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Highlights of Union Budget 2006
ibnlive.com
Published on Thu, Jan 31, 2008 at 13:20, Updated at Fri, Feb 01, 2008 in section
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The Government is concerned about inflation but it is confident that it will not affect growth, said Chidambaram while presenting the Union Budget.
HIGHLIGHTS OF THE UNION BUDGET
Gross Capital formation up 30 pc in FY 05 Savings up 21.9 pc of GDP Gross capital formation up 30 pc in FY 05Agricultural growth up by 2.1 pc AIM 10 pc economic growth Non-food credit growing by 25 pcGross capital formation up 30 pc in FY 0590 pc golden quadrilateral completed by 90 pc in June 2006 GDP growth target for tenth plan at 8 pc11, 7000 spent on rural employment schemeGovt determined to take growth rate to 10 per centManufacturing sector to grow at 9.4 per cent in FY 06 07Highway scheme progressing at 4.4 km per day96 per cent of GQ to end by June 2006Food grain output this year at 209.5 mt8.7 lakh rural houses constructed by bharat nirmanInflation at 4.02% 5083MW more power to be added in 200610,366 villages electrified this yearRs 11,700 cr to be spent on rural employment Govt's aim is to ensure monetary stability and managing external debtEducation outlay Rs 24,115 crore Rs 3010 crore outlay for midday meal scheme
Rs 944 crore has been given for irrigation Rs 720 cr for rural sanitationHyderabad Metro rail to be consideredOld age pension (above 75 years) - Rs 200 per monthFive lakh additional class rooms to be constructed 1.5 lakh additional teachers to be appointedAllocation for education increased by 31.5 pc to Rs 24,150 crore Allocation for healthcare raised by 22 pc to Rs 12, 546 croreDestitute pensioner to get Rs 400 per month with the help of statesRs 10,041 cr for Sarva Shikhsha AbhiyanMassive polio immunisation programme from 200754 pc hike for Bharat Nirmal Programme at Rs 18,696 croreIncentive for girl child who passes 8th standard - Rs 3000 award after she turns 18Gender budgeting on in 32 ministriesRs 24,115 crore for education Rs 4680 cr outlay for drinking waterTotal budget for Northeast will be Rs 12,041 croreRs 1,350 crore for the ministry of NE developmentRs 16.4 cr for National Minorities Development CorporationRs 8207 crore for rural health spending LPG included in list of declared goods under CST ActRs 4,680 crore for Rajiv Gandhi water drinking planRs 16,000 cr allocation for PSUsExpert body to be set up for jems and jewelery sectorFarmers to receive short term credit at 7 per centGross budgetary support for Plan expenditure up 20.4 pc at Rs 1,74,725 croreSpecial tea fund of Rs 100 cr for Assam,TN,Kerala, UttaranchalStress on development of micro-finance sectorRs 4,595 cr for urban renewal missionProgramme for reconstruction of calamity-hit areas. Rs 28,737 crore allocated for gender budgetingAllocation for national Urdu education programme increased to Rs 13 crore Rs 10, 000 cr allocation for rural infrastructureSpecial schemes for STs and SCs for their development.India to be made manufacturing hub for textiles, steelIndia to be made manufacturing hub for metals and petro productsMaulana Azad Educational Foundation corpus for minority welfare doubled to Rs200 crore
New towns to be established on specific themesFarm credit to benefit Allahabad Bank and SBIGovt aims to double farm credit in three yrsMore infrastructure to benefit cement industryOutcome of Budget to be tabled on March 171,000 schools for SCs, STs, OBCs and minorities girlsForeign tourist arrival 3.92 million in 2005Agricultural credit proposed to be increased to RS 175,000 crore 50 lakh additional farmers to be coveredAgricultural insurance scheme to continueCentral horticulture institute in Nagaland FDI flow put at $4 billion up to November, 2005Budgetary loan for PSEs has been fixed at Rs 16901 crore Budgetary loan of Rs 2791 crore for Railways 4.7 pc growth in power generation in 2005Rs 4,481 crore allocated for improving 20,000 water bodiesNational fisheries development board to be set up82 power projects under construction4 new hotel management institutes in Chattisgargh, Haryana, Jharkhand and Uttaranchal.Five ultra-mega power projects before Dec 2006Rs 597 cr for non-conventional resourcesTourism plan spending at 830 crNational Highway Authority of India to be restructured2 pc of the borrowers' interest liability up to Rs 1 lakh principal of crop loans taken for kharif and rabi this year is to be reimbursed to farmers before March 31 this year Allocation for Rural Infrastructure Development Fund has been stepped up to Rs 10,000 crore in 2006/07
