The Union Budget for 2007-08 was presented in the Lok Sabha by Finance Minister P Chidambaram here on Wednesday.
Updated at 12.54 pm
NEW DELHI: The Union Budget for 2007-08 was presented in the Lok Sabha by Finance Minister P Chidambaram here on Wednesday.
This is the sixth time Chidambaram is presenting the national budget and the fourth for the United Progressive Alliance government.
HIGHLIGHTS
The manufacturing growth rate was estimated at 11.3 per cent.
9.2 per cent GDP growth rate estimated in 2006-07.
Average growth for last three years is 8.6 per cent.
The saving rate of 32.4 per cent, investment rate of 33.8 per cent will continue.
A number of proposals to perk up agriculture to be announced.
The bank credit rate grew by 29 per cent during first 10 months of 2006-07.
Inflation during 2006-07 estimated at between 5.2 and 5.4 per cent against 4.4 per cent during the previous year.
No new forward contract to be launched on wheat and rice from Wednesday.
The Abhijit Sen report on forward trading will be submitted in two months.
The average inflation in the financial year 2007 will be 5.2-5.4 per cent.
Confident of managing inflation, says Chidambaram.
Additional irrigation potential of 24 lakh hectares to be implemented, including nine lakh hectares under Accelerated Irrigation Benefit Programme.
The economy is in a stronger position than ever before.
15,054 villages have been covered under rural telephony and efforts will be made to complete the target of covering 20,000 villages by 2006-07.
The allocation on healthcare will increase by 21.9 per cent.
The allocation for education will be enhanced by 34.2 per cent.
Two lakh more teachers will be employed and five lakh more classrooms will be constructed.
The secondary education allowance will be increased from Rs 1,837 crore to Rs 3,794 crore.
The government is committed to fiscal reforms.
The foreign exchange reserves stand at $180 billion.
The allocation under the Rajiv Gandhi Drinking Mission will be stepped up from Rs 4680 crore to Rs 5850 crore.
The government said it was concerned over inflation and would take steps to moderate it.
A number of steps on fiscal, monetary and supply management side have been taken.
The annual target of 15 lakh houses under the Bharat Nirmal Programme will be exceeded.
The allocation for National Rural Health Mission will be stepped up from Rs 8207 crore to Rs 9947 crore.
The gross budgetary support in 2007-08 will be raised to Rs 2,05,100 crore from 1,72,728 crore in 2006-07. Of this, budgetary support to the Central plan will go up to 1,54,939
crore against 1,72,728 crore.
The allocation for the AIDS control programme will be raised to Rs 969 crore.
The school dropout rates are high, the government admitted. To prevent dropouts, a National Means-cum-Merit Scholarship will be implemented, with an allocation of Rs 6,000 per child.
Rs 1290 crore will be provided for elimination of polio. Intensive coverage will be undertaken in 20 districts in Uttar Pradesh and 10 districts in Bihar.
This will be integrated into NRHM.
The National AIDS Control Programme will achieve zero-level disease.
Measures for significant improvement of healthcare will be undertaken in rural area.
The allocation for ICDS programme will be increased from Rs 4087 crore to Rs 4761 crore.
130 more districts will come under NREGA. Additional allocation of Rs 12,000 crore for it.
Rs 800 crore for Sampoorna Gram Rozgar Yojana in districts not covered by NREGA. Swarna Jayanti Swarozgar Yojana allocation increased from Rs 250 crore to Rs 344 crore.
Computerisation of PDS and integrated computerization programme for Food Corporation of India.
Allocation for schemes only for SCs and STs to be increased to Rs 3271 crore.
Rs 63 crore for share capital for National Minorities Development Finance Corporation following Sachar Committee recommendations.
Allocation for SC/ST scholarships enhanced from Rs 440 crore to Rs 611 crore.
Scholarships programme for minorities students to be of the order of Rs 72 crore for pre-metric, Rs 48 crore for graduate and postgraduate.
The total Budget for the Northeastern region raised from Rs 12,041 crore to Rs 14,365 crore.
The new industrial policy for the northeastern region will be in place before March 31.
