Economy

Indian Budget 2008 – What happened

budget

In my earlier post I have given my guess list. My list was correct by more than 3/4th.

What happened from my list:

  • FM had done nothing for Dollar hit export industry including IT
  • Increase in Defence spending
  • Dividend tax was tweaked
  • Income tax exemptions increased by good percentages
  • 6th Pay commission was accepted
  • Farm credits /benefits were announced

What didn’t happen from my list:

  • Service tax rates were not changed (Good)
  • A new committee for simplification didn’t happen (Good, we have had enough committees)

The points I liked about the budget:

  • Promised allocation for Minimum Work / Employment schemes
  • Pushing the states for more accountability on central funded projects
  • Drinking water availability in all villages and in all schools in India
  • Allocation of over Rs.200 Crores for Chennai’s Desalination plant
  • Service tax for Customized Software (though I don’t like the tax, it at least put an end to all arbitration on whether it is applicable or not)
  • No change in corporate tax rate (Good)