BUDGET - BMR Advisors

BUDGET PROPOSALSA perusal of the Finance Minister’s speech and the proposals ofthe Finance Bill, 2008, it emerges that as compared to thebenefits given to the infrastructure sector in terms of reduction ofduties of excise and customs, there has been a sizablebudgetary allocation of funds under the various developmentalprojects and social schemes of the Government.It appears that the Government has decided to fund moredevelopmental projects and social scheme projects to spur thegrowth of the specific sectors within infrastructure instead ofgiving a fillip to these sectors by way of extending tax incentives.Budgetary allocationBudgetary allocations for major schemes relevant for theinfrastructure sector are given in the table below:Name of the Scheme FY 2007-08 FY 2008-09In Rs Billion In Rs BillionJawaharlal Nehru NationalUrban Renewal Mission 54.82 68.66Rajiv Gandhi Drinking Water Mission 65 73Rajiv Gandhi Drinking Water Mission(Separate component introduced for schoolchildren in water deficient habitations) - 2Desalination plant in Chennaiproposed by the Tamil Nadu Govt. - 3Accelerated Irrigation Benefit Program 35.80 55.50Rainfed Area Development Program - 3.48Total sanitation campaign - 12Central Government sponsored schemeon micro irrigation launched in 2006 - 5Irrigation and Water Resources FinanceCorporation - 1Rural Infrastructure Development Fund - XIV - 140A separate window for rural roadsproposed under the Rural Infrastructure54indiaBUDGET2008