UNION BUDGET

Union Budget 08-09
0909
09
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
09
09
09
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Banking transaction tax to be exempted
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Central sales tax:
Central sales tax:
Central sales tax:
Central sales tax: Reduced to 2%
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15% rise in short term capital gains tax
•
5-yr tax holiday for building hospitals in tier-II, tier III
regions
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Short-term capital gains rises to 15 pc
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Excise duty of Rs 1.35/litre applied on unbranded petrol
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Excise duty of Rs 4.6/litre applicable on unbranded diesel
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Introduction of Commodities Transactions Tax
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Securities Transaction Tax would be considered like
deductible expenditure
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Star hotels:
Star hotels:
Star hotels:
Star hotels: 2,3,4 star hotels to get 5-yr tax holiday in
UNESCO's heritage sites
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FBT exempted on creche, employee sports facilities
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Duty on two wheelers slashed from 16 to 12 pc
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Tax slab for Rs 3-5 lakh would be 25 pc
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TAX:
TAX:
TAX:
TAX: exemption raised from Rs 1,10,000 to Rs 1,50,000
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TAX
TAX
TAX
TAX: Women exemption threshold streched from Rs
1,45,000 to 1,80,000
•
TAX:
TAX:
TAX:
TAX: Senior citizens' exemption raised from Rs 1,95,000 to
2,25,000
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TAX:
TAX:
TAX:
TAX: Coporate income tax unchanged
Page 2
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
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Hike of duty on non filter cigarettes
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Excise duty reduced to 8% on water purification items
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Duty taken off on naptha for production of polymers
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Refigeration components to get less expensive
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Reduction of excise duties on anti-AIDS drugs
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Tax-GDP ratio raised at 12.5%
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Step down of excise on paper and its products
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Reduction of excise duties on buses, chassis
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Excise on small cars stepped to 14%
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Excise on pharma goods reduced to 14%
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General CENVAT rate:
General CENVAT rate:
General CENVAT rate:
General CENVAT rate: dipped from 16% to 14%
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5% cut of customs duty on some bulk drugs
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Crude sulphur: duties stepped down to 5%
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Relieve of duties on coral
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Fiscal Deficit & Revenue Deficit:
Fiscal Deficit & Revenue Deficit:
Fiscal Deficit & Revenue Deficit:
Fiscal Deficit & Revenue Deficit: pegged at 3.1% & 1.4%.
•
Duties on convergence products dipped to 5%
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Set top boxes:
Set top boxes:
Set top boxes:
Set top boxes: 100% exemption
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COMMONWEALTH GAMES:
COMMONWEALTH GAMES:
COMMONWEALTH GAMES:
COMMONWEALTH GAMES: allocated Rs 624 cr.
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Steel melting & aluminum scrap:
Steel melting & aluminum scrap:
Steel melting & aluminum scrap:
Steel melting & aluminum scrap: duties reduced
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Peak rate of customs duties unchanged
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Sixth central pay commission would submit report by March
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Revenue Deficit would be 1.4 % agt Budget Estimate of 1.5%
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Planning Commission to assess major schemes
Page 3
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
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PROTECT TIGER:
PROTECT TIGER:
PROTECT TIGER:
PROTECT TIGER: Rs 50 cr to Natl Tiger Conservation
Authority to get Rs 50 cr
•
Rs 75 cr for ICCR for cultural development
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Defence allocation raised by 10% to Rs 1,05,600 cr
Defence allocation raised by 10% to Rs 1,05,600 cr
Defence allocation raised by 10% to Rs 1,05,600 cr
Defence allocation raised by 10% to Rs 1,05,600 cr
•
PDS to get Rs 32,676 as subsidy
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Smart-card based PDS system to come up in Haryana,
Chandigarh
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PDS to be toned up
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Grant of Rs 44 cr to 22 Sainik schools each
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Rs 75 cr to given to Agri Ministry to set up soil testing labs
in 250 districts
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Rs 15,000 cr to be given for a non-profit body for dev
programme
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Set up a world-class skilled development programme
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PAN requirement extended to all securities transactions
PAN requirement extended to all securities transactions
