Budget 2007 08
Download
1 / 35

Budget 2007-08 - PowerPoint PPT Presentation


  • 104 Views
  • Uploaded on

Budget 2007-08. Shubhashis Gangopadhyay India Development Foundation (March 7, 2007) Prepared for the joint discussion with ICRIER, NCAER and NIPFP; Jacaranda Hall, IHC. The Document. Annual book-keeping Policy statement Tax implications Sops, exemptions and largesse. The Basics.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Budget 2007-08' - tatiana-hopkins


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Budget 2007 08
Budget 2007-08

Shubhashis Gangopadhyay

India Development Foundation

(March 7, 2007)

Prepared for the joint discussion with ICRIER, NCAER and NIPFP; Jacaranda Hall, IHC


The document
The Document

  • Annual book-keeping

  • Policy statement

  • Tax implications

  • Sops, exemptions and largesse


The basics
The Basics

  • Receipts and expenditure

  • Revenue deficit is down (2.0 to 1.5)

  • Fiscal deficit is down (3.7 to 3.3)

  • Capital versus revenue expenditure





Macro versus micro
Macro versus Micro

  • Overall deficit targets are being met

  • Composition of expenditure a bit suspect


Setting
Setting

  • Start of the plan period

  • Continuity towards long term goals

  • CMP

  • Inflation and elections





Inference
Inference

  • NREG disbursement raises local food prices

  • But rural wages have been increasing

    Real wage rise small but positive

  • Agriculture is highly fragmented

    Differing prices in adjoining states



Hiv aids
HIV/AIDS

  • NACP III to begin in 2007 -2008

  • Budget allotted for 2007-2008 is 969 crores

  • Steps by the government to destabilize HIV/AIDS by keeping the prevalence to < 1per cent in the population

  • Focus on high risk groups in all states

  • Access to condoms

  • Universal screening of blood and safe blood

  • Hospitals to prevent mother to child transmission of HIV/AIDS

  • To follow protocol for paediatric dosage developed by Indian doctors


Budget 2007 08
ICDS

  • Budget increased from INR 4087 crore to INR 7061 crore for 2007-2008

  • 173 new ICDS projects

    1,07274 anganwaadi centres

    25,961 mini anganwaadi centres

  • Government committed to cover all habitations and settlements by ICDS during the 11th plan


National rural health mission 2005 12
National Rural Health Mission (2005-12)

  • Decentralisation of health planning and management – Village Health Plan/District health plan – all districts will be ready with District health plans by March 2007

  • Integration with programmes on health determinants (nutrition,sanitation etc.)

  • Recruitment of ASHAs (Accredited Social Health Activists) – 320,000 recruited and 200,000 undergone orientation training

  • Mainstreaming of AYUSH (Ayurveda,Yoga and Naturopathy, Unani, Siddha and Homeopathy) into the public health system – budget increased by 26 percent

  • Integration of vertical health and family welfare programmes and funds (e.g. Polio – allocated 1290 crores)


Medical equipment and drugs
Medical Equipment and Drugs

  • General rate of import duty on medical equipment reduced to 7.5 per cent (equipment are taxed at 12.5 per cent at present with a concessional duty of 5 per cent on specified equipment)

  • Duty on 15 specified machinery in pharmaceutical and biotechnology sector reduced from 7.5 percent to 5 percent

  • Duty on most chemicals and plastics reduced from 12.5 percent to 7.5 percent


Clinical trials
Clinical Trials

  • Exempted from service tax

    Advantages:

    Disadvantages:



Primary education focus
Primary Education Focus

  • SSA allocation increased by 35%

  • Mid-day meal scheme to cover upper primary

  • Teacher training boost

    • allocation almost tripled to Rs. 450 crores

    • 200,000 teachers to be added

  • Classrooms to increase – by 500,000


School education
School Education

Problem – dropout rate high

  • Critical class – 8th to 9th class

  • Solution – Scholarships from 9-12

    • 100,000 means-cum-merit scholarship

    • Rs. 6000/- a year

    • Rs. 750 crores in 2007-08


Secondary education
Secondary Education

  • Allocation increase

    • INR 1837 crore to INR 3794 crore

  • Scholarships

    • Through a fund with SBI


Education and r d
Education and R&D

  • Promoting Ph.D.s – for some sections

  • Research institutions – customs duty exempt

  • Corporate in-house R&D – 150% deduction continued


Vocational training
Vocational training

  • Vocational education mission

    • INR 50 crore

    • Based on PPP concept

  • ITIs – 1396 centres of excellence

    • 300 more ITIs to be covered

    • Academic and financial autonomy

    • 2nd shift allowed


Physically challenged
Physically Challenged

  • Subsidy for regular employment

  • Employer contribution to PF reimbursed


Budget 2007 08
SME

  • Increase in outstanding credit from INR 135,200 crore to INR 173,460 crore at end Dec 2006

  • Government to encourage banks to lend to SME’s

  • Proposal to allow credit rating of SMEs to fix interest rates by bank

  • Exemption limit for SSI raised from INR 1 crore to INR 1.5 crore


Food processing
Food Processing

  • Customs duty on food processing machinery reduced from 7.5% to 5%

  • Exemption on crude and refined edible oil from additional CV duty of 4% and reduction on duty on crude and refined sunflower oil by 15 percentage points

  • Biscuit below INR 50 per Kg and all food mixes fully exempted


Urban development
Urban Development

  • Increase in allocation for SJSRY from INR 250 crore to INR 344 crore

  • Promoting world class financial centre in Mumbai

  • Five year tax holiday for luxury hotels in NCT regions like Gurgaon, Faridabad and Ghaziabad


Indirect taxes
Indirect taxes

Reform continued

  • Move toward general sales tax:

    • central sales tax reduced – 4% to 3%

    • states to be compensated – revenue loss

  • Peak customs duty to ASEAN levels: reduced - 12.5% to 10%


Reducing customs duty
Reducing customs duty

Controlling inflation

  • Chemicals and plastics – 12.5% to 7.5%

  • Steel seconds – 20% to 10%

  • Coking coal – duty exempt

  • Polyester yarn and fibres – 10% to 7.5%

  • Diamonds – 5% to 3%

  • Dredgers – duty exempt

  • Food processing machinery – 7.5% to 5%

  • Medical equipment – 12.5% to 7.5%

  • R & D – 5% duty extended to all research institutions

  • Pharmaceuticals and biotechnology specified machinery – 7.5% to 5%


Reducing excise duty
Reducing excise duty

  • Ad valorem duty on petrol and diesel – 8% to 6%

  • Other reductions

    • Job-creating sectors

    • Food processing

    • Cement

    • Umbrellas, footwear, plywood

  • Biodiesel, water carrying pipes - exempt


Service tax
Service tax

  • Service tax extended to a no. of services

  • Exemptions

    • Technology business incubators

    • Clinical trials for new drugs


Direct taxes
Direct taxes

Personal income tax (lower)

  • Standard exemption increased - all assessees, senior citizens, women

  • Deduction for medical insurance premia increased


Direct taxes1
Direct taxes

  • Corporate income tax

    • Infrastructure companies exempt – gas pipeline and distribution; sea navigation channel

    • In-house R&D – 150% deduction continued until 2012

    • Hotels (2,3,4 star) in the NCR region – 5-year tax holiday

  • CESS on education – secondary and higher – 2% - what for? (could it be scholarships in private educational institutions?)