Finance Minister P Chidambaram presented one of the most highly anticipated budgets of recent years today, a blueprint for

austerity that forms the centrepiece of India's efforts to stave off a damaging credit ratings downgrade. Here are the highlights of this year's budget:

Leather products get cheaper Mobile phones, dinning out, cigarettes, SUVs, motorbikes, set-up boxes get expensive (Read) Excise duty on cigarettes raised by 18 per cent Mobile Phones, SUVs to get more expensive: On mobile phones priced at more than Rs.2000, excise duty hiked to 6%. Excise duty on SUVs raised from 27% to 30% (Read: How you are affected) Duty free limit for Gold raised to Rs. 50,000 in case of a male passenger and Rs. 1 lakh for female passengers The current slabs were introduced last year. Hence there is no case of revising either (Read) Some tax credit of Rs. 2000 for every person who has an annual income of upto Rs. 5 lakh (Read: High earners say not fair) Tax Administration Reforms Commission to be set up to review tax laws In 2007-08 Tax GDP ratio touched a peak; in short term we must regain that peak The current slabs were introduced last year. Hence there is no case of revising them But will give some tax relief of Rs. 2000 for every person who has an annual income of up to Rs.5 lakh Rs. 1000-crore Nirbhaya Fund announced for the empowerment of women (Read) All Regional Rural Banks and cooperative banks to be e-linked by this year-end National Housing Bank (NHB) to set up urban housing bank fund and Rs. 2,000 crore will be allocated in this regard Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India Rs. 14,000 crore capital infusion into public sector banks in 2013-14 PSU banks to have ATMs at all their branches by March 31, 2014 Rs. 6,000 crore to be allocated for rural housing fund in 2013-14 Defence allocation increased to Rs. 2.03 lakh crore (Read) Rs. 6,275 crore to ministry of science and technology, Rs. 5,880 crore to Department of Atomic Energy Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 2016-17

Finance Minster asks state governments to prepare financial restructuring plan for power distribution companies at the earliest. Simpler SEBI rules:Securities and Exchange Board of India to simplify procedures for foreign portfolio investors Two new ports to be set up in West Bengal and Andhra Pradesh to ad 100 million tonnes handling capacity Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14 State governments urged to sign restructuring plans with electricity discoms Tax-free infrastructure bonds of Rs.50,000 crore to be issued Textile ministry allocated Rs.50 crore for establishing apparel parks Handloom sector allocated Rs.96 crore to benefit 150,000 weavers Infrastructure debt funds to be encouraged Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14 Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects Rajiv Gandhi Equity Scheme to be liberalised Seven new cities identified along Delhi-Mumbai Industrial Corridor Preliminary work begun on Bangalore-Mumbai Industrial corridor Foodgrain production during 2013-13 estimated at 250 million tonnes Household sector must be incentivised to save in financial instruments rather than gold.Person taking a home loan for his first home during the period 2013-14 will be entitled to an additional deduction of Rs. 1 lakh, announces Mr Chidambaram (Read) Re-financing capacity of SIDBI increased to Rs. 10,000 crore from Rs. 5,000 crore for Ministry of Small and Medium Enterprises Rs. 27,049 crore allocation to the Agriculture Ministry in 2013-14 Rs. 7 lakh crore target fixed for agriculture credit for 2013-14 compared to Rs. 5.75 lakh crore in the current year. Eastern Indian states to get Rs. 1,000 crore allocation for improving agricultural production Infrastructure Development Funds will be encouraged Funds to raise resources for the development Govt committed to food security bill. 10,000 crores set apart for expenditure likely under the act Rs. 37,330 crore allocated for Ministry of Health & Family Welfare Rs. 110 crore to be allocated to the department of disability affairs Rs. 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates Additional sum of Rs. 200 crore to Women and Child Welfare

Ministry to address issues of vulnerable women Rs. 37,330 crore allocated for Ministry of Health & Family Welfare Faced with huge fiscal deficit, I have no choice but to rationalise expenditure Development must be sustainable - economically and ecologically Cannot spurn foreign investments, that is an imperative Great worry is the current account deficit (Read) Without growth, there will be neither development nor inclusiveness The job of a finance minister is to create the economic space and find resources to achieve it Only China and Indonesia growing faster than India By 2013 only China will grow faster than India I seek support as we navigate the Indian economy through crisis that has enveloped the whole world I intend