Friday, Aug 12, 2022

Budget Highlights

  • Accelerator on the privatisations process, public enterprises to be restructured.
  • Special excise duty reduced to a single rate of 16 per cent.
  • Surcharge of 15 per cent on cigarettes. Duty on bidis raised to Rs 7 per thousand from Rs 6. The total duty on pan masala would be 55 - 60%. Miscellaneous tobacco products like chewing tobacco would be charged to a total duty of 60%.
  • Excise duty on motor spirit and high speed diesel oil increased to 16 per cent. Levies an 8% excise duty on Compressed Natural Gas (CNG), which till now was exempt from any duty. Liquefied Natural Gas (LNG) exempted from the additional duty of customs (CVD).
  • 16 per cent duty on garments sold under the registered trade name.
  • Thrust on agricultural sector reforms and restrictions on free inter-state movement of food grains to be removed.
  • Kisan Credit Cards to all eligible farmers within the next 3 years.
  • Intensification of infrastructure investment, continued reform in the financial sector and capital markets.
  • Emphasis on rationalisation of subsidies and improvement in the quality of government expenditure.
  • Better educational opportunities and programmes of social security to be introduced.
  • Growth to be accelerated through stringent expenditure control of non-productive expenditure.
  • Revenue enhancement through widening of the tax base and administration of a fair and equitable tax regime.
  • Duty on second hand cars, old MUV, scooters and motorcycles enhanced.
  • Government raises basic import duty to 105% taking the total duty to over 180%.
    Centre proposes to reduce the basic customs duty on specified textile machines, including shuttle-less looms, from 15% to 5%.
  • Accredited journalists allowed to import camera, computers and fax machines etc… worth Rs. 1,00,000 without paying customs duty every 2 years instead of 5 years.
  • Government proposes to reduce customs duty on cement, and clinkers to 25% from 35%.
  • Gold to be cheaper, duty on it slashed from Rs. 400 per 10 grams to Rs. 250 per 10 grams.
  • Customs tariff rationalised, to be brought down to East Asian levels. It is to be achieved progressively within three years. They will be reduced to a minimum, with a peak of 20 per cent.
  • The central excise rules to be simplified to make them user-friendly
  • Budget estimates

    • The target of 5.1% of fiscal deficit in 2000-01 has been achieved first time in many years.
    • Total expenditure in the budget estimates for 2001-2002 is estimated at Rs 3,75,223 crore, of which Rs 100,100 crore is for plan and Rs 275,123 crore for non-plan.
    • The budget support for Central, State and UT Plans placed increased by Rs 13,862 (16%) crore over revised estimates 2000-2001 to Rs 100,100 crore.
    • Gross budgetary support for Central, State and UT Plans placed increased by Rs 48,269 crore in the revised estimates 2000-2001 to Rs 59,456 crore in 2001-2002.
    • Central Plan assistance to States and Union Territories in 2001-2002 increased to RS 40,644 crore from Rs 37,969 crore in the revised estimates 2000-2001
    • Non-plan expenditure in 2001-2002 is estimated to be Rs 2,75,123 crore compared to Rs 2,49,285 crore in Revised estimates for Rs 2000-2001.