Budget 2008- 2009 India Highlights
The union budget is an important financial document for the next one year. The Union budget of India lays down guidelines and pronouncements on different types of taxes, financial allocations for various heads, and developmental plans for different sectors. Budget is also an important source of information on government finances i.e. which way that’s heading.Every year before the budget is presented; there are expectations from people all over the country; industry and the masses alike. There are a few concerns and challenges such as inflationary pressure from food and oil, Slowdown in the growth rate of economy from the previous years and increasing fiscal pressure. The budget of 2008-09 has to be seen in the backdrop of the abovementioned concerns. Some of the key areas that may be addressed in the coming budget are:Union Finance Minister P Chidambaram presented his fifth Budget in Parliament on Friday (29-feb-2008). Following are the highlights of the union budget of India, 2008-2009.Highlights of Budget 2008-2009:
Modifications in IT slab. Edge of exemption for all Income Tax assesses increased from 1, 10,000 to 1, 50,000.
The latest tax slabs will be - 10 per cent for 150,000 to 300,000, 20 per cent for 300,000 to 500,000 and 30 per cent above 500,000.
For women, the income tax limit goes up from Rs 1.45 lakh to Rs 1.80 lakh and in case of senior women citizens, the income tax limit increases from Rs 1.95 lakh to Rs 2.25 lakh.
Assigning of Rs 130 Crore for this project. Further an additional Rs.750 Crore to be allotted for merit scholarship to students up to 10th and 12th standard.
Mid day Meal scheme now to cover up till the upper primary level in 3,479 schools across India. Plus, 16 central universities to be set up in 2008-2009.
Plans to setting up three IITs in the states of Andhra Pradesh, Bihar and Rajasthan.
Plans for Schools of architecture and planning in Bhopal as well as Vijaywada. Additional institutes of higher education to be set up.
Rs 100 Crore to be assigned to the Information Technology Ministry to create national knowledge centres.
Allotment for NRHM boosted to Rs 12,050 Crore.
Rs 992 Crore for the national AIDS programme.
A national programme for the elderly to be initiated at expenditure of Rs. 400 Crore.
Rashtra Swasthya Beema Yojana to begin from 1 April in Delhi and Haryana. Rs 30,000 will be set out for every family from the unorganised sector.
Allotment for ICDS risen to Rs 6300 Crore.
Rs 85 Crore authorized for scholarships to students who have undertaken science education.
Indian Institutes of Science Education and Research to be created at Bhopal as well as Thiruvananthapuram.
Agriculture credit increased to a double in the initial two years of the government to touch Rs.2.40 lakh Crore by March in the year 2008.
The 11th Plan kick started showing a healthy growth.
Gross budgetary support to be increased to Rs 2,43,386 Crore, which a boost of over Rs 38,000 Crore from the present level.
Allotment for Bharat Nirman to be increased to Rs 31,280 Crore.
Education budget this year witnessed a 21 per cent hike from Rs 28,674 Crore to Rs 34,400 Crore.
The GDP growth decelerated to 8.4 per cent during quarter ended 31 December in 2007 in comparison to 9.1 per cent just a year back.
Economy grew at more than eight per cent over 12 consecutive quarters since the year 2005, says Chidambaram.
Growth rate of agriculture likely to be at around 2.6 per cent during the current year.
Services and manufacturing sectors likely to grow by 10.7 per cent and 9.4 per cent, says the finance minister of India, P Chidambaram.
To keep inflation under control is one of the main keystones of the Government's policy.
The production of rice probably be around 94.08 million tonnes, maize 16.78 mt, soyabean 9.45 mt whereas cotton 23.38 million bales.
Allotment for defense to receive boost of 10 per cent from Rs 96,000 Crore to Rs 1,05,600 Crore.
Health insurance scheme to cover 75 lakh citizens
Allotment for Textile Upgradation Fund to be more than doubled.
Micro, small as well as medium businesses to keep getting special consideration.
Risk Capital Fund (RCF) to be created in SIDBI.
The requirement of PAN to be made necessary for all dealings in capital market subject to a threshold.
Rs 750 Crore for development / upgradation of 300 ITIs in 25 districts.
Rs 32,676 Crore to be allotted as subsidy to Public Distribution System.
PDS via smart cards in Haryana as well as Chandigarh on a pilot basis.
Three schemes to be hosted for giving social security to the workers of the unorganised sector.
