Indian budget highlights

Indian finance minister P Chidambaram presented the annual budget of $185 billion for 2008-09 in the Lok Sabha on February 29. However, corporate taxes will contribute a whopping 24 per cent of the total budget for 2008-09.
There is a remarkable increase in the plan expenditure to create assets. In the next fiscal year, the government will spend Rs 243,3860 million Indian Currency (IC) under the plan head against the revised Rs 207,5240 million IC in 2007-08.
The Indian finance minister in his budget speech today said that the fiscal position of the country had tremendously improved. "The revenue deficit for the current year will be 1.4 per cent against the budget estimate of 1.5 per cent and the fiscal deficit will be 3.1 per cent against the budget estimate of 3.3 per cent," he said.
As much as 43 per cent contributions to the state coffer come from income, excise and customs taxes, accounting respectively for 15, 13 and 15 per cent. Service and other taxes will contribute seven per cent.
All taxes together account for 74 per cent of India's total budget, with the rest coming from borrowings, non-tax, non-debt capital and other liabilities. The non-tax revenues make only 10 per cent of the total budget amount.
The states' share of taxes and duties claim 19 per cent of the budget funds, followed by defence that gets 11 per cent of the total funds.
In 2008-09, the government intends to receive Rs 602,9350 million IC from the taxes, while the capital receipts would generate Rs 147,9490 million IC compared to the revised Rs 184,2750 million IC in 2007-08.
Compared to the current fiscal year, there is a slight increase in non-plan expenditure in the next fiscal, estimated to be Rs 507,4980 million IC. It was Rs 501,8490 million IC in 2007-08. The non-plan expenditures take care of maintenance and other in-built expenses involving salaries and other costs.
Chidambaram said that revenue deficit in 2008-09 is estimated to be one per cent of the GDP, while the fiscal deficit of 2.5 per cent at Rs 133,2870 million IC.highlights
Highlights of Indian Budget 2007-08

The highlights
Over eight percent growth for 12 successive years
Maintaining growth with price stability
Maintaining supply of food main task in coming fiscal Concern
Inflationary trends Concern: Capital inflow exceeds current account deficit.
Farm growth disappointing at 2.6 percent
Gross budgetary support rises to Rs 380 billion
Education gets 20 percent more to Rs.344 billion from Rs.286.8 billion
Rural infrastructure scheme Bharat Nirman to get Rs.312.8 billion.
Midday meal scheme for schoolchildren to get Rs.80 billion
School enrolment scheme Sarva Shiksha Abhiyan to get Rs.131 billion
Government and Reserve Bank of India to manage capital inflow
16 new central universities 3 new Indian Institutes of Technology.
Government to raise additional resources worth Rs.100 billion
National Rural Employment Guarantee Scheme (NREGS) extended to all 596 rural districts
NREGS to get Rs.160 billion, more money will be provided on need
Jawaharlal Nehru Urban Renewal Mission to get Rs.68.66 billion, up from Rs.54.82 billion.
National health insurance for poor introduced
Northeast development to get Rs.14.55 billion
Scheduled Castes, Scheduled Tribes, minorities get special allocations Rs.5.5 billion for minority dominated districts HIV/AIDS prevention to get Rs.9.93 billion.
Complete loan waivers for farms up to 2 hectares
Weather based crop insurance scheme to continue Rs.400 million for special tea fund Rs.200 billion for irrigation.
Total plan spending will be Rs.2.4 trillion
Farm credit target at Rs.2.8 trillion Health spending to rise 15 percent.
Loan waiver to benefit 40 million farmers
Farm debt waiver scheme to cost Rs.600 billion Farm debt scheme to be completed by June 30.
Additional 10,000 MW power generation by March 2009
To create national fund for power transmission and distribution Foreign direct investment (FDI) in April-Dec 200 at $12.7 billion.
Banks to open 250 rural household accounts every year in rural branches
Banks to give loans to self-help groups for income-generating activities, social needs and debt swapping
National Bank for Agriculture and Rural Development (Nabard) to get Rs.50 billion to refinance loans
Small Industries Development Bank of India (Sidbi) to get Rs.40 billion to refinance loans National Housing Bank to get Rs.12 billion.
Foreign Exchange Derivatives Market to be set up
Coal regulator to be set up
Textile upgrading funding to get Rs.10.9 billion
National highways to get Rs.129.7 billion Rs.440 million to improve infrastructure at 22 Sainik schools.
Food subsidies at Rs.326.67 billion
Defence spending to rise 10 percent
PAN requirement for all financial markets
No income tax on annual earnings of Rs 150,000 Rs 4,000 minimum relief for all tax assesees
10 percent tax on income between Rs 150,000 and Rs 300,000
20 percent tax on income between Rs 300,000 and Rs 500,000
30 percent tax on income over Rs.500,000
No income tax for women with annual income up to Rs 180,000
No income tax for senior citizens with annual income up to Rs.225,000