Union Budget as it unfolds. Some key jottings. If you have questions, please let me know.
Fiscal deficit for 2007-08 pegged at 3.3 per cent of GDP at Rs.1,50,948 crore. Revenue deficit at Rs.72,478 crore which will be 1.5 per cent. Total expenditure during 2006-07 estimated at Rs.6,80,521 crore
Personal income tax: Token relief to the taxpayers. Exemption limit increased to Rs 110,000, for women Rs 145,000 and for senior citizens up at Rs 195,000. Deduction: Medical insurance to be increased to Rs 15,000; and for senior citizens Rs 20,000. Dividend distribution tax rate raised to 15%. ESOP under FBT.
Indirect Taxes: Peak customs duty rate cut to 10%; Central Sales Tax rate to be reduced to 3%
A high-powered committee report aimed at making Mumbai a world class financial centre submitted.
E-governance allocation to be increased from Rs.395 to Rs.719 crore.
Now you can own foreign stocks through Indian mutual funds: The finance minister says that Indian investors to be allowed investment in overseas capital markets through mutual funds. Mutual funds to set up Infrastructure Fund schemes.
Insurance companies to launch a senior citizens scheme in 2007-08. Reverse mortgage scheme for senior citizens.
Bonds worth Rs 5,000 crore to augment NABARD to be issued, says FM. These bonds will enjoy tax benefits.
FM announces package for agriculture:
National Agricultural Insurance Scheme to be continued for Kharif and Rabi this year.
Duty on lift irrigation, agricultural sprinklers and food processing equipment reduced from 7.5 per cent to five per cent.
Special Purpose Tea Fund to rejuvenate tea production:
Food mixes to be fully exempted from excise duty.
Rs. 100 crore allocated for National Rainfed Area Authority.
One hundred per cent subsidy for small farmers and 50 per cent for other farmers for water recharging scheme.
World Bank signed agreement for revival of 5,763 waterbodies in Tamil Nadu, Loan component Rs 2,182 crore. To have a command area of four lakh hectares.
Similar agreement with Andhra Pradesh in March for recharge of 2,000 bodies, Command area 2.5 lakh hectares
Farmers' credit likely to reach Rs.1,90,000 crore as against the targeted Rs.1,75,000 crore during 2006-07
As part of a full-fledged war on rising prices, futures trading on staples wheat and rice have been suspended in all commodity exchanges with immediate effect.
Saving rate of 32.4 per cent, investment rate of 33.8 per cent will continue, says the FM.
Read the detailed highlights on Rediff. But I did not see any initiatives on Infrastructure!
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