Presenting his fifth consecutive Union Budget for 2008-09 in Lok Sabha, P. Chidambaram said the Indian growth story has been phenomenal. He noted that the economy has recorded a growth rate of over 8% since January 2005. Manufacturing and services were driving the economy, while more required to be done for agriculture.

Income Tax
>> 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 raised from 1,10,000 to 1,50,000
>> Tax slab for Rs 3-5 lakh is 20%, above 5 lakhs 30%

Agriculture
>> Agriculture grew by 2.4%
>> Marginal, small farmers to get full waiver on all loans
>> Scheme of debt waiver and debt relief for farmers
>> Allocation for NRHM increased to Rs 12,050 cr
>> Rs 500 cr to be allocated for micro irrigation schemes

New Taxes
>> Commodities Transactions Tax to be introduced
>> Securities Transaction Tax to be treated like deductible expenditure

Banking Cash Trasaction Tax
>> Banking Cash Transaction Tax withdrawn from 1 April, 2008

Corporate Tax, FBT, CTT
>> Corporate Tax remains unchanged
>> NO FBT on creche, employee sports, guest houses facilities
>> Commodities Transaction Tax to be introduced

Securities Transaction
>>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

Public Distribution System
>> Rs 32,676 crore as subsidy to PDS
>> Smart-card based PDS system in Haryana, Chandigarh

Growth
>> Growth to be 8.7% this fiscal, according to CSO
>> Confident of 8.8% this fiscal
>> Manufacturing growth at 9.4%
>> Services growth at 10.7%
>> Agriculture grew by 2.4%