BUDGET
JAI KISAN
Rs 60,000-crore debt waiver for farmers; relief for income-tax payers
"If you are against the one-time writeoff of debts of the small and marginal farmers, then have the courage to stand up and be counted. You cannot duck the issue and I'm not ducking the issue." -- Finance Minister P. Chidambaram More

Signing off with Nehru and Valluvar
Mr Speaker, Sir, once upon a time India, together with China, accounted for 50 per cent of the world’s output. We must regain our position and it is within our capacity to do so. Our work in Government is, every day and every hour, a ... More

Keeping inflation under check main task: Chidambaram
Mr Speaker, SirI rise to present the Budget for 2008-09. This House and the United Progressive Alliance Government have bestowed upon me the honour of presenting all five Budgets on behalf of a Government - a rare honour that I have the ... More

‘Proof of more inclusive growth’
To return to the India growth story, I am of the firm belief that we owe our sustained progress to the policy of economic reforms first ushered in by a Congress Government and now carried forward by the UPA Government.If 1984 and 1991 were ... More

Research & development get a fillip
Companies engaged in certain businesses are allowed a weighted deduction of 150 per cent on any expenditure on in-house scientific research. I propose to add the business of production of seeds and manufacture of agricultural implements to this ... More

There is no case for corporate tax rate cut, says Chidambaram
‘They are doing well and are making good profits’ More

Insurers happy over higher cap on Sec 80D waiver
Payment for parents’ medical cover More

Money for votes
What makes a populist budget? Putting money in the hands of all who can vote would definitely be there. This was as populist a budget as one could make – a hefty Rs 60,000 crore debt waiver for the farmer and tax breaks for the salaried ... More

Gross budgetary support increased
The Eleventh Plan has started on a note of robust growth. Never before did we start a Plan with a first year growth rate of 8.7 per cent. Government regards the second year of the Plan as extremely critical to the success of the Plan. 2008-09 ... More

Steps to expand market for corporate bonds
In my Budget Speech of 2006, I had informed the House that, on the basis of the R.H. Patil Committee Report, we shall take steps to create an exchange-traded market for corporate bonds. Both Bombay Stock Exchange and National Stock Exchange have ... More

Fiscal position improves
The estimate of Plan Expenditure is placed at Rs 2,43,386 crore. As a proportion of total expenditure, it will be 32.4 per cent. Non-Plan Expenditure is estimated at Rs 5,07,498 crore. It is widely acknowledged that the fiscal ... More

Excise on small cars, 2-wheelers slashed
The domestic auto industry got a major boost with the Finance Minister, Mr P. Chidambaram, announcing a 4 percentage point reduction in excise duty on two-wheelers, three-wheelers, passenger cars, buses and chassis to 12 per cent from the ... More

No change in peak rate of customs duty
Many people are surprised by the buoyancy in tax revenues, especially in direct taxes. I am not. I have always maintained that moderate and stable tax rates coupled with a tax administration that shows no fear or favour will bring high revenues ... More

Budget will boost growth of manufacturing sector: KCCI
Mangalore, Feb. 29 The Union Budget proposals for 2008-09 will help in the growth of the manufacturing sector in the country, according to Mr K. Narasimha Prabhu, President of Kanara Chamber of Commerce and Industry (KCCI). ... More

‘Textile sector has been overlooked’
Coimbatore, Feb. 29 Textile industry experts, who waited for the Finance Minister, Mr P. Chidambaram, to announce some relief for the “labour-intensive” sector, were rather disappointed when he “sympathised but made no ... More

Less outgo for parent companies
Infrastructure, power and financial services companies are likely to be among the key beneficiaries of the budget proposal to avoid double taxation of dividend income received by a parent company from its subsidiaries. These companies route ... More

Smokers may downgrade
Most regular smokers Business Line spoke to in the CBD area of Kolkata could not exactly understand the actual impact of the Budget hike in excise on non-filter cigarettes. As a committed consumer group, they, however, ... More

‘Every Budget is election Budget’
Chennai, Feb. 29 It was a supremely confident Finance Minister P. Chidambaram who handled the press conference after presenting Budget 2008. As expected, he had handed out the largest-ever relief package to the long-suffering agri sector, ... More

The ‘lucky’ Finance Minister
New Delhi, Feb. 29 The usual white dhoti, the shirt — starched crisp, pashmina shawl around his shoulder P. Chidambaram, presenting his fifth Union Budget in a row, took a bow as a ‘lucky’ Finance ... More

