| Financial Bill, 2006-2007...Government of
| |
| | and the state government to provide
|
| IndiaThe following are the proposals
| |
| | matching contribution.20.Rajiv Gandhi
|
| announced by Union Finance Minister of
| |
| | drinking water program to get Rs 4680
|
| India, in the Parliament on 28th Feb.
| |
| | crore (Rs 46.8 billion) next year as
|
| 2006.
| |
| | against Rs 3645 crore this
|
| Changes in Fringe Benefit Tax...as
| |
| | year.21.National Health Mission
|
| compare to Financial Bill,
| |
| | allocation increased to Rs 8207 crore (Rs
|
| 2005-2006Fringe Benefit Tax introduced
| |
| | 82.07 billion) in next fiscal from Rs
|
| last year as a revenue raising measure;
| |
| | 6,553 crore (Rs 65.53 billion) this
|
| justified on the principles of horizontal
| |
| | year.22.Government plans to eradicate
|
| equity and vertical equity; on review,
| |
| | polio by December 2007, Chidambaram
|
| following changes being proposed:B)Value
| |
| | said.23.The Finance Minister said that Rs
|
| the benefit in the form of 'tour and
| |
| | 14,300 crore (Rs 143 billion) for rural
|
| travel' at 5 per cent instead of 20 per
| |
| | employment program would be scheduled
|
| cent;C)Value benefit in the form of
| |
| | during 2006-07, out of which Rs 11,300
|
| 'hospitality' and 'use of hotel boarding
| |
| | crore (Rs 113 billion) for NREG program
|
| and lodging facilities', in case of
| |
| | and Rs 3,000 crore (Rs 30 billion) for
|
| airline companies and shipping industry,
| |
| | SGRY.24.New towns to be established on
|
| at 5 per cent instead of 20 per
| |
| | specific themes.25.For gender budgeting
|
| cent;D)Exclude expenses on free samples
| |
| | under various heads, Rs 28,737 crore (Rs
|
| of medicines and of medical equipment
| |
| | 297.37 billion) has been
|
| distributed to doctors;E)Exclude expenses
| |
| | allocated.26.Special schemes to be
|
| incurred on brand ambassador and
| |
| | announced for STs and SCs for their
|
| celebrity endorsement; andF)Prescribe a
| |
| | development.27.India to be made a
|
| threshold of Rs 100,000 under section
| |
| | manufacturing hub for textiles, steel,
|
| 115WB(1)(c) so that only a contribution
| |
| | metals and petroleum products.28.Maulana
|
| by an employer to an approved
| |
| | Azad Educational Foundation corpus
|
| superannuation fund in excess of Rs
| |
| | doubled to Rs 200 crore (Rs 2 billion)
|
| 100,000 per year per employee to attract
| |
| | for greater financial support to
|
| FBT.G)Under section 80C there is already
| |
| | organizations involved in minority
|
| exemption up to Rs 100,000 for
| |
| | welfare.29.Allocation for national Urdu
|
| contribution by an employee to an
| |
| | education program increased to Rs 13
|
| approved superannuation fund.H)Effective
| |
| | crore (Rs 130 million) from Rs 10 crore
|
| FBT rate on hospitality reduced to 1.68%
| |
| | (Rs 100 million) this year.30.One
|
| from 6.73%.I)Free sample exclusion from
| |
| | thousand schools for girls of SCs, STs,
|
| FBT to benefit pharma companies.Proposals
| |
| | OBCs and minorities to be set up.31.A
|
| on Direct (Income) -TaxA)No changes in
| |
