India Budget 2008-09 presented by P. Chidambaram
Feb 29th, 2008 | Category:India News, National News
Union Finance Minister P. Chidambaram on Friday presented the Union Budget for 2008-09 in Lok Sabha. Since this will be the last full budget of the UPA government, every segment of the society, including individual taxpayers & corporate are expecting some relief.
P. Chidambaram said that the Indian growth story has been an absorbing one. Chidambaram also said that the economy has achieved record growth of over 8% for the 12th quarter starting January 2005 till December 2007. The FM said that the growth projected for the current financial is likely to be 8.7% according to CSO but that he was confident of achieving 8.8%. Manufacturing & services have been driving the economy & had recorded growth rates of 9.4% & 10.7% respectively.
Budget Major Highlights:
GDP increased by 8.8% during first 3 years of UPA.
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 just 2.4%.
Govt to monitor & moderate capital inflow to ensure stock market stability.
Education outlay increased by 20%.
Health outlay increased by 15%.
Capital inflows in excess of deficits.
Bharat Nirman program at Rs 31,280 cr.
New debt-waiver scheme for farmers.
Complete debt-waiver scheme for small and marginal farmers.
Debt-Waiver
New scheme of debt-waiver and debt relief for farmers.
All agriculture loans disbursed by PSU banks, cooperatives till March 07 waiting recovery to be covered under scheme.
Complete waiver for marginal farmers holding up to 1 hectare of land.
Complete waiver for small farmers holding 1 to 2 hectares of land.
One-time settlement scheme for “all other” farmers.
Agricultural loans were restructured by banks through special packages. All such loans will also be eligible for waiver under the scheme.
Implementation to be completed by June 30, 2008.
Farmers will be also eligible for fresh loans.
Govt to allocate 60,000 cr for this scheme.
Four crore farmers to benefit.
Agriculture
Agriculture grew by 2.6%.
New debt-waiver scheme for farmers.
Agri credit doubled during UPA’s tenure.
Record food grain production at 219 mn tonnes.
Record rice production at 98.04 mn tonnes.
Record maize production at 16.7 mn tones.
Agriculture credit by next year.
75-78% total credit by PSU banks.
2008-09 target at Rs 280,000 cr for credit to farmers.
Additional irrigation potential to be developed for 5 lakh hectares.
Rain-fed area development program to be launched in new areas.
Rs 500 cr for this scheme.
World bank aiding many states in agriculture.
14 national projects approved.
New financial institution IWRFC to be launched with an initial allocation of Rs 100 cr to mobilise money to fund agriculture.
500 soil testing labs to start via PPP.
Rs 175 cr for mobile soil testing units in 200 districts by March 09.
20 cr to Tea Research Institute.
National agricultural insurance scheme to continue for Kharif, Rabi crops.
Fertiliser subsidy to continue.
Fertilisers: New nutrient based subsidy regime to be launched.
Prof Vaidyanathan Committee recommendations on micro-credit to be implemented.
Education
Education outlay increased by 20% at Rs 34400 cr.
Mid-day meal is the largest such scheme in world.
Mid-day meal scheme to start in all govt, govt-aided schools across India.
Kasturba Gandhi Balika Vidayalaya has enrolled thousands of girls.
410 new Kasturba Gandhi Balika Vidayalaya to be set up.
New model school program to be started.
New Navodaya Vidyalaya to be set up in 20 backward districts.
New 1 lakh new scholarships to be given.
New Nehru Yuva Kendras to be set up in all districts.
One central university in all states.
16 central universities this year.
3 new IITs in AP, Bihar, Rajasthan.
2 Schools of Architecture in Bhopal and Vijaywada.
Ministry of S&T will start a new scholarship scheme.
100 cr to connect all knowledge centres via broadband to build national knowledge network.
Social Sector & Development
Bharat Nirman program at Rs 31,280 cr.
Rs 16,000 cr for NREGA.
NREGA to be extended to all districts.
SC/STs & Minorities
NMDFC allocation at 75 cr.
Allocation for SCs at 804 cr; 160 cr for STs.
Allocation for OBCs at Rs 120 cr.
Allocation for Minorities at Rs 100 cr.
Rajiv Gandhi National Fellowship Scheme for scholarships to SC/STs at Rs 75 cr.
Rs 1000 cr for Minority Commission.
Pre-metric scholarship scheme for minorities.
Madrassa scheme at Rs 440 cr.
288 bank branches in minority areas.
More minorities in Central paramilitary forces.
For Senior Citizens & Womens
Two national institutes of ageing. Health & Development Health outlay increased by 15%. Taxes Tax collections have increased dramatically. Direct Taxes Short-term capital gains tax hiked to 15%. Income Tax Threshold exemption limit increased from 1,10,000 to 1,50,000. New Tax Slabs 1.5 lakh to 3 lakh: 10%. Corporate Tax No change in corporate taxes. Indirect Taxes No change in peak rates of customs duty. Infrastructure & Industry Power generation on target for 11th Plan. FM Speak 2008 should be a year of consolidation.
New national program for the elderly.
2000 cr for Women and Child Ministry
Rashtriya Janashree Yojana of LIC to cover all women self-help groups
Rs 16,000 cr for NREGA.
NREGA to be extended to all districts.
46,200 Asha workers have been trained.
Anganwadi workers remuneration increased to Rs 1500.
More than 300 district hospitals to be upgraded.
Rs 12050 cr for NRHM.
Rs 900 cr for combating AIDS.
Rashtrya Health Bima Yojna to be launched in Delhi, Haryana, Rajasthan on April 1.
ICDS allocation increased to Rs 6000 cr.
Some surprised at the tax collection buoyancy, I am not.
Moderate and stable rates bring high collections.
Tax-GDP ratio has improved from 9.2% in 2003 to 12.5% this year.
Tax collection helped by high growth rate, change in attitudes, and by technology the most .
Securities Transactions Tax unchanged.
Banking Transaction Tax withdrawn.
Central Sales Tax up from 2% to 5%.
Exemption limit for women increased to 1,80,000.
Exemption limit for senior citizens up from 1,95,000 to 2,25,000. Exemption of 2.25%.
3 lakh to 5 lakh: 20%.
5 lakh and above: 30%.
No change in surcharge.
Rural electrification to get Rs 5000 cr.
Rs 12,966 cr for highways.
96.48% of Golden Quadrilateral completed.
26.36% of East-West, North-South Corridor completed.
Rs 380 cr for oil and gas exploration.
New coal regulator to be appointed.
Rs 1680 cr for IT ministry.
One lakh broadband centres to be set up in rural areas.
All 30 integrated textile parts have been approved.
Clasuter Approach for handloom has been a success.
17 lakh weavers to be covered under insurance scheme.
SIDBI to reduce guarantee fee.
Determined to become self sufficient in agriculture.
UPA wants to make growth inclusive.
Govt sensitive to farmers’ needs.
Irrigation program is UPA’s priority.
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