highlights of the Union Budget for 2008-09

Following are the highlights of the Union Budget for 2008-09
2	Apr-Mar) presented by Finance Minister P. Chidambaram in Lok Sabha today:
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4	GROWTH, INFLATION		LOAN WAIVER
5	GLOBAL IMPACT		SOCIAL SECTOR
6	FISC		FARM, RURAL SECTOR
7	DIRECT TAXES		NON-FARM COMMODITIES
8	INDIRECT TAXES		SUBSIDY
9	SPENDING		INDUSTRY
10	TRADE		FINANCIAL SECTOR
11	CORE SECTOR		HEALTH
12	INVESTMENT, SAVINGS		MISCELLANEOUS
13	EDUCATION
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17	GROWTH, INFLATION		LOAN WAIVER
18	India growth story interesting, inspiring		Farmers' debt worth 500 bln rupees to be waived off
19	Manufacturing, services to grow 10.7%, 9.4% respectively		40 mln farmers to benefit from loan waiver scheme
20	Confident of 8.8% GDP growth in FY08		Complete waiver of all loans for marginal, small farmers
21	FY08 H1 GDP growth was 9.1%		Loan waiver for marginal farmers holding up to 1 ha
22	FY08 most challenging of last 4 years		11 bln rupees for National Horticulture Mission FY09
23	12 successive quarters of over 8% GDP growth until December		Farm loans by bank, RRBs, co-op bks until Mar 07 covered
24	8.7% GDP growth seen FY08 as per CSO estimates		Farm loan waiver scheme to be completed Jun 30
25	Second year of plan extremely critical		Farmers can get fresh loans after debt reschedule
26	Farm growth seen 2.6% FY08		Farm loan waiver to cover 600 bln rupees of loans
27	FY09 year of consolidation, implementation, monitoring		Debt waiver scheme implementation to be completed by Jun
28	Must be vigilant, swift for growth with price stability		Loan waiver scheme to be completed by June
29	Keeping inflation in check remains cornerstone of policy		Waiver also for farm loans recast by banks since 2005, 2006
30			Rescheduled farm loans will also be eligible for waiver
31	GLOBAL IMPACT		One-time settlement scheme for "other farmers"
32	Capital inflows in excess of economic deficit		Farm loan waiver scheme liability 600 bln rupees
33	Capital inflows need to be managed more actively		Loans worth 500 bln rupees to be waived under scheme
34	To take steps on foreign inflows to ensure stable markets		10 mln other farmers to also gain from loan waiver
35	Downside risks have increased worldwide		30 mln small, marginal farmers to benefit from waiver
36	Global markets weak since August, impact on local market not clear		30 mln small, medium farmer to gain from loan waiver
