Education, health get booster dose

The government on Thursday announced a package of measures for the health and the education sector including a 2 per cent cess on all Central taxes to help it raise Rs 4,000 crore to 5,000 crore to fund primary education and provide mid-day meals to younger students.

The outlay for the department of elementary education and literacy has been increased 10 per cent to Rs 6,004 crore for the current fiscal.

Spending on major primary and elementary education schemes like Sarva Sikhsha Abhiyan will be enhanced from Rs 2,732 crore in 2003-04 budget estimates to Rs 3,057 crore during 2004-05.

The allotment for schemes like the Kasturba Gandhi Swatantra Vidyalaya, a scheme for girls from weaker sections, has also been raised.

Finance Minister P Chidambaram also announced a programme to upgrade 500 ITIs through the public-private partnership and said that the banks have decided to waive the collateral requirement for education loans upto Rs 7.5 lakh. A suitable guarantee on behalf of students would, however, still be required.

The other major focus of Chidambaram's Budget was on the health sector. The health package, apart from a revamped health insurance scheme for the poor and self-help groups, included a Rs 259 crore programme for prevention of HIV and AIDS and fiscal incentives to boost healthcare in rural areas through a 100 per cent tax deduction on profits for hospitals with 100 or more beds.

Increased income tax benefits for people suffering from autism, cerebral palsy and multiple disability have been introduced. In addition, customs duty on rehablitation aids like braille writers and listening devices and zero excise on hepatitis-testing equipment was proposed.

The outlay for the department of health and family welfare was also enhanced to Rs 5,700 crore mainly on account of the higher spending proposed on immunisation programme for the eradication of polio and the reproductive and child health project.