New Delhi, Feb 29: Finance Minister P Chidambaram in his fifth consecutive Union Budget for 2008-09 on Friday announced a complete debt-waiver scheme for the small and the marginal farmers. The FM also raised the exemption limit for Income Tax to Rs 1,50,000, Rs 1,80,000 for women and Rs 2,25,000 for senior citizens. He tinkered with the tax slabs for individuals, but left the corporate tax structure untouched.
Beginning his address, the FM said the economy had achieved record growth rates of over 8% for the 12th quarter starting January 2005 till December 2007. The FM said that the growth projected for the current financial is likely to be 8.7%, according to CSO, but he was confident of achieving 8.8%. Manufacturing and services have been driving the economy and had recorded growth rates of 9.4% and 10.7% respectively.
Chidambaram said the Indian growth story has been an absorbing and inspiring one. He added that the Indian economy was on a high growth trajectory but faced major challenges in year 2007-08. Since August 2007, financial markets in the developed world have faced turbulence while crude oil prices have spiralled. The prices of iron ore, copper, lead have escalated while wheat rates have grown by 88% and rice by 15%. He said therefore keeping inflation under control while providing inclusive growth were the corner stones of the UPA government’s policies. The FM kept his promise to the Defence Services and raised allocation by 10% to Rs 105,000 cr.
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