs duty to be applied on a few specified projects in
the power sector.
• Customs duty brought to nil from steel melting scrap and aluminium
scrap from 5 per cent to nil.
• Customs duty reduced from 10 per cent to 5 per cent on certain
specified life saving drugs and on the bulk drugs used for the manufacture
of such drugs.
• Customs duty reduced on bactofuges from 7.5 per cent to nil for
the betterment of dairy industry
• Customs duty done away for specified parts of set top boxes and
specified raw materials for use in the IT/ electronic hardware industry
• Customs duty on convergence products downed from 10 per cent to 5
per cent
• Customs duty would be cut down on specified machinery from 7.5 per
cent to 5 per cent
• Customs duty is freed on rough cubic zirconia and downed on
polished cubic zirconia from 10 % to 5 %
• Customs duty done away on helicopter simulators to facilitate
training of helicopter pilots
• Customs duty reduced on crude and unrefined sulphur from 5 % to 2
%
• General CENVAT rate down from 16% to 14%
• Duty of Rs 4.6/litre on unbranded diesel
• Two-wheelers, 3-wheelers cut to 12% vs 16%
• Pharma goods cut to 8% vs 16%
• Wireless data card exempt
• Polyester filament yarn exempted
• Refrigeration units above 2 tn cut
• Packaged software 12% vs 8%
• Packaged coconut water exempted
• Coffee mixes, puffed rice exempted
• Wireless data cards exempted
• Pharma goods down from 16% to 8%
• Small cars down 16% to 12%
• Bus chassis down 16% to 12%
• Hybrid cars cut to 14% vs 25%
• Some paper types cut to 10% vs 12%
• Some writing, printing paper 8% vs 12%
• Anti-AIDS drugs totally exempted
• RO water purifiers down 16% to 8%
• Cigarettes to cost more
• New scheme launched for waiving the debt for farmers
• The scheme would cover all agriculture loans disbursed by PSU
banks, cooperatives till March 07 waiting recovery
• Full waiver for marginal farmers holding up to 1 hectare of land
• Complete waiver for small farmers having 1 to 2 hectares of land
• One-time settlement scheme for “all other” farmers
• Restructured agricultural loans eligible for waiver
• Implementation to be completed by June 30, 2008
• Farmers would be also eligible for fresh loans
• 60,000 cr allocated for this scheme
• Farmers` debt worth Rs 50,000 cr to be waived
• Four crore farmers to benefit (3 crore small, 1 crore marginal)
• Waiver amounts to 4% of total bank loans
• Scheme would cover farm loans by bank, RRBs, co-op banks until
March 07
• Farm loans recast by banks since 2005, 2006 would also be waivered
off.
• Rate of agriculture growth only 2.6%
• Rashtriya Krishi Vikas Yojna outlay at Rs 25,000 cr
• National Agri Insurance Plan to get Rs 640 cr
• Food security scheme allocation Rs 4,882 cr
Deliver subsidies through smart cards; pilot project in Haryana and
Chandigarh
• 75-78% total agri credit by PSU banks
• 75-79% of agri lending has come from rural, small banks
• Retired bank officers to work as credit counsellors
• Rs 5000 cr fund for NABARD to refinance loans
• Recapitalisation for SMEs
• Additional irrigation potential to be developed for 5 lakh
hectares
• Rain-fed area development program to be launched in new areas
• 14 national projects approved
• New financial institution IWRFC to be launched with an initial
allocation of Rs 100 cr
• National agricultural insurance scheme to continue for Kharif,
Rabi crops at Rs 644 cr
• Fertiliser subsidy to continue
• New nutrient based subsidy regime on fertilisers to be launched
• Vaidyanathan Committee recommendations on micro-credit to be
implemented at Rs 3,074 cr
• World Bank aiding many states in agriculture
• Gross capital formation in agri 12.5% of GDP FY-07
• Aims to up agri contribution to GDP to 1.6% in 11th Plan
• Irrigation Resources Finance to have Rs 100 cr capital
• To set up Irrigation, Water Resources Finance Corp
• 548,000 hectare brought under irrigation in last 2 years
• 24 major, 750 minor irrigation projects in FY-09
• Education plan to up retention, upgrade learning quality
• To cover 4,00,000 hectare more in micro, dip irrigation at Rs 500
cr
• Irrigation outlay Rs 20,000 cr vs Rs 11,000 cr yr ago
• National Plant Protection Training Institurte to be upgraded
• IWRFC to be incorporated as company before Mar
• Perpetual fund for Rubber, Cardamom, few others
• Rubber Fund to get Rs 19.41 cr, Cardamom 10.68 cr, Coffee 18 cr
• Coconut, cashew, pepper to get priority for crop revival
• Special Purpose Tea Fund to get Rs 40 cr
• 20 cr for Tea Research Association
• 56,000 old plantations revived under Horticulture Mission
• 2,76,000 hectares brought under horticulture crops
• National Horticulture Mission to get Rs 1,100 cr
