The Tribune, Chandigarh, India

	PM: Budget for common man Tribune News Service New Delhi, February 28 Hailing the Budget as an “outstanding” exercise, Prime Minister Manmohan Singh today said that it not only provided potential for achieving 8-10 per cent economic growth but also a fair deal to social justice imperatives. “It is a pro-common man Budget and will help the country to move towards a higher growth path,” Dr Manmohan Singh told newspersons soon after Finance Minister P.Chidambaram presented the Budget in Parliament. He said the Budget was an “excellent combination” of different factors with the emphasis on the farming community, rural health, education and infrastructure development. Taking an overall view of the budget provisions, Mr Manmohan Singh said this was in line with the commitments made in the National Common Minimum Programme, which has been endorsed by the Left Parties, when the UPA government came to power at the Centre. There will be relief for “aam aadmi” (common man), he said, adding that strong emphasis had particularly been laid on the farming community. Asserting the Budget would provide “unprecedented” opportunities in major sectors, he said the government would provide funding to core areas for which money may not come through the market borrowings route. Asked why the Fringe Benefit Tax was not withdrawn despite demands from various quarters, the Prime Minister said the Finance Minister has given concessions for the industry. “Leave something for a later day,” he quipped. He attributed the growth to larger generation of funds through increased tax-GDP ratio among other means. The Gross Tax Revenue ratio to the GDP has gone up to over 10 per cent, he said. Enough allocation has been made for infrastructure development through the ambitious Bharat Nirman Programme, National Rural Employment Guarantee and rural health and education, Mr Manmohan Singh said, adding that this symbolised significant steps for improving the condition of the poor. Justifying the hike in Defence Budget which has been increased by Rs 6,000 crore, the Prime Minister said the country’s security and defence requirement would be met.
	Sidelights AT least one proposal in the Union Budget 2006-07 will not have to wait for a vote. Finance Minister P. Chidambaram’s announcement that he was reducing the excise duty on dosa and idli mix from 16 per cent to 8 per cent won instant approval from the entire Lok Sabha. MPs cutting across party and geographical confines cheered the reduction of duty on the two South Indian dishes with a Pan-India flavour. Even Speaker Somnath Chatterjee, whose state West Bengal has a distinct liking for fish, was forced to comment: “Very popular dishes it seems.” The largesse shown for dosa and idli was also extended to ice cream, fish and poultry which were fully exempted from excise duty. *** * * * Former Prime Minister Atal Bihari Vajpayee appeared a forlorn figure as he sat alone away from his usual position in the front row listening to the Budget speech. While the leader of the opposition in the Lok Sabha, Mr L.K. Advani, sat glancing through the Budget papers from his designated seat in the front row, Mr Vajpayee chose to sit in the third row. Prime Minister Manmohan Singh and UPA chairperson Sonia Gandhi heard the Finance Minister in rapt attention occasionally thumping the desk. * * * *** Last year Finance Minister P. Chidambaram had pompously proclaimed “Main Hoon Na”, picking up the title of the Shah Rukh Khan-starrer Bollywood blockbuster, on the floor of the Lok Sabha, seeking to allay doubts of the members of the House on the Budget proposals. This year, the Harvard-educated Finance Minister preferred to quote his favourite poet-philosopher Thiruvalluvar, whose 1,330 verses are considered sacred in Tamil literature, to project the UPA coalition as a ‘compassionate government.’ Mr Chidambaram concluded his 95-minute speech on a sublime note by quoting the famous words of Swami Vivekananda. “We reap what we sow. We are the makers of our own fate. The wind is blowing; those vessels whose sails are unfurled catch it, and go forward on their way, but those which have their sails furled do not catch the wind. Is that the fault of the wind?....We make our own destiny.”
