The Finance Minister, Mr Jaswant Singh has introduced the
Interim Budget, 2004 in the Parliament. This article aims to present the importance changes proposed by
the FM in his speech. This article has been prepared on the basis of the Budget speech of
the FM and therefore, readers are advised to read it along with the Finance Bill, 2003
etc. tabled in Parliament.
Economic Indicators -
GDP growth forecast at 7.5-8.0 per cent in 03-04.
Inflation seen on target at 4.0-4.5 per cent in
03-04.
The Government to repay Rs 51,400 crore in loans
ahead of schedule in 2003-04.
Tax revenue target for 2004-05 Rs 2.2 trillion.
Privatisation receipts target for 2004-05 Rs 16,000
crore.
2004-05 market borrowing seen at Rs 90,502 crore.
2004-05 revenue deficit seen at 2.9% of GDP and 3.6%
in 2003-04.
Overall spending to be cut by Rs 11,100 crore in
2003-04.
Sectoral Measures
Rs 25,000-crore defence modernisation fund to be
established.
Defence spending to rise to 660 billion rupees in
2004-05 from Rs 65,300 crore in 2003-04.
Taxes -
Existing tax structure to continue
Tax break on long term capital gains extended by 3
yrs
I-T deduction, standard deduction to be revisited
No tax on foreign companies' outsourcing to India (BPO).
E-filing of excise returns from June 30
Single return and registration for service tax
payers.
Tax concessions for power, shipping sectors.
Economy
Govt to enhance job opportunities
GDP growth pegged between 7.5-8% in '03-04
Inflation estimate at 4-4.5%
Fiscal deficit for 04-05 pegged at 4.4% of GDP
Infrastructure
The Jaipur Airport will be upgraded to an
international airport.
Implementation of accelerated drinking water projects
for mega cities like Bangalore, Chennai, Hyderabad and Delhi.
Social Sector
The government was committed to second green
revolution, employment generation, eradication of poverty and fiscal
consolidation.
Under the Pradhan Mantri Swastha Suraksha Yojana six
hospitals, one each in Andhra Pradesh, J & K, Tamil Nadu, West Bengal,
Jharkhand and Uttaranchal, will be upgraded to the level of All India
Institute of Medical Sciences.
All farmers will be eligible for credit cards by
March 31, 2004. A committee is being set up under V.S. Vyas to go into
all issues relating to agriculture credit.
A National Cattle Development Board will also be set
up through funding by the Centre.
Others -
Federal government stamp duty cut by 50 per cent
DA for federal civil servants to be merged with basic
pay
Finance Ministry official says a cut in the small
savings rate unlikely.
The Government urges banks to cut interest rates for
farm loans
IFCI bad loans to be transferred to asset
reconstruction firm.
The loan limit on credit card for small scale
entrepreneurs with a good track record would be raised from Rs 2 lakhs
to Rs 10 lakhs.
