Home Economy Highlights of Indian Budget 2007-08

Highlights of Indian Budget 2007-08

By IANS

New Delhi : The highlights of India’s national budget for 2008-09 presented by Finance Minister P. Chidamabaram in the Lok Sabha Friday:

No income tax on annual earnings of Rs.150,000

Rs.4,000 minimum relief for all tax assesees

10 percent tax on income between Rs.150,000 and Rs.300,000

20 percent tax on income between Rs.300,000 and Rs.500,000

30 percent tax on income over Rs.500,000

No income tax for women with annual income up to Rs.180,000

No income tax for senior citizens with annual income up to Rs.225,000

Over 8 percent growth for 12 successive years

Maintaining growth with price stability

Maintaining supply of food main task in coming fiscal

Concern: Inflationary trends

Concern: Capital inflow exceeds current account deficit

Farm growth disappointing at 2.6 percent

Gross budgetary support rises to Rs.380 billion

Education gets 20 percent more to Rs.344 billion from Rs.286.8 billion

Rural infrastructure scheme Bharat Nirman to get Rs.312.8 billion

Midday meal scheme for schoolchildren to get Rs.80 billion

School enrolment scheme Sarva Shiksha Abhiyan to get Rs.131 billion

Government and Reserve Bank of India to manage capital inflow

16 new central universities

3 new Indian Institutes of Technology

Government to raise additional resources worth Rs.100 billion

National Rural Employment Guarantee Scheme (NREGS) extended to all 596 rural districts

NREGS to get Rs.160 billion, more money will be provided on need

Jawaharlal Nehru Urban Renewal Mission to get Rs.68.66 billion, up from Rs.54.82 billion

National health insurance for poor introduced

Northeast development to get Rs.14.55 billion

Scheduled Castes, Scheduled Tribes, minorities get special allocations

Rs.5.5 billion for minority dominated districts

HIV/AIDS prevention to get Rs.9.93 billion

Complete loan waivers for farms up to 2 hectares

Weather based crop insurance scheme to continue

Rs.400 million for special tea fund

Rs.200 billion for irrigation

Total plan spending will be Rs.2.4 trillion

Farm credit target at Rs.2.8 trillion

Health spending to rise 15 percent

Loan waiver to benefit 40 million farmers

Farm debt waiver scheme to cost Rs.600 billion

Farm debt scheme to be completed by June 30

Additional 10,000 MW power generation by March 2009

Government to create national fund for power transmission and distribution

Foreign direct investment in April-Dec 2007 at $12.7 billion

Banks to open 250 rural household accounts every year in rural branches

Banks to give loans to self-help groups for income-generating activities, social needs and debt swapping

National Bank for Agriculture and Rural Development (Nabard) to get Rs.50 billion to refinance loans

Small Industries Development Bank of India (Sidbi) to get Rs.40 billion to refinance loans

National Housing Bank to get Rs.12 billion

Foreign Exchange Derivatives Market to be set up

Coal regulator to be set up

Textile upgrading funding to get Rs.10.9 billion

National highways to get Rs.129.7 billion

Rs.440 million to improve infrastructure at 22 Sainik schools

Food subsidies at Rs.326.67 billion

Defence spending to rise 10 percent

Rs.80 billion for accelerated power development programmes

PAN requirement extended to all securities transactions

Rs.129.66 billion for National Highway development programme

100,000 broadband-enabled common service centres to be set up in villages

Rashtriya Krishi Vikas Yojana to get Rs.2.8 trillion

Tax-GDP ratio rises to 12.5 percent

Sixth central pay commission to submit report by March

General central value-added tax rate slashed to 14 percent from 16 percent

Fiscal and revenue deficit pegged at 3.1 percent and 1.4 percent, respectively

Revenue deficit would be 1.4 percent against budget estimate of 1.5 percent