Budget Highlights

  • Central sales tax cut to 2% from 3%
  • Banking cash transaction tax withdrawn
  • Changes in I-T slabs
  • 30% income tax for income above Rs 5 lakh
  • 20% income tax for income in the range of Rs 3-5 lakh
  • 10% income tax for income in the range of Rs 1.5-3 lakh
  • I-T exemption limit for senior citizens goes up to Rs2,25,000
  • I-T exemption slab for women at Rs 1,80,000
  • I-T exemption limit goes up to Rs 1,50,000
  • Scope of fringe benefits reduced
  • No change in corporate tax structure
  • Five-year tax holidays to set up hospitals in India, except some urban pockets
  • Short-term capital gains tax hiked to 15%
  • Levy of STT only on options premiums
  • To introduce commodities transaction tax (like STT)
  • Dividend distribution tax unchanged at 15%
  • Cars to get cheaper
  • Excise duty on small cars cut to 12% vs 16%
  • Cigarette prices to go up
  • Excise duty on buses & chassis cut from 16% to 12%
  • Anti-AIDS drug totally exempt from excise
  • CENVAT reduced from 16% to 14% on all goods
  • Excise on coconut water, puffed rice down to zero from 16 pc
  • Customs duty on phosphoric acid cut to 5% vs 7.5%
  • Customs duty halved to 5 pc on specified life-saver drugs
  • No change in peak Customs duty
  • Duty on project imports cut to 5% vs 7.5%
  • Steel scrap duty reduced to zero
  • Plan expenditure estimate at Rs 2,43,386 crore
  • Fiscal target under FRBM Act will be met
  • Revenue deficit for 2007-08 at 1.4% vs estimate of 1.5%
  • 6th Pay Commission report by March 31, 2008
  • Central Plan Scheme Monitoring system to be set up
  • Rs 50 cr for raising Tiger Protection Force
  • Rs 100 cr each for Mahatma Phule institute, Mysore and Delhi varsities
  • Defence allocation at Rs 1,05,000 cr
  • Defence allocation goes up by 10 pc
  • Social security for unorganised sector
  • Two separate funds for SIDBI
  • To ask States to help develop National Securities market
  • Difference in state duties, levies hampering securities market
  • Rs 50,000 cr fund to be created by NABARD
  • Rs 12966 cr for National Highway plan
  • Rs 450 cr provision for textile parks
  • Rs 44 cr for upgradation of 22 Sainik schools
  • Rs 50,000 cr fund to be created by NABARD
  • Rs 12966 cr for National Highway plan
  • Rs 450 cr provision for textile parks
  • To expand market to corporate bonds
  • PAN requirement extended to all financial markets
  • NELP-VII to attract investment worth $3.5-8 b
  • Dollar sterilisation cost via MSS at Rs 8,351 cr for 2007-08
  • Steps to open bidding for 5 more UMPPs
  • All 30 integrated textile parks approved
  • Coal regulator to be set up
  • Fertiliser subsidy to continue
  • Power generation in 11th plan period at 77,500 MW
  • Rs 800 cr for accelerating power reform in FY09
  • National fund for power transmission & distribution
  • Risk capital fund in SIDBI
  • To take manufacturing growth rate to double digits
  • Capital goods’ growth still healthy at 20.2%
  • Debt waiver scheme to be completed by June 2008
  • Rescheduled farm loans will also be eligible for waiver
  • Total loan waiver at Rs 60,000 crore
  • Other farmers to get one time settlement
    on payment of 75 pc debt
  • Waiver for farmers holding up to 2 hectares
  • Protests by Opposition after FM announces loan waiver
  • Loan waiver and debt relief for farmers
  • All loans up to March 2007 to come under the scheme
  • Small and marginal farmers to get complete loan waiver
  • Rural credit target to go up to Rs 80,000 cr
  • Rs 20,000 crore to be spent on irrigation
  • Rs 540 cr for minority concentration districts
  • Rs 75 crore for 250 mobile soil testing labs
  • 30 lakh SHGs to get special attention
  • Rs 33,434 cr for child specific schemes
  • Rs 105 cr for 3 National Financial Corporations for
    weaker sections
  • LIC to cover all women SHGs linked to banks
  • Rs 3,966 cr for SC, ST, OBC schemes
  • Rs 300 cr allocated to Chennai desalination plant
  • Allocation to Ministry for minorities doubled to Rs 1,000 cr
  • Rajiv Gandhi drinking water mission to get Rs 7300 cr (from Rs 6500 cr)
  • Rs 16,000 crore for rural jobs
  • Rs 400 crore for National Programme for the elderly
  • Rs 500 crore for Arunachal Pradesh and other border areas of the NE
  • Total allocation to NE increased to Rs 16447 crore
  • Schemes for minorities
  • More minority candidates for central para military forces
  • Allocation to ICDS hiked to Rs 6,300 cr
  • Allocation to JNURM hiked to Rs 6,866 cr from Rs 5,482 cr
  • Allocation to ICDS hiked to Rs 6,300 cr
  • Impact of US slowdown on emerging markets not clear
  • Rs 100 cr for IT ministry to link knowledge institutes
  • Health cover of Rs 30,000 for ever worker in BPL category
  • To set up IISCs in Bhopal and Thiruvananthapuram
  • Impact of US slowdown on emerging markets not clear
  • Rs 100 cr for IT ministry to link knowledge institutes
  • Health cover of Rs 30,000 for ever worker in BPL category
  • Allocation for AIDS programme Rs 999 cr
  • NREGS extended to all 596 rural districts; allocated Rs 16,000 cr
  • To spend Rs 1,042 cr to eradicate polio
  • Health allocation hiked to Rs 16,534 cr
  • Anganwadi workers’ pay hiked
  • 1 new IIM to be set up at Shillong
  • Navodaya vidyalayas to get Rs 130 crore
  • 6,000 high-quality schools to be built by FY09
  • Mid-day meal scheme to cover 13.9 crore students
  • Gross budgetary support at Rs 2.28 trillion
  • Sarva Siksha Abhiyan to get Rs 13,100 cr
  • 16 more central varsities
  • IITs for AP, Bihar and Rajasthan
  • Global markets weak since Aug, impact on local market unclear
  • Need to be vigilant on global risks
  • 8% GDP in 12 successive years
  • Global markets weak since Aug, impact on local market unclear
  • Need to be vigilant on global risks
  • Agriculture estimated to grow at 2.6% in FY08
  • Education sector to get Rs 34,400 crore, up 20 pc
  • Bharat Nirman to get Rs 31,282 crore
  • Farm credit to touch Rs 2.4 lakh crore by year end
  • Balancing supply-side most important
  • Services, manufacturing to drive growth
  • 2007-08 most challenging year
  • Checking inflation top priority
  • RBI takes measures to monitor capital inflow
  • New initiatives for Agri sector
  • Agri growth for whole year estimated at 2.6 pc
  • Confident of 8.8 pc growth rate
  • Chidambaram begins Budget speech

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