Textile upgradation fund allocation to be raised to Rs 55 crore 12 textile industry parks to be set up An allocation of Rs 189 crore provided for this A National Jute Board to be set up Like woolmark, there will be a handloom mark to certify quality A window to be created for equity participation and viability gap funding for the growth of sunrise IT sector Tax rationalisation for jewelry and gems import Food Processing Sector to be a priority sector for bank credit 15 tourist areas to be developed Services sector put on par with manufacturing sector SMEs in service sector to get the status of SSI in manufacturing sector Rs 1500 cr allocation to boost telephone connectivity Plan allocation for shipping up 37 pc Bill on cellular telephony in rural areas soon 40,000 more villages to be electrified under Rajiv Gandhi Gramin Vidhyutikaran Yojana 82 power projects are in various stages of implementation in the country to overcome power shortageWork on to identify a deep draft port in West BengalTo promote India as a semi-conductor hubIntroduction of a comprehensive bill on insurance in 2007Biotechnology will be the big focus in FY 06-07180 items to be de-reserved from SSI listThrust industries: textile and food processingRs 97 crore for upgrading IITsFII investment limit in stock markets will be raised from $1.75 billion to $2 billionNational e-governance plan to be approved shortlyTelephone connection on demand in rural areas in three yearsRaise in the aggregate investment of overseas investors from $1billion to $1 billion An investment protection fund under the aegis of SEBI would be set up Rs 100 crore special grant for Punjab Agricultural University Food fertilizer and petroleum industries to be under subsidiesDefence budget raised to Rs 89,000 crore in 2006-07 from Rs 83,000 crore last yearRs 37,458 crore would be capital expenditure in defenceThrust on farm sector positive for fertilizer companiesGovt urges consensus in Parliament on subsidies in fertiliser, petrol and foodAllocation to the states from the central pool up to RS 1,03,710 cr from Rs 94,402 cr Revenue deficit to be 2.1 per cent of GDP Fiscal deficit 3.8 per cent of GDP im 2006-07 After 20 years, gross fiscal deficit is less than gross budgetary deficit Plan expenditure has gone up to 30.6 per cent Gross tax revenues increases by 19.4 pc in 2004-05
Customs primary and non-primary steel and alloy products down to 7.5 pc from 10 pc Customs on mineral products down to 5 pc from 15 pc barring some items Customs duty on ores and concentrates reduced to 2 pc from 5 pc Customs duty on refractories reduced to 7.5 pc Customs duty on 10 anti-AIDS and cancer drugs down to 5 pcCustoms duty on life-saving drugs down to 5 pc from 15 pc Rs 300 cr as VAT compensation to statesCustomes duty on ferrous alloy down to 7.5 pc from 10 pcPeak customs duty reduced from 15 to 12.5 pcCustoms duty on naptha reduced to nilDuty on packaging machines reduced to 5 pcDuty on major bulk plastics down from 10 to 5 pc4 pc CVD on all importsCountervailing duty on most importsExcise duty on small cars reduced to 16 pcDuty on aerated drinks cut to 16 pcDuty on footwear priced between Rs 250 and Rs 750 down from 16 pc to 8 pcDuty on printing paper reduced to 12 pcImport duty on manmade fibre cut from 15 pc to 10 pcCustoms duty on packaging machines reduced from 15pc to 5 pc8 pc excise duty on packaged softwareExcise duty on compact fluorescent lamps cut from 16 pc to 8 pc Nil customs duty on set-top boxesDuty on instant food cut to 8 pcCess on domestically-produced petroleum crude raised from Rs 1800/t to Rs 2500/tEntire amount to be absorbed by oil producing companiesExcise duty on cigarettes increased by five per centMany tax exemptions in customs and excise to be removed barring SSI No change in rates of personal or corporate income taxesNo new taxes are being imposedOne-by-six scheme for filing of income tax returns abolished Excise duty on cigarettes up 5 pcMAT rate inc from 7.5 pc to 10 pcApril 1, 2010 date for introduction of GSTService tax raised to 12 pcBank Fds upto 5 yrs is included in 80-C reductionSamll cars ice cream get cheaperRs 10,000 tax exemption limit for pension fundsFDs in scheduled commercial banks with five year maturity will get tax exemption under Section 80C Rs 10,000 exemption limit for investment in pension funds under Section 80CCC removed These investments would be brought under Sec 80C subject to a ceiling of Rs 1 lakhMinimum alternate taxBanking cash transcation tax to continueCustoms duty on vanaspati raised to 8 pcConstituency allowances of MLAs to be treated for income tax purposesConstituency allowances of MPs to be treated for income tax purposesMore transactions to come under PAN Banking cash transaction tax introduced last year will continueFringe Benefit Tax modified Threshhold limits of FBT raisedFBT will remain as it is FBT is justified for ensuring horizontal equity
Tags: Union Budget, Highlights 
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