Union Budget 2002-03 Highlights

Updated: Feb 28 2002, 05:30am hrs
Highlights of the Budget:


Two per cent earthquake tax abolished
False PAN number to be punished with Rs 10,000 fine
NHB bonds exempt from capital gains tax
Multiplex theatres in non-metro cities to get tax relief
Corporate tax for foreign companies down to 40 pc from 48 pc
IT capital goods import duties reduced by 15 pc
No change in personal, corporate income tax rates
Cell phone, handphones to be cheaper
Custom duties on pulses (daal) goes up
Custom duty on cement reduced by 5 pc
Cenvat on liqour reduced
Transfer of residence made easier with tax relief
Cess on crude oil to double
Customs on hardware imports down
Service tax net increased, to cover cable operators, health clubs
Excise duty on garment down to 12 pc
Custom peak rate down to 30 per cent from 35 per cent
Excise on tea reduced by half
Cotton yarn expemted from excise duty
Duties on textile sector to be rationalised
Textile industry to be opened up for competition
Outlay for power increased by 22 pc
Banking sector reforms bill to be introduced
Plan outlay for roads and highways up by 39 per cent
Widening of tax base proposed
Postal rates increased
Central assistance to states will be reform-linked
Govt's spending on health up
Information ministry allocation up by Rs 415 cr
Sebi Act to be modified to strengthen investor protection
Non-plan expenditure lower by Rs 10,000 cr than budget amount for current year
Non plan expenditure at Rs 2.96 lakh cr
Government manpower to be cut by 42,000; 12,200 posts to be abolished
Overseas JV investment limit up to 50 pc of net worth
70 lakh more new lines proposed from MTNL and BSNL
New insurance scheme for underprivileged
Allocation for science and tech by 40 pc
Defence spending up by 4.8 per cent to Rs 65,000 crore
NRIs will be free to repatriate in foreign currency
Plan outlay for women and children increased by 33 pc to Rs 2,200 cr
Foreign banks to be allowed fully-owned branches in India
Oil pool account to be dissolved from April 1
Central assistance to state plans hiked by 20 per cent
Jayaprakash Rozgar Guarantee Yojna scheme launched for needy
Telecom allocated Rs 19,463 cr
Government proposes 75,000 km fibre optic network
Rs 866 cr allocated for tribal affairs
Central assistance to state plans hiked by 20 per cent
Jayaprakash Rozgar Guarantee Yojna scheme launched for needy
Petrol and diesel prices to come down from Friday due to dismantling of APM
Fertiliser subsidy to be reduced, five per cent increase in the issue price of urea, DAP and MOP, subsidy on SSP to be reduced by Rs 50 per tonne
Compulsory levy on sugar to be reduced from 15 to 10 percent
Golden Quadrilateral highways project to be completed substantially by December 2003
All major ports to be corporatised in a phased manner
International airports in Delhi, Kolkata, Mumbai and Chennai are to be upgraded to the standards of world-class airports by inducing private sector management and investment through long term leasing systems
Private sector participation in greenfield airports to be encouraged
Infrastructure equity fund of Rs 1,000 crore will be setup
Reform linked assistance to states pegged at Rs 12,300 crore, Rs 2500 crore provided for policy reforms in sectors constraining growth
Urban reform incentive fund to be set up with Rs. 500 crore
Most administered interest rates reduced by 50 basis points
Fiscal deficit in the current year is expected to be 5.7 per cent
Investment in public infrastructure pushed up sharply by Rs 37,919 crore
Interest rate for rural infrastructure loans reduced
Total credit flow to the agriculture sector through institutional channels is expected to reach the targeted level of Rs 64,000 crore this year. FM said it is likely to be Rs. 75,000 crore.
Infrastructure equity fund of Rs 1,000 crore will be setup.
Interest rate for rural infrastructure loans reduced
Disinvestment target set for Rs 12,000 crore for 2002
Investment in public infrastructure pushed up sharply by Rs 37,919 crore
Urban reform incentive fund to be set up with Rs. 500 crore
Most administered interest rates reduced by 50 basis points
Fiscal deficit in the current year is expected to be 5.7 per cent
Dismantling of adminstered price mechanism (APM) for petroleum on target subsidy on LPG and kerosene to be reduced