	Defence gets Rs 6,000-cr hike Girja Shankar Kaura Tribune News Service New Delhi, February 28 For the second year running, modernisation of the armed forces has been high on the agenda of the Congress-led United Progressive Alliance (UPA) government, with the outlay for the Capital expenditure being given priority in the Defence Budget, which has been hiked by Rs 6,000 crore over last year’s allocation of Rs 83,000 crore. It amounts to an increase of more than 8.5 per cent over last year’s revised estimates. While announcing the Budget estimate of Rs 89,000 crore for 2006-07, which would include an allocation of Rs 37,458 crore for Capital expenditure, Finance Minister P. Chidambaram justified higher allocation keeping in view enhanced expenditure on defence forces’ modernisation. The increase in real terms was of Rs 7,300 crore over last year’s revised estimate of Rs 81,700 crore. The government in the Budget also announced the fulfilment of the long-standing need of retired armed forces personnel below officer rank (PBOR) for better pensionary benefits. About 12 lakh PBOR had benefited to the tune of Rs 460 crore with effect from January 1, 2006, the Finance Minister said. The allocation for the pensions had been increased to Rs 13,224 crore from last year’s revised estimate of Rs 12,715 crore. The government had last year allocated Rs 12,452 crore for pensions. The Defence Budget remained pegged at almost three per cent of the GDP, which was far below the country’s immediate neighbours Pakistan and China, which spent between 5 and 7 per cent of the GDP on armed forces. Defence Minister Pranab Mukherjee billed the new Budget as very good and said it signified that current modernisation as well as indigenisation drive in the armed forces would continue. Though India had recently reopened its submarine assembly lines to build French scorpene submarines, the IAF and the Army were both vying to augment their fighter and artillery fleet. The Air Force was on the verge of calling for international tenders to purchase 126 combat aircraft to shore up its depleting fighter squadron strength and the Army badly needed to purchase upgraded 155 mm artillery guns. To ensure that the acquisition process went full steam, the Capital outlay in the new Budget saw a jump of 13.25 per cent from last year’s revised estimates of Rs 33,075 crore to Rs 37,458 crore, an increase of Rs 4,382 crore. The allocation for the Air Force in the Capital outlay was pegged at Rs 11,272 crore, which was higher than the revised estimate of Rs 9,983 crore. With a huge allocation on capital outlay, Mr Mukherjee could now go ahead with major arms acquisition programmes which had been pending. The Capital outlay funding constituted more than 42 per cent of the total Defence Budget. But over Rs 1,000 crore on the Capital outlay head remained unspent, a trend which Mr Mukherjee arrested last year. Defence Ministry officials exuded confidence that the amount would be fully utilised, with some major deals pending nod from the Cabinet Committee on Security. Experts pointed out that the percentage increase this year was less than the amount required to stand the effect of the general national inflation and the military deflation. In the Indian context, a figure of between 10 and 12 per cent would have ensured the same level of Budget support for defence as previous year at constant prices, they said. Though it was yet to meet its deadlines on main battle tank and indigenous aero-engines, the Defence Research and Development Organisation got a hefty 7.48 per cent hike in the new Budget, with its allocation increased from last year’s revised estimates of Rs 2,809.96 crore to Rs 3020.18 crore, a jump of Rs 210.12 crore. The Army, with almost 1.4 million personnel under arms, as usual, got the bulk of share in the new Budget, with a 5.28 per cent jump in allocation to Rs 33,205 crore from last year’s revised estimates of Rs 31,539 crore, an increase of Rs 1,666 crore. The share of the IAF was hiked by 7.88 per cent from Rs 9,350.27 crore to Rs 10087.36 crore, an increase of Rs 737.09 crore. The Navy, the smallest of the three services, got a hike of 5.75 per cent, with allocation increase to Rs 6,791 crore from last year’s revised estimates of Rs 6,422 crore. As far as ordnance factories were concerned, the government was maintaining its trend of not allowing any budgetary support to these units.