PAN requirement extended to all securities transactions
PAN requirement extended to all securities transactions
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Set up bond, derivative market
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More clarity in Derivative market
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Risk Capital Fund to be established in SIDBI
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Allocation of Rs 12,966 cr for National Highway Dev
programme
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Rs 8,000 cr for accelerated power development programmes
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Ultra mega power project to come up at Tilana shortly
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NHDP to get Rs 12,956 Cr
Page 4
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
•
Banks would be bucked up to embrace total financial
inclusion
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Foreign invt:
Foreign invt:
Foreign invt:
Foreign invt: Oil block exploration anticipated to get up to
$8 bn
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Setting up of Coal regulator
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Health Insurance for 17 lakh families o
Health Insurance for 17 lakh families o
Health Insurance for 17 lakh families o
Health Insurance for 17 lakh families of weavers
f weavers
f weavers
f weavers
•
Approval of State data centres scheme and gets Rs 275 cr
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1 lakh broadband
1 lakh broadband
1 lakh broadband
1 lakh broadband-enabled common service centres
enabled common service centres
enabled common service centres
enabled common service centres to be set
up in villages
•
Better allocation of NHDP programme
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Power distribution to get Rs 800 cr
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Public Sector Bank:
Public Sector Bank:
Public Sector Bank:
Public Sector Bank: Around 288 branches to be opened in
districts with minority community concentration.
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Manufacturing rate of growth planned to be doubled
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RIDF corpus to be raised to Rs 14,000 cr
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Education:
Education:
Education:
Education: 20% hike from Rs 28,674 cr to Rs 34,400 cr
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Total amount of loans being waived is Rs 50,000 cr
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Debt waiver scheme to end up by June 30
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Minority Affairs Ministers alloted Rs 1000 cr.
Minority Affairs Ministers alloted Rs 1000 cr.
Minority Affairs Ministers alloted Rs 1000 cr.
Minority Affairs Ministers alloted Rs 1000 cr.
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Total amount of loans being waived is Rs 50,000 cr
•
Debt waiver scheme to end up by June 30
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Interest subvention would prove negative for banks
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Waiver forms up to 4% of total bank loans
Page 5
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
•
Sensex dipped to 210 points
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500 soil testing labs
500 soil testing labs
500 soil testing labs
500 soil testing labs would be established in the country
•
Marginal,small farmers gets 100% waiver on all loans.
Benefit to 4 crore farmers
•
Farmers would provided with scheme of debt waiver and
debt relief
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Allocation for NRHM hiked to Rs 12,050 cr
•
National Horticulture Mission would be allocated Rs 1,100
cr
•
Rs 50 cr for Weather based crop insurance scheme
•
Tea Research Association would be given a special grant of
Rs 20 cr
•
Rashtriya Krishi Vikas Yojana would be allocated Rs
2,80,000 cr.
•
53 minor irrigation programmes would come into action
•
Coffee, cardamom
Coffee, cardamom
Coffee, cardamom
Coffee, cardamom growing gets more funds
•
Child specific schemes
Child specific schemes
Child specific schemes
Child specific schemes would be given Rs 34,334 crores
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Rs 2.80 lakh cr has been set for agri-credit in 2008-09
•
Ministry of Woman and Child Development to be alloted Rs
7,200 cr
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24% hike in allocation for child development
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Border area development gets Rs 500 cr
•
Anti
Anti
Anti
Anti-Polio drive
Polio drive
Polio drive
Polio drive gets Rs 1,042 cr
Page 6
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
•
Hospital sector likely to gain Interest subvention has been
increased in the year 2007-08
•
Jawaharlal Nehru Urban Renewal Mission would be alloted
Rs 6,865cr
•
Development of agri-credit has been impressive
•
Minority Affairs Ministry fund raised to Rs 1,000 cr
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Setting up of 288 PSU bank branches in minority districts
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Rs 540 cr to be given for the development plan for minority
districts
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LIC would entail all women SEGs
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Rs 200 crore to be given for potable water in schools
•
Rural health services would be alloted Rs 12,050 cr for its
development
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Publishing market would gain from education boost
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Sanitation programmes would be alloted Rs 1200 cr
•
More number of minority placements in central para-
military forces
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Higher Education:
Higher Education:
Higher Education:
Higher Education: more institutions in the 11th plan.