Rescue package for national animal
What do you think was the most unexpected announcement in P. Chidambaram’s Budget 2008-09? While his quotes from Tamil poet Thiruvalluvar and sops for the salaried were expected, the concern to save the Indian Tiger did catch ... More

Opt for dividends
The Budget proposal to increase short-term capital gains tax to 15 per cent will be applicable to equity mutual funds as well. This means that investors who exit their equity fund units within a year of purchase will have to shell out tax at ... More

Ferro alloy units not excited over duty increase on chrome ore
Mumbai, Feb. 29 Producers of ferro alloys, a vital input for the steel industry, are not too excited over the Rs 1,000 per tonne increase in export duty on chrome ore proposed in the Union Budget, which is aimed at discouraging export of the ... More

Direct taxes’ share of revenue kitty tops 50% for first time
New Delhi, Feb.29 2007-08 would be a landmark fiscal, when, for the first time, direct taxes would contribute more than 50 per cent of the Centre’s revenue kitty. Of the total of Rs 5,85,410 crore to be mobilised from all Central tax ... More

Education sector, skills development get shot in the arm
IITs to be set up in Andhra Pradesh, Bihar and Rajasthan More

DTH set-top boxes may be no cheaper
New Delhi, Feb. 29 The domestic manufacturers of set-top boxes are expected to benefit from the Budget proposal to exempt certain components from duty taxes, but DTH operators and the CAS-notified cable industry may not necessarily be able to ... More

Durables industry has little to cheer
‘Duty cut will not offset rise in raw material costs’ More

Kerala trade, industry welcome Budget
Kochi, Feb. 29 The trade and industry in Kerala have generally welcomed the Union Budget saying that the Government has initiated steps to correct poor growth in the agricultural sector by placing greater emphasis on its growth and development ... More

Budget lacks transparency: Dholakia
Welcoming the Budget 2008-09 in general, eminent economist, Dr Bakul Dholakia, said today the exercise lacks transparency on both the revenue as well as the expenditure sides.There is also a question mark on fiscal deficit target, which ... More

Export duty on chrome ore hiked
New Delhi, Feb. 29 The Finance Minister, Mr P. Chidambaram, has announced an increase in the export duty on chrome ore from the current Rs 2,000 per tonne to Rs 3,000 per tonne. “The export duty has been increased in order to ... More

Balanced approach, says Bangalore Chamber
Bangalore, Feb. 29 The Bangalore Chamber of Industry and Commerce (BCIC) has welcomed the Budget proposals for 2008-09 as a balanced approach adopted by the Union Finance Minister, Mr P. Chidambaram, and said viewed against the challenges in ... More

Defence allocation proposed to be hiked by 10%
The Finance Minister, Mr P. Chidambaram, has proposed to increase the allocation for defence during the fiscal 2008-09 by 10 per cent to Rs 1,05,600 crore and assured that if more funds were needed especially for capital expenditure, it will ... More

Connectivity thrust
The Budget proposal allocation to the information technology department has been increased to Rs 1,680 crore. The proposal is to create more state-wide area networks (SWAN), 1,00,000 broadband-enabled common service centres in rural areas and ... More

Welcome move: Rs 20 cr for tea research
Kolkata, Feb.29 The tea industry, in general, has welcomed the Union Budget for 2008-09, pointing out that the allocation of Rs 20 crore to Tea Research Association at Tocklai in Jorhat will boost research in tea, thus indirectly benefiting ... More

`Growth with equity'
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Budget fails to cheer D-Street
Sensex opened with a downward gap of 44.94 points at 17,779.54 while the Nifty opened flat and soon dipped into the negative area on the most awaited eventful day — Union Budget 2008. The market was volatile before the Union ... More

FMCG stocks gain
Bet on increased spending power among people More

Proposals to stimulate industrial growth
There has been some moderation in the index of production of the six core infrastructure industries as well as in the overall index of industrial production for the period April-December 2007-08. The decline has been somewhat sharp in the ... More

Four flagship programmes
As Honourable Members are aware, there are eight flagship programmes of the UPA Government. I have dealt with two in the education sector (SSA & MMS) and two in the health sector (NRHM & ICDS). Let me now refer to the allocations that I ... More

An inclusive, election budget
Monisha Adwani, Managing Director, EmmayHR: This is an out-and-out Congress budget. It has election prep written all over it. It also demonstrates economic prudence and caution. By focusing on relief and development to the ... More

