The highlights:

• Economic growth has slowed down to 5.4 per cent
• Reform-linked spending, says FM
• Second generation reform policy being implemented at the state-level
• Agriculture, food reforms to be emphasised to generate social growth
• Deregulation of control from agricultural commodities
• Deregulation of sugar
• Deregulation of drug control regime
• Abolition of SICA
• Expenditure reform commission recommendation considered
• Future and forward trading of all agricultural commodities
• Agriculture: diversification and food processing, amendment of milk and milk products control order
• Announcement of VRS for government employees
• Countrywide integrated market for agri-products
• Removal of SSI reservation of agri-equipment
• Integrated food law to be in place
• Framers can sell their products directly in the markets
• Additional allocation of Rs 70 crore to credit linked subsidies scheme
• Proposal received for 21,00,000-tonne capacity of cold storage as against a target of 12,00,000
• RIDF enhanced to Rs 5,500 crore, rate of interest decreased from 10.5 per cent to 8 per cent
• KCC: Rs 2.07 crore issued
• 1.25 lakh more self-help groups to be in place
• National Agricultural Insurance Scheme: a new corporation for agricultural insurance to be monitored by public sector insurance companies
• Research allocation for agriculture raised to Rs 775 crore
• Allocation of Rs 2,500 crore for Pradhanmantri Gram Sadak Yojna
• Krishi Vigyan Centre to be certified as nodal agencies for quality controls
• Agricultural exports to be encouraged
• New interest subsidy scheme to be introduced with an outlay of Rs 164 crore
• Jaiprakash Rozgar Yojna launched
• KBIC and other agencies will be involved in Jaiprakash Rozgar Yojna
• Rural industrialisation: Mahatma Gandhi Institute for Rural Industrialisation being set up and upgraded to the status of national instituted
• Assistance to set up rural product marketing centre at district and block level
• Decentralised procurement not found favour with states
• Infrastructure – power sector: average rate of return 40 per cent
• Rs 3,500 crore for power development and reform programme
• Focus of reforms shifted from generation to transmission and distribution
• Road Sector: Golden Quadrilateral to be completed substantially by December 2003
• Major corporatisation of major ports in phased manner
• International airports in the four metros to be upgraded to world class
• Package of concession for private parties in greenfield airport projects
• Urban reforms incentive fund should give a boost to housing and commercial pro-party demand
• Urban Reform Incentive Fund: initial allocation of Rs 500 crore
• Rationalisation of high stamp duty regime
• Rent control, high stamp duty and municipal laws of real estate made more realistic
• Allocation of issue of municipal tax-free bonds enhanced to Rs 3,000 crore
• Municipal bond issue thrust could increase business for Crisil
• Six comprehensive tourism circuits to be identified for development
• 50 per cent increase in plan outlay for tourism to Rs 225 crore
• Infra Equity Fund of Rs 1,000 crore to be set up
• Mechanism to coordinate debt financing of infrastructure projects by FIIs and banks
• Capital markets: process of corporatisation of stock markets expected to be completed this year
• Sebi Act, 1992, to undergo legislative changes
• Commitment of Rs 1,300 crore for recapitalisation of Indian banks to enhance its capital adequacy ratio
• FII investments will not be subject to sectoral approval, except in specified sectors
• Legislative changes proposed in the UTI Act
• New bills for banking sector reforms to be introduced
• Asset reconstruction companies to be set up to take over NPAs in banking sector
• Legislative changes to corporatise IDBI in the coming year
• Rs 1,300 crore for recapitalisation support to Indian banks
• Nominees and directors of company boards will be exempted from punitive action for companies defaulting under Companies Act
• Subsidiaries of foreign banks to adhere to priority sector reforms
• Corporate credit structure to be reformed: Rs 100 crore allocated
• Housing Finance: NHB has commenced securitisation of housing loans
• The Banking Reform Bill to provide for faster foreclosure norms and take over of assets in case of bad loans
• Automatic approval limit for Indian companies investing abroad enhance to $100 million from $50 million
• Housing Finance: NHB will launch a credit-guarantee scheme
• Target under rural housing finance scheme increased to 2.25 lakh
• Capital account convertibility: full-convertibility of deposit schemes for NRIs
• Indian MFs can invest in rated securities in countries with full convertible currency
• Legislation to deal with operators linked with terrorist activities
