Investment Thrust
- Targets economic growth of 7-8% a year
- Infrastructure focus: Special purpose vehicle with a borrowing limit of Rs 10,000 crore for 2005-06 to fund roads, ports, airports and tourism; allocation for national highways up 43% to Rs 9,320 crore
- Higher FDI limits sought
Tax Savings
- Possible fall in effective corporate tax rate from 36.6% to 33.6% to boost company profits
- VAT to reduce inefficiencies in the system
Greater Money Flows
- Investments under new Section 80C to direct more money into ELSS
- Setting up of a pension regulator prelude to entry of pension funds
- Allowing FIIs to give securities and bank guarantees as collateral for derivatives trading to boost derivative volumes