| | girl child will get Rs 3,000 deposited in
|
| the rates of personal income tax, which
| |
| | a bank account after she enrolls for
|
| will remain as they are currently.B)No
| |
| | eighth class examination and the amount
|
| change in corporate income tax rate.C)No
| |
| | would be given when she becomes a
|
| new taxes on income.D)One by six scheme
| |
| | major.32.Separate window for tenant
|
| for filing of income tax returns has been
| |
| | farmers to ensure loan share. Agri credit
|
| abolished.E)Services tax net to be
| |
| | proposed to be increased to Rs 175,000
|
| increased which include ATM operations,
| |
| | crore (Rs 1750 billion) next year as
|
| maintenance and management, share
| |
| | against Rs 1,41,500 crore (Rs 1415
|
| transfers, registration, international
| |
| | billion), covering additional 50 lakh
|
| air travel excluding economy class,
| |
| | farmers.33.Farmers to receive short term
|
| sponsorship other sports events,
| |
| | credit at 7 per cent.34.Budgetary loan
|
| auctioneers, ship management and travel
| |
| | for PSEs has been fixed at Rs 16901 crore
|
| on cruise.F)25 per cent across the board
| |
| | (Rs 169.01 billion) including Rs 2791
|
| increase in securities transaction
| |
| | crore ( Rs 27.91 billion) for
|
| tax.G)Cooperative lending banks and rural
| |
| | Railways.35.Ninety-six per cent of the
|
| development banks to be exempted from
| |
| | golden quadrilateral would be completed
|
| taxes under Section 80(B).H)Fixed
| |
| | by June 2006 and the corridor would be
|
| deposits in scheduled commercial banks
| |
| | completed by the end of 2008.36.Six lakh
|
| with at least five year maturity will get
| |
| | hectares of irrigation potential expected
|
| tax exemption for savings under section
| |
| | to be created this year. Rupees nine
|
| 80C of Income Tax Act.I)The Rs 10,000
| |
| | hundred and forty-four crore (Rs 9.44
|
| exemption limit for investment in pension
| |
| | billion) released this year under the
|
| funds under Section 80CCC has been
| |
| | Accelerated Irrigated Benefit
|
| removed but these investments would be
| |
| | Program.37.Allocation on education
|
| brought under Sec.80C subject to a
| |
| | increased by 31.5 per cent to over Rs
|
| ceiling of Rs 1 lakh.J)Donations to only
| |
| | 24,150 crore (Rs 241.5 billion) and that
|
| religious institutions will be exempted
| |
| | for healthcare raised by 22 per cent to
|
| from tax.K)Minimum alternative tax on
| |
| | Rs 12, 546 crore (Rs 125.46
|
| corporates increased from 7.5 per cent to
| |
| | billion).38.Entire Rs 1,100 crore (Rs 11
|
| 10 per cent.L)More transactions to come
| |
| | billion) for rural electrification
|
| under PAN.M)Constituency allowances of
| |
| | released this year and 10,366 villages to
|
| MLAs to be treated as constituency
| |
| | be electrified.39.Five lakh additional
|
| allowances of MPs for income tax
| |
| | class rooms to be constructed and 150,000
|
| purposes.N)Banking cash transaction tax
| |
| | additional teachers to be
|
| introduced last year will
| |
| | appointed.40.Larger budgetary support
|
| continue.O)Fringe Benefit Tax modified.