•  APM to be dismantled as on April 2002
• Petro products prices to be market determined
• Petroleum Regulatory Board to be set up
• Fiscal deficit expected to be at 5.7 per cent of GDP this year
• From 1 March, diesel cheaper by 50 paise and petrol cheaper by Re 1
• Private companies allowed in distribution of petro products, subject to guidelines
• Price of LPG raised by Rs 40
• Kerosene for PDS up by Rs 1.5 per litre
• Subsidy of LPG and kerosene to be reflected in Budget, and will be on specified flat rate basis from 1 March
• Limit for composite loan by SSI increased from Rs 2 lakh to Rs 5 lakh
• Exemption limit for collateral security increased to Rs 5 lakh from Rs 25,000
• PSBs to launch Laghu Udyog Credit Card schemes for persons in the SSI sector
• 50 more items to be dereserved in the small sector, which includes knitwear agri-equipments in the list
• Janraksha: a new insurance scheme launched
• Allocation for women development up by 33 per cent
• National Ayurvedic Hospital to be set up in Delhi with private participation
• At least 100 scholarships in a year to encourage women in scientific profession
• Planned outlay for tribal welfare up 21 per cent to Rs 290 crore and planned allocation for Department of SC/STs increased by 52 per cent
• Budget support to the ministry of information and broadcasting up 22 per cent to Rs 485 crore
• Fertiliser subsidies to be reduced; 5 per cent increase in the issue price of urea
• Excise duty: 16 per cent SEDs retained in PFYs, motor cars, MUVs, tyres for replacements, aerated soft drinks, ACs and pan masala
• 16 per cent SEDs abolished for many items
• Cigars, cheroots to attract 16 per cent CENVAT
• LPG, kerosene to attract CENVAT of 16 per cent
• Motor spirit ad valorem rate reduced to 30 per cent.
• Surcharge imposed
• Special incentives for textiles
• Fabrics, readymade garments attract 12 per cent CENVAT
• Textiles: abolition of 4 per cent on CENVAT of 16 per cent
• Exemption to handloom garments also
• No change in personal income tax rates. Section 88 benefits reduction for salary levels above Rs 1 lakh
• Excise duty on tea reduced from Rs 2 per kg to Rs 1 per kg
• Nine more sectors to come under the purview of service tax
• Service tax to be imposed on life insurance agents, cargo handlers, event managements, health centres, beauty parlors etc.
• By 2004-05, only two rates of custom s duty to remain: 10 per cent and 20 per cent
• Peak rates of customs duty reduced from 35 per cent to 30 per cent
• Basic customs duty on defective steel and seconds raised
• Excise duty exemptions to granite withdrawn
• Service tax exemptions to services provided by hotels extended up to 21 March, 2003
• Import duty increase in rubber could impact tyre companies
• Increase incentives through additional depreciation in plant and machinery for companies
• Customs duty on cement and clinker reduced to 20 per cent from 25 per cent
• Dividend tax on income distribution from MFs and corporates to go; dividend taxed through TDS
• Rs 6,700 crore gains from excise duty and Rs 2,200 crore loss from customs duty
• Additional depreciation to new industrialised units for expansion of installed capacity by at least 21 per cent
• Cell phone, pagers exempted from CVD. Basic duty doubled to 10 per cent
• Capital gains exemption for housing loans given by NHB
• Taxable income between Rs 1.5 lakh and Rs 5lakh to get 10 per cent rebate
• Tax exemption on VRS payment up to Rs 5 lakh extended to certain institutions
• Penalty of Rs 10,000 imposed for faulty PAN quotations
• Surcharge of 5 per cent on all categories for meeting defence expenses
• Direct tax revenues to be Rs 91,585 crore
• 12,200 government posts to be abolished by end of March 2002
• Government relief bonds to have a reduction of 50 basis points in interest rates
• Proceeds of small savings to be transferred to states
• Rs 12,000 crore disinvestment target for the next year
• Rs 12,500 crore for reforms-linked assistance to states
• PDS sugar to be Rs 13.5/ kg
• 20 per cent rebate allowed to persons with income up to Rs 1.5 lakh
• Foreign companies: corporate tax reduced to 40 per cent
• Imported liquor customs duty down from 210 per cent to 182 per cent
• Medical equipment exempted from customs duty
• Eight more drugs included in fully exempt list
• Customs duty on computer hardware items reduced to 5 per cent, capital goods to 15 per cent
• Customs duty on specified equipment in ports and airports reduced to 10 per cent
• Excise duty on agricultural machinery and implements reduced to 15 per cent from 25 per cent
• Excise for NFM: copper, zinc, lead reduced to 25 per cent from 35 per cent; aluminium to 15 per cent from 25 per cent
• SEZs to be entitled to procure duty-free raw materials.

— Compiled by Shehla Raza Hasan