	Oppn, UPA allies slam Budget Tribune News Service New Delhi, February 28 The Opposition and UPA allies today slammed the Budget as anti-people and pro-rich and said the exercise would trigger inflation and turn out to be a fraud on the ‘aam aadmi’. Former Prime Minister and NDA chairperson Atal Bihari Vajpayee said the Budget provisions would lead to spiraling prices and hit the common man hard, adding that there was nothing to cheer about for farmers. Leader of the Opposition L.K. Advani accused the Finance Minister of reversing creative energies unleashed during the NDA regime through all-round infrastructure growth, low inflation and low interest rates. “This Budget has reversed all these gains. The government, which tom-toms its so-called commitment to the ‘aam aadmi’, has provided only Rs 4,000 crore, just 1 per cent of the Budget, for agriculture, which contributes 24 per cent of India’s GDP.” Describing the Budget as anti-farmer, Shiromani Akali Dal leader S.S. Dhindsa said Mr Chidambaram should have been more pragmatic on farm loans, as a large number of peasants in Punjab were in deep debt. Not only was the quantum of short-term lending for farmers not enough, the reduction of the interest rate from 9 to 7 per cent was inadequate, Mr Dhindsa said. Former Finance Minister Yashwant Sinha dubbed the Budget as a timid one, which lacked bold initiatives. “We do understand why the Budget is silent on disinvestment and privatisation, but what about a bold initiative on rationalisation of taxes,” Mr Sinha asked. CPI leader Gurudas Dasgupta said, “This Budget had deceived the common man. The tax system is regressive. Heavy concessions have been granted to the corporate sector and spending on education and healthcare has not been increased to the expected levels.” Mr Dasgupta said heavy concessions had been granted to foreign institutional investors and that there was no proposal to tax wealth, inheritance and turnover. There was also nothing to mop up black money, he said, adding that they would protest and oppose the Budget. CPM leader Basudeb Acharia said the UPA government had not paid any heed to suggestions given by the Left parties on resource mobilisation and continued to burden the common man to raise resources, adding that it was a regressive Budget. Forward Bloc leader Debabrata Biswas said, “Our expectations have not been realised.” He said there was no firm measure to uplift farmers and the urban poor, adding that in a bid to pacify corporate houses and the salaried class, the Finance Minister had shown considerable weakness.
	No hike in allocation for police modernisation S. Satyanarayanan Tribune News Service New Delhi, February 28 Despite Naxalism posing a threat to internal security situation in the country and illegal immigration from Bangladesh continuing, there has been no hike in the budgetary allocation for police modernisation and there has been reduction in the allocation for Indo-Bangladesh Border Works. However, the overall annual outlay for police and paramilitary forces has been hiked by about Rs 1,100 crore. As per the 2006-07 Budget proposals for Ministry of Home Affairs, the allocation for Modernisation of Police Force has been kept at Rs 900 crore as that of last fiscal and the allocation for Indo-Bangladesh Border Roads has been reduced by Rs 12.27 crore. Under the Modernisation of Police Scheme, assistance is provided in cash and kind to the state governments in the form of 100 per cent grants-in-aid to be utilised for the expenditure of non-recurring nature on the purchase of vehicles, wireless equipment, computers and other sophisticated equipment. The allocation for erection of barbed wire fencing along the Indo-Bangladesh border has been kept at Rs 424 crore same as that of the last financial year. The Budget proposed to spend Rs 14,906.33 crore on welfare activities, like providing housing and construction of buildings, and upkeep of police and paramilitary forces, up from last year’s Rs 13801.75. It has allocated Rs 3158.95 crore for CRPF for 2006-07 as against Rs 2966.34 crore this fiscal, Rs 3356.42 for BSF, up by 46 crore, Rs 133.71 for NSG, Rs 601.59 for ITBP, Rs 1010.78 for CISF, Rs 1176.39 for Assam Rifles and Rs 697.59 for Sashastra Seema Bal. The Government nominally increased the financial allocation for housing schemes and the construction of buildings, roads and bridges from Rs 489.35 crore to Rs 503.35 crore and Rs 486.30 crore , respectively. The Budget also allocated Rs 30.33 crore for education, training and research of police personnel, Rs 30.57 for criminal investigation and vigilance, Rs 951 crore for special police and Rs 1343.88 crore for Delhi Police.
