Question : DOMESTIC SAVINGS RATE

MINISTER OF STATE IN THE MINISTRY OF FINANCE & COMPANY AFFAIRS ( SHRI ANANDRAO V ADSUL )
(a) : Gross domestic savings as a proportion of GDP at current market prices during the last three years are as under:

Year Rate of Savings (% of GDP)
1999-2000 24.1
2000-01 23.4
2001-02 24.0

(b) : State-wise information on gross domestic savings is not available.

(c) : The ratio of gross domestic savings to GDP has improved in 2001-02 as compared with 2000-2001 and is almost at the same level as it was in 1999-2000. The Government has taken the following important measures in the current year to encourage the growth of domestic savings:

(i) Increase in deduction under Section 80L to Rs.15,000 comprising Rs.12,000 for income from specified investments and Rs.3000 on interest on Government securities.

(ii) Increase in the limit in respect of dividend income up to Rs.2500 received from each company or a mutual fund for tax deduction at source for senior citizens and investors.

(iii) Exemption of life insurance premia from service tax.

(iv)Introduction of a new scheme of 7 per cent tax free and non-transferable Savings Bonds from October 1, 2002.