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Indian Budget 2008: Major Highlights

The Union Finance Minister Mr. P Chidambaram has presented the General Budget for the financial year 2008-09. This year's Union Budget has covered different sectors including agriculture, education, banking and many more.

The major highlights of the Union Budget 2008 are as follows:

The growth rate of the economy has been 8.8%

Service sector is the key player and expected to grow at 10.7 %
Total food grain output has been 219.32 tonnes; all time high
Education at the center of the social sector reforms
Rs. 34,400 crores to be allocated for education
Rs, 13,100 crores to be allocated for Sarva Shiksha Abhiyaan
Rs. 8,000 crores allocated for Mid-Day Meal Program
6,000 model high schools to come up
16 central universities to be established
3 IITs to be set up in Bihar, Rajasthan and Andhra Pradesh
Rs. 85 crores allocated for the development of a knowledge society
All knowledge bodies to be linked through broadband
Scholarships to encourage science and research
3 IIScs to be set up in Trivandrum and Bhopal
Rs. 4,554 crores to be allocated for Secondary Education Scheme
Allocation for National Rural Health Mission increased by 15%
LIC coverage for all women regulated Self-help Groups attached to banks
Rs. 12,050 crores to strengthen health services in rural area
Direct tax proposal is going to be revenue neutral by nature
Corporate income tax rate to be kept unchanged
No change in Corporate surcharge tax
Tax exemption limit increased from Rs. 1,10,000 to Rs. 1,50,000
Tax exemption limit for women increased from Rs. 1,45,000 to 1,80,000
Tax rate for the income bracket Rs. 1,50,000 to 3,00,000 to be 10%
Tax rate for the income bracket Rs. 3,00,000 to Rs. 5,00,000 to be 20%
Income above Rs. 5,00,000 to be taxed at 30%
Exemption limit for the senior citizens to be increased from Rs. 1,95,000 to 2,25,000
Excise duty on small cars to be 14%
Excised duty reduced to 8% on water purification devices
General CENVAT rate on the common products to be reduced from 16% to 14%
Excise duty on paper and paper goods to be reduced
Excise duty on the pharma products to be reduced to 14%
Duties on aluminum scrap and steel melting scarp to be reduced
Taxes on convergence products to be lowered
Duty on non filtered cigarettes to be increased
The excise duties on anti-AIDS drugs to be lowered
Allocation for defence to be increased by 10%
Rs. 32,676 crores to be allocated for PDS subsidy
Risk Capital Fund to be formed in SIDBI
Rs. 12,966 crores to be allocated for the National Highway Development Program
Rs. 800 crores to be allocated for power sector reforms
Rashtriya Krishi Vikas Yojana to receive Rs. 2,80,000 crores
Rs. 7,200 crores to be allocated for the Ministry of Women and Child Development
Loan waiver for marginal and small farmers
Rs. 1,042 crores to be allocated for anti-Polio drive
Rs. 540 crores to be allocated for the development of minority districts
Rs. 31,280 crores to be allocated for Bharat Nirman Program