CEMENT
Mixed reaction to excise duty parity on cement
Mumbai, Feb. 29 The cement industry remained somewhat divided on the impact of excise duty parity on bulk and packaged cement and the hike in the duty on clinker. Mr N. Srinivasan, Vice-Chairman, India Cements, said that the excise duty ... More

Budget hikes excise duty on clinker
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CONSUMER ELECTRONICS
No impact on product pricing
The management of the economy is the responsibility of the Government and we must compliment the Government for the same. Budget 2008 has exceeded expectations in terms of rural development, education and agriculture. It is commendable that ... More

Consumer electronics overlooked
Demand for import duty cut on raw materials goes unheard More

ECONOMY
Third quarter GDP grows at 8.4%
Indian economy grew 8.4 per cent in October-December 2007, the slowest pace since last quarter of 2005-06. This growth performance was weaker than the 8.9 per cent GDP growth recorded in second quarter of current fiscal and 9.1 per cent ... More

Goodies galore; dilution of fiscal standards may prove costly
Reform measures absent; major demands of exporters unfulfilled More

Walking a tightrope
“We must produce wealth, and then divide it equitably. How can we have a welfare State without wealth?” said the Finance Minister in his Budget speech which had little surprise. His proposals sought to address a host of economic ... More

FERTILISERS
Widening the field
Proposals in the 2008 Union Budget may fuel strong demand and open up new business opportunities for fertiliser makers, in the form of greater flexibility and differentiation possibilities for their products. For one, the Budget has taken a ... More

FOOD & DAIRY PRODUCTS
For a drink of coconut water
New Delhi, Feb. 29 There’s nothing like fresh coconut water, but cheaper packaged coconut water will come closer to those not living under the shade of thick coconut groves. Tea and coffee pre-mixes could also become cheaper, benefiting ... More

HOTELS
Industry not excited over 5-year tax holiday for star hotels
Mumbai, Feb. 29 There are not many takers now for the Finance Minister’s proposal for a five-year tax holiday for star hotels established in specified districts having UNESCO-declared ‘World Heritage Sites’. Although industry ... More

INFRASTRUCTURE
Opening the gates for irrigation
Budget 2008 has no surprises for the Infrastructure sector. While the irrigation and road segments will continue to receive favours, not many incentives were dispensed to the power sector. Similarly, no special support was evident to ... More

PSU
Support to Central PSUs
Since 2005-06, there has been an unmistakable boom in investment. Two indicators tell the story. The saving rate and the investment rate in 2003-04 were 29.8 per cent and 28.2 per cent, respectively. According to estimates made by the Economic ... More

PETROLEUM
Specific duties proposed on unbranded petrol, diesel
Customs exemption on naphtha for polymers scrapped More

Customs duty on crude, unrefined sulphur reduced to 2%
New Delhi, Feb. 29 The Government has reduced the customs duty on crude and unrefined sulphur from five per cent to two per cent.The Finance Minister, Mr P. Chidambaram, in his Budget speech said that the customs duty has been reduced ... More

Most oil sector demands left unanswered
Feb. 29 The Finance Minister, Mr P. Chidambaram’s Budget proposal for 2008-09, while offering a little to the oil marketing companies (OMCs) has left the exploration companies asking for more. Most of the demands of the oil sector have ... More

PHARMACEUTICALS
Pharma and biotech firms cheer tax deduction on outsourced R&D
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Duty cut on six life-saving, bulk drugs
Tax holiday extended for new hospitals More

Not a bad prescription
For the pharma sector, the Budget has not met major demands relating to R&D expenses, but has given in to demands related to excise and Customs duties, which could reduce the cost of drugs. Lower duties might spur an increased off take of ... More

‘Not much to cheer for’
The direct tax proposals have brought some cheer to individuals because they stand to gain from the increase in basic exemption from Rs 1,10,000 to Rs 1,50,000 and change in the slabs for e.g. in case of individuals drawing income over Rs 5 ... More

Good for healthcare, pharmaceutical sectors
The Budget proposals from the Finance Minister, Mr. P Chidambaram, have been extremely positive and are aimed towards an overall inclusive growth.The increased emphasis on social sectors, primarily for healthcare, education and ... More

