Union budget 2008-2009

Highlight of Union Budget
Direct tax proposals revenue neutral
Central Sales Tax cut to 2% from 3%
Banking cash transaction tax withdrawn
Securities Transaction Tax (STT) rates unchanged
DDT unchanged at 15%
Govt to introduce commodities transaction tax, like STT
Five year tax holiday for promoting cultural tourism.
Five year tax holiday for setting up hospitals in tier II and tier III regions for providing healthcare in rural areas from April 1, 2008.
Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.
Levy of STT only on option premiums
Short-term cap gains hiked to 15%
Fresh facilities, encouragement to sports and guest houses exempted from Fringe Benefit Tax.Production of seeds added to VAT list
5-year tax holiday for setting up hospitals in non-urban cities
10% income tax for income in the range of Rs 1.5-3 lakh
30% Income Tax For Income above Rs 5 Lakh
No change in corporate tax
Personal income tax exemption slab for women at Rs 1.8 lakh
PERSONAL INCOME TAX EXEMPTION SLAB AT RS 1.5 LAKH
Filter, non-filter cigarettes to be taxed at par
Excise duty on bulk cement at Rs 400/tonne
Exise cut on all pharma goods at 8% vs 16%
Excise duty on some paper types cut to 10% from 12%
Excise duty on hybrid cars cut from 24% to 14%
Excise duty on buses & chassis cut from 16% to 12%
Customs exempt to continue only for naptha for fertilisers
CENVAT reduced from 16% to 14% on all goods
CIGARETTES TO BE TAXED MORE
Customs on steel melting, aluminium melting cut to 0% vs 5%
Customs duty on phosphoric acid cut to 5% vs 7.5%
Few IT, hardware components exempted from customs duty
TAX: no duty on set-top boxes
Customs duty on few bulk drugs cut to 5% vs 10%
Customs duty on project imports cut to 5% vs 7.5%
Customs duty on steel scrap cut to 0% vs 5%
No change in peak customs duty
Fiscal target under FRBM Act to be met
Revenue deficit for 2007-08 at 1.4% against estimated 1.5%
FY09 fiscal target at 2.5% of GDP
Current yr fiscal deficit at 3.1% vs Budget est of 3.3%
Plan expenditure estimate at Rs 2,43,386 cr
Rs 50 cr to National Tiger Conservation Authority
Allocation of Rs 624 cr in 2008-09 for Commonwealth Games
6th Pay Commission to submit report by March 31
Three schemes to be introduced for providing social security to unorganised sector workers.
Rs 750 crore for upgradation of 300 ITIs in 25 districts.
Rs 32,676 crore as subsidy to Public Distribution System.
PDS -- Public Distribution System -- through smart cards in Haryana and Chandigarh to start on pilot basis.
Defence allocation upped to Rs 1,05,000 cr from Rs 96,000 cr
Defence allocation hiked by 10%
Differences in state duties, levies hampering securities mkt
States to help develop national securities market
Allocation for TUF at Rs 1090 cr up from Rs 911 cr
PAN requirement extended to all financial mkts
PAN sole identification in securities market
Allocation for Textile Upgradation Fund to be more than doubled.