Women's development allocation will be Rs.22,282 crore.
Rs 7,000 crore allocation for better tax administration will be used for social schemes.
Rs 2,25,000 crore farm credit is proposed in the new budget. A target of additional 50 lakh farmers to be brought under farm credit.
Farmers' credit likely to reach Rs 1,90,000 crore as against the targeted Rs 1,75,000 crore during 2006-07.
Special Purpose Tea Fund will rejuvenate tea production.
Rs 100 crore has been allocated for the National Rainfed Area Authority.
The National Agricultural Insurance Scheme will be continued for Kharif and Rabi this year.
Bonds worth Rs 5,000 crore to augment NABARD to be issued.
Death and disability cover for rural landless families to be introduced, known as Aam Aadmi Bima Yojana.
70 lakh households to be covered under a social welfare scheme with LIC and with support from state governments.
50 per cent of the premium at Rs 200 per household to be given by the Centre. Rs 1,000 crore fund to be maintained by LIC for the purpose.
Central public sector enterprises will be given Rs 16,261 crore as equity support and loans of over Rs 2600 crore.
FDI inflows between April and January this fiscal touched 12.5 billion dollars while portfolio investment reached $6.8 billion.
Allocation for National Highway Development programme to be stepped up from Rs 9955 crore to Rs 12600 crore.
Work on Golden Quadrilateral road project nearly complete. Considerable progress made on North-South, East-West corridor and likely to be completed by 2009.
Northeastern region will get Rs 405 crore for highway development. Road-cum-rail project over Brahmaputra in Bogibil, Assam.
Textile Upgradation Fund raised to Rs 911 crore as against Rs 535 crore during 2006-07.
Health insurance cover for weavers to be enlarged to ancillary industries. Allocation increased from Rs 241 crore to Rs 321 crore.
A scheme for modernisation and technological upgradation of choir industry for which Rs 23.55 crore has been earmarked.
Tourism infrastructure to get an allocation of Rs 520 crore as against Rs 423 crore last year.
The ceiling of loans for weaker sections under diferential rate of interest scheme will be raised from Rs 6500 to Rs 15,000 and in housing loan from Rs 5000 to Rs 20,000.
Regulations would be put in place for mortgage guarantee company for housing loans.
Regional rural banks, which are willing to take up greater responsibilities, to undertake aggressive branch expansion programme. One RRB branch for each of 80 districts so far uncovered. RRBs to accept NRE and FCNR deposits.
Insurance companies to launch a senior citizens scheme in 2007-08.
PAN to be made sole identity for participants in the security markets to strengthen capital market.
Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.
Defence allocation increased to Rs 96000 crore. This includes capital expenditure of Rs 41,922 crore.
Any requirement for security of the nation to be provided.
Backward Regions Grant Fund to be raised to Rs 5800 crore.
E-governance allocation to be increased from Rs 395 to Rs 719 crore.
A high-powered committee report aimed at making Mumbai a world class financial centre submitted. Public suggestions will be invited.
Rs 50 crore provided to begin work on vocational education mission for which a Task Force in Planning Commission is chalking out a strategy.
1,396 Indian Technical Institutes to be upgraded to achieve technical excellence.
An autonomous Debt Management Office in government will be set up.
The government will create one lakh jobs for the physically challenged. The government will reimburse the EPF contributions of employers in the case of physically challenged people taken on rolls of the company and included in the PF scheme. A fund of Rs 150 crore will be started, which will go up to Rs 450 crore.
An Expert Committee to be set up to study the impact of climate change in India.
Rs 150 crore to be given to Ministry of Youth and Sports for Commonwealth Games and Rs 350 crore to the Delhi Government for the purpose. Rs 50 crore to be provided for the Commonwealth Youth Games in Pune.
Rs 100 crore for recognising excellence in the field of agricultural research.
VAT revenues increased by 24.3 per cent in the first nine months of 2006-07.
A national level goods and services tax to be introduced from next fiscal.
Fiscal deficit to be 3.7 per cent in the current year and revenue deficit two per cent.
