• Poverty eradication; addressing the life time concerns covering health, housing, education and employment
• Infrastructure development
• Fiscal consolidation through tax reforms and progressive elimination of budgetary drags, including reform of the additional excise duty, introduction of service tax and introduction of Value Added Tax (VAT) from April 1, 2003 at the State level
• Agriculture and related aspects including irrigation
• Enhancing manufacturing sector efficiency, including promotion of exports and further acceleration of the reform process

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• In the budget estimates for 2003-2004, the total expenditure is estimated at Rs.4,38,795 crores, of which Rs.1,20,974 crores is for Plan and Rs.3,17,821 crores for non-Plan
• Fiscal deficit is estimated at 5.6% of GDP at Rs.1,53,637 crores for 2003-2004 and the revenue shortfall is estimated at Rs.8,788 crores. Revenue estimate for 2003-2004 is put at Rs.2,53,935 crores
• Non-plan expenditure in 2003-2004 is estimated to be Rs.3,17,821 crores compared to Rs.2,89,924 crores in revised estimates for 2002-2003

• Antyodaya Anna Yojana:- The Finance Minister has proposed to expand the scope of the Antyodaya Anna Yojana from April 1 2003 to cover an additional 50 lakh families raising the total coverage to more than a quarter of all Below Poverty Line Families (BPL) during the year 2003-04
• Health Insurance:- A community-based universal health insurance scheme will be designed during 2003-04. Premium equivalent to Re.1 per day (or Rs.365 per year) for an individual, Rs.1.50 per day for a family of five and Rs.2 per day for a family of seven will entitle eligibility to reimbursement of hospitalization expenses up to 30,000, a cover for death due to accident for 25,000, and compensation due to loss of earning at the rate of Rs.50 per day up to a maximum of 15 days. To make the scheme affordable to BPL families, Government to contribute Rs.1 00 per year towards their annual premium
• Insurance pension:- A special pension policy to be called Varishtha Pension Bima Yojana, guaranteeing an annual return of 9% in the form of a monthly pension scheme is proposed to be launched by Life Insurance Corporation of India (LIC).The minimum and maximum monthly pensions proposed are Rs.250 and Rs.2,000 per month
• Restructured pension scheme:- A restructured pension scheme for new Central Government employees, (except in the armed forces) and for the general public is proposed to be introduced.The scheme will be based on defined contribution shared equally in the case of Government employees between the Government & the employees
• Power:- The mega power project policy is proposed to be liberalized further by extending all the relevant benefits to any power project that fulfills the conditions already prescribed for mega power projects. A special allocation of Rs.20 crores is proposed to be made to the Council for Scientific and Industrial Research, for launching incentive-driven research in the fields of solar energy, wind turbines and hydrogen fuel as alternatives to fossil fuels
• Drinking Water:- Water supply projects are proposed to be totally exempt in regard to capital goods and machinery,both from customs and excise duties. In addition, pipes are to be exempted from excise duty for bringing raw water from source to the treatment plant and for conveying treated water to the storage place
• Cash Management:- It is proposed to introduce a cash management on a pilot basis, in some major spending ministries, releasing budgetary allocations in a time-sliced manner
• External debt prepayment:- The Government has already effected premature repayment of 'high-cost' currency pool loans of the World Bank and of the Asian Development Bank totaling around $ 3 billion
• Domestic debt of the Central Government:- It is proposed to introduce a scheme for buy-back of bank’s holding of Central Government domestic debt, contracted under the high interest regime of the past on a voluntary basis
• State Government Debt:- A debt swap scheme has been introduced to enable States to prepay high cost debt.States will save an estimated Rs.81,000 crores in interest and deferred loan repayments over the residual maturity period of the loans
• Credit availability:- In order to pass on the benefits of lower rates of interest to agriculture and the SSI sector,the State Bank of India has announced an interest rate band of 2 % above and below its prime lending rate (PLR) for secured advances.By January 2003, bank credit of Rs.598 crores was provided to about 25 lakh poor families through 1.50 lakh new Self-Help Group (SHGs) under the SHG-Bank Linkage Programme propagated by NABARD. It is proposed to examine afresh the question of franchising agricultural credit, including through Post Offices
• Disinvestment:- It is proposed to finalize in early 2003-2004, details about the Disinvestment Fund and Asset Management Company to hold residual shares post disinvestment
• Banking:- Foreign direct investment (FDI) limit in banking companies will be raised from 49% to 74%. The limit of 10% irrespective of shareholding, on the voting rights of any person holding shares of a banking company is proposed to be removed
• Interest rate:- Rates of interest on public provident fund and small savings schemes will be reduced by 100 basis points with effect from March 1. Interest on relief and savings bonds issued by RBI will also be reset accordingly
• Capital account:- Overseas investment under the automatic route will be permitted to corporates with a proven track record,even where the investment is not in the same core activity. Limit on such investment will be raised from 50% of the net worth of the Indian company to 100%. Prepayment of ECB dues under the automatic route will be permitted by removing the current ceiling of US $100 million
• External aid:- The Government of India has declared that it would prefer to give relief to certain bilateral partners with smaller assistance packages. A debt relief package for the Heavily Indebted Poor Countries (HIPCs) will be announced
• Tax Reform:- Additional Duties of Excise Act,1957 is being amended to allow States to levy sales tax on textiles,sugar and tobacco products at a rate not exceeding 4 %. The Government has proposed a Constitutional amendment to give the Central Government power to levy service tax and both the Central and the State Governments powers to collect the proceeds.It is proposed to reduce the ceiling rate of CST for inter-State sale between registered dealers to 2%.The Government also proposes to outsource non-core activities of the Income Tax Department, such as allotment of PAN, etc. A system for computer generated, random selection of only 2% of the returns, annually for scrutiny is proposed to be initiated.It is also proposed to introduce ECS credit of refunds, reduce number of forms used for purposes of tax deduction and tax collection at source from 42 to 22, introduce a one-page return form for individual tax payers, having income from salary house property and interest etc.A scheme for electronic filing of returns is proposed to be introduced.Further, it is proposed to abolish tax-clearance certificates currently needed by a person leaving India,or any person submitting a tender for a government contract.
A 3-tier excise duty structure of 8 %, 16 % and 24 % will be prescribed. It is proposed to increase the general service tax rate from 5 % to 8 %, and impose service tax on 10 new services. Facility of credit of service tax on input services has been extended across all services, even if the input and the final services fall under different categories.The peak rate of customs duty has been reduced from 30 % to 25 % excluding agriculture and dairy products.

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