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