India Budget 2006-2007 highlights...

P. Chidambaram, Minister of Finance, February 28, 2006

 

Highlights of Union Budget 2006-07

  • No change in personal / corporate income tax rates
  • Cash withdrawal tax to continue.
  • Service tax to be 12 per cent.
  • Customs duty on vanaspathi raised to 18%
  • Customs duty on mineral products
  • Customs duty on plastics, naphtha reduced
  • Excise duty on small cars reduced to 16%
  • Excise duty on aerated drinks cut to 16%
  • To promote India as a semiconductor manufacturing hub
  • Empowered committee for clustered development
  • Rs. 50 m rural telephone connections in 3 years.
  • Rural health spending at 8,207 cr
  • Rs. 5,000 cr set aside for backwards districts
  • Defence spending at Rs. 89,000 cr in FY07
  • 5,038 MW to be added this year
  • Rs. 14,300 cr spending for rural employment programme
  • Plan outlay for shipping sector up 27%
  • Old age pension raised
  • GDP growth target for 10th plan at 8%
  • Govt aims for 10% growth
  • Mfg sector growth target at 9.4%
  • Savings up 21.9 per cent of GDP
  • Agriculture growth bounced back to 2.1%
  • 40,000 villages to be electrified
  • Customs duty on steel restored
  • Farm credit to double in three years
  • Non-food credit growing by 25%
  • 96% of Golden Quadrilateral will be completed by June
  • Rs 1,227 lakh cr outlay for public sector
  • Education allocation up in FY-07 to Rs 24,154 cr
  • National Jute Board to be formed
  • Rs 18,696 crore for Bharat Nirman
  • Rs 4,595 crore allocated for Urban Renewal Mission
  • Plan outlay for health up 22%
  • Comprehensive coal policy underway
  • Grant to textile technology upgradation fund increased
  • Gross budgetary support for annual plan expenditure has been raised to Rs 1,74,725 crore for 2006/07 as against Rs 1,43,497 crore, an increase of 20.4 per cent.
  • Metro in Hyderabad to be considered.
  • Old-age pension to be increased to Rs 200 per month for above 75 years of age.
  • Allocation for IT put at Rs 1430 crore from the Centre and the State Government to provide matching contribution
  • Rajiv Gandhi drinking water programme to get Rs 4680 crore next year as against Rs 3645 crore this year.
  • National Health Mission allocation increased to Rs 8207 crore in next fiscal from Rs 6,553 crore this year.
  • Government plans to eradicate polio by December 2007
  • New towns to be established on specific themes.
  • Rs 28,737 crore has been allocated for gender budgeting under various heads.
  • Special schemes for STs and SCs for their development
  • India to be made a manufacturing hub for textiles, steel, metals and petroleum products.
  • Maulana Azad Educational Foundation corpus doubled to Rs 200 crore for greater financial support to organisations involved in minority welfare.
  • Allocation for national Urdu education programme increased to Rs 13 crore from Rs 10 crore this year.
  • One thousand schools for girls of SCs, STs, OBCs and minorities to be set up.
  • Budgetary Allocation for Rural Infrastructure Devlopment Fund has been stepped up to Rs 10,000 crore in 2006/07.
  •  The finance minister concluded with Vivekanda's quote. I liked the quote than the budget.

    179. Over a hundred years ago, a restless young man in his quest for the core of all spirituality admonished his fellow men in the following words: "We reap what we sow. We are the makers of our own fate. The wind is blowing; those vessels whose sails are unfurled catch it, and go forward on their way, but those which have their sails furled do not catch the wind. Is that the fault of the wind?....... We make our own destiny." Those are the immortal words of Swami Vivekananda. Let us believe in our destiny, let us make our future.
    180. Sir, with these words, I commend the Budget to the House.