India Budget 2008-09 Live

RBI to take measures to monitor capital inflows
Agricultural growth for whole year estimated at 2.6%
Services and manufacturing to drive growth
Confident of maintaining 8.8% average growth

Allow FDI in smaller units, simplify FDI norms
Seeks uniform excise duty for cars, SUVs at 16%
Cut excise duty on 2-wheelers to 12% from 16% at present
Only small cars presently subject to 16% excise duty
Excise duty on bigger cars & SUVs currently at 24%
Reduce customs duty on natural rubber, basic raw materials

Cut customs duty for 'gaming industry' from 10% to 7.5%
Budget expected to focus on farm sector & infrastructure
Peak import duty likely to be maintained at 10%.

Incentives for development of low cost airports
Increase investment in rural housing, irrigation
Increase allocation to power and rural power projects
Bullish on alternate energy sector
Extend tax benefits to UMPPs under 80-1A till 2017
Greater focus to be on agriculture & infrastructure
Tax exemptions on power infrastructure bonds
Issue Vidyut Vikas Patra as small savings instruments

Rupee appreciation affected exports of some sectors
Fresh capacity creation required in infrastructure
Need to develop mechanisms for infra financing
Agri/forestry/fishing to grow at 2.6% in FY'08 vs 3.8% (YoY)
Better targeting of food and fertilizer subsidies
Capital inflows expected to be robust in 2008


Cut in surcharge, corporate tax from current 10% to 5%


Allow housing finance companies to tap ECBs

Extend tax holiday to 10 years on oil & gas discoveries
Rupee appreciation continues to be a concern

Channelize domestic savings into power sector
Extend income tax benefits under Sec 80-1A beyond FY'10
Removal of tax on money borrowed from foreign lenders
Separate license for health insurance services

Capital inflows have spurted to 4% of GDP
Surge in capital inflow to continue in medium term
Need to address persistent institution weakness
Heightened urgency to augment and upgrade infrastructure
Need for comprehensive simple and clear regulations
Higher primary goods prices to drive inflation

Higher primary goods prices to drive inflation
Inflation expected to be above 4% for FY'08
Domestic savings & investment driving growth
Deceleration of growth spread across most sectors
Double digit growth will require additional reforms
Infrastructure constraints continue to impact growth
Possible rejig of IT slabs aimed at salaried individuals

Uncertainty over further cut in peak customs duty
Allocation under technology upgradation to be increased
Excise duty on man-made yarn to be reduced
Exempt life saving drugs from customs duty
Exempt life saving drugs from customs duty
Tax exemption on expenditure for clinical trials


Allocation to NRHM increased to Rs 12,050 cr
To raise education spend by 20% to Rs 34,400 cr
Health allocation increased by 15% Positive for pharma
Spending up 20% To benefit, NIIT, Educomp, Aptech
More institutions for higher education in 11th plan
Mid-day meal scheme to cover 13.9 cr students
To raise education spend by 20% to Rs 34,400 cr
Gross budgetary support at Rs 2.28 tn
National rural employment guarantee scheme a success

Only small cars presently subject to 16% excise duty
Excise duty on bigger cars & SUVs currently at 24%
Reduce customs duty on natural rubber, basic raw materials
Exemption from basic customs duty on safety related items
Duty free import of goods required for Research & Development
Cut excise duty on finished steel pdts from 16% to 8%
Scrap 5% customs duty on import of scrap metal

BPO companies to be brought on par with IT services for FBT
Cut customs duty for 'gaming industry' from 10% to 7.5%
Budget expected to focus on farm sector & infrastructure
Peak import duty likely to be maintained at 10%.
Cut in surcharge, corporate tax from current 10% to 5%
Allow housing finance companies to tap ECBs
Extend tax holiday to 10 years on oil & gas discoveries

Candidates from minorities in central paramilitary forces
Total allocation of Rs 3966 cr for SCs/STs/OBCs schemes
Total allocation for North East region at Rs 16447 cr
Increased allocation of govt share towards health insurance

FY'09 allocation for AIDS programme at Rs 990 cr
To spend Rs 1042 cr in FY'09 to eradicate polio
Allocation to NRHM increased to Rs 12,050 cr
To raise education spend by 20% to Rs 34,400 cr
Health allocation increased by 15% Positive for pharma
Spending up 20% To benefit, NIIT, Educomp, Aptech
More institutions for higher education in 11th plan
Mid-day meal scheme to cover 13.9 cr students
To raise education spend by 20% to Rs 34,400 cr

To raise education spend by 20% to Rs 34,400 cr
Gross budgetary support at Rs 2.28 tn
National rural employment guarantee scheme a success
Agricultural credit to reach 2.4 lakh cr by year end
RBI to take measures to monitor capital inflows
Agricultural growth for whole year estimated at 2.6%
Services and manufacturing to drive growth
Confident of maintaining 8.8% average growth
Q3 manufacturing growth at 9.3% vs 11.3%


Agricultural growth for whole year estimated at 2.6%
Services and manufacturing to drive growth
Confident of maintaining 8.8% average growth
Q3 manufacturing growth at 9.3% vs 11.3%
GDP at 8.4% Manufacturing at 9.3% Farm growth at 3.2%
Allow FDI in smaller units, simplify FDI norms
Seeks uniform excise duty for cars, SUVs at 16%
Cut excise duty on 2-wheelers to 12% from 16% at present


• Farmers' debt to be waived!
• 16 central universities to be opened in 2008-09
• Bharat Nirman: Fund to be raised to Rs 31,280 cr
• Keeping inflation under check is primary: Govt
• Services, manufacturing sectors grew by 10.7%
• GDP growth in Oct-Dec quarter slips to 8.4%
• 3 IITs to be set up in AP, Bihar and Rajasthan
• 20% per cent hike in education budget


Lona waiver

Commercial banks advised to have 250 rural accounts every year.
Completion rate of Golden quadrilateral project is 98.3 pct.
Rs 12,970 cr allocated for National Highways.
Govt to provide Rs 303 cr as debt support to PSUs.
Loan waiver will discourage fresh lending.
Rescheduled agricultural loans are also eligible for waivers.
At least 4 cr farmers to be benefited by debt waiver.
The waiver amounts to 4% of total loans, is worth Rs 60,000 cr and is to be completed by June 2008.
Waiver of loans for small farmers holding up to 1-2 hectares.
All loans for farmers due up to 31 Mar 2007, have been waived.
Rs 75 cr for mobile soil-testing labs in 260 districts.
Banks to disperse agricultural credit of Rs 2,80,000 cr.
Rs 16,202 cr for schemes with 30% women representation.
Urban infrastucture spending raised to Rs 6,870 cr.

P Chidambaram concludes his Budget speech and the House is adjourned till the 3rd of March.
No change in coporate income tax rate. Short term Capital Gains Tax increased.
Income Tax exemption rates raised from 1.1 lakhs to 1.5 lakhs across the board. Exemption limit for women raised to 1.8 lakhs.
Prices of non-filter cigarettes to go up.
Excise duty cut on wireless data cards.
Excise on small cars down to 14%.
Reduction of excise duties on anti-AIDS drugs.
Duties on convergence products slashed to 5%.
Full exemption of duties on Set Top boxes .
Duties reduced on steel melting scrap, aluminum scrap .
Cut in duties on sports goods from 7.5 % to 5%.
Revenue Deficit will be 1.4 % against the Budget estimate of 1.5% .
6th Pay Commision will meet employee expectations.
Rs 624 cr allocated for Commonwealth Games.
Defence allocation raised Rs 1,05,600 cr.
Rs 5,000 cr fund for enhanced re-finance operations.