MAIN POINTS
* Economic growth estimated at 6.9 per cent in 2004-05.
* Fiscal deficit at 4.5 per cent of GDP in 2004-05.
* Total 2005-06 spending at Rs 5.14 trillion. Tax receipts for 2005-06 at Rs 2.73 trillion.
* The Government is to borrow a gross amount of Rs 1.25 trillion from the bond market in 2005-06. Also to raise Rs 150.19 billion under the market stabilisation scheme.
* No targets set for state asset sales in 2005-06.
* Finance Minister Palaniappan Chidambaram says "no more room for spending beyond our means."
* Defence spending raised to Rs 830 billion, up by 7.8 per cent over the previous year.
* Corporate taxes for domestic firms reduced. Sweeping changes in personal income taxes.
* Subsidies on food, petroleum. fertiliser to continue. Total subsidy bill for 2005-06 at Rs 474.32 billion.
* Peak Custom tariffs reduced to 15 per cent from 20 per cent.
* Inflation has been reined in.
* All engines of economy running at nearly full speed.
{{/usCountry}}* All engines of economy running at nearly full speed.
{{/usCountry}}* Investments in 2004-05 buoyant.
GROWTH MEASURES
* Chidambaram says to look at more FDI in pensions, mining.
* To introduce legislation for pension funds sector.
* Foreign exchange reserves can be used for infrastructure; Special Purpose Vehicles to fund infrastructure with reserves. Borrowing limit of SPVs set at Rs 100 billion.
* Aims to further liberalise trade policy.
* Govt to permit mutual funds to introduce gold traded exchange fund. The gold units will be traded in the same manner as units of mutual funds.
* Stable environment for biotechnology and pharmaceutical sectors.
* Allocates Rs 93.2 billion to fund highways including Rs 14 billion for high density highways programme.
* Sets aside Rs 55 billion for urban infrastructure
* Increase flow of funds to agriculture sector by 30 per cent.
* Agriculture policy to focus on crop diversification.
* Scheme for tea replanting, Government to continue farmer friendly crop insurance sector.
* New scheme to promote small, medium manufacturing.
* Financial package for sugar industry announced. Sugar factories registered in 2002-03 will be provided assistance to re-structure and a moratorium on repayment of loans and interests announced. Sugar mills allowed to re-negotiate high interest rate with banks.
* Allocates Rs 300 billion for textile industry,including modernisation and assistance to handloom and powerloom sector.
TAX MEASURES
* Corporate tax for domestic firms reduced to 30 pct. Domestic companies to pay tax surcharge of 10 per cent. Effective corporate tax to be 33 per cent.
* No change in taxes for foreign companies
* Sweeping changes in personal income taxes.
* Services tax maintained at 10 per cent.
* Direct taxes to yield an additional Rs 60 billion.
* Securities transaction tax raised to 0.02 per cent for day traders.
* Custom duty on some capital goods reduced to between five to 10 per cent. Customs duty on capital goods for IT manufacturing removed.
* Cuts custom duty on crude oil to five per cent from 10 per cent; customs duty on petrol diesel reduced to 10 per cent.
* Proposes 10 per cent surcharge on tobbaco products.
* Removes excise duty of Re 1 per kg on edible oil and Rs 1.25 on Vanaspati oil.
* A stable tax policy for services sector.
OTHER MEASURES
* Budget allocates Rs 80 billion to build rural infrastructure.
* A Rs 102.16 billion assistance package for victims of the December 26 tsunami.
* Extra funding of Rs 250 billion in 2005-06 for social sectors.
* Total allocation for health increased to Rs 102.8 billion.
* Spending on primary education increased to Rs 71.56 billion.
* Government sets aside Rs 62.53 billion for backward classes of society.