Chidambaram began the Budget speech with a series of sops to boost agriculture and social sectors. The defence allotment, too, has gone up by Rs 6,000 crore and now stands at a record Rs 89,000 crore.
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 05
Agricultural growth up by 2.1 pc
AIM 10 pc economic growth
Non-food credit growing by 25 pc
Gross capital formation up 30 pc in FY 05
90 pc golden quadrilateral completed by 90 pc in June 2006
GDP growth target for tenth plan at 8 pc
11, 7000 spent on rural employment scheme
Govt determined to take growth rate to 10 per cent
Manufacturing sector to grow at 9.4 per cent in FY 06 07
Highway scheme progressing at 4.4 km per day
96 per cent of GQ to end by June 2006
Food grain output this year at 209.5 mt
8.7 lakh rural houses constructed by bharat nirman
Inflation at 4.02%
5083MW more power to be added in 2006
10,366 villages electrified this year
Rs 11,700 cr to be spent on rural employment
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Govt's aim is to ensure monetary stability and managing external debt
Education 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 sanitation
Hyderabad Metro rail to be considered
Old age pension (above 75 years) - Rs 200 per month
Five lakh additional class rooms to be constructed
1.5 lakh additional teachers to be appointed
Allocation for education increased by 31.5 pc to Rs 24,150 crore
Allocation for healthcare raised by 22 pc to Rs 12, 546 crore
Destitute pensioner to get Rs 400 per month with the help of states
Rs 10,041 cr for Sarva Shikhsha Abhiyan
Massive polio immunisation programme from 2007
54 pc hike for Bharat Nirmal Programme at Rs 18,696 crore
Incentive for girl child who passes 8th standard - Rs 3000 award after she turns 18
Gender budgeting on in 32 ministries
Rs 24,115 crore for education
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Rs 4680 cr outlay for drinking water
Total budget for Northeast will be Rs 12,041 crore
Rs 1,350 crore for the ministry of NE development
Rs 16.4 cr for National Minorities Development Corporation
Rs 8207 crore for rural health spending
LPG included in list of declared goods under CST Act
Rs 4,680 crore for Rajiv Gandhi water drinking plan
Rs 16,000 cr allocation for PSUs
Expert body to be set up for jems and jewelery sector
Farmers to receive short term credit at 7 per cent
Gross budgetary support for Plan expenditure up 20.4 pc at Rs 1,74,725 crore
Special tea fund of Rs 100 cr for Assam,TN,Kerala, Uttaranchal
Stress on development of micro-finance sector
Rs 4,595 cr for urban renewal mission
Programme for reconstruction of calamity-hit areas.
Rs 28,737 crore allocated for gender budgeting
Allocation for national Urdu education programme increased to Rs 13 crore
Rs 10, 000 cr allocation for rural infrastructure
Special schemes for STs and SCs for their development.
India to be made manufacturing hub for textiles, steel
India to be made manufacturing hub for metals and petro products
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Maulana Azad Educational Foundation corpus for minority welfare doubled to Rs
200 crore
New towns to be established on specific themes
Farm credit to benefit Allahabad Bank and SBI
Govt aims to double farm credit in three yrs
More infrastructure to benefit cement industry
Outcome of Budget to be tabled on March 17
1,000 schools for SCs, STs, OBCs and minorities girls
Foreign tourist arrival 3.92 million in 2005
Agricultural credit proposed to be increased to RS 175,000 crore
50 lakh additional farmers to be covered
Agricultural insurance scheme to continue
Central horticulture institute in Nagaland
FDI flow put at $4 billion up to November, 2005
Budgetary 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 2005
Rs 4,481 crore allocated for improving 20,000 water bodies
National fisheries development board to be set up
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82 power projects under construction
4 new hotel management institutes in Chattisgargh, Haryana, Jharkhand and Uttaranchal.
Five ultra-mega power projects before Dec 2006
Rs 597 cr for non-conventional resources
Tourism plan spending at 830 cr
National Highway Authority of India to be restructured
2 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
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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 shortage
Work on to identify a deep draft port in West Bengal
To promote India as a semi-conductor hub
Introduction of a comprehensive bill on insurance in 2007
Biotechnology will be the big focus in FY 06-07
180 items to be de-reserved from SSI list
Thrust industries: textile and food processing
Rs 97 crore for upgrading IITs
FII investment limit in stock markets will be raised from $1.75 billion to $2 billion
National e-governance plan to be approved shortly
Telephone connection on demand in rural areas in three years
Raise in the aggregate investment of overseas investors from $1billion to $1 billion
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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 subsidies
Defence budget raised to Rs 89,000 crore in 2006-07 from Rs 83,000 crore last year
Rs 37,458 crore would be capital expenditure in defence
Thrust on farm sector positive for fertilizer companies
Govt urges consensus in Parliament on subsidies in fertiliser, petrol and food
Allocation 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 pc
Customs duty on life-saving drugs down to 5 pc from 15 pc
Rs 300 cr as VAT compensation to states
Customes duty on ferrous alloy down to 7.5 pc from 10 pc
Peak customs duty reduced from 15 to 12.5 pc
Customs duty on naptha reduced to nil
Duty on packaging machines reduced to 5 pc
Duty on major bulk plastics down from 10 to 5 pc
4 pc CVD on all imports
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Countervailing duty on most imports
Excise duty on small cars reduced to 16 pc
Duty on aerated drinks cut to 16 pc
Duty on footwear priced between Rs 250 and Rs 750 down from 16 pc to 8 pc
Duty on printing paper reduced to 12 pc
Import duty on manmade fibre cut from 15 pc to 10 pc
Customs duty on packaging machines reduced from 15pc to 5 pc
8 pc excise duty on packaged software
Excise duty on compact fluorescent lamps cut from 16 pc to 8 pc
Nil customs duty on set-top boxes
Duty on instant food cut to 8 pc
Cess on domestically-produced petroleum crude raised from Rs 1800/t to Rs 2500/t
Entire amount to be absorbed by oil producing companies
Excise duty on cigarettes increased by five per cent
Many tax exemptions in customs and excise to be removed barring SSI
No change in rates of personal or corporate income taxes
No new taxes are being imposed
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One-by-six scheme for filing of income tax returns abolished
Excise duty on cigarettes up 5 pc
MAT rate inc from 7.5 pc to 10 pc
April 1, 2010 date for introduction of GST
Service tax raised to 12 pc
Bank Fds upto 5 yrs is included in 80-C reduction
Samll cars ice cream get cheaper
Rs 10,000 tax exemption limit for pension funds
FDs 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 lakh
Minimum alternate tax
Banking cash transcation tax to continue
Customs duty on vanaspati raised to 8 pc
Constituency allowances of MLAs to be treated for income tax purposes
Constituency allowances of MPs to be treated for income tax purposes
More transactions to come under PAN
Banking cash transaction tax introduced last year will continue
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