Editor ASO
The Union Budget of India for the year 2008-09 is to be laid in a few hours in the parliament by the finance minister Mr.P.Chidambaram. He presents his seventh budget in the parliament, becoming the first one to present such. The Speculation on the possible Parliamentary election in May ’08 raises the brows as to whether the focus will be on economy or election. Don’t miss the budget updates in our site.
Highlights
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A scheme of Debt waiver & debt relief to farmers has introduced with the total amount of 60,000 Crores.Waiver amounts to 4% of all bank loans.
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All agri loans upto march 2007 will be covered under the scheme.
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A complete waiver of all loans for marginal farmers(holding one hectare land) and small farmers (holding 1-2 hectares), and one time settlement scheme for all other farmers.
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NREG scheme to be rolled out to all 596 backward districts with the initial allocation of 16,000 crores.
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Three new IIT’s to be set up in Bihar, Rajasthan & Andhra Pradesh.
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Three new IISc’s to be set up.
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16 central universities to be set up.
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Rs.33,434 Crores for child related Schemes
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Allocation for education increased by 20%
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Special fund of Rs.500 Crores to Ministry of North Eastern states.
Tax
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Threshold limit on service tax exemption has increased from 8 lakhs to 10 lakhs for small service providers.
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Threshhold limit on Income tax for males has increased from 1.1 lakhs to 1.5 lakhs.
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Threshold limit on Income tax for women has increased from 1.45 lakhs to 1.8 lakhs.
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Threshold limit on Income tax for senior persons has increased from 1.95 lakhs to 2.25 lakhs
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No change in Corporate tax, Surcharge.
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5 year tax holiday for establishment of hospitals in all areas except some specified urban areas.
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Bank cash transaction tax withdrawn.
Fiscal indicators
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Current fiscal deficit 3.1%(Estimate-07- 3.8%, target -2009 – 2.5%)
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Current revenue deficit 1.4% (Estimate -07 -1.5%).
Impacts
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Waiving of the Farmer loans has reflects negatively on public sector banks.
I guess the next election would be during mid-2009 and towards the end of 2008, some States are going to polls. So, I guess, this budget would be more populist and try to please all.
It’s not the number of budgets an FM has presented matters. What counts is how he has steered the country to economic prosperity. What positive difference does the budget policies & allocations make a difference to the man on the street is important and a key factor in measuring the success of his tenure.
Years ago, I remember buying petrol for Rs.17/- and today it sells at Rs.53/- at Bangalore. If this continues in this rate, I’m afraid in about 5 yrs time it will double…100 bucks for a litre of petrol! The Govt has to cut its share of tax/levy on fuel to make it affordable. This is just one instance & there are many such essential products (e.g. medicines, gas) which need price correction.
Let’s hope for the best and yet be prepared for the worst!
looks like a safe popular start…
Withdrawing bank transaction tax shows that the last budget was not truly impactful in all ways…