New Delhi: The Union Budget for 2003-04 will have five main objectives including poverty eradication, tax reforms and introduction of service tax and VAT in states from April 1, 2003.

The focus will be on health, education, housing and tackling unemployment, Finance Minister Jaswant Singh said, while presenting the Budget in the Lok Sabha on February 28.

The Budget will aim at fiscal consolidation through tax reforms and elimination of additional excise duty.

The Budget will also focus on agriculture and related aspects, besides enhancing manufacturing sector efficiency.

It would aim at further acceleration of reforms.

The Budget will aim at releasing the social and economic energy for growth and development, Singh said, adding it would attempt to realise the collective need for transformation of nation into a developed country.

He admitted the gross domestic product (GDP) growth would be lower at 4.4 per cent in the current year.

The second revolution after the green revolution would be in the field of physical and social infrastructure, Singh said.

The Budget would continue to make efforts for self-reliance programmes for all-round growth of national wealth.

Singh said agriculture growth is likely to be 3.5 per cent in the current year, while services expected to be 7.1 per cent and exports at 20.4 per cent.

The Budget would attempt to release public and private partnership and realise the target of building one crore houses in a year.

• 'Antoyadya yojana' of providing subsidised wheat and rice to the poorest of the poor will be expanded to cover additional 50 lakh families, Singh said. At present, the scheme covers one crore families.
• A Committee, headed by deputy chairman of Planning Commission, has been set up to look into poverty alleviation and rural development programmes.
• It is proposed to reduce customs duty on life saving equipment from 25 per cent to five per cent.
• To encourage sports and games, government would shortly issue guidelines for direct funding for sports infrastructure facilities through public-private funding.
• In a move to encourage research and development in medical sector and the need to upgrade facilities, it has been decided to increase rate of depreciation of life saving equipment from existing 25 per cent to 40 per cent.
• To promote India as a major health destination, Singh announced to extend tax benefits to private hospitals.
• Prime Minister will inaugurate 227 ex-servicemen medical centres in the country, including in remotest districts.
• New pension scheme with equal contribution from employers and the government.
• Innovative funding mechanism for modernisation of Railway, airports and ports and roads will be undertaken.
• Thirty-eight new road projects worth Rs 40,000 crore.
• Two more major airports in private sector in Delhi and Mumbai will be set up. Already two airports in Bangalore and Hyderabad are coming up.
• Modernisation of JNPT and Kochi Ports at a cost of Rs 7,500 crore including dredging.
• Under a new health insurance scheme, an individual would have to pay one rupee per day as premium for 365 days, Rs 1.50 per day for a family of five and Rs two per day for a family of seven, including dependents and will be eligible for a benefit of Rs 30,000 in case of hospitalisation. In the event of death, the family would get Rs 25,000.
• Liberalised government policy for mega power projects. Ceiling of 14 mega projects lifted and concessions will be available for all mega power projects, which qualify.
• Provision of safe drinking water would be given priority by further incentives to water treatment and supply projects.
• Modernisation of taxation regime and expenditure rationalisation will be undertaken.
• Interest commitment is Rs 1,15,653 core during 2002-03, which constitute 48.8 per cent of the revenue earnings.
• Government intends to continue prepayment of high cost World Bank and Asian Development bank (ADB) loans in the face of burgeoning foreign exchange reserves and low domestic interest rates. About $ three billion have already been repaid in the current year.
• Twelfth finance commission to address the high-debt burden of states.
• Government has decided to allow debt-swap scheme to avail of the lower interest rate benefits.
• Debt of states towards Centre is Rs 2.44 lakh crore, besides Rs 1,00,000 crore as coupon rate securities.
• It is government's resolve to encourage diversification of horticulture and floriculture, Singh said.
• A new Central sector scheme to promote hi-tech horticulture and precision farming.
• Ministries of Food and Finance would jointly address the problem of sugar industry.
• Reserve Bank of India (RBI) has given instructions to enhance repayment period of medium term loan to nine years.
• Price stabilisation fund of Rs 500 crore will be created for tea and coffee.
• Excise of Re one per kilo for tea has been replaced by cess of one per cent for modernisation of tea plantation.
• Private banks will encouraged to open branches in rural sector to provide credit for farm equipment including tractors.
• A number of initiatives proposed to conserve water by promoting drip irrigation and the like.
• Bank credit for 50,000 self-help groups to be provided. Rs 598 crore already spent on 25,000 self-help groups as on January 3 this year.
• Women empowerment to be given additional stress.
• Andhra Pradesh Chief Minister Chandrababu Naidu will head a bipartisan task force with Agriculture Ministers from other states to expand and quicken drip irrigation projects.
• Adequate outlay is being provided for the task force on inter-linking of rivers.
• Special programmes for desert districts of Rajasthan for developing pastures. Rs 100 crore for setting up a task force for the purpose.
• All power loom workers to be provided with special insurance scheme for accidents.
• An India development initiative is to set up in the Finance Ministry to attract investment.
• Foreign direct investment (FDI) ceiling of 49 per cent for subsidiaries of foreign banks as well as private banks has been raised to 74 per cent.
• Repayment of external commercial borrowing up to $ 100 million put under automatic route.
• Government proposes to continue credit line for developing countries in Africa and Asia.
• Department of Economic Affairs is being restructured.
• Six aspects of tax reforms to be addressed.
• Excise duties to be rationalised, fiscal consolidation will be continued.
• Reprioritisation of expenditure to be undertaken.
• Constitution amendment would be carried out to arm state governments to appropriate and collect service tax by states.
• Fiscal deficit is estimated at 5.6 per cent of GDP at Rs 1,53,637 crore for the next fiscal.
• The total revenue receipt is pegged at Rs 2,53,935 crore for the next fiscal. Gross budgetary support would be Rs 1,20,974 crore, Rs 7474 crore more than this year.
• Tax revenue is estimated to be Rs 619 crore more than estimated for the current year at Rs 1,72,759 crore. Disinvestment receipt in this financial year is expected to be Rs 3350 crore against the target of Rs 12,000 crore.
• The Budget estimate for the next year is fixed at Rs 4,38,795 crore.

PTI