37	Govt will monitor foreign fund inflows
38	Chidambaram says need to be vigilant on global risks		SOCIAL SECTOR
39	Impact of US slowdown on emerging mkts not clear yet		India midday meal scheme is world's largest
40	Outlook for global econ benign early FY08		182,000 girls in residential schools under Kasturba plan
41			114 mln children covered by midday meal scheme
42	FISC		FY09 2nd year of plan should be year of consolidation
43	Govt targets FY09 fiscal deficit at 2.5% of GDP		52 villages per day get phone connections under Bharat Nirman
44	Govt targets FY09 fiscal deficit 1.33 trln rupees		4,113 rural villages computerised everyday.
45	FY09 non-plan expenditure seen 5.70 trln rupees		42 villages/day get power connections under Bharat Nirman
46	FY09 plan expenditure seen 2.43 trln rupees		"Can do better" on ensuring more inclusive growth
47	One more year needed to remove revenue deficit		Noon meal scheme to be extended to upper primary schools
48	Fiscal deficit not only achieved but also some headroom		Mid-day meal plan to be extended to all blocks in country
49	FY09 revenue deficit 551.84 bln rupees, 1% of GDP		Midday meal scheme extended to all govt schools
50	FY09 revenue expenditure projected at 6.58 trln rupees		Mid-day meal plan extension to help 25 mln children
51	Govt targets FY09 fiscal deficit at 3.1% of GDP vs 3.3%		Cleanliness drive allocation upped to 12 bln rupees FY09
52			More equity to Commissions for minorities, SC/ST
53	DIRECT TAXES		SC, ST, minorities to continue getting special attention
54	Income Tax slabs changed		Northeast, especially Arunachal, face "special problem"
55	Income tax threshold up to 150,000 rupees for all assesses		Plan to give potable water to schools in scarcity areas
56	On course to achieve budget estimate of direct taxes		FY09 plan for districts with minorities 37.8 bln rupees
57	Agriculture income exempt from income tax		288 more bank branches by Mar in mainly minority districts
58	Demat corp debt instruments exempt from TDS		2 bln rupees for new potable water plan for schools FY09
59	Reverse mortgage income won't be considered income for tax		Paramilitary forces to have more SC, ST candidates
60	10% income tax for 150,000-300,000 rupees income		Initial grant for potable water in schools 2 bln rupee
61	Stock, commodity bourses under service tax net		Potable water in schools cost 15,000-30,000 rupee/system
62	All income tax payers get minimum relief of 4,000 rupee/yr		Non-profit cooperation fund for national skill development
63	30% income tax for income above 500,000 rupees		Need to set up world class skill development programme
64	I-T threshold for women 180,000 rupees vs 145,000 rupees		Smart card based PDS food delivery in Haryana, Chandigarh
65	No change in corporate income tax, surcharge		3 social security schemes for unorganised workers FY09
66	Direct tax proposals revenue neutral		National Handicapped Corporation to get 90 mln rupees
67	Withdraws banking cash transaction tax
68	No change in securities transaction tax		FARM, RURAL SECTOR
69	Short-term capital gains tax 15% vs 10%		Food grain adequacy will be a challenge in FY09.
70	Introduces STT for commodity futures trades		Farm credit seen 2.4 trln rupees by March end.
71	Dividend distribution tax to be 15%		Promises new initiatives for agriculture.
72	Deduction of STT paid allowed		Cotton output seen at 23.38 mln bales FY08.
73	Can setoff dividend income from arms vs dividend tax		Cotton output estimated 24.38 mln bales.
74	Exemption limit for small service providers 1 mln rupee/yr		Maize output seen at 65.78 mln tn FY08.
75	Services contribute 55% of GDP		88% rise in wheat prices, 15% rise in rice prices.
76	Svc sector to get amortisation benefit		Soybean output estimated 9.45 mln tn.
77	5 yr tax holiday for hospitals set up to serve rural areas		Rice output seen at 94.08 mln tn FY08.
78	To up short-term capital gains tax to 15% in some cases		Maize output estimated 16.7 mln tn.
79	High growth rates helped boost tax revenue collection		FY08 food grains output at record high of 219.32 mln tn.
80	Senior citizen I-T threshold 225,000 rupees vs 195,000		Rice output estimated 94 mln tn.
81	Production of seeds added to VAT list		FY09 farm credit aim 2.8 trln rupees
82	30% income tax on over 500,000 rupees per year		Farm credit growth impressive
83	FBT exemption to creche facility, guest houses		Gross capital formation in farm 12.5% of GDP FY07
84	125% weighted deduction for research co on R&D outsourcing		Aims to up farm contribution to GDP to 1.6% in 11th plan