Duty to benefit AIDS patients too
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POWER
Fund for transmission and distribution reform
The Eleventh Plan target for additional power generation capacity is 78,577 MW which is more than the total capacity added in the previous three Plans. By end March 2008, we will achieve Commercial Operation Date (COD) on about 10,000 MW, marking ... More

New fund for power reforms, more ultra mega projects in the offing
New Delhi, Feb. 29 The Finance Minister, Mr P. Chidambaram, announced a new fund in the power sector that focussed on transmission and distribution reforms. The Budget also clearly indicated that the Government would be pushing for at least ... More

Power players optimistic about new T&D fund
New Delhi, Feb. 29 Power sector players have broadly voiced optimism on the creation of the new fund dedicated to the transmission and distribution sector, even as some have expressed concern on the hike in the rate of service tax applicable ... More

GVK lauds focus on power sector
Hyderabad, Feb. 29 The Chairman of GVK Power & Infrastructure, Mr G.V. Krishna Reddy, said that the Finance Minister has recognised the need to meet the targeted power capacity of 78,577 MW in the 11th Five Year Plan and has stressed on ... More

STEEL
No curbs on iron ore export: Steel industry disappointed
Mumbai, Feb. 29 The steel industry though disappointed that no curbs were imposed on iron ore exports welcomed excise duty cuts in general and said it stood to benefit the industry indirectly. Mr K. Roongta, Chairman, SAIL, said higher ... More

TAXATION
Load on taxman eased
Mr P. Chidambaram is undoubtedly a lucky Finance Minister. He has many firsts to his credit. The tax-GDP ratio is at an all-time high of 12.5 per cent. Direct tax collections touched Rs 3-lakh crore for the first time. For the ... More

DDT, STT: Marginal reprieve
In the last Budget before the forthcoming general elections, the Finance Minister has decided to keep corporate tax rates unchanged. Though rates of Dividend Distribution Tax (DDT) and Securities Transaction Tax (STT) also remain unchanged, the ... More

BCCT withdrawal: Good for planters
Coimbatore, Feb. 29 The withdrawal of the Banking Cash Transaction Tax (BCTT) from April 1, 2009, planters say “is a positive signal for the plantation sector.”Commenting on the BCTT withdrawal, Mr. D. P. Maheshwari, ... More

Sindhi Chamber welcomes CST cut
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‘Budget is disappointing’
Coimbatore, Feb. 29 The markets would give a thumbs-down to the inclusion of stock and commodity exchanges under the service tax net and the trading volume would dive, according to Mr K. Annamalai, former President, Coimbatore Stock ... More

TEXTILES
Hike in TUFS allocation
The Government has proposed a hike in the allocation for the Centrally-sponsored Textile Technology Upgradation Fund Scheme (TUFS) to boost modernisation and expansion of the textile and garments sector. The funding would be increased to Rs 1,090 ... More

Mixed reaction from textile industry
Mumbai, Feb. 29 The Budget fetched mixed reactions from the textile companies. While some of the measures were welcomed, the exporters said they were left very disappointed. “We are sorely disappointed with the budget and will ... More

SSI
Rs 2,000-cr risk capital fund to boost SMEs
SIDBI to provide equity support to projects More

Micro, SMEs will continue to receive Govt support
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TYRES
Major tyre producers start reducing prices
Responding to the cut in excise duty from 16 to 14 per cent on tyre almost all major producers have started reducing their product prices beginning tonight. While MRF, JK Tyre and Ceat have already reduced the prices Apollo Tyres is yet ... More

COAL
Coal watchdog on the anvil
The Government has proposed to appoint a regulator to streamline the coal sector. “A new coal distribution policy was notified in October 2007. A coal regulator would be appointed,” the Finance Minister, Mr P. Chidambaram, said in his ... More

PERSONAL PRODUCTS
Of Budget boost and breakfast cereals
Chennai, Feb. 29 So, what’s in it for you and me? If consumers were looking to the Budget to lower prices across a range of items of daily consumption or on that refrigerator you were hankering for, that is going to be unlikely. The ... More

Consumption boost, but no market triggers
Depressing global cues and a slowing growth trajectory for India Inc have made for a rather lackluster stock market in the run-up to this Budget. Though expectations were at a low ebb, there is actually little in the document to put the ... More

PC turns Robin Hood
Common man has plenty to cheer about, but inflation left unaddressed More

‘Review of tax slabs increases disposable incomes’
Social infrastructure gets a boost with outlays on education, health More

