It is a political budget from Chidambaram but has provisions for the poor and those who need help
Babu Ghanta
Feb. 29, 2008

It gives a minimum relief of Rs 4,000 to all, incomes between Rs 1,50,001 and Rs 3,00,000 will be 10 per cent, those between Rs 3,00,001 and Rs 5,00,000 will be 20 per cent and above Rs 5,00,001 will be 30 per cent. Senior citizens will pay no tax up to Rs 2,25,000 and women up to Rs 1,80,000. Military expenses grows by 10 per cent from Rs 95,000 crore to Rs 105,600 crore in the coming year.

Budget deficit grows. Revenue receipts for 2008-09 are projected at Rs 6,02,935 crore and expenditure at Rs 6,58,119 crore raising the budget deficit slightly above Rs. 50,000 crore. The fiscal deficit is estimated at Rs 1,33,287 crore which is 2.5 per cent of GDP.

The Central Sales Tax was reduced from three to two percent. The budget in general announced a waiver of agricultural loans to the tune of Rs 60,000 crore. It raised the income tax exemption threshold to Rs 1,50,000. The provisions also slashed customs and excise duties on variety of goods.

The results of the budget speech are slowly coming to fore with mobile and car companies deciding on thier future moves. Mobile phone users would now have to shell out more money for buying new handsets, with the government proposing to levy one per cent excise duty on them.

The budget reduced customs duties on project imports from 7.5 per cent to five per cent. The budget introduced customs duty sops on manufacturers of sports goods and exports of gems and ornaments, helicopter simulators, and domestic fertilizer production.

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