Budget 2008-09

Friday, February 29, 2008

Budget 2008-09

The following are the highlights of Budget 2008-09:

- Plan expenditure fixed at Rs 2,43,000 crore and non plan expenditure at 5,74,000 crore
- Revenue Deficit will be 1.4 % against Budget Estimate of 1.5%
- Direct tax proposals to be revenue neutral.
- Indirect tax proposals to result in loss of Rs 5,000 crore
- Tax to GDP ratio increased from 9.2 per cent in 2004-05 to 12.5 per cent 2007-08

Income tax benefits
- Tax exemption hiked from Rs 1,10,000 to Rs 1,50,000
- Women exemption threshold extended from Rs 1,45,000 to 1,80,000
- Senior citizens' exemption hiked from Rs 1,95,000 to 2,25,000
- No change in corporate income tax

New tax slabs
- 10 per cent for 1,50,000 to 3,00,000
- 20 per cent for 3,00,000 to 5,00,000
- 30 per cent above 5,00,000.

Benefit: Every income tax assessee to get relief of minimum of Rs 4,000

Market changes
- Increase in short term capital gains tax to 15%
- Commodities Transactions Tax to be introduced
- Securities Transaction Tax to be treated like deductible expenditure
- Asset management service under mutual funds, services by stock exchanges to be brought under services tax net
- Banking cash transaction tax to be withdrawn from April 1, 2009

What will come down
- Duty on two wheelers reduced from 16 to 12 pc
- Excise duty on small cars reduced to 12 per cent from 16 per cent
- Excise duty on hybrid cars cut to 14 per cent
- Duty withdrawn on naptha for production of polymers
- Refigeration components to become cheaper
- Reduce excise duties on anti-AIDS drugs
- Customs duty on specified life saving drugs reduced from ten per cent to five per cent
- Excise duty on water purification items cut from 16 to 8 per cent
- Customs duty on specified Sports goods machinery cut from 7.5 per cent to five per cent
- Customs duties on crude sulphur reduced to 5%
- Customs duty on few bulk drugs cut to 5%
- Duties on convergence products slashed to 5%
- Fully exempt duties on Set top boxes
- Duty on pharma products reduced by 8%
- Reduce duties on steel melting scrap, aluminum scrap
- Duty on helicopter simulators removed

What will go up
- Duty on non filter cigarettes raised
- Special countervailing duty on power imports
- Increase in Excise duty on packaged software from 8% to 12%

Sectoral Highlights
- Grant of Rs 50 cr to National Tiger Conservation Authority
- Rs 624 crore allocated for Commonwealth games
- Rs 75 cr to ICCR for cultural development
- Defence allocation hiked by 10% to Rs 1,05,600 cr
- Rs 32,676 crore as subsidy to public distribution system
- Three schemes to be introduced for providing social security to unorganised sector orders
- Rs 15,000 cr for non-profit body for skilled development programme
- Allocation of Rs 44 cr to 22 Sainik schools
- PAN requirement to be extended to all transactions in capital market subject to a threshold
- Smart card-based door delivery of food grains to be introduced
- National fund for transmission and distribution reforms to be launched
- Risk capital fund to be set up in SIDBI
- National Highway Dev programme gets Rs 12,966 cr
- Accelerated power development programmes to get Rs 8,000 cr
- Rs 12,956 Cr for NHDP
- 20 per cent hike in education budget from Rs 28,674 crore to Rs 34,400 crore
- Coal regulator to be set up
- 17 lakh families of weavers to be brought under Health Insurance
- State data centres scheme to get Rs 275 cr
- 1 lakh broadband-enabled common service centres proposed in villages
- Rs 800 cr for power distribution
- RIDF corpus to be hiked to Rs 14,000 cr

Farm sector benefits
- Rs 60,000 crore loan waiver proposed for farmers; scheme to benefit four crore farmers

- Complete waiver of loans for marginal farmers owning land up to one hectare and small farmers owning land up to 1 and 2 hectares; Package to cost Rs 50,000 crores and will cover all agricultural loans given by scheduled commericial banks, regional rural banks and cooperative credit institutions up to March 31, 2007 and due for December 31 that year

- Rescheduled farm loans eligible for waiver

- National horticulture mission to be given Rs 1,100 crore in 2008-09 with special focus on coconut cultivation

- Rs 644 crore for National agriculture insurance scheme, which will be continued pending evolving an alternative crop insurance scheme

Institutions
- National plant protection training institute at Hyderabad to be made autonomous body and Rs.29 crore will be allocated to it
- Mobile soil testing laboratory for Agriculture ministry
- Jawaharlal Navoday Vidyalaya to be set in 20 new districts for SC/STs
- Bhopal and Tripura to get one IISc each and 2 colleges of art
- 6,000 model schools to be built by 2009
- Rs 750 crore for upgradation of 300 ITIs in 25 districts


Women/children/SC/ST/ Minorities
- Rs 500 crore for corpus fund to subsidise all women self-help groups for LIC cover for permanent disability
- Rs 75 crore sanctioned for Rajiv Gandhi National fellowship programme for SC/ST students pursuing M Phil
- 288 Public sector bank branches to be opened in districts having minority community concentration
- Rs 7,200 crore to be allocated to the Ministry of Women and Child Development, marking an increase of 24 per cent.
- Rs 540 crore for multi-sectoral development plan for minority concentration districts
- Rs 230 crore will be extended as additional equity to developmental organisations loking after the welfare of SC, ST, socially and economically backward classes and minorities.
- Healthcare allocation to be raised by 15%



See also...

Revised Income Tax - Budget 08

Rail Budget 2008-2009


ATOzTOA : Latest Headlines


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