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Indian Budget 2003-2004
BUDGET
2002 : HIGHLIGHTS
Economic growth
has slowed down to 5.4% Reform-linked
spending, says FM
Second generation reform policy being implemented at the
state level
Deregulation of control from agricultural commodities
Deregulation
of sugar
Deregulation of drug control regime
Abolition of SICA
Future
and forward trading of all agricultural commodities
Announcement of VRS for
Govt employees
Removal of SSI reservation of agri equipments
Integrated
food law to be in place
Framers can sell their products directly in the markets
RIDF enhanced to Rs 5,500 crore, rate of interest decreased from 10.5% to 8%
National Agricultural Insurance Scheme – a new corporation for agricultural insurance
to be monitored by public sector insurance companies
Research allocation for
agriculture raised to Rs 775 crore
Allocation
of Rs 2500 crore for Pradhanmantri Gram Sadak Yojna
Krishi
Vigyan Centre to be certified as nodal agencies for quality controls
Agricultural
exports to be encouraged
New interest subsidy scheme to be introduced with
an outlay of Rs 164 crore
Jaiprakash
Rozgar Yojna launched
Rural
industrialisation - Mahatma Gandhi Institute for Rural Industrilisation being
set up and upgraded to the status of national instituted
Infrastructure
– power sector – average rate of return 40% Rs
3,500 crore for power development and reform programme
Major corporatisation
of major ports in phased manner
International
airports in the four metros to be upgraded to world class
Package
of concession for private parties in greenfield airport projects
Urban
Reform Incentive Fund – initial allocation Rs 500 crore
Rationalisation of
high stamp duty regime
Rent
control, high stamp duty and municipal laws of real estate made more realistic
Allocation
of issue of municipal tax-free bonds enhanced to Rs 3,000 crore
Six comprehensive
tourism circuits to be identified for development
50% increase in plan outlay
for tourism to Rs 225 crore
Mechanism to coordinate debt financing of infrastructure
projects by FIIs and banks
Removal
of linking FII investments to sectoral FDI limit is good news for the markets
Capital
markets – process of corporatisation of stock markets expected to be completed
this year
Sebi
Act, 1992, to undergo legislative changes
Commitment
of Rs 1,300 crore for recapitalisation of Indian banks to enhance its capital
adequacy ratio
FII
investments will not be subject to sectoral approval, except in specified sectors
Legislative changes proposed in UTI Act
New bills for banking sector reforms
to be introduced
Asset
reconstruction companies to be set up to take over NPAs in banking sector
Legislative
changes to corporatise IDBI in the coming year
Nominees and directors of company
boards will be exempted from punitive action for companies defaulting under Companies
Act
Subsidiaries of foreign banks to adhere to priority sector reforms
Corporate credit structure to be reformed – Rs 100 crore allocated
Housing
Finance – NHB has commenced securitisation of housing loans
Banking
Reform Bill to provide for faster foreclosure norms and take over of assets in
case of bad loans
Automatic
approval limit for Indian companies investing abroad enhance to $100 million from
$50 million
Housing
Finance – NHB will launch a credit guarantee scheme
Target under rural housing
finance scheme increased to 2.25 lakh
Capital
account convertibility - full convertibility of deposit schemes for NRIs
Indian
MFs can invest in rated securities in countries with full convertible currency
Legislation
to deal with operators linked with terrorist activities
Petro products prices
to be market determined
Petroleum Regulatory Board to be set up
Fiscal
deficit expected to be at 5.7% of GDP this year
From
March 1, diesel cheaper by 50 paise and petrol cheaper by Re 1
Private
companies allowed in distribution of petro products, subject to guidelines
Price
of LPG raised by Rs 40
Kerosene
for PDS up by Rs 1.5 per litre Subsidy
of LPG and kerosene to be reflected in Budget, and will be on specified flat rate
basis from March 1
Limit for composite loan by SSI increased from Rs 2 lakh
to Rs 5 lakh
Exemption limit for collateral security increased to Rs 5 lakh
from Rs 25,000
PSBs to launch Laghu Udyog Credit Card schemes for persons
in SSI sector
50 more items to be dereserved in the small sector, which includes
knitwear agri equipments in the list
Janraksha - a new insurance scheme launched
Allocation for women development up by 33%
National Ayurvedic Hospital to
be set up in Delhi with private participation
At least 100 scholarships in
a year to encourage women in scientific profession
Planned outlay for tribal
welfare up 21% to Rs 290 crore and planned allocation for Department of SC/STs
increased by 52%
Budget support to ministry of information & broadcasting
up 22% to Rs 485 crore
Fertiliser subsidies to be reduced; 5% increase in
the issue price of urea
Excise
duty - 16% SEDs retained in PFYs, motor cars, MUVs, tyres for replacements, aerated
soft drinks, ACs and pan masala | 