• SIDBI cuts SSIs annual services fees to 0.5% from 0.75%
• Launching of exchange traded forex, rate derivative market
• Expansion of market for corporate bonds
• 288 PSU bank branches to be opened in backward areas by March
• Temporary steps to moderate inflow of funds
• No seamless national market for securities
• PSU banks to give DRI scheme home loans at 4% interest rate
• Assistance sought from states for development of national
securities market
• IT department allocation Rs 1,680 cr vs 1,500 cr
• New coal regulator to be appointed
• Handloom clusters to be developed at Varanasi, Shivsagar
• 250 clusters for handloom being developed
• Rs 450 cr rupees allocated for textile parks
• All integrated textile parks approved
• Fund for Textile Upgradation Fund up to Rs 1,090 cr vs Rs 911 cr
• Central Public Sector Enterprises to get Rs 16,436 cr as equity
and Rs 3,003 cr as loans
• Power PAN requirement extended to all financial markets
• PAN sole identification number in securities market
• Relief to exporters to continue
• Merchandise exports to fall short of target
• Rs 340 cr rupees for weavers insurance scheme
• Power generation on target for 11th Plan; target at 78,577MW
• National fund for power transmission, distribution
• Rs 800 cr for accelerated power reform plan
• Rural electrification to get Rs 5000 cr
• Rs 12,966 cr for National Highways vs Rs 10867 cr
• 96.48% of Golden Quadrilateral completed
• 23.36% of East-West, North-South Corridor completed
• Rs 4,000 cr for rural roads
• One lakh broadband centres to be set up in rural areas
• To introduce more reform in coal, electricity sectors
• Plans national fund for power transmission, distribution
• 1.57 mn houses to be built by March
• Rs 1,200 cr for refinancing operations in rural housing sector
• Health outlay increased by 15% at Rs 16,534 cr
• ICDS allocation increased to Rs 6,300 cr
• Anganwadi workers remuneration increased to Rs 1500
• 323 district hospitals to be upgraded
• Rural Health Plan budget aid upped to Rs 12,050 cr
• 8,756 rural primary health centres to work round-the-clock
• Rs 993 cr for combating AIDS
• Rashtriya Health Bima Yojna to be launched in Delhi, Haryana,
Rajasthan on April 1
• Rs 1,042cr alloted for polio eradication drive allocation
• Rs 31,280 cr for Bharat Nirman programme
• Rs 6,866 cr for Nehru Urban Renewal Mission outlay
• Rs 6,866 cr for Jawaharlal Urban Plan
• Rs 16,000 cr for NREGA which would be extended to all 596 rural
districts
• PSU banks to lend Rs 20,000 per unit at interest rate of 4%
• Rs 3,443 cr for social security scheme
• Rs 7,300 cr for Rajiv Drinking Water Plan
• Rs 300 cr for desalination plant in Chennai
• Rs 200 cr initial outlay for drinking water in schools
• 290 habitations getting drinking water every day * 52 villages per
day get phone connections under Bharat Nirman
• Cleanliness drive allocation upped to Rs 1,200 cr
• 3 social security schemes for unorganised workers
• Rs 9 crore for National Handicapped Development Corporation
• Rs 1000 cr to LIC for Aam Admi Bima Yojana
• Govt to ask banks to meet credit needs of self-help groups
• Rs 1000 crores allocated to Ministry of Minorities
• Rs 50 cr for Scheduled Tribe Finance Corp
• 3,443 cr alloted for social security scheme
• NMDFC allocation at 75 cr
• Home loans for people below poverty lines brought under banks' DRI
scheme
• Rs 50 crores for National/State STFDC
• Allocation for SCs at 804 cr; 195 cr for STs
• Allocation for OBCs at Rs 164 cr, minorities at Rs 100 cr
• Rs 45.45 cr for Madrasa education
• Navodaya Vidyalayas in 20 districts dominated by SC/STs at Rs 130
cr
• PSU banks to lend Rs 20,000 per unit at interest rate of 4%
• Rs 1000 cr to LIC for Aam Admi Bima Yojana
• Rs 200 crore for drinking water in scholls
• Rs 300 cr for desalination plant in Chennai
• 3 social security schemes for unorganised workers
• 10% raise in allocation for budget
• Defence allocation would be Rs 1,05,600 crore
• Army biggest recipient of the defence budget with a allocation of
Rs 36,270 crore for the year 2008-09.
• Funds allocated to Air Force are Rs 10,855 crore
• Navy's outlay raised to Rs 7,421 crore
• DRDO outlay pegged at Rs 3,393.59 crore
• Rs 50 crore granted as one-time grant for National Tiger Conservation Authority
Rs. 624 crores alloted for Commonwealth Games
Permanent institutional mechanism to be developed
Pay Commission to submit report by March 31
Legitimate claims of government employees would be met
Rs 16,447 cr alloted for north-east region of the country
UP, Bihar and Orissa get 45% of backward regions grant
Rs.500cr made available for border development plan