Have money, will spend
Accent on consumption rather than investment More

EDUCATION
‘Lack of specific allocation may lead to fund leakage’
The Finance Minister’s bid to boost education seems encouraging, but could have been better, say spokespersons from education and tech sectors. Mr K. Ganesh, Founder and CEO, TutorVista.com, an online tutoring ... More

Bengal seeks information security course in IIITs
The West Bengal Government is trying to persuade the Centre to include ‘information security’ as a subject in the Indian Institutes of Information Technology (IIIT).Speaking at a seminar here on Friday organised by the ... More

New institutes welcome; concern over faculty shortage
Bangalore, Feb. 29 Prof Pankaj Chandra, Director, Indian Institute of Management, Bangalore, termed the current Budget a disappointing and a missed opportunity. “While the Finance Minister has picked up the Knowledge ... More

More IITs in the offing
Knowledge is power. It is knowledge that will drive success in the 21st century. India has the opportunity to become a knowledge society. Following the Prime Minister’s announcement, an IIM at Shillong; three IISERs at Mohali, Pune and ... More

CARS
Hyundai, Maruti, GM to cut prices
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GEMS & JEWELLERY
Gem & jewellery industry rewarded
Mumbai, Feb. 29 The confidence in the performance of the gem and jewellery against sops by the Government is clear from the Finance Minister’s move to further abate duties on raw materials. While rough cubic zirconias are exempt ... More

MEDICAL INSTITUTIONS & HOSPITALS
Healthy outlook for hospitals
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Healthcare delivery sector given a direction
Bangalore, Feb. 29 Hospitals probably never had it so good, especially at a time when the healthcare sector is on an expansion spree. The five-year tax holiday in tier-2 and -3 regions and health insurance steps should push up the wellness ... More

REAL ESTATE & CONSTRUCTION
CREDAI keen to build civil infrastructure
The Confederation of Real Estate Developers Association (CREDAI) has said it is keen on participating in building “civil infrastructure” in collaboration with the State Government to facilitate real estate projects in the ... More

Realty sector upbeat on I-T exemption
Mumbai, Feb. 29 Realty majors found cause to cheer the budget on concessions extended to other sectors. Mr Ravi Ramu, Director, Puravankara Projects Ltd, said reverse mortgage proceeds not to be treated as income tantamount to a tax ... More

Private equity players eye real estate mart in Kolkata
Kolkata, Feb. 29 Private equity companies are eyeing Kolkata’s real estate industry as a viable market this year. Last year Kolkata’s share in the total FDI pie of $4 billion in the real estate sector, was only $150 million, a ... More

PAPER, BOARD & NEWSPRINT
Paper makers cheer reduction in duty
Chennai, Feb. 29 The paper manufacturers have welcomed the reduction in excise duty on printing and writing paper and packaging material. The announcement affords some relief from the spiralling costs of inputs, they say.More

KNITWEAR & HOSIERY
TEA disappointed
The exporting community perceives that the Union Budget has failed to respond to their issues. The Tirupur Exporters Association sought reduction of interest rates, exemption of service and fringe benefit tax, refund of state levies and taxes and ... More

SOCIAL WELFARE
‘Welcome focus on social development’
I feel this is a positive Budget, focusing a lot more on social development which is desperately needed in a country like ours. It is heartening to see that a “monitoring and accounting” system is being put in place, scheme-wise ... More

RURAL DEVELOPMENT
A ‘sensitive’ Budget
Budget 2008 focuses on ensuring equitable and sustainable growth of the economy. India lives in its villages and Budget 2008 unequivocally acknowledges this. The agrarian population has been going through a tumultuous phase, and ... More

HUMAN RESOURCES
Non-profit corporation for skill development
Today, skill development programmes are diffused and administered by a number of ministries/departments. I have no intention of interfering with these sector-specific programmes. However, there is a compelling need to launch a world-class skill ... More

INCOME TAX
Changes in slabs for personal income-tax
I recall the Budget Speech of 1997. I believe that boldness pays. I also believe that trust will beget trust, moderation will beget revenues and fairness will beget compliance. Income-tax payers have made out a persuasive case for some relief. ... More

More for the middle-class
“I can now spend my last days peacefully” exulted the octogenarian Ramanathan after listening to the Budget speech of the Finance Minister for two hours with rapt attention. “Don’t talk of death at this happy ... More

EXPORTS & IMPORTS
Nothing for exporters except sympathy: EEPC
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CARTOON
etc
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