 Rs60,000 crore agricultural debt relief package; complete loan waiver for small and marginal farmers; 4 crore farmers to benefit
- Rs2,80,000 crore target set for farm credit in 2008-09; short term crop loan to continue at 7 per cent interest
- Irrigation and water resources finance corporation to be set up; rainfed area development programme to be started
- Rs3, 966 crore for schemes for SCs and STs; Rs18,983 crore for schemes earmarking 20 per cent funds for SCs and STs
- Multi-sectoral development plans for all 90 minority concentration districts
- All women Self Help Groups credit-linked to banks to be covered under Janashree Bima Yojana
- National Rural Employment Guarantee Scheme to cover all 596 rural districts
- A national programme to be launched for the elderly
- Rashtriya Swasthya Bima Yojana for workers under BPL category in the unorganized sector
- A statement on child related scheme introduced in the budget for the first time
- Mid-day meal scheme to be extended to upper primary classes in all blocks
- Special mechanism for north-eastern border areas
- Government to establish 16 central universities
- 3 IITs, 2 IISERs and 2 schools of Planning and Architecture to be established
- 6,000 high quality model schools to be opened
- New scholarship scheme for promoting innovations in science
- Each district to have a Nehru Yuva Kendra
- Schools in water deficient habitations to have drinking water systems
- Subsidy on houses under Indira Awas Yojana increased from Rs25,000 to Rs35,000 in plain areas and from Rs27,500 to Rs38,500 in hill/difficult area
- Rs1000 crore provided for Aam Adami Bima Yojana
- Allocation under Indira Gandhi old age pension scheme increased from Rs2392 crore to Rs3443 crore
- Rs32,667 crore provided for food subsidy under public distribution system
- Rs1000 crore provided for establishing a non-profit corporation for skill development
- Rs750 crore allocated for upgrading 300 ITIs
- Six mega-clusters planned for handlooms, powerlooms and handicrafts
- Government to provide Rs16,436 crore as equity support and Rs3,003 crore as loans to central public sector enterprises
- Backward region grant fund retained at Rs5,800 crore; Bihar, Orissa and Uttar Pradesh to get nearly 45 per cent of the amount
- Income tax exemption limit hiked to Rs1.5 lakh; 10 per cent tax for income between Rs1.5 lakh and Rs3 lakh; 20 per cent between Rs3 lakh and Rs5 lakh. Income above Rs5,00,001 to attract 30 per cent income tax
- Exemption limit for women taxpayers increased to Rs1,80,000 and for senior citizens to Rs2,25,000
- No change in corporate income tax rates and surcharge
- No change in the peak rate of customs duty
- Customs duty on project imports slashed from 7.5 per cent to 5 per cent
- Duty on steel and aluminum scrap abolished
- Excise duty on pharmaceutical sector reduced from 16 per cent to 8 per cent
- Small cars, two and three wheelers, buses and their chassis to cost less
- Non-filter cigarettes to cost more, excise on non-filter cigarettes will be at par with filter cigarettes
- Four more services brought under service tax net
- Threshold limit of exemption for small service providers increased from Rs8 lakh to Rs10 lakh
- Customs duty on crude and unrefined sulphur brought down from 5 to 2 per cent
- Export duty on chrome ore increased from Rs2000 to Rs3000 per metric tonne
- CENVAT on all goods reduced from 16 to 14 per cent
- Central sales tax proposed to be reduced to 2 per cent from April 2008
- Excise duty on bulk cement brought on par with packaged cement; clinkers to attract excise duty of Rs450 per metric tonne
- PAN numbers made compulsory for all transactions in the financial market subject to suitable exemption limit
- Allocation for defence increased by 10 per cent from Rs96,000 crore toRs105,600 crore
- Revenue deficit estimated at Rs55,184 crore
- Fiscal deficit pegged at 2.5 per cent of GDP
(See: Summary of Budget 2008-09)
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