Monday, February 28, 2005

Budget Highlights...

The Finance Minister Mr.P. Chidambaram presented the budget today... and the key highlights are...
  • Expert committee to be set up for EET system
  • Exemption for women at Rs 1.25 lakh Exemption for senior citizens Rs 1.5 lakh
  • Tax of 0.1% on cash withdrawal of Rs 10,000 per day
  • Initial depreciation rate increased to 20% To levy fringe benefits tax of 30%
  • Depreciation rate to be 15% for plant and machinery
  • Corporate tax rate for domestic co's at 30% Corporate tax at 30% Surcharge of 10%
  • STT to be increased to 0.02% from 0.015% for day traders
  • Rs 1-1.5 lakh at 10% Rs 1.5-2.5 lakh at 20%
  • More taxes on perks :(
  • Deductions under medical insurance premiums to continue
  • Fertiliser subsidy could be cut if natural gas is used
  • To continue subsidies but in recast form
  • Foodgrain procurement to be made more cost-effective
  • Customs duty on industrial raw materials cut to 10%
  • Customs duty on coking coal cut from 15% to 5%
  • To allow banking companies to issue preference shares
  • New Banking bill to be introduced in Budget session
  • Credit linking target increased to 2.5 lakh SHGs
  • 12th Finance commission to cost the centre Rs 26000 cr
  • Revenue deficit 2.7%; Fiscal deficit 4.3%
  • Plan expenditure of Rs 1,72,500 cr Non-plan expenditure Rs 3,70,847 cr
  • Targets $15000 cr of exports by FY'09
  • Will ensure devp schemes don't continue without checks
  • Fertiliser subsidy could be cut if natural gas is used
  • Defence allocation increased to Rs 83000 cr
  • Rs 34375 cr on capital expenditure for defence
  • Entire production, distribution chain to be covered soon
  • VAT to be introduced from 1st April 2005
  • To make Mumbai regional 'hub for finance'
  • May allow trading of asset backed debt
  • To clear legal validity of OTC derivative contracts
  • Stamp duty exemption for corporatisation of stock exchanges
  • FIIs to give collateral on derivatives trade
  • To ammend Banking Regulation Act
  • To remove cap/floor for SLR for banks
  • Seeks overseas investment in mining, trade, pensions
  • Trade policy to be further liberalised
  • Forex to be used for infrastructure projects
  • SMEs in Pharma, IT to get equity support
  • Companies allowed to re-negotiate debt
  • Financial package to to be worked out by NABARD
  • Capital subsidy allocation for SSI's up to Rs 173 cr
  • To extend insurance scheme for 2 mn handloom weavers
  • Lower interest costs for Sugar industries
  • To launch manufacturing competitiveness plan for SME's
  • 10% capital subsidies scheme for textile sector
  • To ask PSU banks to increase borrowers by 5 mn in FY'06
  • New fund for strategic agriculture research Rs 50 cr allocated
  • Rs 450 cr provided for Highway development in North East
  • Micro-finance devpt fund increased to Rs 200 cr
  • Services sector to get stable tax policy
  • National Agriculture Insurance scheme to continue
  • Rs 6,253 cr for devpt of SC/ST Special scheme for SC/ST students
  • Loans for rural areas to increase by 30%
  • Rs 1,08,500 cr to be disbursed as loans
  • Comparative advantages in tea have eroded
  • Price stabilisation fund for commodities not effective
  • To provide telephone connections to 66,820 villages
  • Rs 14,040 cr equity support & Rs 3,554 cr as loans for PSEs
  • Rs 14,040 cr equity support & Rs 3,554 cr as loans for PSEs
  • National Horticulture Mission to get Rs 630 cr
  • 60 lakh additional houses for rural poor
  • Telephone connectivity for 66,822 villages
  • Electricity to 1.25 lakh villages
  • Addl 1 cr hectare to be brought under irrigation
  • Rs 4200 cr state plan for Jammu and Kashmir, Rs 14379 cr allocation for J&K
  • 2000 Rajiv Gandhi fellowships On pattern of UGC fellowships
  • Double nutrition norms Centre to share half of state's burden
  • Schemes for SC/STs Rs 6253 cr allocated
  • Mid-day meal allocation up to Rs 3,010 cr vs Rs 1,675 cr
  • Baramull-Udhampur railway project designated project of national importance
  • Special grants for Bihar Over Rs 7900 cr granted to Bihar
  • New backward regions grant fund to get Rs 5000cr
  • Outlay on drinking water increased to Rs 4,750 cr
  • 170 backward districts Backward regions fund Rs 5000 cr yearly
  • Separate statement on 'gender' sensitivity Central assistance for teaching Urdu
  • ICDS allocation up 47% to Rs 3142cr Pledges 'inclusive economic growth'
  • New prarambikh shiksha fund To be allocated Rs 7156 cr
  • Sectors getting jobs will get highest govt. priority
  • Textile job potential seen 12 mn in 5 yrs Gross Budgetary Support up 16.9%
  • National Rural Health mission to start in FY'06
  • Allocation for mid-day meal goes up to Rs 3010 cr
  • Education allocation at Rs 18,337 cr in in FY'06
  • Food-for-work programme announced in 250 districts
  • Allocation for health and family welfare at Rs 10,280cr
  • 70 lakh extra jobs in IT by 2009 Fertilizer subsidy in FY'06 at Rs 16254cr
  • Subsidy for Rural devt. at Rs 18,334 cr
  • Allocation to increase to 10,280 crores
  • Food-for-work programme successful Programme announced in 250 districts
  • One crore to be employed in irrigation schemes
  • Non-food credit up 21.5% To raise plan expenditure by 25.6%
  • To raise plan expenditure by 25.6% in FY' 06
  • FM: UPA committed to greatest good to greatest number
  • Rs 10,216 cr for Tsunami relief and rehabilitation
  • CMP mandated growth rate of 7-8% Growth rate to be 6.9% Ind growth up 8.9%

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