Housing:
Far-reaching tax initiatives to promote housing.
National Housing Bank Act to be amended.
Changes proposed in tax treatment of income earned on non-performing assets by housing finance companies.
Scheduled commercial banks to lend up to 3% of their incremental deposits for housing finance.
Target for Golden Jubilee Rural Housing Finance Scheme of NHB raised from 100,000 to 125,000 dwelling units.
NHB to reduce interest rates for small borrowers.
Tax-free status for a limited amount of municipal bonds each year.
Science and Technology:
Rs 200 million national foundation to help innovators.
Technology mission on vaccines to be constituted.
A National Bio-resources Board to be set up to protect bio-diversity.
Banking:
5 more debt recovery tribunals and 4 more debt recovery appellate tribunals to be set up.
Bill to be introduced in Parliament soon to strengthen provisions for recovery of debts due to banks and financial institutions.
Public-sector banks to be encouraged to set up settlement advisory committees to settle chronic overdue loan cases.
Expenditure management:
Four secretary-level posts to be abolished from April 1, 1999.
Expenditure Reforms Commission to be constituted.
Zero-base budgeting to be initiated for the next Budget.
Rs500 million Guarantee Redemption Fund created.
PSU Reform/Disinvestment:
Rs100,000 million to be raised from PSU divestment programme.
Public-sector units to issue bonds to workers opting for voluntary retirement schemes
National Statistical Commission to examine deficiencies in the present statistical system.
Others:
Defence expenditure increased to Rs456.34 billion from Rs412 billion
GDP growth rises to 5.8% from 5%.
Institutional credit to agriculture rises to Rs38 billion from Rs31.69 billion last year
Inflation brought under 5%
Watershed Development Fund to be created
Budget 1999-2000
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