	Bharat Nirman gets 54 pc more Tribune News Service New Delhi, February 28 With implementation of the UPA Government’s Bharat Nirman gathering pace, Union Finance Minister P. Chidambaram today proposed a 54 per cent increase in the allocation for 2006-07 for the ambitious programme that aims at improving the rural infrastructure. Against current year’s figure of Rs 12,160 crore, he proposed an allocation,including the Northeast component, of Rs 18,696 crore for the programme. Mr Chidambaram said the government was confident of achieving the rural electrification target of 10,366 villages in the current fiscal with Rs 1,100 crore having been released for the purpose. He said 17,182 villages had been provided with telephone connections till December 2005 in the first year of the programme. The minister said 8,70,000 rural houses had been constructed under Bharat Nirman so far with an allocation of Rs 2,260 crore till January. Under the Rural Roads Programme, 5,337 habitations have been connected till September 2005 at an expenditure of Rs 3,749 crore. Under the Accelerated Rural Water Supply Project, 47,546 habitations have been covered till January against the target of 56,270, Mr Chidambaram said. The Finance Minister said bulk of the resources must go to the UPA Government’s eight flagship programmes, including the Sarva Siksha Abhiyan, Mid-day Meal Scheme, Rajiv Gandhi Drinking Water Mission, Total Sanitation Campaign.
	Fiscal deficit down to 3.8 pc New Delhi, February 28 The government today proposed to raise social and infrastructure spendings significantly but not at the cost of fiscal discipline, as Finance Minister P. Chidambaram pledged to cut deficit from 4.3 to 3.8 per cent of GDP during 2006-07. Presenting his Budget in Parliament, Chidambaram said,' revenue deficit is estimated at Rs 84,727 crore which is 2.1 per cent of GDP. Fiscal deficit is estimated at Rs 1,48,686 crore, which is 3.8 per cent of GDP.’’ Revenue deficit was pegged at 2.7 per cent in last year’s budget while fiscal deficit was targeted at 4.3 per cent. Government later revised the revenue deficit estimate to 2.6 per cent and fiscal deficit to 4.1 per cent. The drastic cut in deficits, which is on the lines of Fiscal Responsibility and Budget Management Act, has been proposed despite substantial increase in the expenditure for social and infrastructure sectors and with moderate tax rates. Total receipts and expenditures have been pegged at Rs 5,63,991 crore each for 2006-07. Revenue receipts are slated to rise by 15 per cent to Rs 4,03,465 crore this year from Rs 3,51,200 crore budgeted for last year. Tax revenue is targeted at Rs 3,27,205 crore, a 20 per cent jump from last year’s Budget estimate of Rs 2,73,466 crore. The revised estimate for tax collection is at Rs 2,74,139 crore for 2005-06.— PTI
	Santro to cost Rs 23,000 less Maruti to cut prices by Rs 13,000 to 22,000 Mumbai, February 28 Domestic automobile industry, especially B-segment car manufacturers, are feeling upbeat over the Union Budget 2006 proposal envisaging a cut in excise duty on B-segment cars to 16 per cent. Some of them, already announced their intention to pass on the benefits of 'Budget' munificence in the form of duty cut to the consumers. To begin with, Hyundai Motors has announced that it would reduce the prices of Santro cars by about Rs 23,000 each. Suzuki has stated that it would reduce the prices of B-segment cars between Rs 13,000 to Rs 22,000 each. An official source at Suzuki said the Maruti 800cc will come down by Rs 13,000, while other B-segment cars from Alto to Zen by around Rs 22,000 each. Though Tata Motors have not officially announced their intention to reduce the price of Indicas yet, an official source indicated that it would not lag behind in passing off the benefits of duty cuts to the passengers. ‘‘It is only a matter of time, after reading all the fine prints of the proposals,’’ he said. General Motors Managing Director and President Rajeev Chaba said, as far as the passenger car industry goes, ''the Budget is not on expected lines. We expected the excise duties to come down for all cars and not only on small cars.’’—UNI
