Rich to pay more, 10 percent surcharge on Income over one crore rupees, no change in Tax in Income Tax slab, 2000 rupees tax benefit to income upto five lakhs, higher allocation for social sector with 46 percent hike for rural development and 17 per cent in education, 15 percent allowance to new investments by companies are some of the highlights of the Budget for the next fiscal.
Presenting the Budget, the Finance Minister Mr. P.Chidambaram also announced ten thousand crore rupees more for the ambitious National Food Security. He said cheaper loans to farmers will continue and announced a 22 percent hike in the out lay for agriculture sector.
The Finance Minister said that 1000 crore rupees fund to be named as NIRBHAYA fund to boost safety of women and a separate women bank will be set up and duty concession will be extended to Aircraft maintenance industry. Mr. Chidambaram proposed excise exemption to hand made carpets, textile flooring of coir and jute and cheap loan for handloom sector. He said there will be no change on excise and peak customs duty.
The Finance Minister included Rickshaw pullers , Taxi Drivers, sanitation workers, rag pickers and mine workers in the health insurance scheme. The Finance Minister announced private FM Radio services to all cities with over one lakh population and concessions to new home buyers. He, however, added that selling and buying properties over fifty lakh rupees will cost more.
Mr. Chidambaram pegged fiscal deficit will be at 4.8 per cent. Turning to Indirect Taxes, he said duty on specified machinery for manufacture of leather and leather goods including footwear is to come down from 7.5 to five per cent.
Duty on set top boxes goes up from five to 10 per cent. Raw silk to cost more with customs duty going up from five to 15 per cent. Duty on imported luxury goods including high end motor vehicles, motor cycles and yachts is to go up from 75 to hundred per cent. On motor cycles with 800 CC engine capacity, the duty will increase from 60 to 75 per cent.
To redress the complaints of passengers because of increase in gold prices, duty free gold limit for male passengers increased to 50 thousand rupees and for females to one lakh rupees.
Announcing the excise duty concessions, the budget provides relief to readymade garment industry. Smokers are not spared as specific excise duty on cigarettes will go up by 18 per cent. The excise duty on sports utility vehicles is to go up from 27 to 30 per cent . Marble to cost more with higher duty of 60 rupees per square meter.
Silver manufactured from smelting zinc or lead will attract four per cent excise duty. Mobile phones will cost more. Six per cent higher duty is proposed for the sets costing more than two thousand rupees.
Branded Ayurveda, Unani and such medical systems will be cheaper.
A Voluntary Compliance Encouragement Scheme will be introduced. Defaulters may avail the scheme on truthful declaration of service tax dues since
1st October, 2007.
Health and Education for all remain the main priorities, the health sector will get an increased allocation of 24.3 per cent and education 17 per cent.
For the welfare programmes of Scheduled Castes and Scheduled Tribes children, the budget proposes an allocation of 41 thousand 561 crore rupees. The allocation for the programmes for the welfare of minorities has been increased by 12 per cent.
To bring green revolution to eastern India, the budget proposes one thousand crore rupees to increase rise production in Assam, Bihar, Chhattisgarh and West Bengal.
Integrated Child Development Programme is proposed to get 17 thousand 700 crore rupees.
100 districts are to be covered to remove maternal and child mal nutrition. Over 15 thousand crore rupees will be spent for safe drinking water and sanitation.
The budget proposes to increase allocation for defence to over two lakh three thousand crore rupees. It also proposes to expand private FM Radio Services to 294 more cities to cover all cities having more than one lakh population.
About 839 new FM Radio Channels will be auctioned.
A Bill on the Direct Tax Code will be brought before the House in this session. A consensus on goods and services tax is being evolved and in the meanwhile the budget proposes nine thousand crore rupees towards the first installment of the balance of Central Sales Tax compensation.
