“Tough spending choices need to be made,” stressing on this key note Union Finance Minister P Chidambaram presented the Union Budget 2013 in parliament (Thursday) today. This year’s union budget undoubtedly one of the most anticipated in recent years and tipped off as roadmap to resist the possibility of a downgrade and also to liven the economy, would be tested in terms of its implementation, next fiscal. Compiled below are the highlights of this year budget.
Fiscal Deficit, Current Account Deficit and Inflation
•Fiscal deficit is seen as 4.8 in 2013-14 and 5.3% in 2012-13
•Faced with this deficit there is no other option but to channelize expenditure
•India current account deficit is a matter of serious worry and there is a need of more than $75 billion dollars this year and next year to fund deficit
•Food Inflation continues to be a worry and as such steps be taken to increase supply
Plan and Budgetary Allocation
•Total Budget spending Rs 16,65,297 crore for 2013/14
•Plan expenditure of Rs 5,52,332 crore for 2013/14
•No plan expenditure of Rs 11.1 trillion in 2013/14
•Plan expenditure in 2013/14 will be 29.4 percent that is more than this 2012/13
•Allocation of Rs 41,561 crore for SC Sub plan
•Allocation of Rs 24,598 crore for tribal sub plan
•Women and Children programmes allocation Rs 97,134 crore and Rs 77,326 crore
•Rs 200 crore for Ministry of women and child development
•Rs 3,511 crore for minorities
•Rs 110 crore for disabled persons
•Rs 37, 330 crore for ministry of Health and Family Affairs
•Rs 150 crore for National Programme for the Health Care of Elderly
•Rs 1,069 crore for National Health Mission
•Rs 65,867 crore for Ministry of Human Resources Development
•Rs13,215 crore for Mid Day Meal Scheme (MDM)
•Rs 17,700 crore for ICDS
•Rs 15,260 crore for the Ministry of Drinking Water and Sanitation
•Ministry of Rural Development steers a number of flagship programs
Jawaharlal Nehru National Rural Urban Mission
•Apart from 14,000 sanctioned buses the government has proposed Rs 14,473 crore
Agriculture
•Plan to enroll Rs 270.49 billion for agriculture in 2013/14
•Plan to enroll Rs 801.94 billion for rural employment in 2013/14
Corporate/Power Energy sector and markets
•Proposal for capital allowance of 15 points for companies on investment of 1 billion
•FII can use investments in corporate/government bonds for margin requirements
•Insurance, provident funds can trade directly in debt segments of stock exchanges
•Implementation of various recommendations of financial sector legislative reforms
•Zero customs duty for electrical plants and machinery
•Revenue sharing policy for oil and gas sector
Foreign Trade and Banking
•Cut on precious and semi precious stones from 2 point to 10 point
•No duty on import ships and vessels
•Rs 140 billion capital infusion in state run banks
Defence
•Allocation of Rs 2.03 trillion for 2013/14
Tax
•Proposal for surcharge of 10 point on rich tax payers with an annual income of more than 10 million
•Proposal for surcharge of 10 point on domestic companies with annual income of Rs 100 million
•Surcharge for foreign companies for foreign companies paying higher corporate tax from 2 pct to 5pct
•withholding tax of 20 point on profit distribution to shareholders
•Amnesty on service tax non compliance
•10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment
•Step to introduce commodity transaction tax
•Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point
•CTT on non-agriculture futures contracts at 0.01 point
Borrowings
•Gross Market Borrowing= Rs 6.29 trillion
•Net Market Borrowing = Rs 4.84 trillion
•Short term borrowing = Rs 198.44 trillion
•By back of bounds= Rs 500 billion
Subsidies
•Major Subsidies Bill= Rs 2.48 trillion
•Petroleum Subsidy= Rs 650 billion
•Revised Petroleum Subsidy= Rs 968.8 billion
•Estimated spending on food= Rs 900 billion
•Revised Food subsidies= Rs 850 billion
•Revised fertilizer subsidy= Rs 659.7 billion
Revenue
•Direct tax proposals = Rs 133 billion
•Indirect tax proposals= Rs 47 billion
•Stake sales in state run firms= Rs 588.14 billion
•Expect revenue(airwave surcharges, auction of telecom spectrum, licence fees)= Rs 408.5 billion
Growth
•Potential Challenge of 8 point growth
Category :
Politics
Date :
28 February 2013
