Highlights of Economic Survey 2008-09

By IANS,

New Delhi : Salient features of a wish list in the Economic Survey for 2008-09 released by Finance Minister Pranab Mukherjee in parliament Thursday:


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– Cut fuel, food and fertiliser subsidy leakages

– Raise foreign investment cap in insurance to 49 percent

– Allow 100 percent foreign investment in health, weather insurance

– Raise foreign investment cap in defence production to 49 percent and in high tech defence to 100 percent

– Raise Rs.25,000 crore from divestment every year

– Sell 5-10 percent in profitable non-Navratnas

– List unlisted state-owned firms, divest at least 10 percent equity

– Auction loss-making state-owned firms

– Rationalise dividend distribution tax to avoid double taxation

– Review customs duty exemptions

– Remove fringe benefit tax

– Remove commodity and security transaction taxes

– Limit subsidy on cooking gas to six-eight cylinders per household

– Kerosene subsidy only for non-electrified, non-cylinder homes

– Introduce new income tax code

– Provide fertiliser subsidy directly to farmers

– Target zero fiscal deficit

– Eliminate inverted duty structure

– Convert specific textile taxes to ad valorem

– Lift price control on all drugs except essentials

– Roll back excess liquidity once growth picks up

– Decontrol sugar and insurance industries

– Auction spectrum and make it freely tradable

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