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Highlights Economic Survey 2008-2009
- Unleash reforms and phase out cesses, surcharges and transaction taxes (such as commodities transaction tax, securities transaction tax and fringe benefit tax).
- Introduce new income tax code that results in neutral corporate tax regime.
- 7-7.5% growth possible in 2009-10.
- Allow 49% FDI in defence and insurance; permit FDI in multi-format retail starting with food.
- Decontrol petrol and diesel prices; end Govt monopoly in railways, coal and nuclear energy.
- Lift all bans on future contracts to restore price discovery; decontrol sugar and fertiliser.
- Revitalise disinvestment programme to generate Rs 25,000 crore annually, list all PSUs and auction those beyond revival
- Economic growth decelerated in 2008-09 to 6.7 per cent from nine per cent in 2007-08
- Fiscal deficit in 2008-09 shot up to over 6 per cent from 2.7 per cent in 2007-08
- Complete the process of selling 5-10 per cent equity in identified profit-making non-'Navratna' PSUs.
- List all unlisted PSUs and sell a minimum 10 per cent equity to public.
- Auction all loss-making PSUs that cannot be revived. In PSUs with zero networth, allow negative bidding in the form of debt write-off.
- Auction 3G spectrum-The auctioned spectrum must be freely tradable, with capital gains on spectrum to be taxed under the Income Tax Act.
- Rationalise Dividend Distribution Tax to ensure full single taxation of returns to capital in the hands of the receiver
- Reform petroleum (LPG, Kerosene), fertiliser and food subsidies to reduce leakages.
- Limit LPG subsidy to a maximum of 6-8 cylinders per annum per household.
- Phase out kerosene supply-subsidy by ensuring that every rural household has a solar cooker and solar lantern.
- Review customs duty exemptions and move to a uniform duty structure to eliminate inverted duties.
- Implement GST from April 1, 2010
- Rapid operationalisation of UID Authority within 3 months
- Agriculture growth fell sharply to 1.6 per cent in 2008-09 from 4.9 per cent.
- Exports grew at 3.4 per cent to 168 billion dollar in 2008-09 from 163 billion dollar in previous fiscal.
- Imports grew at 14.3 per cent to $287.75 bn from $251.65 bn.
- Trade balance deteriorated to $119.05 bn from $88.52 bn.
