Budget 2008-2009 - Textile sector

29 Feb '08

3 min read

The much-awaited Union Budget 2008-2009 is out now and all the speculations on this are over.

Textile industry in particular seems to be the Minister's pet as the industry has been given some benefits in the budget.

68.7 bn for Urban infrastructure

Need larger ambitious scheme to revive farms

Crop insurance scheme will be introduced

To continue with fertiliser subsidies, may move to nutrient-based subsidies

Debt waived for farmers

Implementation of debt waiver to be completed by June 2008

75 pct farm credit from scheduled bank - research for farm - 5 cr - debt waive and relief for farmers - marginal farmers and small farmers - complete waived of all loans for 1 & 2 hectare

Rs644 crores for crop insurance schemes

Estimated 4 crores farmers to benefit from this scheme

Debt Waiver: Total estimate Rs 60,000cr; Overdue loans to be waived will be Rs 50,000 crore;One-time settlement estimated at Rs 10,000 crore

Rs 644 crores for National Agriculture Insurance for Rabi and Kharif crops

Textile upgradation funding spending 10.9 bln rupees

4th UMPP to be awarded shortly

To allocate Rs 34 crore for clusters in handloom sector

30 integrated textile parks to be set up - govt policities finance success - Rs 450 cr provision textile parks

Will continue to respond to needs of exporters

Intend to develop mkt for exchange-traded currency and int rate futures

Continue to take measured steps to open up financial sector

Govt to introduce more reforms in coal sector Rs 800 bn to accelerate power reform plant in 2008 Allow FDI in smaller units, simplify FDI norms

Revenue deficit at 1.4% against budget estimate of 1.5%

Plan expenditure Rs 2,43,386 crore

No change in peak rate of customs duties

Project import customs duty reduced from 7.5% to 5%

Tax Proposal - Custom duty (CD) 10 pct non agricultural products - 20 pct agricultural April 2007 - No change in private custom duty - Fiscal deficit target 2.5 pt - Reduced sports goods 7.5 pct - Gems and jewelry exemption on certain gems - Cut in duties on sports goods from 7.5 % to 5% - Reduced general CENVAT from 16% to 14% - Duty withdrawn on naptha for production of polymers

Hikes tax-free income from Rs 1,10,000 to Rs 1,50,000 - Service Tax limited hiked to Rs 10 lakh - No change in corporate income-tax - No change in corporate surcharge tax - Tax exemption for women is 1. 8lakh now

Commodities Transactions Tax to be introduced - Securities Transaction Tax to be treated like deductible expenditure

Customs duties on crude sulphur reduced to 2% - STT applicable on commodities trading

NCCD of 1 per cent removed on polyester filament yarn and the levy shifted to cellular mobile phones.

Excise unbranded petrol and diesel 14.35 per liter petrol and 14.6 per liter diesel

Foreign invt up to $8 bn expected for oil block exploration

Banks to be encouraged to embrace total financial inclusion

Excise duty of Rs 1.35/litre on unbranded petrol

Rs 75 cr to Agri Ministry for soil testing labs in 250 districts

Accelerated power development programmes to get Rs 8,000 cr

17 lakh families of weavers under Health Insurance

Fibre2fashion News Desk - India

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