Budget 2008-09 Highlights
	15:20 IST

GENERAL BUDGET 2008-09 BUDGET 2008-09 HIGHLIGHTS   RS. 60,000 CRORE AGRICULTURAL DEBT RELIEF PACKAGE; COMPLETE LOAN WAIVER FOR SMALL AND MARGINAL FARMERS; 4 CRORE FARMERS TO BENEFIT  RS.2,80,000 CRORE TARGET SET FOR FARM CREDIT IN 2008-09; SHORT TERM CROP LOAN TO CONTINUE AT 7 PER CENT INTEREST  IRRIGATION AND WATER RESOURCES FINANCE CORPORATION TO BE SET UP;  RAINFED AREA DEVELOPMENT PROGRAMME TO BE STARTED  RS.3, 966 CRORE FOR SCHEMES FOR SCs AND STs; RS. 18,983 CRORE FOR SCHEMES EARMARKING 20 PER CENT FUNDS FOR SCs AND STs  MULTI-SECTORAL DEVELOPMENT PLANS FOR ALL 90 MINORITY CONCENTRATION DISTRICTS  ALL WOMEN SELF HELP GROUPS CREDIT-LINKED TO BANKS TO BE COVERED UNDER JANASHREE BIMA YOJANA  NATIONAL RURAL EMPLOYMENT GUARANTEE SCHEME TO COVER ALL 596 RURAL DISTRICTS  A NATIONAL PROGRAMME TO BE LAUNCHED FOR THE ELDERLY  RASHTRIYA SWASTHYA BIMA YOJANA FOR  WORKERS UNDER BPL CATEGORY  IN UNORGANIZED SECTOR  A STATEMENT ON CHILD RELATED SCHEME INTRODUCED IN THE BUDGET FOR THE FIRST TIME MID-DAY MEAL SCHEME TO BE EXTENDED TO UPPER PRIMARY CLASSES IN ALL BLOCKS SPECIAL MECHANISM FOR NORTH-EASTERN BORDER AREAS GOVERNMENT TO ESTABLISH 16 CENTRAL UNIVERSITIES 3 IITs, 2 IISERs AND 2 SCHOOLS OF PLANNING AND ARCHITECTURE TO BE ESTABLISHED 6,000 HIGH QUALITY MODEL SCHOOLS TO BE OPENED NEW SCHOLARSHIP SCHEME FOR PROMOTING INNOVATIONS IN SCIENCE EACH DISTRICT TO HAVE A NEHRU YUVA KENDRA SCHOOLS IN WATER DEFICIENT HABITATIONS TO HAVE DRINKING WATER SYSTEMS SUBSIDY ON HOUSES UNDER INDIRA AWAS YOJANA INCREASED FROM RS. 25,000 TO RS. 35,000 IN PLAIN AREAS AND FROM RS. 27,500 TO RS. 38,500 IN HILL/DIFFICULT AREA RS. 1000 CRORE PROVIDED FOR AAM ADAMI BIMA YOJANA ALLOCATION UNDER INDIRA GANDHI OLD AGE PENSION SCHEME INCREASED FROM RS. 2392 CRORE TO RS. 3443 CRORE RS. 32,667 CRORE PROVIDED FOR FOOD SUBSIDY UNDER PUBLIC DISTRIBUTION SYSTEM RS. 1000 CRORE PROVIDED FOR ESTABLISHING A NON-PROFIT CORPORATION FOR SKILL DEVELOPMENT Rs. 750 CRORE ALLOCATED FOR UPGRADING 300 ITIs SIX MEGA-CLUSTERS PLANNED FOR HANDLOOMS, POWERLOOMS AND HANDICRAFTS GOVERNMENT TO PROVIDE RS. 16,436 CRORE AS EQUITY SUPPORT AND RS. 3,003 CRORE AS LOANS TO CENTRAL PUBLIC SECTOR ENTERPRISES BACKWARD REGION GRANT FUND RETAINED AT RS. 5,800 CRORE; BIHAR, ORISSA AND UTTAR PRADESH TO GET NEARLY 45 PER CENT OF THE AMOUNT INCOME TAX EXEMPTION LIMIT HIKED TO RS. 1.5 LAKH; 10 PER CENT TAX FOR INCOME BETWEEN RS. 1.5 LAKH AND RS. 3 LAKH; 20 PER CENT BETWEEN RS. 3 LAKH AND RS. 5 LAKH.  INCOME ABOVE RS. 5,00,001 TO ATTRACT 30 PER CENT INCOME TAX EXEMPTION LIMIT FOR WOMEN TAX PAYERS INCREASED TO RS. 1,80,000 AND FOR SENIOR CITIZENS TO RS. 2,25,000 NO CHANGE IN CORPORATE INCOME TAX RATES AND SURCHARGE NO CHANGE IN THE PEAK RATE OF CUSTOMS DUTY CUSTOMS DUTY ON PROJECT IMPORTS SLASHED FROM 7.5 PER CENT TO 5    PER CENT DUTY ON STEEL AND ALUMINNUM SCRAP ABOLISHED EXCISE DUTY ON PHARMACEUTICAL SECTOR REDUCED FROM 16 PER CENT TO 8 PER CENT SMALL CARS, TWO AND THREE WHEELERS, BUSES AND THEIR CHASSIS TO COST LESS NON FILTER CIGARETTES TO COST MORE, EXCISE ON NON FILTER CIGARETTES WILL BE AT PAR WITH FILTER CIGARETTES FOUR MORE SERVICES BROUGHT UNDER SERVICE TAX NET THRESHOLD LIMIT OF EXEMPTION FOR SMALL SERVICE PROVIDERS INCREASED FROM RS. 8 LAKH TO RS. 10 LAKH CUSTOMS DUTY ON CRUDE AND UNREFINED SULPHUR BROUGHT DOWN FROM 5 TO 2 PER CENT EXPORT DUTY ON CHROME ORE INCREASED FROM RS. 2000 TO RS. 3000 PER METRIC TONNE  CENVAT ON ALL GOODS REDUCED FROM 16 TO 14 PER CENT CENTRAL SALES TAX PROPOSED TO BE REDUCED TO 2 PER CENT FROM     APRIL 08  EXCISE DUTY ON BULK CEMENT BROUGHT ON PAR WITH PACKAGED CEMENT; CLINKERS TO ATTRACT EXCISE DUTY OF RS. 450 PER METRIC TONNE  PAN MADE COMPULSORY FOR ALL TRANSACTIONS IN THE FINANCIAL MARKET SUBJECT TO SUITABLE EXEMPTION LIMIT  ALLOCATION FOR DEFENCE INCREASED BY 10 PER CENT FROM 96,000 CRORE TO RS. 105,600 CRORE  REVENUE DEFICIT ESTIMATED AT RS. 55,184 CRORE  FISCAL DEFICIT PEGGED AT 2.5 PER CENT OF GDP     SMK/BSC/DNM/MP/VK/AS