Flashback: Reformist and dream budgets

By: |
New Delhi | Published: February 28, 2015 1:35:49 AM

From Manmohan Singh to P Chidambaram, here are a flashback of reformist and dream budgets.

A file pic of Manmohan Singh and P Chidambaram. (Reuters)A file pic of Manmohan Singh and P Chidambaram. (Reuters)

MANMOHAN SINGH,  JULY 24, 1991

* Drastically slashes license raj and quantitative restrictions on companies.
* Tax concessions for software exports, leading to creation of global giants like Infosys, TCS and Wipro.
* Easier norms for import of consumer goods, plant & machinery; peak customs duty cut from 220% to 150%.
* Begins divestment of profitable PSUs.
* SEBI given full statutory powers to regulate listed companies.
* Emphasis on rationalisation of direct tax rates, simplified procedures for better tax compliance.

Budgets

P CHIDAMBARAM,  FEB 28, 1997

* Maximum marginal income tax rate for individuals cut from 40% to 30%.
*  Income tax rate for domestic firms brought down from 40% to 35%.
* Simplified excise duty structure; peak customs duty slashed from 50% to 40%.
* Dividend tax abolished; MAT exemption for export profits; economic criteria-based tax on urban rich.
* Voluntary Disclosure of Income Scheme to recover black money.

YASHWANT SINHA, FEB 29, 2000

* Modvat scheme rationalised, ad valorem rates of basic excise duty merged into a single one.
* Government equity in all non-strategic PSUs to be brought down to 26% and below; PSUs which cannot be revived to be closed down.
* No allocation of sugar under PDS for Income Tax assesses; fertilizer subsidies rationalized.
* Vows to downsize Government; introduced VRS scheme for staff in the surplus pool.
* For medium-term management of the fiscal deficit, backed a strong institutional mechanism embodied in a Fiscal Responsibility Act.

Sensex-Budget

YASHWANT SINHA, FEB 28, 2001

* Major rationalization in excise duty structure to introduce a single Cenvat Rate
* Removes Surcharge on Income Tax and Custom Duty to lower tax burden on cos.
* Attempts major labour reforms by easing hiring-firing rules and making it easier for industrial units to shut down
* Acceleration of the privatisation process and restructuring of public enterprises
* FII investment limit in a company raised to 49% from 40%

P CHIDAMBARAM, JULY 8, 2004

* Announces FDI cap to be raised from 49% to 74% in telecom; from 40% to 49% in civil aviation; & from 26% to 49% in insurance
* Unveils a major tax reform that led to all states switching to a uniform Value Added Tax regime from April 1, 2005.
* Tax on long-term capital gains from securities transactions abolished
* Raises the investment ceiling for FIIs in debt funds from $1 billion to $1.75 billion
* No one with a taxable income of Rs 100,000 will be required to pay income tax

Do you know What is Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget, Customs Duty? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Union Budget 2015: 7 top sops Arun Jaitley may deliver; income tax and more
2How did Gujarat remain poor even when Narendra Modi was CM: Mallikarjun Kharge
3Rupee retreats from 3-week high vs US dollar ahead of Budget