New Delhi:

It will aim at fiscal consolidation through tax reforms and elimination of additional excise duty. It will focus on agriculture and related aspects besides enhancing manufacturing sector efficiency and will further accelerate reforms.

“The budget will aim at releasing the social and economic energy for growth and development,” Singh said. “It will attempt to realise the collective need for transformation of the nation into a developed country.”

According to Singh, the second revolution after the Green Revolution will be in the field of physical and social infrastructure. “Efforts will be made for self-reliant programmes for an all-round growth of the national wealth.

Agriculture growth is likely to be 3.5 per cent in the current year, while the services sector is expected to be 7.1 per cent and exports at 20.4 per cent, he said. Some the major economic initiative announced in his budget speech are:

• Attempt will be made to release public and private partnership and realise the target of building 1 crore houses in a year.
• Antoyadya Yojana, a scheme for providing subsidised wheat and rice to the poorest of the poor, will be expanded to cover additional 50 lakh families. At present the scheme covers 1 crore families.
• To encourage sports and games, the government will shortly issue guidelines for direct funding for sports infrastructure facilities through public and private funding.
• To encourage research and development in the medical sector and keeping in view the need to upgrade facilities, it has been decided to increase the rate of depreciation of life saving equipment from the existing 25 per cent to 40 per cent.
• To promote India as a major health destination, Singh announced to extend tax benefits to private hospitals.
• Under a new health insurance scheme, an individual will have to pay Re 1 per day as premium for 365 days; Rs 1.50 per day for a family of five; Rs 2 per day for a family of seven including dependants. And they will be eligible for a benefit of Rs 30,000 in case of hospitalisation. In the event of death, the family will get Rs 25,000.
• Innovative funding mechanism for modernisation of the Railways, airports and ports and roads will be undertaken; 38 new road projects worth Rs 40,000 crore will be undertaken.
• Two more major airports in the private sector in Delhi and Mumbai will be set up. Already two airports in Bangalore and Hyderabad are coming up.
• Modernisation of Jawaharlal Nehru Port Trust and Kochi Port Trust at a cost of Rs 7,500 crore, including dredging.
• Liberalised government policy for mega power projects. Ceiling of 14 mega projects lifted and concessions will be available for all mega power projects which qualify.
• Modernisation of taxation regime and expenditure rationalisation will be undertaken.
• Interest commitment is Rs 1,15,653 core during 2002-03, which constitute 48.8 per cent of the revenue earnings.
• The government intends to continue prepayment of high-cost World Bank and Asian Development Bank loans in the face of burgeoning foreign exchange reserves and low domestic interest rates. About $3 billion have already been repaid in the current year.
• A provision for safe drinking water will be given priority by further incentives to water treatment and supply projects.
• The 12th Finance Commission was set up to address the high-debt burden of states. The government has decided to allow debt-swap scheme to avail of the lower interest rate benefits. The debt of states towards the Centre is Rs 2.44 lakh crore, besides Rs 1,00,000 crore as coupon rate securities.
• “It is the government’s resolve to encourage diversification of horticulture and floriculture,” Singh said. A new central sector scheme to promote hi-tech horticulture and precision farming.
• The ministries of food and finance will jointly address the problem of the sugar industry.
• A price stabilisation fund of Rs 500 crore will be created for tea and coffee.
• Excise of Re 1 per kilo for tea has been replaced by cess of 1 per cent for modernisation of tea plantation.
• Private banks will be encouraged to open branches in the rural sector to provide credit for farm equipment, including tractors.
• A number of initiatives proposed to conserve water by promoting drip irrigation and the like will be taken.
• Adequate outlay is being provided for the task force on inter-linking of rivers.
• Special programmes for desert districts of Rajasthan for developing pastures; Rs 100 crore will be provided for setting up a task force for this purpose.