Highlights of Budget 2007-2008

• Deduction in respect of medical insurance under Section 80 (D) increased to Rs 15,000 and Rs 20,000 for senior citizens
• 2 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 8 per cent
• Water purification devices, small and big, fully exempted from excise
• Customs duty on polyester to be reduced from 10 per cent to 7.5 per cent
• Duty on sunflower oil to be reduced by 15 per cent
• Import duty of 15 specified machinery to be reduced from 7.5 per cent to 5 per cent
• Duties on seconds and defective reduced from 20 to 10 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 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
• 1,396 Indian Technical Institutes to be upgraded to achieve technical excellence
• Rs 50 crore provided to begin work on vocational education mission for which Task Force in Planning Commission is chalking out a strategy
• CST rate to be reduced
• Reverse mortgage scheme for senior citizens
• Special Purpose Tea Fund to rejuvenate tea production
• 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.
• Two lakh more teachers to be employed and five lakh more classrooms to be constructed
• Minimum Alternate Tax extended to I-T companies
• Extend service tax to development of telecom advertising
• No change in STT, capital gains tax
• Customs duty on plastics reduced to 7.5%
• Cash withdrawal tax limit hiked to withdrawals over Rs 50,000
• Dividend distribution tax raised to 15% from 12.5%
• Tax benefit on R&D extended by 5 years
• Fiscal deficit target at Rs 1,50,94 cr
• 1% education cess on all taxes
• ESOPs under FBT
• Capital gains tax on art works
• 1% additional cess on all taxes to fund secondary education
• Duty cuts from 5-3% to help domestic trade
• Effective corporate tax rate at 19.2%
• No excise on instant food mixes
• Advalorem duty on petrol, diesel cut to 6%
• Corporate tax surcharge scrapped for small companies
• No change in CENVAT rates
• No change in corporate income tax
• Tax exemption for Senior Citizens upto Rs 1.9 lakh
• Differential excise duty on cement
• Rs 1.2 lakh crore for States
• Goods and services tax from April 1
• Income tax exemption for women raised to Rs 1.45 lakh
• Income tax exemption hiked by Rs 10,000
• Import duty cut on medical equipment to 7.5%
• Income-tax code to be introduced
• Duty on food processing machines cut to 5%
• Irrigation and food processing tariffs cut to 5%
• Pet food duty cut to 20%
• Lower duty on edible oils
• Customs duty on polished gems cut
• Excise duty on cigarettes up by 5%
• Ad valorem duty on petrol, diesel down
• Customs duty on man-made yarn & poly fibre cut to 7.5%
• Watch, Umbrella duties cut to 5%
• Reduction in excise duty on umbrella parts, bio-diesel and water pipes
• Peak customs duty on non-agro products cut to 10%
• No change in service tax rate
• Hike in exise on cigarettes
• Coking coal exempted from customs duty
• Duties on PTA, MEG and DMT cut to 7.5%
• Rs 350 cr for Delhi for Common wealth games
• Government to encourage banks to lend to SMEs
• Central PSUs to invest Rs 1.6 lakh cr
• Separate schools for class 9-12
• PAN mandatory for security transactions
• Handlooms covered under TUF scheme
• Allocation for National Highways programme increased to Rs 10,667 cr
• 100% subsidy to small farmers, 50% subsidy for other farmers
• Mortgage guarantee companies to be set up
• To create 1 lakh jobs for physically challenged people
• Rs 750 cr allocated for setting up ITIs
• Rs 321 cr allocated for handloom sector
• Private companies invited to submit plans for certified seeds
• Mumbai to be converted into world-class financial city
• E-Governance expenditure hiked to Rs 179 cr
• Part of forex reserves for infrastructure projects
• Defence allocation up at Rs 96,000 crore
• Overseas investment to be allowed by individuals via MFs
