Union Budget 2008-09 features and highlights

The release of Union Budget 2008-09 by Finance Minister P Chidambaram on 29 Feb'08 as follows(features and highlights):
*Farmers have been granted a package of Rs 60,000-cr
*Rs 44 crore for 22 Sainik schools
*300 more ITIs to be elevated with an investment of Rs 750 cr
*Setting up of 3 new IITs, 16 central universities
*Power sector would be given national fund for transmission, distribution reforms
*Hike of Rs 12,966 cr from Rs 10,866 cr in NHDP allocation
*Govt would now cost Rs 50,000 cr on farm loan waiving
*Tea would get Rs 400 mn special support fund
*Agri loans would be reconstructed in 2004-06 under special packages to be waived
*Tea Research association would be allocated Rs 20 cr
*Micro irrigation scheme allocated Rs 500 cr
*Agriculture share in total investment would be raised to 16% from 10.2%
*Grant for ministry of minorities would be raised to Rs 1,000 cr
*Planned schemes for woman to get Rs 11,460 cr this fiscal
*Child related schemes would be granted Rs 33,434 cr
*288 branches of public sector banks would be set up in 2008
*Corporate surcharge tax: unchanged
*Indirect tax proposals to incur a loss of Rs 5,000 cr
*Direct tax proposals would be revenue neutral
*Dividend of subsidiary company will be released from DDT
*Banking transaction tax to be exempted
*Central sales tax: Reduced to 2%
*15% rise in short term capital gains tax
*5-yr tax holiday for building hospitals in tier-II, tier III regions
*Short-term capital gains rises to 15 pc
*Excise duty of Rs 1.35/litre applied on unbranded petrol
*Excise duty of Rs 4.6/litre applicable on unbranded diesel
*Introduction of Commodities Transactions Tax
*Securities Transaction Tax would be considered like deductible expenditure
*Star hotels: 2,3,4 star hotels to get 5-yr tax holiday in UNESCO's heritage sites
*FBT exempted on creche, employee sports, guest houses facilities
*Duty on two wheelers slashed from 16 to 12 pc
*Tax slab for Rs 3-5 lakh would be 20 pc
*TAX: exemption raised from Rs 1,10,000 to Rs 1,50,000
*TAX: Women exemption threshold streched from Rs 1,45,000 to 1,80,000
*TAX: Senior citizens' exemption raised from Rs 1,95,000 to 2,25,000
*TAX: Corporate income tax unchanged
*Hike of duty on non filter cigarettes
*Excise duty reduced to 8% on water purification items
*Duty taken off on naptha for production of polymers
*Refigeration components to get less expensive
*Reduction of excise duties on anti-AIDS drugs
*Tax-GDP ratio higher at 12.5%
*Step down of excise on paper and its products
*Reduction of excise duties on buses, chassis
*Excise on small cars stepped to 14%
*Excise on pharma goods reduced to 14%
*General CENVAT rate: dipped from 16% to 14%
*5% cut of customs duty on some bulk drugs
*Crude sulphur: duties stepped down to 5%
*Relieve of duties on coral
*Fiscal Deficit & Revenue Deficit: pegged at 3.1% & 1.4%.
*Duties on convergence products dipped to 5%
*Set top boxes: 100% exemption
*COMMONWEALTH GAMES: allocated Rs 624 cr.
*Steel melting & aluminum scrap: duties reduced
*Peak rate of customs duties unchanged
*Sixth central pay commission would submit report by March
*Revenue Deficit would be 1.4 % agt Budget Estimate of 1.5%
*Planning Commission to assess major schemes
*PROTECT TIGER: Rs 50 cr to Natl Tiger Conservation Authority to get Rs 50 cr
*Rs 75 cr for ICCR for cultural development
*Defence allocation raised by 10% to Rs 1,05,600 cr
*PDS to get Rs 32,676 as subsidy
*Smart-card based PDS system to come up in Haryana, Chandigarh
*PDS to be toned up
*Grant of Rs 44 cr to 22 Sainik schools each
*Rs 75 cr to given to Agri Ministry to set up soil testing labs in 250 districts
*Rs 15,000 cr to be given for a non-profit body for dev programme
*Set up a world-class skilled development programme
*PAN requirement extended to all securities transactions
*Set up bond, derivative market
*More clarity in Derivative market
*Risk Capital Fund to be established in SIDBI
*Allocation of Rs 12,966 cr for National Highway Dev programme
*Rs 8,000 cr for accelerated power development programmes
*Ultra mega power project to come up at Tilana shortly
*NHDP to get Rs 12,956 Cr
*Banks would be bucked up to embrace total financial inclusion
*Foreign invt: Oil block exploration anticipated to get up to $8 bn
*Setting up of Coal regulator
*Health Insurance for 17 lakh families of weavers
*Approval of State data centres scheme and gets Rs 275 cr
*1 lakh broadband-enabled common service centres to be set up in villages
*Better allocation of NHDP programme
*Power distribution to get Rs 800 cr
*Public Sector Bank: Around 288 branches to be opened in districts with minority community concentration.
