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Budget 2007-08 Highlights |
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| February, 28th 2007 |
Budget Highlights
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 one crore removed
Tax free bonds to be issued by state-owned urban local bodies
Minimum Alternate Tax being extended
Benefits of investment in venture capital funds confined to IT, biotechnology, nano-technology, seed-research, and dairy among some others
Dividend distribution tax raised from 12.5 to 15 per cent
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. Govt to lose Rs 800 crore as a result.
Service tax on Residents Welfare Associations whose members contribute more than Rs 3,000.
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
Customs duty on polyester to be reduced from ten per cent to 7.5 per cent
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
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. Intend to keep tax rates moderate.
Peak customs duty rate on non-agricultural items reduced from 12.5 to ten per cent.
All coking coal fully exempted from duty.
Duties on seconds and defective reduced from 20 to ten per cent
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
An autonomous Debt Management Office in government to be set up
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.
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 Task Force in Planning Commission is chalking out a strategy.
1,396 Indian Technical Institutes to be upgraded to achieve technical excellence.
CST rate to be reduced.
MFs to launch infrastructure funds.
PAN is the sole identification for all capital market transactions.
To hike provision for Textile Parks.
FDI inflows between April and January this fiscal touched $12.5 billion 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.
Reverse mortgage scheme for senior citizens
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.
Total Budget for the Northeastern region raised from Rs 12,041 crore to Rs 14,365 crore.
New Industrial Policy for the northeastern region to be in place before March 31.
Women's development allocation will be Rs.22,282 crore.
Rs 2,25,000 crore farm credit 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 to rejuvenate tea production.
Rs. 100 crore allocated for National Rainfed Area Authority.
School dropout rates high. To prevent dropout, a National Means-cum-Merit scholarship to be implemented, with an allocation of Rs 6,000 per child.
Rs 1290 crore to be provided for elimination of polio. Intensive coverage will be undertaken in 20 districts in UP and 10 districts in Bihar. This will be integrated into NRHM.
National AIDS Control Programme to achieve zero level disease.
Measures for significant improvement of health care in rural area
Allocation for ICDS programme to be increased from Rs 4087 crore to Rs 4761 crore.
130 more districts 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 computerisation programme for FCI.
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.
Fertilser subsidy hiked.
Weather-based crop insurance scheme launched
AABY to cover rural landless labourers.
Farm credit to be enchanced.
Panel to be formed to monitor commodities forward market.
Housing sector to get boost.
Increased allocation for drinking water schemes in Metros.
Rs 12,000 crore allocation for rural employment scheme
National means-cum-merit schlorship launched.
More allocation for Urban Renewal Mission.
31% increase in Bharat Nirman to boost infrastructure companies.
Secondary education allowance to be increased from Rs.1,837 crore to Rs.3,794 crore.
Government committed to fiscal reforms.
Foreign exchange reserves stand at $180 billion
Allocation under Rajiv Gandhi Drinking Mission stepped up from Rs 4680 crore to Rs 5850 crore.
Government concerned over inflation and would take all steps for moderating it.
Already a number of steps on fiscal, monetary and supply management side have been taken.
Annual target of 15 lakh houses under Bharat Nirmal Programme to be exceeded.
Allocation for National Rural Health Mission stepped up from Rs 8207 crore to Rs 9947 crore.
Gross budgetary support in 2007-08 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.
Allocation for AIDS control programme to be raised to Rs 969 crore
Manufacturing growth rate 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.
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.
Bank credit rate grew by 29 per cent during first ten 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 today.
Abhijit Sen report on forward trading to be submitted in two months' time.
Additional irrigation potential of 24 lakh hectares to be implemented, including nine lakh hectares under Accelerated Irrigation Benefit Programme
Economy in a stronger position than ever before
15,054 villages have been covered under rural telephony and efforts to be made to complete the target of covering 20,000 villages by 2006-07.
Allocation on Healthcare to increase by 21.9 per cent.
Allocation for education to be enhanced by 34.2 per cent
Two lakh more teachers to be employed and five lakh more classrooms to be constructed.
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