E-Paper
Union Budget 2003-04
Finance Minister Jaswant Singh has made several people-friendly announcements in Budget 2003-04.
Finance Minister Jaswant Singh made several people-friendly announcements including removal of dividend tax and five per cent income tax surcharge for individuals besides giving some tax exemptions to the salaried class and senior citizens, in the Budget 2003-04.
Singh said the five per cent income tax surcharge will be halved for corporates. However, for individuals earning above Rs 8.5 lakh, there will be an income tax surcharge of 10 per cent.
Singh said standard deduction for salaried class with an annual income up to Rs 5 lakh will be up to 40 per cent of salary or Rs 30,000, whichever is lower. For those earning above Rs 5 lakh, standard deduction will be Rs 20,000.
Budget Priorities
Poverty eradication, addressing the 'life time concerns' of citizens, covering health, housing, education and employment
Infrastructure Development
Fiscal consolidation through tax reforms and progressive elimination of budgetary drags, including reform of the additional excise duty, introduction of service tax and introduction of value added tax (VAT) from April 1, 2003 at the state level
Agriculture and related aspects including irrigation
Enhancing manufacturing sector efficiency, including promotion of export and further acceleration of the reform process
Government Finances
Budget deficit for 2003-04 projected at 5.6 per cent of GDP compared with 2002-03 fiscal deficit estimated at 5.5 per cent in annual Economic Survey.
2003-04 budget sets net government borrowings at Rs 1,071.94 billion.
Disinvestment receipts goal for 2003-04 set at Rs 132 billion.
Defence spending seen at Rs 653 billion compared with revised Rs 560 billion expenditure previous year.
India to continue to pre-pay high-cost external debt and will buy back high-interest government bonds from banks.
States to swap all loans with interest rates of more than 13 per cent by 2004-05. States' debt swap to cut interest costs by Rs 810 billion.
