Annual Report 2002-2003
Budget 2003-04
With a view to ensure the total well being of Indian citizens as well as the economic security of the country, the Union Budget 2003-04 announced 'Panch Priorities'' which are outlined below:
| a) |
Poverty eradication by addressing the 'life time concerns' of Indian citizens, such as health, housing, education and employment; |
| b) |
Infrastructure development; |
| c) |
Fiscal consolidation through tax reforms and progressive elimination of budgetary drags |
| d) |
Agriculture and related aspects including irrigation; and |
| e) |
Enhancing manufacturing sector efficiency, including promotion of exports and further acceleration of the reform process. |
Acknowledging the entrepreneurial fervor and creativity of Indians as the cornerstone of our basic development, the Government endeavours to unshackle the reservoir of potential by removing the economic and social hindrances mainly manifested in the form of poverty and inequality. It also makes a conscious effort to make available the budgetary provisions to the common populace with a renewed progress on the front of agriculture- the nation's life blood. The underlying importance of infrastructural development as the rudimentary requirement has also been acknowledged for which, private and public interest need to combine so as to generate maximum social welfare. Upon these foundations, and through encouraging specific manufacturing sectors, particularly activities where knowledge is industry, the Government envisages enhancing growth, improving incomes, generating employment and promoting exports. For a sustainable growth, fiscal consolidation would be the central pillar. Government also intends to eliminate budgetary drags. An all round growth, with a wider distributive spread of national wealth and greater disposable income to spend would usher a new era of reform in the Indian economy.
Consequent to the announcement made by the Hon'ble Prime Minister on Independence Day, 2002, the Union Budget announced the Government's commitment to improving national well-being by addressing the 'life-time concerns' of Indian citizens. 'Housing' occupies a prominent position as one of the basic necessities. Besides promoting the all important employment-generating activity of construction, it also stimulates demand for core industries like steel and cement. To maintain its present momentum of growth, the interest deductible under income tax up to Rs.1,50,000, for construction or purchase of a self-occupied house property has been continued and in addition, the Union Budget 2003-04 made the income from housing projects for construction of residential units, of prescribed specification, approved by the local authorities up to March 31, 2005, exempt from income tax. Thus, not only has the limitation with regard to the year of sanction, earlier frozen at March 31, 2001, now been extended, but the benefits of the scheme also made available irrespective of the year of completion. The continuance of the fiscal concessions came as a welcome respite to all home-seekers, extant as well as prospective, particularly in the face of the Kelkar Committee recommendations that opined in favour of removal of such fillips. In his budget speech, the Hon'ble Finance Minister announced that the government would further examine what additional incentives could be given to basic infrastructural developments that must accompany slum up gradation, sewerage system laying and green-field housing projects.
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