	Sops for northern region announced Tribune News Service New Delhi, February 28 Zipping to Chandigarh in less than three hours from Delhi or doing agriculture research in Ludhiana with a tag of prestige attached to it will now be a reality with the Union Finance Minister P. Chidambaram announcing sops for the northern region in the Budget 2006-07. While debt-ridden farmers have been provided relief by short-term credit at 7 per cent with an upper limit of Rs 3 lakh on the principal amount, the food processing sector has been treated as “priority sector for bank credit” and offered other incentives, including excise duty exemptions. Later, talking to newspersons, Chidambaram ruled out imposing tax on agriculture income as there is no such provision in the Constitution and farming is a state subject. He said non-farm incomes of rural rich were being taxed. Chandigarh is among the seven projects selected by Mr Chidambaram for the development of 1,000 km of access-controlled expressways. These will be on new alignment and build on the design, build, finance and operate model. The concessionaires will be selected through an international competitive bidding process. The Chandigarh expressway would be taken up in the first phase and built along the existing national highway. The Finance Minister announced a special grant of Rs 100 crore for an institution of excellence to a distinguished institution. The Punjab Agriculture University, Ludhiana, would be given this special grant in acknowledgement of its pioneering contribution to its green revolution. Modelled on the pattern of Land Grant Universities in the USA, it was established in 1962 to serve the state of erstwhile Punjab. On the reorganisation of Punjab, two independent universities for the two states — Punjab and Haryana — were established. The university, located in Ludhiana, has played a key role in increasing foodgrain production in Punjab several folds. It has also made notable contributions in increasing livestock and poultry production. Stating that the Centre would continue to provide special assistance to Jammu and Kashmir, Mr Chidambaram said the state plan for 2006-07 had been fixed at Rs 2,300 crore. In addition, he proposed to provide Rs 848 crore for the Jammu and Kashmir reconstruction plan, including Rs 230 crore for the Baglihar project. He also proposed to provide special central plan assistance of Rs 1,300 crore to enable the state to undertake reforms in the power sector. Concerned over small farmers getting into debt trap that drive some of them to suicide, Mr Chidambaram announced a one-time relief of 2 percentage points on the interest liability up to the principal amount of Rs 1lakh, besides reducing the interest on short-term loan from NABARD at 7 per cent with upper limit of Rs 3 lakh for the coming kharif season. He said assured irrigation, credit, diversification and creating a market for agricultural products were the thrust areas. The decision to increase credit flow to the farm sector would provide relief to additional 50 lakh farmers. Farm credit that was increased to Rs 1,25,309 crore in 2004-05 was again expected to cross the target of Rs 1,41,500 crore set for 2005-06, he said. The outlay for Accelerated Irrigation Benefit Programme (AIBP) has been raised by 58.22 per cent to Rs 7,120 crore for 2006-07 from Rs 4,500 crore during 2005-06. The National Agricultural Insurance Scheme would be continued in the present form for kharif and rabi 2006-07, the Budget said. The Finance Minister gave a major fillip to the food-processing industry by creating a Rs 1,000 crore corpus for re-financing loan, besides exempting condensed milk, ice-cream, pasta, yeast, pectin and processed meat, fish and poultry products from the excise duty.