85			Crucial to manage inflow of food supply
86	INDIRECT TAXES		FY09 agri credit target 2.8 trln rupees
87	Indirect tax proposals revenue loss 59 bln rupees		16 bln rupee interest subvention for short-term crop loan
88	Not surprised with buoyancy in tax revenues		900,000 ha to be developed under World Bank aid
89	Excise duty on 2 wheelers, 3-wheelers cut to 12% vs 16%		Irrigation Resources Finance to have 1 bln rupee capital
90	Excise on small cars cut to 12% vs 16%		More pacts with World Bank likely for Orissa, W Bengal
91	Customs duty on vitamin food, mineral food cut to 20%		To set up Irrigation, Water Resources Finance Corp
92	Customs duty on phosphoric acid 5% vs 7.5%		548,000 ha brought under irrigation in last 2 years
93	Some cuts in customs to protect industry		To give 2.8 trln rupees of loans to farm sector FY09
94	On course to exceed budget estimate of indirect taxes		Funds for rain-fed area 3.48 bln rupees FY09
95	Customs duty on some bulk drugs cut to 5% vs 10%		24 major, 750 minor irrigation projects in FY09
96	Customs duty on project imports cut to 5% vs 7.5%		Education plan to up retention, upgrade learning quality
97	Customs duty steel scrap cut to 0% vs 5%		To cover 400,000 ha more in micro, dip irrigation
98	No change in peak rate of customs duty		Irrigation outlay 200 bln rupees FY09 vs 110 bln yr ago
99	Customs duty on crude sulphur 2% vs 5%		IWRFC to be incorporated as company before Mar
100	Fully exempt rough cut stones from import duty		Rubber Fund to get 190 mln rupees FY09
101	Raw material for sports goods exempt from customs duty		Coconut, cashew, pepper to get priority for crop revival
102	Customs duty on unrefined sulphur cut to 2% vs 5%		Special purpose Tea Fund to get 400 mln rupees FY09
103	Customs duty exemption for set top boxes in IT hardware		56,000 old plantations revived under horticulture mission
104	Customs duty on sports goods cut to 5% vs 7.5%		To stress on revival of coconut, cashew, pepper crops
105	To give 34.43 bln rupees to social security scheme FY09		To set up 500 soil testing labs as PPP in 11th plan
106	Customs duty on specialised machinery cut to 5% vs 7.5%		276,000 ha brought under horticulture
107	Customs on steel melting, aluminium melting scrap 0% vs 5%		To incorporate new water commission before Mar 31
108	Some IT, hardware components exempted from Customs duty		Have planned crop insurance scheme for spices next yr
109	Excise on hybrid cars cut to 14% vs 25%		180 mln rupees allocation for coffee in FY09
110	Excise duty on paper cut to 8% vs 12%		50-mln-rupee one-time fund to Trivandrum plantation unit
111	Customs duty on edible oils left unchanged		400 bln rupees allocation for special purpose tea fund
112	General CENVAT rate on all goods cut to 14% from 16%		200 mln rupee grant for Tea Research Association
113	Excise duty on pharma goods cut to 8% vs 16%		750 mln rupees for farm ministry for mobile soil testing
114	FY08 tax to GDP ratio 12.5% vs 9.2% inherited by UPA govt		Perpetual fund for Rubber, Cardamom, few others FY09
115	Customs duty on rough coral 5% vs 10%		Have planned crop insurance scheme for spices next year
116	Customs duty on crude/unrefined sulphur cut to 2% vs 5%		Determined to be self-sufficient in foodgrain output
117	Customs exempt to continue only for naptha for fertiliser		200 mln rupees for tea research
118	Excise duty on water purifiers cut to 8% vs 16%		To set up mobile soil testing labs in 230 districts
119	Excise cut on all pharmaceutical goods to 8% from 16%		40 bln rupees for rural roads in FY09
120	Excise duty on bus chassis 12% vs 16%		RIDF corpus up 140 bln rupees in FY09
121	No excise duty on anti-AIDS drugs
122	Excise duty on some paper types cut to 10% vs 12%		NON-FARM COMMODITIES
123	Wireless data card exempt from excise duty		Global crude oil prices sharply up.
124	Excise duty on some writing, printing paper 8% vs 12%		Crude oil, iron ore, copper, lead, tin prices elevated.
125	Excise duty of 1% on polyester filament yarn removed
126	Cement Excise: Higher of 14% advolorem or 400 rupees/tn		SUBSIDY
127	Filter, non-filter cigarettes to be taxed at par		To give 326.67 bln rupees for food subsidy under PDS FY09