• Golden quadrilateral project near completion
• RRBs asked to undertake branch expansion
• Allocation for tourist infrastructure up at Rs 520 cr
• Health insurance allocation for weavers hiked to Rs 321 cr
• Coir industry modernisation provision at Rs 22.5 cr
• Credit rating must for SMEs
• Soc Sec scheme for unorganised workers
• Weather-based crop insurance schemes
• Rs 14,365 crore for North-East
• Overseas investment exceeds portfolio investment
• Road-Rail projects in Bihar, Assam to be National Projects
• Allocation for textile parks up from Rs 189 cr to Rs 425 cr
• 330 districts under job guarantee scheme
• Rural landless households covered under AABY
• Focus on mega power projects
• Rs 3983 cr allotted for rural electrification
• UMPPs under review 2 to be approved by July
• FDI in April-Jan at $12.5 b
• Rs 22,452-crore subsidy to fertiliser
• Rs 1800 crore allocation for NABARD
• Tax exemption for Rs 5,000-cr NABARD bonds
• NABARD's rural bonds to get tax exemptions
• Govt to start weather-based crop insurance scheme
• Special funds for coffee, spices, rubber
• Education: Scholarship launched to arrest drop outs
• Rs 100 cr for new rainfed area development programme
• Rs 11000 cr outlay for irrigation projects
• Farm credit growth doubled in 2 years
• Rs 3794 cr allocated for primary education
• Rs 153 cr for high-yield milch animal scheme
• New scholarship for class VIII students
• School education up by 35%
• Rs 8795 cr for women-oriented schemes
• Scholarship for standard 9-12 students
• SC/ST allocation hiked to Rs 3271 cr
• NREGS to be expanded to 330 districts
• Education spend up 44.2% to Rs 32,352 cr
• Rs 750 cr for national scholarship scheme
• Bharat Nirman cornerstone of Govt policy
• Desired agriculture growth 4%
• Bank growth at 29.6% till Feb
• PDS system to be fully computerised
• Initial allocation for NREGS at Rs 12,000 cr
• Rs 15,291 crore earmarked for health
• Allocation for anti-AIDS programme at Rs 969 cr
• Agri investment to go up by 2% of GDP
• Allocation for NRHM hiked to Rs 9,947 cr
• Drinking water schemes allocation hiked to Rs 5,850 cr vs Rs 4,680 cr
• To substantially increase budgetary support for 11th plan
• Agri focus to benefit rural income & FMCG companies
• 31.6% increase in allocation for Bharat Nirman programme
• Panel set up to probe future trade in food items
• No new forward contract in wheat, rice futures
• Per capita income for FY06 up 7.6%
• Economy at a stronger position than before
• Confident of moderating inflation
• Higher tech education spend
• 10th plan target of 8% nearly achieved
• Higher outlay for roads
• Hike in allocation for health
• Rs 4,000 cr more earmarked for RIDF in FY07
• 24 lakh irrigated hectares to be created in FY08
• Panel set up to probe future trade in food items
• No new forward contract in wheat, rice futures
• 7.83 lakh rural houses built upto Dec 2006
• Education spending up 44.2 per cent at Rs 32352 cr
• High rate growth can be continued in the current year too
• Until Feb 2007, forex reserves stood at $180 b
• Farm supply imbalances can disrupt growth
• Manufacturing has grown from 8.7% to 11.3%
• Average inflation for FY-7 estimated at 5.2-5.4%
• Government concerned about inflation
• Savings rate estimated at 32.4%
• Global commodity prices have exerted pressure on local prices
• Revenues are buoyant for the third year in succession
• Government committed to fiscal prudence
• High growth rate can be continued in the current year too
• Agri must top the agenda of policy makers
• Average agri growth during 10th plan to 2.3%, below desired level
• Have noticed sharp ups & downs in agriculture
• Savings rate at 32.4%
• GDP growth average at 8.5%
• Growth rate of GDP has improved to 9.2%
• Average growth rate during UPA years at 8.6%
• Finance Minister to begin Budget presentation at 11 a.m.