	Delhi-Chandigarh expressway proposed Tribune News Service New Delhi, February 28 Considering that development and maintenance of the road network was crucial for accelerating the process of economic development, Finance Minister P. Chidambaram today proposed to enhance Budget support for National Highways Development Programme (NHDP) from Rs 9320 crore to Rs 9945 crore in 2006-07. The government also decided to develop 1000 kms of access-controlled expressways. The sections that have been identified are Vadodara-Mumbai, Delhi-Chandigarh, Delhi-Jaipur, Delhi-Meerut, Delhi-Agra, Bangalore-Chennai and Kolkata-Dhanbad. While presenting the Budget proposals for 2006-07 in the Lok Sabha, the Finance Minister said the NHDP continued to make impressive growth and highest ever number and values of contract were awarded during 2005, adding that the National Highway Authority of India(NHAI) would be restructured and made more effective. It will be made into a multi-disciplinary body with the capacity to handle a large number of Public-Private Participation (PPP) projects. Mr Chidambaram also announced that a special accelerated road development programme for the North-East at an estimated cost of Rs 4618 crore had been approved and proposed to provide a sum of Rs 550 crore for this programme. The Finance Minister also informed that the India Infrastructure Finance Company Limited (IIFCL) had been incorporated and the first proposal for funds received. Several proposals had been received for viability gap funding for PPP projects. In-principle approval had been granted to three road projects in Gujarat and a final was likely to be taken before March 31st next year.
	How Rupee comes and goes New Delhi, February 28 Borrowings will contribute less at 22 paise of each rupee the government earns during the next fiscal (2006-07), albeit remaining the single largest contributor. The change, however, results in lower interest outgo by one paise. For the current fiscal, government was shelling out 22 paise of each rupee earned as interest outgo on borrowings and other liabilities. This would come down to 21 paise for the next financial year. In the “Rupee Comes From and Rupee Goes To”, in the Union Budget for 2006-07, presented in Parliament today, Finance Minister P. Chidambaram proposes to earn 20 paise from corporation tax, up by 2 paise over 2005-06. On defence, although the allocation has gone up in net terms marginally by Rs 6,000 crore but in terms of percentage spending the expenditure on defence has gone down to 13 paise of each rupee earned from 14 paise for the current fiscal. Contribution from income tax has remained unchanged at 11 paise for the next fiscal also. Also the burden of subsidies has remained unchanged at 7 paise of each rupee in the expenses side. The Centre would give one paise more to states as their share in taxes and duties at 17 paise of each rupee for the next fiscal compared to 16 paise in 2005-06. Under the Central Plan head, the government would be spending 19 paise, up by one paise. The government will be earning more from customs at 11 paise of each rupee over 8 paise for the current fiscal, while excise duties would contribute less at 18 paise of each rupee compared to 20 paise. — PTI
	Law Ministry, EC get Rs 872 cr Tribune News Service New Delhi, February 28 Finance Minister P. Chidambaram has earmarked Plan and non-Plan allocation of Rs 872.95 crore to the Law and Justice Ministry for the year 2006-07, which included the expenditure on elections due in the states of West Bengal, Assam, Tamil Nadu and the Union Territory of Pondicherry and preparation of the voters identity cards. Of the total outlay of Rs 872.95 crore to the ministry, Rs 371.50 crore had been earmarked for election expenses, Rs 42.24 crore for preparing voters cards, Rs 137.95 crore for computerisation of district and subordinate courts and Rs 142 crore for meeting the cost of fast track courts set up in every state. A provision of Rs 183.55 crore had been made for meeting the cost of administration of justice with a special package of Rs 20.40 crore under the head to geographically disadvantageous states of the North-East and Sikkim. The Department of Legal Affairs, Appellacte Tribunal for Foreign Exchange, Legislative Department and Department of Justice got a total of Rs 29.96 crore, while the budgetary provision for Income Tax Appellate Tribunal and National Tax Tribunal had been pegged at Rs 41.04 crore. A provision of Rs 42.60 crore and Rs 20.70 crore had been made for improving infrastructural facilities for judiciary and legislature, respectively. The Election Commission got a separate allocation of Rs 12.50 crore to meet its administrative expenditure.