128	Abolish ad valorem component on unbranded petrol, diesel		Fertiliser subsidy to continue
129	Excise on refrigeration units above 2 tn cut		Mulling new structure for fertiliser subsidy scheme
130	Filter, non-filter cigarettes to be taxed at higher rate		To continue providing fertilisers at subsidised rate
131	Excise duty on packaged software 12% vs 8%		National Agri Insurance Plan to get 6.4 bln rupees FY09
132	Excise duty on bulk cement 400 rupees/tonne		Looking at moving to nutrient-based fertiliser subsidies
133	Excise on packaged software hiked to 12% from 8%
134	Excise duty on packaging software upped to 12%		INDUSTRY
135	Money changers, tour operators to come under svc tax net		Policy is to list PSUs to unlock their true value
136	Excise duty also exempted on packaged coconut water		Aiming to take manufacturing growth rate to double digits
137	Excise duty exemption for coffee mixes, puffed rice		Manufacturing industries, apparel, paper growing slower
138	Svc tax net to include svc by shr, commodity exchanges		Manufacturing sector growing more slowly
139	Excise duty exempted on wireless data cards		20% growth in capital goods
140	Svc tax net to include asset management svc of ULIPs		IIP for consumer goods, durables down in FY08
141	Excise duty on unbranded diesel to be 4.6 rupees/litre		Govt to list more arms to unlock value
142			Some fiscal steps to be taken to boost industrial growth
143	SPENDING		55 bln rupees for Rajiv electrification plan in FY09
144	Additional 100 bln rupees plan capital expenditure this yr		National fund for power transmission, distribution
145	FY09 defence allocation 1.056 trln rupees vs 960 bln		Double-digit manufacturing growth in coal, power, steel
146	Defence allocation up by 10%		8 bln rupees for accelerated power reform plan FY09
147	Sets aside 5 bln rupee for Arunachal, border develop plan		Power generation capacity target in 11th plan 78,577MW
148	73 bln rupee for Rajiv drinking water plan FY09 vs 65 bln		Tilaiya ultra mega power project to be awarded shortly
149	3 bln rupees for desalination plant in Chennai in FY09		Sharp fall in consumer goods growth in Apr-Dec
150	2 bln rupee initial outlay for drinking water in schools		Micro, small enterprises to continue to get govt aid
151	Allocation for northeast 164.47 bln rupees vs 143.65 bln
152	FY09 ministry of minority allocation at 10 bln rupees		FINANCIAL SECTOR
153	Nehru Urban Renewal Mission outlay up at 68.66 bln rupee		To extend sr citizens pension plan to all above 65 yrs
154	68.66 bln rupees for Jawaharlal Urban plan vs 54.82 bln		To give 10 bln rupees to LIC for Aam Admi Bima Yojana
155	FY09 Integrated Child Development Plan sum 63 bln rupees		Govt to ask bks to meet credit needs of self-help groups
156	Scheduled Tribe Fin Corp gets 500 mln rupees allocation		Home loans for poor brought under banks' DRI scheme
157	National Agri Insurance Plan to get 6.4 bln rupees FY09		LIC to cover 10mln landless farmer in social security plan
158	Food security scheme allocation 48.82 bln rupees		Aam Aadmi Bima Yojna to cover 10 mln households by Sep 30
159	IT department allocation 16.80 bln rupees vs 15 bln		20-bln-rupee SIDBI fund for risk financing
160	44% of backward regions' grant to UP, Bihar, Orissa		50-bln-rupee fund in NABARD to up short-term loans
161			To launch exchange traded FX, rate derivative mkt
162			To expand market for corporate bonds
163	TRADE		50 bln rupee NABARD fund for short-term co-ops' lending
164	Rupee up 9.8% from Apr 2007		Banks to embrace total financial inclusion concept
165	Relief to exporters in FY09 to continue as required		288 PSU bank branches to be opened in backward areas by Mar
166	To develop handloom cluster at Varanasi, Shivsagar		Will work with RBI for temporary steps to moderate inflow
167	Apr-Dec merchandise export growth 21.8%		256 new bank branches opened in minority districts
168	Merchandise exports to fall short of target		75-79% of farm lending has come from rural, small banks
169	3.40 bln rupees for weavers insurance scheme in FY09		75% of farm credit by scheduled commercial banks
170	Interest spend on MSS is subsidy to export sector		256 PSU bank branches opened in 2007
171	Govt sensitive to needs of merchandise export sector		288 more PSU bank branches to be set up by Mar
