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Finance Minister Palaniappan Chidambaram on Friday presented the fifth and final full budget of the ruling coalition before it faces elections due by May 2009. Commentary.

Finance Minister Palaniappan Chidambaram presented the budget for 2008/09 on Friday, the fifth and final full one of the UPA administration before elections due by May 2009. Following are highlights and key quotes from the budget speech.

The stock market extended its losses with the Sensex dipping close to 500 points within minutes of Finance Minister P Chidambaram announcing a hike in short-term capital gains tax to 15 per cent, while leaving corporate tax and surcharge rates unchanged.

Stock market benchmark Sensex on Friday dropped by over 200 points, in the middle of Finance Minister P Chidambaram announcing loan waivers worth Rs 60,000 crore for farmers in his budget speech.

On the heels of Railway Minister Lalu Prasad presenting a populist Budget, Finance Minister P Chidambaram too is expected to come out with a "please-all" budget on Friday.

Finance Minister P Chidambaram exuded confidence of achieving a 9 per cent economic growth and containing inflation in 2008-09 and said this would help ensure overall welfare of common man.

Pushing for reforms, the Economic Survey on Thursday said inflationary impact of foreign funds flow, a slowdown in the US, an appreciating rupee and sluggish infrastructure sector were major challenges before economy that is projected to slow down to 8.7 per cent in 2007-08.

Member Parliament and senior BJP leader Navjot Singh Sidhu on Wednesday lambasted the Union Railway Minister Lalu Prasad Yadav for ignoring the vital concerns of Punjabis in the Union Railway Budget for year 2008-09 presented in the Lok Sabha on Tuesday.

Adding a garnish of some Bollywood masala to the 2008-09 Railway Budget, Lalu Prasad likened the 'historic' success of the rail network to the megahit movie 'Chak De India'. "In the proud history of independent India, it is for the first time that the returns on the capital investment in the Railways will reach 21 per cent," the Railway Minister announced as he presented his fifth Rail Budget.

Railway Minister Lalu Prasad doled out concessions to students, women and AIDS patients.
Railways have decided to extend free monthly season tickets for second class travel between school and home for girl students up to graduation and boys up to Class XII, Prasad announced in the Rail Budget.

The BJP on Tuesday criticised the Railway Budget 2008, terming it 'disappointing' and noting that the announcements made for reduction in fares were just an 'eyewash'. "The Railway Budget presented by Lalu Prasad is disappointing.

The Government on Tuesday cut rail passenger fares and freight rates and unveiled a major push to modernise its huge network as it tries to woo voters ahead of a general election and bolster a fast-growing economy.

Adding a garnish of some Bollywood masala to the 2008-09 Railway Budget, Lalu Prasad likened the "historic" success of the rail network to the megahit movie 'Chak De India'. "In the proud history of independent India, it is for the first time that the returns on the capital investment in the Railways will reach 21 per cent," the Railway Minister announced as he presented his fifth Rail Budget.

The BJP on Tuesday criticised the Railway Budget 2008, terming it 'disappointing' and noting that the announcements made for reduction in fares were a just an 'eyewash'. "The Railway Budget presented by Lalu Prasad is disappointing.

Railway Minister Lalu Prasad came under attack from friends and foes alike for presenting a 'parochial' and 'discriminatory' Budget for 2008-09 amid claims that the 'UPA train' has met with a serious accident ahead of polls.

The Indian Railways will consider issuing tickets through mobile phones, Railway Minister Lalu Prasad told Parliament on Tuesday.

Announcing a slew of new passenger utilities Railways Minister Lalu Prasad Yadav in his fifth budget has announced measures targeting the customers including opening ticket counters everywhere and doing away with the long queues at ticket booking counters over the next two years.

The government is likely to reduce some passenger fares and freight rates when it unveils annual plans for its huge rail network on Tuesday, moves which could ease rising inflation and help it at elections.