India Union Budget 2006-07

EFFECT OF BUDGET ON DIFFERENT SECTORS

• Peak import duty cut to 12.5% from 15%

• STT hiked by 25% from existing levels

EFFECT OF BUDGET ON DIFFERENT SECTORS

• Peak import duty cut to 12.5% from 15%

• STT hiked by 25% from existing levels

• There is no change in the rates of personal income tax or corporate income tax, nor any new taxes are being imposed.

• Food processing industry has been given a fillip as the condensed milk, ice cream, preparation of meat, fish and poultry, pectins, pasta and yeast have been fully exempted from excise duties.

• No change in personal, corporate income tax rates

• Cess on domestic crude oil hiked by Rs 700/tn

• Leather and footwear industries have been recognized as thrust sectors.

• Customs on PTA, DMT and & MEG cut to 10% from 15%

• Excise duty on small cars cut to 16% from 24%

• No FBT on free samples to doctor No FBT on payment to brand ambassadors

• Tours & Travel cut down to 5% vs 20% Lodging & Boarding cut to 5% vs 20%

• Duty on inorganic chemicals cut to 10%

• To widen the tax net Service tax on: ATMs, Share trasfer agents, PR firms

• Service tax rate hiked 12% from 10%

• Excise duty on instant food cut to 8% Aerated drinks excise duty cut to 16%

• Excise duty on cigarettes raised by 5%

• Countervailing duty of 4% on all imports of excisable goods

• To levy countervailing duty of 4% on oil imports

• Import duty on ores, concentrates cut to 2% from 5%

• Plastics duty down to 5% from 10% Duties on refractories down to 7.5%

• Customs duty on manmade fibres down to 10% from 15%

• Duty on packaging machines down to 5% from 15%

• Duty on Naphtha for plastics down to 0% Duty on mineral products reduced to 5%

• Tourism plan spending at Rs 830 cr To develop 15 tourist centres

• FY’07 non-plan expenditure estimated at Rs 3,91,263 cr

• FY’06 revenue deficit at 2.6% vs estimated 2.7%

• Removes cap for MFs on reciprocal foreign holding

• To set up 3 investment regions for oil sector in FY’07

• Tax-GDP ratio to go up to 11.2% from 10.5%

• Indian Infrastructure Investment company to be established

• Record 34,000 MW to be added under 10th plan 82 projects to be completed in 1-2 years

• NDS, OM to be extended to some MFS, PFs and Pension Funds

• Cap on FII investment in corp debt raised to $1.5 bn

• FIIs investment limit Govt bonds raised to $2 bn

• To remove 10% cap on overseas investment by Mutual Funds

• To create unified exchange traded market for corporate bonds

• 20 bn tn coal to be deblocked for captive power projects till 2012

• Policy changes will attract more FDI in infrastructure

• Rs 100 cr fund to help tea growers

• India has potential to become a gem and jewellery hub

• To set up investor protection fund

• Non-tradable securities to be phased out

• IIFCL has received first proposal for funds

• Coal to be deblocked for captive power projects till 2012

• To add about 40,000 MW capacity in 3 years

• Record 34,000 MW to be added under 10th plan 82 projects to be completed in 1-2 years

• To double world export share to 1.5% by FY’09

• Govt to provide electricity to 40,000 villages in FY’06

• Rs 597 cr provided for non-conventional energy resources

• Food processing to be top priority sector for bank credit

• Tourism plan spending at Rs 830 cr

• EGoM to be set up for cluster development

• Cluster model for manufacturing and industrial townships

• Food processing to be top priority sector for bank credit

• FY’07 mid-day meal allocation at Rs 4813 cr

• Bulk of spending to go to 8 social sector programs

• 96% of the project to be completed by June 2006

• FM says barring mining, all sectors are performing satisfactorily

• Rural Employment To Get Rs 14,300 cr

• 96% of Golden Quadrilateral To Be Completed By June 2006

• Record 34,000 MW To Be Added Under 10th Plan

• Urban Renewal Mission gets a grant of Rs 4,595 cr

• Spending on flagship plans at Rs 50,000 cr

• 50 handicraft villages to be identified for foreign tourists

• Textile allocation increased by Rs 100 cr to Rs 535 cr

• Services SMEs to be treated at part with manufacturing SMEs

• Equity support to state companies at Rs 16,900 cr

• To raise old age pension from Rs 75 per month to Rs 200 per month

• To double farm loans in 3 years Short term credit to farmers at 7%

• RIDF gets Rs 4000 cr for rural roads

• Special new NABARD credit line for self help groups

• To double farm loans in 3 years To cut 2 bps on agri loans of upto Rs 1 lk

• Outcome Budget to be presented on March 17

• National Rural Health Mission to get Rs 8207 cr

• To consider taking Hyderabad Metro under the NURM plan

• Record 34,000 MW to be added under 10th plan

• Budgetary provision North East up 9 times to Rs 18,696 cr

• 1.5 lakh teachers to be employed under Sarva Siksha Abhiyan To spend Rs 10,041 cr

• GBS for FY’07 up 24% at Rs 1,72,720 cr

• Larger Budgetary support for Bharat Nirman project

• Rs 944 cr grant given for irrigation in Bharat Nirman

• Gross Budget Support for FY’07 up 20.4% at Rs 1,72,720 cr

• NABARD to get Rs 1000 cr corpus for food processing

• Food processing to be treated as priority sector

• Outlay for National Urban Mission in FY’07 at Rs 4595 cr

• Educational allocation up 31.5% to Rs 24,115 cr

• Rs.14, 300 cr to be spent on rural employment

• Expects ‘continued buoyancy’ in capital formation

• GDP growth likely to be 8.1% in 2006-07

• To aim for 10% economic growth

• This fiscal ‘best of times’ & ‘worst of times’

• Expert Body To Examine Various Aspects Including Tax

• Urban Renewal Mission Gets A Grant Of Rs 4,595 cr

• National Rural Health Mission To Get Rs 8207 cr

• Spending On Flagship Plans at Rs 50,000 cr

• Allocation For Education Up 31.5% to Rs 24,115 cr

• Output of foodgrains likely to be 209.3 MT

• Govt will fund disaster rehabilitation

• 10,600 Villages To Be Provided With Electricity

• 87,000 Houses To Be Build

• Rs 944 cr Grant Given For Irrigation In Bharat Nirman

• Expects ‘Continued Buoyancy’ In Capital Formation

• Govt To Fund Disaster Rehabilitation

• Foodgrains Output Likely To Be 209.3 MT In 2006-07

• All Sectors, Barring Mining, Performing Satisfactorily

• Govt To Aim For 10% Economic Growth

• GDP Growth Likely To Be 8.1% in 2006-07