Highlights of the Budget '05-'06

â—� These are some of the highlights of the Budget 2005-2006 presented by â—� Finance Minister P Chidambaram. TAXES& DUTIES â—� Plans to undertake major tax reforms â—� Peak rate on non-farm product to be lowered â—� Lower customs duty on selective CG to below 15% â—� No customs duty on import of ITA-bound items â—� Counterveiling duty on certain VAT goods â—� No CVD on IT software however â—� Customs duty on textile machinery cut to 105 from 20% â—� Leather & footwear: duty on certain machineries cut to 5% from 20% â—� Sunrise industry, printing presses used by media: duty cut â—� Duty on polyester, nylon PFYs from 20% to 15% â—� No duty on import of clothes FISCAL MEASURES â—� Fiscal deficit at 4.5% and account deficit at 2.7% â—� No more room for spending beyond means POLICY MEASURES â—� Govt plans to prune fertiliser subsidy bill â—� Plans to remove limits on SLR, CRR on banks â—� Plans to increase defence expenditure â—� Govt to allow FDI in mining, trade and pension after consulations â—� Govt plans to make Mumbai a regional finance hub â—� RBI to allow NGOs to raise funds abroad â—� Rural bias to help companies linked with farm sector â—� Stable policy environment for pharma and biotech sectors â—� National urban renewal to cover 7 cities â—� Plans to use forex reserves to develop infrastructure â—� 10% capital subsidy for textile processing sector â—� Restructuring package for sugar industry â—� Rs 1,43.7 bn for gender budget in FY06 â—� Textile to create 1.2 cr jobs by 2010 â—� More fertliser subsidy as input costs rise â—� National fund for strategic agriculture and research â—� New AIIMS to be launched â—� National Rural Health mission to be launched â—� Govt to raise plan expenditure by 25.5% in FY 06 â—� 1 cr to be employed in irrigation schemes â—� New schools for minority areas â—� 2000 Rajiv Gandhi fellowships for SC/ST â—� Plan expenditure to be by 25.5% â—� CMP mandated growth rate between 7%-8% â—� Estimated cost of Rs 10,216 cr for Tsunami rehab ECONOMIC AGENDA â—� Economic growth estimated at 6.9% in 2004/05. â—� Inflation has been reined in â—� All engines of economy running at nearly full speed â—� Investments in 04-05 buoyant

Highlights of the Budget '05-'06

These are some of the highlights of the Budget 2005-2006 presented by Finance Minister P Chidambaram.

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