Fiscal management enabled States consolidate debt to the tune of Rs.1,10,268 crore and 20 states availed of debt waiver to the tune of Rs 8575 crore.
The share of States from the revenue expected to touch Rs 1,42,450 crore during 2007-08 as against Rs 1,20,377 crore during 2006-07.
Total expenditure estimated at Rs 6,81,521 crore.
Increase in gross tax revenue by 19.9 per cent, 20 per cent and 27.8 per cent in first three years of UPA government. The government intends to keep tax rates moderate.
Peak customs duty rate on non-agricultural items reduced from 12.5 to 10 per cent.
All coking coal fully exempted from duty.
Duties on seconds and defective reduced from 20 to 10 per cent.
Customs duty on polyster to be reduced from 10 per cent to 7.5 per cent.
Fiscal deficit for 2007-08 pegged at 3.3 per cent of GDP at Rs 1,50,948 crore.
Revenue deficit at Rs 72,478 crore which will be 1.5 per cent.
Total expenditure during 2006-07 estimated at Rs 6,80,521 crore including Rs 40,000 crore for SBI shares.
Duty on lift irrigation, agricultural sprinklers and food processing equipment reduced from 7.5 per cent to five per cent.
Duty on pet food reduced from 30 per cent to 20 per cent.
Duty on sunflower oil to be reduced by 15 per cent.
Duty reduced on watch dials and movements and umbrella parts from 12.5 to five per cent.
Import duty of 15 specified machinery to be reduced from 7.5 per cent to five per cent.
Economy grows 8.6 per cent in third quarter of this fiscal compared to 9.3 per cent in the year-ago period.
Three per cent import duty to be levied on private importers of aircraft, including helicopters.
No change in general CENVAT rate.
No change in general CENVAT rate.
Ad valorem duty on petrol and diesel to be brought down from eight to six per cent.
Export duty on iron ore and concentrate at the rate of Rs 300 per tonne. Export duty on chromium proposed at Rs 2000 a tonne.
Small-scale industries excise duty exemption raised from Rs 1 crore to Rs 1.5 crore.
Manufacturing sector grows at 10.7 per cent, agriculture at 1.5 per cent during October-December 2006-07.
Excise duty for plywood reduced from 16 per cent to eight per cent.
Food mixes to be fully exempted from excise duty.
Bio-diesel to be fully exempted from excise duty.
Water purification devices, small and big, fully exempted from excise.
Specific rates of excise duty on cigarettes increased.
Excise duty on pan masala without tobacco as mouth freshners reduced from 66 per cent to 45 per cent.
Excise duty on cement reduced from Rs 400 per tonne to Rs 350 per tonne for cement bags sold at Rs 190 per bag at retail market. Those sold above Rs 190 will attract excise duty of Rs 600 per tonne.
Two lakh people to benefit out of service tax exemption. The government will lose Rs 800 crore as a result.
Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.
Income-tax limit not to be changed. Threshold limit raised by Rs 10,000 giving every assessee a relief of Rs 1,000.
Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 and Rs 20,000 for senior citizens.
Surcharge on Corporate income tax on companies below Rs 1 crore removed.
Tax-free bonds to be issued by state-owned urban local bodies.
Five year tax holiday for two-, three-, four-star hotels and convention centres with a seating capacity of 3,000 in NCT of Delhi, Gurgaon, Ghaziabad, Faridabad and Gautam Buddha Nagar for Commonwealth Games. Twenty thousand more rooms required.
Minimum Alternate Tax being extended.
Benefits of investment in venture capital funds confined to IT, bio-technology, nano-technology, seed research, dairy among some others.
Dividend distribution tax raised from 12.5 to 15 per cent.
ESOPs to be brought under FBT.
Expenditure on samples and free distribution items will be exempted from fringe benefit tax.
Additional revenue from direct taxes will yield Rs 3000 crore and indirect taxes revenue neutral.
Tax exemption on aviation turbine fuel sold to turbo prop aircraft extended to all small aircraft less than 40,000 kg.
Withdrawals by Central and state governments exempted from Banking Cash Transaction Tax. The limit for individuals and HUF raised from Rs 25,000 to Rs 50,000.
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