Budget update: Debt reforms

BANGALORE: As part of the debt reforms in this Budget, the finance minister

has increased the investment of overseas corporations to $ 100 million from last

year’s $ 50 million. There is also an increase in the investment of

corporations in alliances, partnerships and acquisitions up to 50 per cent of

the net worth from last year’s 25 per cent.

• Full convertibility of deposit schemes to NRIs.
• Indian Mutual Funds can now invest on overseas countries with fully
  
  convertible currencies.
• Government bill to replace public debt act of 1949.
• SEBI to protect investor interest.
• FIIs will not be in sectoral limits of FDI.
• Focus on accounting practices.
• FII allowed to trade in all stocks.
• Legislative changes proposed in UTI act.
• Fiscal relief to help banks and financial institutions.
• Oil pool account to be dismantled.
• A five per cent cut in fertilizer subsidy has been introduced.
• A modest increase in postal rates has been announced.
• Petrol and diesel rates to drop by 50 paisa to one rupee by March 1.
• LPG cost to be increased by Rs 40 per cylinder and Kerosene to increase by
  
  Rs 1.5 per liter.
• IDBI to be corporatized.
• Finance asset reconstruction company has been set up.
• Option of foreign banks either to have subsidiary or branches of parent
  
  bank.
• Small savings to be handled by state government.
• 12,200 government staff to be laid off.
• Fresh recruitment of civilian staff to be limited to one per cent for the
  
  next four years.