	No constitutional provision to tax farm income: PC New Delhi, February 28 There is no provision in the Constitution to tax agricultural income, Finance Minister P. Chidambaram said today. Asked why he was not taxing the rural rich, the minister told reporters that non-farm income of rural people was being taxed. However, there was no provision to tax agricultural income as farming was a state subject, he said. The minister also said he had abolished the one-by-six criterion for filing income tax returns as it had outlived its utility. Initially, when the criterion was introduced about seven years ago, large additions were made to the number of income tax payers. “However, the additions have dwindled in recent years,” the minister told reporters. Further, the Income Tax Department was better equipped now to track down tax evaders through other means because of computerisation, he said. — UNI
	Domestic goods to be dearer Manoj Kumar Tribune News Service New Delhi, February 28 The Budget will push up the prices of goods and services used for domestic consumption as the government has proposed to introduce excise duty on new products, raising service tax from 10 per cent to 12 per cent, bringing more services under the tax net, besides withdrawal of excise tax exemptions given to small producers. Things that go costlier Kitchenware, household articles made of iron, steel, copper and aluminium, tobacco for hookah, umbrellas, pencils, low-price soaps, on which 16 per cent excise duty has been imposed Mosaic tiles, glassware, lay flat tubing, cigarette filter, stainless steel, on which excise duty has been raised from 8 per cent to 16 per cent All services like telephone bill, insurance premium, credit card, debit card charges, cable, coaching, on which service tax has been raised from 10 to 12 per cent, besides inclusion of new services. Things that go cheaper* Non-cotton garments made of man-made fibre like polyester, nylon, vascose and acrylic, since custom duty on man-made fibre, filaments yarns and spun yarns has been reduced from 15 per cent to 10 per cent Condensed milk, ice cream, yeast, pasta, on which excise duty has been reduced from 16 per cent to nil Imported MP3 players and MPEG4 players, on which custom duty has been reduced from 15 per cent to 5 per cent 14 anti-cancer and 10 specified anti-AIDS drugs, diagnostic kits, on which customs duty has been reduced from 5 per cent to nil
	ATM withdrawals not to be taxed New Delhi, February 28 Allaying the concern of millions of Automatic Teller Machine (ATM) users, Finance Minister P. Chidambaram said today that his new service tax proposal would not cover cash withdrawals. “It is a baseless apprehension,” he told mediapersons. Asked if the service tax on ATMs will affect the users, he said what is proposed is to tax “not the amount of money withdrawn, but the ATM service providers.” While increasing the service tax to 12 per cent from 10 per cent, Mr Chidambaram announced more services under the tax net. This included ATM operations, maintenance and management; registrars, share-transfer agents and bankers to an issue; sale of space or time, other than in the print media, for advertisement; sponsorship of events, other than sports events, by companies; international air travel, excluding economy class passengers. — UNI
	Rs 50 cr each for 3 varsities New Delhi, February 28Finance Minister P. Chidambaram today proposed to allocate Rs 50 crore each to the University of Calcutta, the University of Mumbai and the University of Madras, celebrating their 150th anniversary, for a specified research department or a programme. “Three great universities have entered their 150th year. I propose to mark the beginning of the 150th year celebrations with a grant of Rs 50 crore to each university for a specified research department or a research programme in that university,” he said in his Budget speech. The three universities would get an additional Rs 50 crore each at the end of the year. The Finance Minister had last year announced a grant of Rs 100 crore to the Indian Institue of Science, Bangalore, to help it develop into a world-class institution. Mr Chidambaram also announced a special grant of Rs 100 crore to the Punjab Agricultural University, Ludhiana, in acknowledement of its pioneering contribution to the green revolution. — TNS
	No going back on Sixth Pay Commission: FM New Delhi, February 28 Finance Minister P. Chidambaram today said there was no mention about the appointment of the Sixth Pay Commission for government employees as there was no need for it after Prime Minister Manmohan Singh’s recent announcement. “The Prime Minister’s announcement is final,” Mr Chidambaram told reporters and denied that the Economic Survey had “denounced” the announcement. — UNI