Sixth central pay commission will deliver report by 31 March in year 2008.
Rs 624 Crore assigned for the forthcoming Commonwealth Games
The debt of the farmers to be waived
Total loan waiver for the marginal farmers possessing land upto one hectare as well as small farmers having land upto one and two hectares.
Agricultural loans to be provided by scheduled commercial banks, regional rural banks as well as cooperative credit institutions till 31 March 31, 2007 and due for 31 December that year will come under the waiver scheme as solution to the crisis of indebtedness.
One time settlement of loans for other farmers.
Agriculture loans reorganized and rearranged by the banks from 2004 to 2006, whereas other loans generally rescheduled under guidelines of the Reserve Bank of India will also be made qualified under the waiver scheme.
Execution of debt waiver as well as debt relief will be finished by 30 June this year.
Loan waiver scheme to comprise loans liability of Rs 60,000 Crore. It is estimated to profit four Crore farmers.
Through the loan waiver scheme, India is releasing a deep debt and sense of gratefulness to farmers, says finance minister P Chidambaram.
The quantity of rural infrastructure development fund to be increased to Rs 14,000 Crore.
Additional reforms required in the coal and electricity segments to make sure there is double digit growth in the manufacturing sector.
Rs 800 Crore for revved up power reforms programme.
Presentation of the National Fund for Transmission and Distribution Reforms.
The loan waiver scheme will profit three Crore small as well as medium farmers and also deal with loans of about Rs 50,000 Crore.
One Crore more agriculturalists will make profit to about Rs 10,000 Crore in the waiver.
For investigation and development of new oil blocks, foreign investment of 3.5 to 8 billion dollars expected.
Rs 7,200 Crore to be assigned to the Ministry of Women and Child Development underscoring a rise of 24 per cent.
Rs 500 Crore for corpus fund to subsidize all women Self Help Groups for LIC cover for permanent disability.
A goal of Rs 2.80 lakh Crore for agriculture credit fixed for the next year.
Rs 20,000 Crore for irrigation projects under AIPB, indicating a rise of Rs 9,000 Crore from previous year.
National Horticulture Mission to be allotted Rs 1,100 Crore in 2008-2009 with special concentration on growing coconut.
Rs 75 Crore to be allotted to the Agriculture Ministry for giving mobile soil testing laboratories in as many as 250 districts of India.
Rs 644 Crore for National Agriculture Insurance Scheme, which will be made to keep on pending creating a substitute crop insurance scheme.
National Plant Protection Training Institute at Hyderabad to be declared an independent body, for which Rs 29 Crore will be assigned.
The proclamation to be made of a scheme for debt waiver and relief for small as well as marginal farmers.
NREGA scheme to be introduced in all 596 rural districts in India in 2008-2009.
Jawaharlal Nehru Urban Renewal Mission to avail Rs 6,865 Crore this year in comparison to Rs 5,482 Crore the previous year.
Allotment for Rajiv Gandhi Drinking Water Mission to be risen to Rs 7,300 Crore. Rs 200 Crore for drinkable water in the schools.
Rs 300 Crore to be assigned for desalination plant at Chennai for facilitating the production of clean drinking water.
Rs 500 Crore for recognizing important requirements of development programmes of border areas such as Arunachal Pradesh.
SC, ST and minority students to keep on getting special consideration.
Allocation of various schemes pertaining to the North East increased from Rs 14,365 Crore to Rs 16,400 Crore.
Rs 75 Crore allowed for Rajiv Gandhi National Fellowship Programme for SC/ST students doing their M.Phil.
Rs 230 Crore will be provided as extra equity to developmental organisations concerned with the welfare of SC, ST, socially and economically backward groups and minorities.
The allotment for the Minority Affairs Ministry to be increased to a double from Rs 500 Crore to Rs 1,000 Crore.
Rs 540 Crore assigned for multi-sectoral development plan for the minority concentration districts in India.
Opening of 288 public sector bank branches in Indian districts having a significant population of minority community.
Sarva Shiksha Abhiyan to be handed Rs 13,100 Crore, the Mid-Day Meal scheme to be given Rs 8,000 Crore and Secondary education scheme to get Rs 4,554 Crore.
There will be set up 410 more Kasturba Gandhi Vidyalaya in the backward blocks.
Navodaya Vidyalayas to be set up in 20 districts with special concentration on regions having SC/ST majority.