| |
| | will be given to Bharat Nirmal Programme:
|
| Threshold limits raised, but FBT will
| |
| | Rs 18696 crore (Rs 186.96 billion) to be
|
| remain as it is justified for ensuring
| |
| | given which represents a hike of 54 per
|
| horizontal equity.P)Minimum alternative
| |
| | cent.41.Total budget for north-eastern
|
| tax on corporates increased from 7.5 per
| |
| | region will be Rs 12,041 crore (Rs
|
| cent to 10 per cent.Proposals on Indirect
| |
| | 120.41billion) including Rs 1,350 crore
|
| -TaxA)Excise duty on cigarettes increased
| |
| | (Rs 13.5 billion) for the ministry of
|
| by five per cent.B)Many tax exemptions in
| |
| | north-east development.42.A massive
|
| customs and excise to be removed barring
| |
| | immunization program will be launched to
|
| SSI.C)April 1,2010 has been fixed as the
| |
| | eradicate polio completely by
|
| date for introduction of goods and
| |
| | 2007.43.Allocation for mid-day meal
|
| services tax.D)Peak customs duty for non
| |
| | scheme to be enhanced to Rs 4813 crore
|
| agriculture products reduced from 15 to
| |
| | (Rs 48.13 billion) next fiscal as against
|
| 12.5 per cent.E)Customs Duty on primary
| |
| | Rs 3014 crore (Rs 30.14 billion) this
|
| and non-primary steel and alloy products
| |
| | year.44.Gross budgetary support for
|
| reduced from 10 per cent to 7.5 per
| |
| | annual plan expenditure has been raised
|
| cent.F)Duties on mineral products reduced
| |
| | to Rs 1,74,725 crore (Rs 1747.25 billion)
|
| from 15 to five per cent, barring some
| |
| | for 2006-07 as against Rs 1,43,497 crore
|
| items.G)Duty on ores and concentrates
| |
| | (Rs 1434.97 billion), an increase of 20.4
|
| reduced from five to two per cent.H)Duty
| |
| | per cent.45.Likewise for the central plan
|
| on refractories reduced to 7.5 per
| |
| | increased to Rs 1,31,285 crore (Rs
|
| cent.I)Customs duty reduced on ten
| |
| | 1312.85 billion) next fiscal.46.Eight
|
| anti-AIDS drugs and 14 anti-cancer drugs
| |
| | flagship program of the UPA including
|
| to five per cent.J)Customs duty on
| |
| | Sarva Shiksha Abhiyan and Mid-Day Meal
|
| packaging machines reduced from 15 per
| |
| | Scheme will get a total allocation of Rs
|
| cent to five per cent.K)Four per cent
| |
| | 60,015 crore (Rs 600.15 billion) in
|
| countervailing duty on all imports to be
| |
| | 2006-07 as against Rs 34,927 crore (Rs
|
| levied with few exceptions.L)Customs duty
| |
| | 349.27 billion) in the current
|
| on bulk plastics reduced from 10 per cent
| |
| | year.47.Metro in Hyderabad to be
|
| to five per cent.M)To protect vanaspati
| |
| | considered.48.Old age pension to be
|
| industry, customs duty to be increased to
| |
| | increased to Rs 200 per month for above
|
| 80 per cent on its imports.N)Import duty
| |
| | 75 years of age.49.Allocation for it put
|
| on all man made fiber has been reduced
| |
| | at Rs 1430 crore (Rs 14.3 billion) from
|
| from 15 per cent to 10 per cent.O)Excise
| |
| | the Centre and the state government to
|
| duties on man-made fibers and filament
| |
| | provide matching contribution.50.Rajiv
|
| yarn reduced from 16 per cent to eight 8
| |
| | Gandhi drinking water programme to get Rs
|
| per cent, since it provides growth and
| |
| | 4680 crore (Rs 46.8 billion) next year as
|
| employment.P)Eight per cent special
| |
| | against Rs 3645 crore this
|
| additional duty on aerated soft drinks
| |
| | year.51.National Health Mission
|
| and small cars withdrawn and they will
| |
| | allocation increased to Rs 8207 crore (Rs
|
| attract only 16 per cent CENVAT excise
| |
| | 82.07 billion) in next fiscal from Rs
|
| duty instead of 24 per cent
| |
| | 6,553 crore (Rs 65.53 billion) this
|
| earlier.Q)Reduction of duty on footwear
| |
| | year.52.Government plans to eradicate
|
| priced between Rs 250 and Rs 750 from 16
| |
| | polio by December 2007, Chidambaram
|
| per cent to eight per cent.R)Duty on
| |
| | said.53.The Finance Minister said that Rs
