Following are the highlights and key quotes from the budget speech. The entire text can be seen at http://indiabudget.nic.in/
MAIN POINTS
* Total spending in 2007/08 seen at 6.81 trillion rupees ($154.6 billion); non-plan expenditure next year seen at 4.35 trillion rupees.
* Fiscal deficit for 2007/08 seen at 3.3 percent of GDP compared to 3.7 percent in previous year.
* Revenue deficit for 2007/08 seen at 1.5 percent of GDP compared to 2.0 percent in previous year.
* The average inflation rate seen at between 5.2 and 5.4 percent in 2006/07 and the government says it is confident it can tackle the present inflationary trend.
* "I wish to reiterate government's concern over inflation. The government has already taken a number of measures on the fiscal, monetary and supply sides to maintain price stability and if required will not hesitate to take more measures," he said.
* Chidambaram says all indicators point to an accelerating rate of investment.
* April 2006-Jan. 2007 foreign direct investment seen at $12.5 billion.
* Exports seen crossing $125 billion in 2006/07.
* Defence spending increased by 7.8 percent to 960 billion rupees.
* Amendment to insurance laws to be introduced in parliament's budget session.
TAXES
* Tax to GDP ratio seen at 11.4 percent in 2006/07; tax rates to be moderate and stable.
* Direct tax revenue to increase 30 billion rupees in next fiscal year.
* Exemptions cut for export-oriented enterprises such as software outsourcing firms, by asking them to pay mininum alternate tax (MAT) on income.
* Revenue from indirect tax changes to remain neutral next year.
* Centre to give states 1.24 trillion rupees as their share of 2006/07 taxes.
* National goods and services tax to be levied from Apr. 1, 2010.
* Service tax to be extended to more services including mining.
* Personal income tax threshold for exemption raised by 10,000 rupees.
* Corporate tax rates maintained, surcharge on small and medium enterprises removed
* Gas pipelines to get tax exemption for 10 years
* Five-year tax exemption for 2-, 3- and 4-star hotels and convention centres with seating capacity of at least 3,000 in New Delhi and surrounding districts.
* Dividend distribution tax raised to 15 percent
* Employee stock options brought under fringe benefits tax
* Education cess to be raised by one percent
* Cash transaction tax may be reviewed next year
DUTY CUTS
* Peak customs duty for non-farm sector to be reduced to 10 percent.
* Second steel import duty cut to 10 percent
* Import duty on polyester yarn cut to 7.5 percent
* Duty on farm sprinklers cut to 5 percent from 7.5
* Import duty on medical equipment cut to 7.5 percent
* Duty on sunflower oil cut by 15 percentage points
* To eliminate additional CVD duty on crude and refined edible oils
* Petroleum excise duty cut to 6 percent
* Duty on cut and polished diamonds reduced to 3 percent from 5 percent; on rough synthetic stones to 5 percent from 12.5 percent; on unworked corals to 10 percent from 30 percent.
* Biodiesel and water purification equipment exempted from excise duty
* Excise duty on cement sold for 190 rupees per bag or below cut to 350 rupees per tonne.
NEW/INCREASED DUTY
* Import duty of 3 percent on private aircraft
* Export duty of 300 rupees per tonne on iron ore
* Excise duty on cigarettes raised by 5 percent
* Excise duty on cement sold for more than 190 rupees per bag raised to 600 rupees per tonne from 400.
FARM SECTOR
* Government sets up panel to study the impact of forward trading in commodities.
* Farm credit for 2007/08 seen at 2.25 trillion rupees compared to 1.90 trillion in the previous year.
* Chidambaram says government is "concerned about the stagnation in the production and productivity of pulses" and plans to boost output.
* Spending on irrigation to be increased to 110 billion rupees in 2007/08.
* National Bank for Agriculture and Rural Development to issue farm bonds worth 50 billion rupees.
* Agriculture must top the agenda of policymakers. "There is no dearth of schemes, there is no dearth of funds, what needs to be done is to deliver the intended outcomes," he said.
RURAL AND SOCIAL SECTOR
* Spending on education raised by 34.2 percent to 323.5 billion rupees for 2007/08.
* Spending on healthcare and family welfare raised by 21.9 percent to 152.9 billion rupees for 2007/08.
* "Revenues were buoyant for the third year in succession. I have put the revenues to good use to promote inclusive growth, equity and social justice," he said.
"The economy is in a stronger position than ever before. It therefore behoves us to set higher goals."
* Spending on rural job guarantee scheme in 2007/08 set at 120 billion rupees; plan expanded to 330 districts.
* New insurance plan for rural poor to be introduced; part of the fiscal burden to be borne by federal government, with individual states expected to chip in with rest.
INFRASTRUCTURE
* Spending on national highway programme increased to 106.67 billion rupees for next fiscal year from 99.45 billion in previous year.
GROWTH
* "Our human and development indices are low, not because of high growth but because growth is not high enough. Faster economic growth has given us once again the opportunity to unfurl the sails and catch the wind."
"As Dr. Muhammad Yunus, the Nobel laureate said, faster growth is essential for faster reduction in poverty, there is no other trick to it. With these words, I commend the budget to the House."
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