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Highlights of Interim Budget

Agencies | February 03, 2004 12:38 IST
Last Updated: February 03, 2004 13:13 IST

The following are the highlights of the Interim Budget presented by Finance Minister Jaswant Singh in the Lok Sabha on Tuesday.

  • 50% Dearness Allowance of the pay will be merged with basic salary of Central government employees
  • No changes made to tax structure.
  • Government committed to 2nd green revolution.
  • Govt to focus on jobs generation, poverty eradication and fiscal consolidation.
  • GDP growth is expected to be 7.5 to 8 per cent in the current fiscal year. Level of growth is matter of great satisfaction, says finance minister.
  • Declining interest rates and buoyant capital markets have boosted the economy.
  • First RBI forex report today
  • Six hospitals -- one each in Andhra Pradesh, J&K, Tamil Nadu, West Bengal, Jharkhand and Uttaranchal -- to be upgraded to the level of AIIMS.
  • All farmers will be eligible for credit cards by March 31, 2004.
  • Kisan Credit Cards to be made ATM-compatible
  • Committee to be set up for agriculture credit.
  • Tea growers to get loans up to Rs 200,000 at 9% interest rate.
  • The loan limit on credit card for small-scale entrepreneurs to be raised from Rs 200,000 to Rs 10,00,000.
  • National Cattle Development Board to be set up.
  • Non-lapsable defence modernisation fund of Rs 25,000 crore being created.
  • Accelerated drinking water projects for Bangalore, Chennai, Hyderabad and Delhi to be implemented.
  • Additional innovative funding to be given to speedier execution of Indira Gandhi Canal project in Rajasthan.
  • Airport in Jaipur to be upgraded to an international airport.
  • IDBI's role to be strengthened as a lead development financial institution.
  • Service tax procedures simplified
  • Long-term capital gains tax break extended by 3 years
  • E-filing of excise returns from June 30
  • Income tax deduction, standard deduction to be revisited
  • Rs 15,000 crore for co-operative sector
  • Stamp duty cut up to 50%
  • Defence modernisation fund of Rs 25,000 cr
  • I-T exemption on power projects extended
  • Tax burden reduced for shipping companies
  • Farm fund to give loans at 200 basis points below PLR
  • Task force to review desert development programmes
  • Special package for tea, industry to be announced
  • Countervailing duty for power sector to be examined
  • Single return and registration for service tax payers.
  • Rs 11,145 crore savings achieved in expenditure.
  • Customs clearance to be on basis of self assessment from June 30.
  • E-filing of excise returns to be introduced from June 30.
  • Net tax revenue pegged at Rs 1,87,539 crore.
  • Non-tax revenue pegged at Rs 75,488 crore, an increase of Rs 5732 crore.
  • Fiscal deficit to be 4.8 per cent of GDP as against projected 5.6 per cent during 2003-04.
  • Non plan expenditure up by Rs 16,218 crore on account of debt servicing, defence and food subsidies.
  • Fiscal deficit at 4.8% of GDP, revenue deficit at 3.2%.
  • Singh promises to rein in inflation at 4.3%.

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Number of User Comments: 7

Sub: service tax details

Please send me the list of new entries in service tax catagories.

Posted by Tushar Shingala

Sub: Budget - Service Class

Income till 1 lakh should be tax exempted.

Posted by Ranvijay

Sub: very bad

the budget is very very disappointing as far as working class is concerned.we expected some relief in IT structure.

Posted by madhuraj

Sub: this very injustice done to employees

The BJP party when it was in opposition vehemently cried for the incometax exemption to 1 lack even from Indiraji period-it is clearly known that ...

Posted by ravikumar

Sub: UP is always forgotten

The good points are revised interest into Agriculture, extension of AIIMS(but why UP is not there in the list atleast consider it because it being ...

Posted by Akshaya


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