|
| specialized writing paper reduced form 16
| |
| | 14,300 crore (Rs 143 billion) for rural
|
| to 12 per cent.S)Excise duty on compact
| |
| | employment programme would be scheduled
|
| fluorescent lamps reduced from 16 to
| |
| | during 2006-07, out of which Rs 11,300
|
| eight per cent.T)Cess on domestically
| |
| | crore (Rs 113 billion) for NREG programme
|
| produced petroleum crude has been raised
| |
| | and Rs 3,000 crore (Rs 30 billion) for
|
| from Rs.1800 per tonne to Rs.2500 per
| |
| | SGRY.54.New towns to be established on
|
| tonne but the entire amount to be
| |
| | specific themes.55.For gender budgeting
|
| absorbed by oil producing companiesOther
| |
| | under various heads, Rs 28,737 crore (Rs
|
| Highlights of General Budgets...Others
| |
| | 297.37 billion) has been
|
| Proposals1.The defence budget raised to
| |
| | allocated.56.Special schemes to be
|
| Rs 89,000 crore (Rs 890 billion) in
| |
| | announced for STs and SCs for their
|
| 2006-07 from Rs 83,000 crore (Rs 830
| |
| | development.57.India to be made a
|
| billion) in the current year. Of this Rs
| |
| | manufacturing hub for textiles, steel,
|
| 37,458 crore (Rs 374.58 billion) would be
| |
| | metals and petroleum products.58.Maulana
|
| capital expenditure.2.Rs 100 crore
| |
| | Azad Educational Foundation corpus
|
| special grant for Punjab Agricultural
| |
| | doubled to Rs 200 crore (Rs 2 billion)
|
| University as a centre of excellence for
| |
| | for greater financial support to
|
| its commendable work in agricultural
| |
| | organizations involved in minority
|
| research.3.500 ITIs to be upgraded in
| |
| | welfare.59.Allocation for national Urdu
|
| five years. Work has already started in
| |
| | education programme increased to Rs 13
|
| 100 ITIs and would be taken up in the
| |
| | crore (Rs 130 million) from Rs 10 crore
|
| remaining 400 institutes soon. Rs 97
| |
| | (Rs 100 million) this year.60.One
|
| crore (Rs 970 million) allocated in
| |
| | thousand schools for girls of SCs, STs,
|
| 2006-07.4.Special assistance of Rs 848
| |
| | OBCs and minorities to be set up.61.A
|
| crore (Rs 8.48 billion) for Jammu and
| |
| | girl child will get Rs 3,000 deposited in
|
| Kashmir for its reconstruction fund,
| |
| | a bank account after she enrolls for
|
| including Rs 230 crore (Rs 2.30 billion)
| |
| | eighth class examination and the amount
|
| for Baglihar project. This will be in
| |
| | would be given when she becomes a
|
| addition to 2006-07 state plan of Rs
| |
| | major.62.Separate window for tenant
|
| 2,300 crore (Rs 23 billion).5.Rs 10 crore
| |
| | farmers to ensure loan share. Agri credit
|
| (Rs 100 million) allocated for
| |
| | proposed to be increased to Rs 175,000
|
| preparatory work for celebrating the
| |
| | crore (Rs 1750 billion) next year as
|
| 150th anniversary of the First War of
| |
| | against Rs 1,41,500 crore (Rs 1415
|
| Independence of 1857 in a befitting
| |
| | billion), covering additional 50 lakh
|
| manner.6.To safeguard old art forms,
| |
| | farmers.63.Farmers to receive short term
|
| Vedic chanting and Ram Lila have been
| |
| | credit at 7 per cent.64.Budgetary loan
|
| declared UNESCO heritage and will be
| |
| | for PSEs has been fixed at Rs 16901 crore
|
| granted Rs 5 crore (Rs 50
| |
| | (Rs 169.01 billion) including Rs 2791
|
| million).7.Comprehensive Insurance
| |
| | crore ( Rs 27.91 billion) for
|
| Regulatory and Development Authority bill
| |
| | Railways.What they have to say about the
|
| to be introduced in 2006-07 incorporating
| |
| | Financial Bill, 2006-2007Saroj K Poddar,
|
| the recommendations of K P Narasimhan
| |
| | President, FICCI: The most significant
|
| Committee on insurance sector revamp. The
| |
| | points in the Budget are the enhanced
|
| committee has already submitted its
| |
| | allocations for infrastructure like
|
| report to government and IRDA is studying
| |
| | roads. I am sure this will drive growth.
