Union Budget 2008-09 Presented by P.Chidambram : Highlights..
March 01, 08 by FinanceTurfHere presents the Union Budgets 2008-09 highlights:
-
Debt Waiver: Total estimate Rs 60,000cr; Overdue loans to be waived will be Rs 50,000 crore. One-time settlement estimated at Rs 10,000 crore; all agriculture loans by RRBs (Railway Retirement Board), co-operatives, SCBs (State Controlling Body) overdue taken before March 2007 and outstanding on December 2007 are covered. Loans waived for marginal farmers holding up to 1 hectare and small farmers up to 2 hectare..
 |
-
Excise on two-wheelers reduced from 16% to 12%
-
Hikes tax-free income from Rs 1,10,000 to Rs 1,50,000
-
10% tax on income from Rs 1,50,000 to Rs 3,00,000
-
20% tax on income from Rs 3,00,000 to Rs 5,00,000
-
30% tax on income over Rs 5,00,000
-
Women exemption increases from Rs 1,45,000 to Rs 1,80,000
-
Senior citizen exemption increases from Rs 1,95,000 to Rs 2,25,000
-
Banking cash transaction tax to be removed
-
Tax on short term capital gains increased to 15% from 10%
-
Service tax limited hiked to Rs 10 lakh.
-
Reduced general CENVAT (Central Value Added Tax) from 16% to 14%
-
Duties on iron ore exports increased to Rs 3,000 per tonne.
 |
-
Project import customs duty reduced from 7.5% to 5%; Steel melting scrap and aluminum scrap made nil; Life saving drugs customs duty from 10% to 5%;
-
No change in peak rate of customs duty;
-
Revenue deficit at 1.4% against budget estimate of 1.5%; To eliminate revenue deficit in Fiscal Year 2010; Fiscal deficit at 3.1% against budget estimate of 3.3%; Plan expenditure Rs 2,43,386 crore;
-
Defence allocation increased from Rs 96,000cr to Rs 1,05,600 crore; Food subsidies at Rs 32,667 crore;
-
Exchange-traded currencies; interest rate derivatives to be introduced;
-
TUF (Technology Up gradation Fund) to increase to Rs 1,090 crore; Rural Infrastructure Development Fund increased to Rs 14,000 crore;
-
Saving rate at 35.6%, investment rate at 36.3 %;
-
Rs 1,000cr to be placed with LIC for covering an additional 1 cr landless households; PAN to be extended for all transactions in financial markets
-
Coal regulator to be set up; GQ (Golden Quadrilateral) completed 96.48%
-
Government to interconnect all national institutions on a knowledge network; Government to establish 16 central universities; 3 IITs in Bihar, Andhra Pradesh and Rajasthan;
-
To continue with fertilizer subsidies, may move to nutrient-based subsidies; Rs 20,000 crore allocated for irrigation; Agricultural credit at Rs 2,80,000 crore; To mobilse Rs 10,000cr for plan capital expenditure;
-
·Rs 16,202cr scheme that will cover at least 33% women.
 |
-
Chennai desalination plant to get Rs 300 cr in 08-09; -
JNURM (Jawaharlal Nehru Urban Renewal Mission) to get Rs 6,866cr in 2008-09 from Rs 5,482cr in 07-08; -
Anganwadi workers remuneration to be increased to Rs 1,500 per month. -
Rs 30,000 cover for unorganized sector; Center to share Rs 200 cr premium; Health allocation increased by 15% -
Mid-day meal scheme extended in government and government aided schools in upper primary classes. Total coverage of 13.9 crore children; Education allocation increased by 20% -
2008-09 should be a year of consolidation; We can; The government will manage capital inflows along with RBI (Reserve Bank of India); -
Total agricultural output 219.32 million tone. Agriculture growth rate at 2.6% in 2007 -
The next Union Budget will be a vote-on-account because of general elections.
