Employment: five top employment opportunities in manufacturing sector, these include textiles, food processing, petroleum, chemicals and petro-chemicals, leather and automobiles; in services, tourism and software can offer large number of jobs.
Textiles: Rs.189 crore to be provided for Scheme for Integrated Textiles Parks (SITP), Jute Technology Mission to be launched; a National Jute Board to be established.
Handlooms: Cluster Development approach to continue with 100 clusters to be added at a cost of Rs.50 crore in 2006-07; yarn depots to be established; a 'handloom' mark to be launched; Petroleum, Chemicals and Petro-chemicals: a Task Force setup to facilitate development Small and Medium Enterprises:
Small and Medium Enterprises: 180 items identified for dereservation; to give impetus to lending by SIDBI, SMEs to be recognised in the services sector and small enterprises in services sector to be treated on par with small scale enterprises in manufacturing sector; support for SMEs; implementation to be in the PPP model.
Power generation on target for 11th Plan
Allocation of Rs 5000 crore for rural electrification
Rs 12,966 crore for highways
96.48% of Golden Quadrilateral completed
26.36% of East-West, North-South Corridor completed
Rs 380 crore for oil and gas exploration
New coal regulator to be appointed
Rs 1680 cr for IT Ministry
One lakh broadband centres to be set up in rural areas
All 30 integrated textile parts have been approved
Clasuter Approach for handloom has been a success
17 lakh weavers to be covered under insurance scheme
SIDBI to reduce guarantee fee
Education outlay increased by 20% at Rs 34400 crore
Mid-day meal is the largest such scheme in world
Mid-day meal scheme to start in all govt, govt-aided schools across India
Kasturba Gandhi Balika Vidayalaya has enrolled thousands of girls
410 new Kasturba Gandhi Balika Vidayalaya to be set up
New model school program to be started
New Navodaya Vidyalaya to be set up in 20 backward districts
New 1 lakh new scholarships to be given
New Nehru Yuva Kendras to be set up in all districts
16 central universities this year
3 new IITs in AP, Bihar, Rajasthan
2 Schools of Planning and Architecture in Bhopal and Vijaywada
Ministry of S&T will start a new scholarship scheme
100 cr to connect all knowledge centres via broadband to build national knowledge network
Health outlay increased by 15 per cent at Rs 16,543 crore
Rs 16,000 crore for National Rural Emplyoment Guarantee Act
National Rural Employment Guarantee Act to be extended to all districts
46,200 Asha workers have been trained
Anganwadi workers remuneration increased to Rs 1500
More than 300 district hospitals to be upgraded
Rs 12,050 crore for National Rural Health Mission
Rs 900 crore for combating AIDS
Rashtrya Health Bima Yojna to be launched in Delhi, Haryana, Rajasthan on April 1
Integrated Child Development Scheme allocation increased to Rs 6000 crore
Threshold exemption limit increased from 1,10,000 to 1,50,000
Women exemption threshold hiked from Rs 1,45,000 to 1,80,000
Senior citizens' exemption hiked from Rs 1,95,000 to 2,25,000
New tax slabs - 1.5 lakh to 3 lakh: 10%; 3 lakh to 5 lakh: 20%: 5 lakh and above: 30%
No change in corporate tax; no change in surcharge
Duty on two wheelers reduced from 16 to 12 per cent
Excise duty slashed to 8% on water purification items
Duty withdrawn on naptha for production of polymers
Short-term capital gains tax hiked to 15%
Duty on aerated drinks and small cars to be reduced to 16 per cent.
8 per cent duty to be imposed on packaged software sold over the counter; customised software and software packages downloaded from the internet to be exempt
India has one of the highest incidences of indirect tax on goods, where most of the manufactured products attract 16% excise duty and 12.5% VAT.
In Budget 2008-09, the excise duty on buses and chassis has been cut from 16% to 12%, on 2-wheeler and small cars, it has been cut from 16% to 12%. Meanwhile, the excise duty on some paper types has been cut from 12% to 10% and the excise duty on all Pharma good is down to 8% from the prevalent 16%. The FM also reduced excise duty on bulk cement to Rs 400/tonne.
There is no change in peak customs duty. Customs duty on steel scrap has been cut to 0% versus 5% and the customs duty on project imports has been cut to 5% versus 7.5%.
The customs duty on a few bulk drugs have been cut to 5% versus 10% while the duty on life saving drugs has been cut from 10% to 5%.
CENVAT has been reduced from 16% to 14% on all goods.
Customs exemptions will continue only for Naptha for fertilizers. The duty on crude/unrefined sulphur has been cut to 2% versus 5%.
Union Budget 2007 reduced peak rate for non-agricultural products from 12.5% to 10% and duty on chemicals and plastics from 12.5% to 7.5%.
The previous Budget had reduced peak rate for non-agricultural products from 12.5% to 10%. The duty on most chemicals and plastics was reduction from 12.5% to 7.5%. There was also a reduction in the general rate of import duty on medical equipment to 7.5%.
In the 2007 budget, The FM made PAN mandatory for all security transactions and the sole identification for all participants in the securities markets. He also made it mandatory for all high value transactions to be supported by PAN identification numbers.
In his Budget 2008-09 speech, the FM has proposed the launch of an excange traded Forex and a rate derivative market. He added that PAN would continue to be the sole identification in the securities market. He has also extended PAN requirements to all financial markets.
The FM has also asked states to help develop a National Securities Market. He added that differences in state duties and levies are hampering the securities market.
There is no change in peak customs duty. Customs duty on steel scrap has been cut to 0% versus 5% and the customs duty on project imports has been cut to 5% versus 7.5%.
The customs duty on a few bulk drugs have been cut to 5% versus 10% while the duty on life saving drugs has been cut from 10% to 5%.
CENVAT has been reduced from 16% to 14% on all goods.
Customs exemptions will continue only for Naptha for fertilizers. The duty on crude/unrefined sulphur has been cut to 2% versus 5%.
Union Budget 2007 reduced peak rate for non-agricultural products from 12.5% to 10% and duty on chemicals and plastics from 12.5% to 7.5%.
The previous Budget had reduced peak rate for non-agricultural products from 12.5% to 10%. The duty on most chemicals and plastics was reduction from 12.5% to 7.5%. There was also a reduction in the general rate of import duty on medical equipment to 7.5%.
The Finance Minister, P Chidambaram has left the Dividend Distribution Tax or DDT rates unchanged at 15%. While presenting the Union Budget before the Parliament today, he also announced that the Government would introduce commodities transaction tax, like the Securities Transaction Tax, or, STT.
The STT rates have also been left unchanged. Mr. Chidambaram said that the levy of STT would only on option premiums.