172			To create risk capital fund in SIDBI
173	CORE SECTOR		Micro, small, medium cos continue to be priority
174	To give 129.66 bln rupee to National highway plan FY09		Fund for TUFS up to 10.9 bln rupees vs 9 bln rupees
175	NHDP outlay upped to 129.66 bln rupees from 108.67 bln		Banks, RRBs to add 250 accounts/yr per rural branch
176	96.4% roads completed in Golden Quadrilateral		"Measured steps" to continue in financial sector reforms
177	NELP-7 to attract $3.5 bln-$8.0 bln investments		SIDBI cuts SSIs annual services fees to 0.5% from 0.75%
178	$3.5 bln-$8.0 bln needed for oil exploration blocks		Risk capital fund for micro, small, medium cos under SIDBI
179	To introduce more reform in coal, electricity sectors		To ask states to help develop national securities mkt
180	Coal regulator to be established		PAN requirement extended to all financial mkts
181	300 km roads to be completed FY09 under national plan		PAN sole identification number in securities market
182	Plans national fund for power transmission, distribution		There is no seamless national market for securities
183	4.5 bln rupees allocated for textile parks FY09		Differences in duties, levies hampering securities mkt
184	All 30 integrated textile parks approved		PSU bks to give DRI scheme home loans at 4% interest rate
185	Integrated textile park scheme to continue in 11th Plan
186	750 mln rupees for common service centres		HEALTH
187	180-km roads completed in FY08, 300 km target FY09		Health allocation up 20%
188	250 clusters for handloom being developed		FY09 allocation for AIDS programme 9.9 bln rupees
189	Provision for integrated textile parks 4.5 bln rupees		FY09 polio eradication drive allocation 10.42 bln rupees
190	1.57 mln houses to be built by March		Rural health plan budget aid upped to 120.50 bln rupees
191	4.1 mln houses built until Dec under rural housing plan		323 district hospitals taken up for upgrade in FY09
192	Sop for housing for poor 35,000 rupees/head from Apr		Trained 462,000 personnel in National Rural Health plan
193			165.34 bln rupees allocation for health sector in FY09
194	INVESTMENT, SAVINGS
195	FDI inflow seen at $12.7 bln in FY08		MISCELLANEOUS
196	FII inflow seen at $18 bln in FY08		6th pay commission to submit report by Mar 31
197	Policy is to encourage all investment - local, foreign		Concerned about rate of attrition in defence services
198	FY08 investment rate estimated 36.3% of GDP		Permanent institutional mechanism to study climate change
199	"Unmistakeable boom of investment" since FY06		Fund worth 6.24 bln rupees in FY09 for Commonwealth Games
200	FY08 savings rate estimated 35.8% of GDP		750 mln rupees to Indian Council of Cultural Relations
201	FY08 savings estimated 35.8% of GDP		Allocates funds for special tiger protection force
202			500 mln rupees for national tiger conservation project
203	EDUCATION
204	Education allocation up 20%
205	India has opportunity to become "knowledge society"
206	To set up 2 architecture schools at Bhopal, Vijaywada FY09
207	New IIT in Andhra, Bihar, Rajasthan
208	New central universities in each of uncovered states
209	16 central universities to be set up in FY09
210	16 new central universities in FY09
211	800 mln rupees for Balika Vidyalaya hostels upgrade
212	FY09 allocation for secondary education 45.54 bln rupees
213	1 bln rupees to IT ministry to link knowledge institutes
214	Deccan college in Pune to get 50 mln rupees grant
215	850 mln rupees to new scholarship for scientific research
216	454.5 mln rupees for Madrasa education FY09
217	600 mln rupees to up corpus of Maulana Azad Foundation
218	1 bln rupees for IT ministry to set up knowledge bank
219	Student reservation to continue for SC, ST, minorities
220	Spend on children's schemes FY09 over 330 bln rupees
221	72 bln rupees for ministry for woman, child development
222	162.02 bln rupees allotted for 30% women-specific plans
223	114.60 bln rupees for 100% women specific programme
224	To allot 72 bln rupee for ministry of women, children FY09
225	7.5 bln rupees for upgrade of ITIs in FY09
226	440 mln rupees for Sainik School infrastructure
227	1 bln rupees each for DU, University of Mysore
228	1 bln rupees for Mahatma Phule Vidyapeth