Budget 2008-09 highlights sector wise!!

Posted on    29 February 2008

P. Chidambaran presents his 7th Union budget and puts down the following points:




GDP at present- 8.8%


Concern throughout- Inflation in Cheack is the cornerstone of the policy .


Capital Inflow needs to be managed


Govt, RBI to jointly take temporary steps to manage capital inflows


Capital inflows in excess of Economic Deficit.


Gross Budgetary Support F/y-09 Rs.2.4 Lakh crores


Education and Health:


Education,health allocation up by 20%


IIts to be set up in bihar,andhra pradesh and rajasthan


Health outlay up by 15%


3 IIsc’s to be set up in bhopal and trivandrum


Education 34,400 crore


Bharat nirman 31,281 crores


Sarva siksha 13,100 crores


Mid day meal 8,000 crores


Health outlay up by 15%


16 central universities to be set up


National rural health mission allocation up by 15%


2 national institutes for ageing


2 schools of planning and architecture.




Rajeev gandhi drinking water mission-7,300 crores


NREGS to be extended to all districts-16,000 crores


Planned Additional Rs.10,000/- Crore Capital expenditure.


Allocation of 100 crores to it ministry


ICDS allocation hiked to 6,300 crores


Minority outlay doubled


RS 540 crores for minority dominated districts


288 PSU branches to be set up in backward areas


RS 11,460 crores for women development schemes


Rs 500 crores for development of border areas


Urban renewal allocation plan up by 25%


Subvention payment to nuetralize -ve for PSU banks.


NELP-VII to attract $8bn investment


30 integrated textile parks to be set up


Provision for textile parks Rs.450/- crores


National highway Develpoment programme Rs.12,966 cr.


To introduce more reforms in coal sector


Rs. 800 bln for accelerated power reform.


PAN required for all financial markets


To start forex derivative markets


Rs.75 cr to Indian Cultural sector to uplift its presentation.


Defence allocation Rs. 1,05,000/- crore


Rs.50 cr tiger conservation authority.



Rs.624 cr for commonwealth games.


Fiscal Deficit-2.5%







Agricultural credit target at 2,80,000 crores


750 irrigation in fy-09 and 20 major projects


20 crores to tea research industry


north-east to get 15% more funds


Irrigation outlay up by 80%


For marginal farmers and small farmers upto 2 hectares complete loan waiver.


One time settlement scheme for all other farmers


Waiver amounts to Rs. 60,000/- crore


Agricultural loans restructured earlier will also be legible for complete waiver or relief as the case may be.


Loan waiver amounts to 4% of the total bank loans.


Waiver to benefit 4cr farmers-waiver to be completed by june 08.







Peak rate of custom duty stays at 10%


Few Bulk drugs custom duty down to 5%


Custom on steel scrap made 0.


Few IT hardware components exempted from customs duty





Pharmaceuticals to 8%


Buses 16% to 12%


Small cars 16% to 12%


2 wheelers- 16% to 12%


Excise duty slashed to 8% on water purification items



Direct taxes:


Personal taxes




upto 150000-nil






above 500,001-30%




upto 180,000-nil


Senior citizen:


upto 225,000- nil


No change in Corporate tax


No change in surcharge


Additional Rs.15,000/-deduction for 80 D in case an individual pays on behalf of his parent/parents medical insurance


Senior Citizen Saving Scheme 2004 and the Post Office Time Deposit Account

added to the basket of saving instruments under Section 80C of the Income Tax




STCG increases to 15%


Duty on non filter cigarettes to be raised


Introduction of commodity transaction tax


Five year tax holiday for hospitals from April 2008 - March 2013


Income Tax Act to be amended to provide that reverse mortgage would not amount

to "transfer"; and the stream of revenue received by the senior citizen would not be



Tax income arising from saplings or seedlings grown in a nursery exempted.


Business of production of seeds and manufacture of agricultural implements added

to the list of companies allowed weighted deduction of 150 per cent on any

expenditure on in-house scientific research.


Benefit of amortisation of certain preliminary expenses under Section 35D allowed

to assessees in the services sector.


Corporate debt instruments issued in demat form and listed on recognised stock

exchanges exempted from TDS.


Crèche facilities, sponsorship of an employee-sportsperson, organising sports events

for employees and guest houses excluded from the purview of FBT.

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