To launch exchange traded forex, rate derivative mkt
Dollar sterilisation cost via MSS at Rs 8,351 cr for 2007-08
To allocate Rs 12,966 cr to National Highway Plan in FY09
To create risk capital fund in SIDBI
Urge to open bidding for 5 more UMPPs
Rs 450 cr provision for textile parks
All 30 integrated textile parks approved
NELP-VII to attract investments worth $3.5-8 bn
Coal regulator to be established, more reforms in coal, electricity
National fund for power transmission, distribution
Plan Rs 800 cr for accelerating power reform in FY09
Bank of Mah says should not be negative if govt reimburses
Growth in cap goods still healthy at 20.2%
Looking at moving to nutrient-based fertiliser subsidies
FDI in Apr-Dec USD12.7 bn; FII USD18 bn
Rs 50,000 cr WAIVER FOR FARMERS
Total agri loan waiver estimated at Rs 50,000 cr
Debt waiver scheme to be completed by June 2008
Rescheduled loans also eligible for waiver
One-time settlement scheme for other farmers
Waiver amounts to 4% of total bank loans
Complete loan waiver for marginal farmers with 1-2 hec holding
Complete waiver of all loans to marginal & small farmers
Scheme of debt waiver and relief for Small and marginal farmers
Govt proposes move to nutrient based fertilser subsidies scheme
Rs 18 cr allocated for coffee in FY09
National agri insurance plan to get Rs 64 cr in FY09
Perpetual fund for rubber, cardamom in FY09
Rubber Fund to get Rs 19 cr in FY09
Special purpose tea fund to get Rs 40 cr in FY09
Irrigation resources fin to have Rs 100 cr capital
To set up irrigation, water resources finance corp
24 major, 750 irrigation projects in FY09
FY09 Irrigation outlay seen at Rs 20,000 cr Vs Rs 11,000 cr
Aim to hike farm contribution to GDP to 1.6% in 11th Plan
75% farm credit by Scheduled Cmmercial Banks
288 PSU Bank Branches to be opened in backward areas by March
Plan addl Rs 10,000 cr capital expenditure this year
Agri credit target at Rs 2.8 lakh cr for 2008-09
LIC to cover all women SHGs linked to Banks
3 National Fin Corporations for weaker sections get Rs 105 Cr
Allocation To Ministry For Minorities Doubled To Rs 1000 Cr
National Minority Development Fin Corporation gets Rs 75 cr
Allocation to North-East at Rs 16,447 cr vs Rs 14,365 cr
Rs 300 cr allocated to desalination plant to be set up near Chennai
Rajiv Gandhi Drinking Water Mission To Get Rs 7300 Cr From Rs 6500 Cr
Allocation to ICDS hiked to Rs 6,300 cr
Allocation To JNURM Hiked To Rs 6,866 Cr From Rs 5,482 Cr
NREGS extended to all 596 rural districts; allocated Rs 16,000 cr
Rs 1,042 cr allocated for Polio eradication in UP, Bihar
Health Cover Of Rs 30,000 For Every Worker In BPL Category
To allot Rs 100 cr to IT Ministry to link knowledge institutes
Impact of US slowdown on EMs not clear
Allocation of Rs 16,534 cr for health in '08-'09
National Rural Health Mission Allocation Hiked by 15%
Govt To Set Up 3 IITs; One Each In AP, Bihar, Rajasthan
To set up 3 IISCs in Bhopal and Trivandrum
Midday meal scheme extended to upper primary classes in all blocks
Sarva Shiksha Abhiyan will be provided Rs 13,100 cr
16 Central Universities To Be Set Up
6,000 high quality schools to be built by FY09
FY09 Gross Budgetary Support At Rs 2.4 Lakh Cr
Education, health allocation up 20%
Bharat Nirman Programme gets allocation of Rs 31280 cr
'Can Do Better' On Ensuring More Inclusive Growth
FY08 Farm Growth Seen At 2.6%
Agri Credit Doubled In First 2 Yrs Of UPA Govt
Need to be vigilant on global risks
Govt, RBI To Jointly Take Temporary Steps To Manage Cap Inflows
Capital Inflows In Excess Of Economic Deficit
To Take Steps On Foreign Inflows To Ensure Stable Mkts
Govt will monitor foreign fund inflow: FM
Global Markets Weak Since Aug, Impact On Local Market Unclear
8% GDP Growth In 12 Successive Quarters
Keeping inflation under check cornerstone of govt policy
FM Says Confident Of Maintaining 8.8% GDP Growth
Agriculture estimated to grow at 2.6% in FY08
Q3 Mfg Growth At 9.3% Vs 11.3% (YoY)
Q3 Farm Growth At 3.2% Vs~3.4% (YoY)
Q3 GDP At 8.4% Vs 9.1% (YoY)