By IANS,
New Delhi : The following are the highlights of the fiscal stimulus package unveiled by the government Sunday to contain the impact of global financial crisis on the Indian economy:
– Plan, non-plan expenditure of Rs.300,000 crore (Rs.3,000 billion/$60 billion) in four months
– Parliament nod to be sought for Rs.20,000 crore more toward plan expenditure
– Across-the-board cut of four percent in the ad valorem central value-added tax
– Interest subvention of two percent on export credit for labour intensive sectors
– Additional allocations for export incentive schemes
– Full refund of service tax paid by exporters to foreign agents
– Incentives for loans on housing for up to Rs.500,000, and up to Rs.2 million
– Limits under the credit guarantee scheme for small enterprises doubled
– Lock-in period for loans to small firms under credit guarantee scheme reduced
– India Infrastructure Finance Co allowed to raise Rs.100 billion through tax-free bonds
– Norms for government departments to replace vehicles relaxed
– Import duty on naphtha for use by the power sector is being reduced to zero
– Export duty on iron ore fines eliminated
– Export duty on lumps for steel industry reduced to five percent