|
| its recommendations.8.An Investors
| |
| | We are also glad that Finance Minister P
|
| Protection Fund will be set up and funded
| |
| | Chidambaram has announced a series of
|
| by fines and penalties to safeguard the
| |
| | incentives in the agriculture sector. He
|
| interests of retail investors.9.FII
| |
| | has made good allocation for agriculture.
|
| investment limit in stock markets will be
| |
| | This will increase agricultural output
|
| raised from $1.75 billion to $2 billion
| |
| | and it will in turn help develop the
|
| to deepen, strengthen and broaden the
| |
| | rural areas.One area of concern in the
|
| market.10.Raise in the aggregate
| |
| | Budget is power generation. The finance
|
| investment of overseas investors from $1
| |
| | minister has now announced five new power
|
| billion to $2 billion is proposed.11.An
| |
| | projects, and we hope these new projects
|
| investment protection fund under the
| |
| | will accelerate growth in the industrial
|
| aegis of SEBI would be set up.12.Rs 50 cr
| |
| | sector. But our concern is whether the
|
| (Rs 500 million) for Mumbai, Kolkata,
| |
| | power projects will be executed on
|
| Chennai varsities.13.Eighty two power
| |
| | time.It is also great that Chidambaram
|
| projects are in various stages of
| |
| | has not touched income tax rates. I
|
| implementation in the country to overcome
| |
| | believe reducing the excise tax rates
|
| power shortage. This when completed in 1
| |
| | will lead to more manufacturing. The
|
| to 3 years will generate 33,000 mws of
| |
| | finance minister's idea to introduce
|
| power in PSUs and 6500 mws in private
| |
| | goods and services tax by 2010 is a good
|
| sector. Of this, 15,000 mw of power
| |
| | move forward.R Seshasayee, Vice
|
| generation is to be installed by March
| |
| | President, CII: I feel overall the Budget
|
| 2007.14.Five mega power projects of Rs
| |
| | is good. The good news is that we must
|
| 4000 crore (Rs 40 billion) each is to be
| |
| | celebrate the tax-GDP ratio of 10 per
|
| set up for which clearance is to be given
| |
| | cent. It proves our economy has arrived.
|
| by March 31, 2006. Of this, one each will
| |
| | The disappointing factor is the
|
| come in Chhattisgarh and MP. The
| |
| | continuation of bank withdrawal tax.
|
| remaining three will be in coastal areas
| |
| | Another good thing about the Budget is
|
| of Maharashtra, Karnataka and
| |
| | that it continues to put emphasis on
|
| Gujarat.15.NHAI to be reconstituted to
| |
| | education.
|
| make it more effective.16.A new deep
| |
| | The overall approach is good for economy
|
| draft port to be set up in West Bengal. A
| |
| | and country if we continue to pay more
|
| study is to be conducted.17.The National
| |
| | attention on education.The above
|
| Institute of Port Management in Chennai
| |
| | mentioned proposals are as presented by
|
| to be renamed as National Maritime
| |
| | Union Finance Minister of India Mr. P.
|
| Academy and converted into a Central
| |
| | Chidambaram in Parliament on 28th Feb.
|
| University with branches in Mumbai,
| |
| | 2006. These proposals are debatable and
|
| Viskhapatnam and Kolkata.18.Old age
| |
| | subject to change.Compiled and prepared
|
| pension to be increased to Rs 200 per
| |
| | by: Sanjeev Sharma (Himachali)
|
| month for above 75 years of
| |
| | Chandigarh-India
|
| age.19.Allocation for it put at Rs 1430
| |
| | (Mobile: +91-9876328841)
|
| crore (Rs 14.3 billion) from the Centre
| |
| | (E-mail: ; sanjeev.
|