•
Anganwadi helpers & workers remuneration hiked to Rs
750 & Rs 1,500
•
National Programme for elderly citizens at Rs. 400 crore
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Rajiv Gnadhi Natl Fellowship Programme would be alloted
rs 75 cr
•
Rs 9 cr for Nat Handicap Development Corp
Page 7
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
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Natl Minorities Development Corp would be alloted Rs 75 cr
•
Rs. 500 crore for Arunachal and north eastern states
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Education spend to be raised by 20% to Rs 34,400 cr
•
NE region would be granted Rs 1, 350 cr for development
•
Rajiv Gandhi Drinking Water mission allotment would be
raised
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NREG scheme to be implemented in 596 districts
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National Rural Health Mission allocation raised by 15%
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Rs 30,000 health cover allotment for every worker in
unorganised sector
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Increase of Health allocation to 15%
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supply safe drinking water as per Rajiv Gandhi's plan
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3 IIScs would be set up in Bhopal and Trivandrum
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National Programme for the Elderly to be set up
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Secondary education Scheme: Rs 4,554 crore
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2 schools would be set up for planning and architecture
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Rs 4,554 crore Secondary education Scheme
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Rs 100 cr would be given to Ministry of Science and tech for
Natl Knowledge Network
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All knowledge bodies would be connected through
broadband
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Rs 85 crore for the setting up of a knowledge society
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Scholarships would be given for science and research
Page 8
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
•
Education and Health allocation up 20%
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Service Sector to rise at 10.7%
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Setting up of 3 IITs in AP, Bihar and Rajasthan
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16 central universities would come up
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Mid
Mid
Mid
Mid-day meal scheme:
day meal scheme:
day meal scheme:
day meal scheme: for upper primary classes also.
Budgetary allocation Rs 8,000
•
Navodiya Vidyalayas to start up in 6,0-00 districts
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6,000 model high schools to be established
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Agricultural growth rate planned at 2.6%
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reforms for Education, health remains a major concern
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2008-09 would be a year of integration
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He remains to be convicted to sustain 8% growth
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Effect of global mkts on local mkts is hazy
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Govt, RBI will to take a conjoint step to manage capital
inflow
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Govt to monitor all foreign fund inflow
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Govt. to check foreign inflow to stabilise Indian mkts
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Rashtriya Krishi Vikas Yojna launched
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Food grains overall output is 219.32 mn tonnes
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We should remain wakeful for downside risk
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Crude oil has seen a step down
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Agriculture condition was disatisfactory
Page 9
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
•
Capital inflows proves to be point of consideration against
monetary management
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Growth rate at 8.8%
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Service sector remains the propelling force for Budget
•
Since Aug 2007 financial economies has seen a great ups
and downs 2007-08 has been a challenging year
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Chaos in the parliament as Opposition interrupts speech
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Finance Minister P Chidambaram starts up to address
Parliament
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This Union Budget 2008-09 would be UPA government's
last Budget before elections next year.
•
The next Union Budget will be a vote-on-account because of
general elections.
•
FM might not deliver a populist Budget as against the
general speculations.
Page 10
Union Budget 08
Union Budget 08
Union Budget 08
Union Budget 08-09
0909
09
Affected ite
Affected ite
Affected ite
Affected items after the Union Budget 2008
ms after the Union Budget 2008
ms after the Union Budget 2008
ms after the Union Budget 2008-09
0909
09
Expensive
Expensive
Expensive
Expensive
Cheaper
Cheaper
Cheaper
Cheaper
•
Non filter cigarettes
•
Unbranded petrol and diesel
•
Anti-AIDS drugs
•
Two wheelers
•
Small cars
•
Bulk drugs
•
Crude sulphur
•
Buses, Chassis
•
Water Puriifier
•
Refrigeration
Components
•
Paper and its products
•
Naptha
•
Pharma goods