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HIGHLIGHTS OF THE UNION BUDGET

Fiscal deficit to be 5.6 per cent of the GDP, placed at Rs 910 billion.

Revenue deficit placed at Rs 480 billion.

New postal rates to net Rs 2.7 billion. Competition postcards hiked to Rs 3, inland letter price hiked to Rs 1.50.

Computerisation of income tax and excise departments on anvil. Attempt to link both departments.

Government promises end to "inspector raj".

Group to be set up to recast excise laws.

Authority for advanced tax rulings to be set up to cut through confusion.

Service tax proposed on architects, interior decorators, CAs, ICWS, ICS, real estate consultants, market research, credit rating, underwriting agencies.

Service tax on transportation of good by roads abolished.

Excise duty reduced on alcohol-based toilet goods.

6%-11% tax hike on cigarettes. Excise duty on matches reduced.

Recorded audio cassettes and video cassettes exempted from duty.

Jute products being exempted from excise duty.

Wood-free particle boards exempt from excise duty.

Petrol tax for infrastructure development. Price up by Re 1 per litre to earn Rs 9.5 billion.

Gold import duty up Rs 30 per ten gram.

Duty-free baggage allowance ceiling doubled.

Duty on solar button cells reduced by 10 per cent.

Duties on ecofriendly biopesticides down.

Telecom software duties down. Telecom equipment duties cut to 20 per cent.

Computer parts duty down 3 per cent. Duty on floppy disk drives, hard disk drives, CD-ROM drives reduced from 12 per cent to five per cent.

Duty on specific machinery for leather industry slashed from 25 per cent to 5 per cent.

Thalassemia drug inputs exempt from import duty.

Customs duty on standard and glazed newsprint down by five per cent.

Duty on jumbo rolls of cine films down.

Higher duty to be levied on wrought copper, wrought iron and cold rolled steel. Duty reduced on stainless steel scrap.

No other changes in duty structure for ferrous and non-ferrous metals envisaged.

Duty on caprolactum, important for textile indutry, reduced to 25 per cent.

Direct tax concessions will cost the exchequer Rs 9.5 billion to be made up by tightening tax collection measures.

No expenditure tax on hotel room up to Rs 2,000 per day.

Import duty up by 8 per cent

Money given as extortion will not be considered business expense.

Concessions for film industry. For films released on commercial basis at least 90 days before the end of the previous year, full amortisation of costs on production and distribution allowed.

Stock lending to be exempted from capital gains.

Tax holiday for industries in backward districts, states.

Tax incentives for housing projects.

National sports fund to be set up, donations to be eligible for 100% exemption.

Gift tax to go after September 1998.

No standard deduction for salary over Rs 500,000.

A simple, one-page IT form called Saral to be introduced.

Waiver scheme -- Samadhan -- to minimise tax litigation, announced.

VDIS scheme in select centres.

Filing of returns mandatory for credit card holders and members of elite clubs.

Rs 15,000 medical reimbursement tax free, up from Rs 10,000

No change in individual and corporate tax. Standard deduction ceiling up to Rs 100,000.

Disinvestment target set at Rs 50 billion.

Modified formula for centre-state revenue-sharing on anvil.

Plan allocation for department of atomic energy has been enhanced by 68 per cent, that of the space department by 62 per cent.

Urea price up by Re 1.

Northeastern tribal rehabilitation plan launched with Rs 250 million outlay.

Provision for women and child development hiked 20 per cent.

Crop insurance scheme is being launched in 24 districts.

Allocation for non-conventional energy sources hiked 113 per cent.

Health and family welfare, hiked 34%; welfare outlay hiked 91 per cent. Allocation for ministry of agriculture increased by 58 per cent to Rs 28.54 billion.

Task force to be set up to review the distinction between plan and non-plan expenditure.

Restructuring of North Eastern Council mooted for speedy implementation of development schemes there, Sikkim to be included in the plan.

NEDFI to undertake refinancing work in the Northeast.

Safety net on anvil for workers of PSUs destined for closure. They will be given VRS packages. Workers will get 45 days wages for each completed year of service. Workers also to be eligible for five years wages if they have finished 30 years of service.

Indian Airlines to be restructured; government to shed 51% within three years.

UTI launches new dollar-linked millennium scheme for NRIs

SBI introducing Resurgent India Bond for NRIs.

NRI companies shareholding in Indian firms up by 10 per cent.

FIIs to invest in unlisted domestic debt, risk to be borne by FIIs.

Insurance sector to be opened for private Indian insurance companies.

Banking sector reforms to go hand in hand with insurance reforms.

Individual NRI shareholding in Indian firms up by 5 per cent

Stock indices futures to be treated be as securities

Anti-money laundering bill on the anvil

Brokers get one more year for corporatisation

Special scheme formulated to allow stock options to Indian IT employees linked to ADR/GDR options.

Defence budget up 14 per cent, to Rs 360.99 billion.

Scheme for creation of Nation Reconstruction Force.

NBFCs to be regulated better.

Debt recovery tribunals strengthened to recover Non Performing Assets.

Banks's non-performing assets to be brought down from 9 per cent to 5 per cent

50 per cent increase in allocation for education, up to Rs 70.47 billion.

NABARD asked to formulate a scheme for Kisan Credit cards.

The Budget aims at being growth-oriented, with special thrust on agriculture, rural development.

Plan allocation for agriculture to be increased by 58 per cent

Rs 16.27 billion for rural water supply to benefit 100,000 houses.

Persons of Indian origin cards to be issued to NRIs holding foreign passports

Disinvestment in IOC, GAIL, VSNL and CONCOR

Government shareholding in public sector undertakings to be brought down to 26 per cent

All FDI clearance in 90 days

New system for foreign investment

Furtures trading allowed in oil seeds, oil cakes, edibile oils

Defence allocation for 1998-99 pegged at Rs 412 billion

Watershed development allocation increased to Rs 6.77 billion from Rs 5.17 billion

Budget '98