*Manufacturing rate of growth planned to be doubled
*RIDF corpus to be raised to Rs 14,000 cr
*Education: 20% hike from Rs 28,674 cr to Rs 34,400 cr
*Total amount of loans being waived is Rs 50,000 cr
*Debt waiver scheme to end up by June 30
*Minority Affairs Ministers alloted Rs 1000 cr.
*Interest subvention would prove negative for banks
*Waiver forms up to 4% of total bank loans
*Sensex dipped to 210 points
*500 soil testing labs would be established in the country
*Marginal,small farmers gets 100% waiver on all loans. Benefit to 4 crore farmers
*Farmers would provided with scheme of debt waiver and debt relief
*Allocation for NRHM hiked to Rs 12,050 cr
*National Horticulture Mission would be allocated Rs 1,100 cr
*Rs 50 cr for Weather based crop insurance scheme
*Tea Research Association would be given a special grant of Rs 20 cr
*Rashtriya Krishi Vikas Yojana would be allocated Rs 2,80,000 cr.
*53 minor irrigation programmes would come into action
*Coffee, cardamom growing gets more funds
*Child specific schemes would be given Rs 34,334 crores
*Rs 2.80 lakh cr has been set for agri-credit in 2008-09
*Ministry of Woman and Child Development to be alloted Rs 7,200 cr
*24% hike in allocation for child development
*Border area development gets Rs 500 cr
*Anti-Polio drive gets Rs 1,042 cr
*Hospital sector likely to gain Interest subvention has been increased in the year 2007-08 *Jawaharlal Nehru Urban Renewal Mission would be alloted Rs 6,865cr
*Development of agri-credit has been impressive
*Minority Affairs Ministry fund raised to Rs 1,000 cr
*Setting up of 288 PSU bank branches in minority districts
*Rs 540 cr to be given for the development plan for minority districts
*LIC would entail all women SEGs
*Rs 200 crore to be given for potable water in schools
*Rural health services would be alloted Rs 12,050 cr for its development
*Publishing market would gain from education boost
*Sanitation programmes would be alloted Rs 1200 cr
*More number of minority placements in central para-military forces
*Higher Education: more institutions in the 11th plan.
*Anganwadi helpers & workers remuneration hiked to Rs 750 & Rs 1,500
*National Programme for elderly citizens at Rs. 400 crore
*Rajiv Gnadhi Natl Fellowship Programme would be alloted rs 75 cr
*Rs 9 cr for Nat Handicap Development Corp
*Natl Minorities Development Corp would be alloted Rs 75 cr
*Rs. 500 crore for Arunachal and north eastern states
*Education spend to be raised by 20% to Rs 34,400 cr
*NE region would be granted Rs 1, 350 cr for development
*Rajiv Gandhi Drinking Water mission allotment would be raised
*NREG scheme to be implemented in 596 districts
*National Rural Health Mission allocation raised by 15%
*Rs 30,000 health cover allotment for every worker in unorganised sector
*Increase of Health allocation to 15% *supply safe drinking water as per Rajiv Gandhi's plan
*3 IIScs would be set up in Bhopal and Trivandrum
*National Programme for the Elderly to be set up
*Secondary education Scheme: Rs 4,554 crore
*2 schools would be set up for planning and architecture
*Rs 4,554 crore Secondary education Scheme
*Rs 100 cr would be given to Ministry of Science and tech for Natl Knowledge Network
*All knowledge bodies would be connected through broadband
*Rs 85 crore for the setting up of a knowledge society
*Scholarships would be given for science and research
*Education and Health allocation up 20%
*Service Sector to rise at 10.7%
*Setting up of 3 IITs in AP, Bihar and Rajasthan
*16 central universities would come up
*Mid-day meal scheme: for upper primary classes also. Budgetary allocation Rs 8,000 *Navodiya Vidyalayas to start up in 6,0-00 districts
*6,000 model high schools to be established
*Agricultural growth rate planned at 2.6%
*reforms for Education, health remains a major concern
*2008-09 would be a year of integration
*He remains to be convicted to sustain 8% growth
*Effect of global mkts on local mkts is hazy
*Govt, RBI will to take a conjoint step to manage capital inflow
*Govt to monitor all foreign fund inflow
*Govt. to check foreign inflow to stabilise Indian mkts
*Rashtriya Krishi Vikas Yojna launched
*Food grains overall output is 219.32 mn tonnes
*We should remain wakeful for downside risk
*Crude oil has seen a step down
*Agriculture condition was disatisfactory
*Capital inflows proves to be point of consideration against monetary management
*Growth rate at 8.8%
*Service sector remains the propelling force for Budget