Union Budget Highlights 2008 - 09

FARMER FRIENDLY DECISIONS
New scheme of debt-waiver and debt relief for farmers
All agriculture loans disbursed by PSU banks, co-operatives till March 2007 waiting recovery to be covered under scheme
Complete waiver of loans for small and marginal farmers holding upto 2 hectares of land
One-time settlement scheme for “all other” farmers

CHEAPER vs DEARER
Cheaper: Small cars, motorcycles and scooters, dairy products, washing machine and ACs, set-top box, gems and jewellery, water purifiers, three and four star hotel tarrif, all pharma products, imported life-saving drugs
Dearer: Mobiles, non filter cigarettes, packaged softwares , stock and commodity exchange services

TACKLING TAXES
Threshold exemption limit increased from 1,10,000 to 1,50,000
Income Tax exemption limit for women hiked from Rs 1,45,000 to 1,80,000
Senior citizens' exemption limit hiked from Rs 1,95,000 to 2,25,000
New tax slabs — 1.5 lakh to 3 lakh: 10%; 3 lakh to 5 lakh: 20%: 5 lakh and above: 30%
No change in corporate tax; no change in surcharge
Duty on two wheelers reduced from 16 to 12 %
Excise duty slashed to 8% on water purification items
Duty withdrawn on naptha for production of polymers
Central Sales Tax up from 2% to 5%
Introduction of commodity transaction tax
Short-term capital gains tax hiked to 15%
Securities Transactions Tax unchanged
Banking Transaction Tax withdrawn
BALANCE SHEET
GDP increased by 8.8% during first 3 years of UPA govt
Growth to be 8.7% this fiscal
Manufacturing growth at 9.4%
Services growth at 10.7%
Agriculture growth pegged at 2.4%
Govt to monitor and moderate capital inflow to ensure stock market stability
AGRICULTURE
Agriculture sector has grown by 2.4%
Agri credit doubled during UPA government’s tenure
Record food grain production at 290 mn tonnes
Record rice production at 98.04 million tonnes
Record maize production at 16.7 million tones
INFRASTRUCTURE AND INDUSTRY
Power generation on target for 11th Plan
Allocation of Rs 5,000 crore for rural electrification
Rs 12,966 crore for highways
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EDUCATION
Education outlay increased by 20% to Rs 34,400 crore
Mid-day meal scheme to be extended to all govt and govt-aided schools
410 new Kasturba Gandhi Balika Vidayalaya to be set up
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HEALTH
Health outlay increased by 15% to Rs 16,543 crore
National Rural Employment Guarantee Scheme to be extended to all districts
FOR SENIOR CITIZENS
Two national institutes of ageing
New national programme for the elderly
DEFENCE
Budget increased by 10% to to Rs 1,05,600 crore
Rate of attrition high in defence forces
MISCELLANEOUS
Special fund of Rs 500 crore for Arunachal Pradesh
Rs 12,155 crore to Ministry for North East Development
Rs 200 crore for clean water to school children
Rs 1,000 crore for Ministry for Minorities
Rs 75 crore for Rajiv Gandhi National Fellowship Programme
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CHIDAMBARAM SPEAK
2008 should be a year of consolidation
UPA wants to make growth inclusive
We can do better and we should; Budget 08-09 is about doing more
India determined to become self sufficient in agriculture
Finance Minister confident of 8.8% this fiscal