Budget 2013-14: Highlights

Tax credit of Rs. 2,000 for income u to Rs. ! la"h# $urcharge of 10 er cent for taxa%le incomes a%o&e Rs. 1 crore, 'o re&ie( of tax sla%s# )ommodit* transaction tax for non-agri commodit* trading# Tax +educted at $ource to %e fixed at 1, on land deals o&er Rs !0 la"h# 30, excise dut* hi"e on $-.s# /, excise dut* hi"e on mo%iles a%o&e Rs. 2,000 Tax credit of Rs. 2,000 for income upto Rs. 5 lakh Surcharge of 10 per cent for taxable incomes above Rs. 1 crore, o revie! of tax slabs "xcise dut# on S$%s to be increased to &0 per cent from 2' per cent, S$%s registered as taxis exempted (ommodities transaction tax levied on non)agriculture commodities futures contracts at 0.01 per cent Rs 5&2 crore to make post offices part of core banking *irect Taxes (ode +*T(, bill to be introduced in current -arliament session *ut#.free limits raised to Rs 50000 for men and Rs 1 lakh for !omen 1/0 rise in excise dut# on (igarattes, cigars and cheerots Service tax on all 12( restaurants Ro#alt# tax hiked from 100 to 250 Tax *educted at Source to be fixed at 10 on land deals over Rs 50 lakh o change in peak custom, excise rates. 5 to 10 per cent surcharge on domestic companies !hose taxable income exceeds Rs 10 crore 11 lakh beneficiaries have received benefit under *irect 3enefit Transfer scheme. *irect 3enefit Transfer +*3T, Scheme to be rolled out throughout the countr# during the term of $-1 4overnment. 5odified 411R norms to be introduced from 1pril 1, 2016. 1dministration reform commission proposed Rs 5,/',0/2 crore to be transferred to states under share of taxes and non plan grants in 201&)17 8To the !omen of 9ndia . !e have a collective responsibilit# to ensure the dignit# and safet# of !omen. Recent incidents have cast a long dark shado! on our credentials. 1s more !omen enter public spaces...there are more reports of violence against them. :e stand in solidarit# !ith our girl children. :e pledge to ever#thing possible to keep them s!cure. 1 number of measures are in the !orks and the# !ill be taken up 4overnment and on. government sources;9 !ill set up a fund of Rs 1000 crore to achieve this end. 5instr# of :omen !ill come up !ith a plan on ho! to use these funds.8 Rs. 1,000 crore each for !omen, #outh funds Rs. 1,000 crore for irbha#a fund

-romise to !omen, #outh and senior citi<ens 2/= more cities to get private radio >5 stations 4rant of Rs 100 crore each to 15$ +1ligarh,, 3?$ +%aranasi, and T9SS +4u!ahati, and 9 T1(? 8Rs 62'5 crore to 5inistr# of Technolog#, Rs 5216 crore to *epartment of Space, Rs 52/0 crore to *epartment of "nerg#. These amounts are substantial increases.8 Rs. 2 trillion for defence sector >irst home loan from a bank or housing finance corporation upto Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh. -roposal to launch 9nflation 9ndexed 3onds or 9nflation 9ndexed ational Securit# (ertificates to protect savings from inflation. @n oil and gas exploration polic#, the 3udget proposes to move from the present profit sharing mechanism to revenue sharing. atural gas pricing polic# !ill be revie!ed. 9nsurance companies can no! open branches in Tier 2 cities and belo! !ithout prior approval. 1ll to!ns of 9ndia !ith a population of 10000 or more !ill have an A9( branch and one other public sector insurance compan#. 9ncome limit for the tax.saving RaBiv 4andhi "Cuit# Savings Scheme is raised to Rs. 12 lakh from Rs. 10 lakh 1ll public.sector banks have assured the >inance 5inister that the# !ill all have 1T5s in their branch areas b# 2017 9ndiaDs first !omenDs bank as a -S$ proposed, Rs. 1,000 crore !orking capital announced 9ndia 9nfrastructure >inance (orporation +99>(,, in partnership !ith 1*3 !ill help infrastructure companies to access bond market to tap long term funds. Regulator# authorit# to be set up for road sector >our 9nfrastructure debt funds have been registered Rs ' lakh crore target fixed for agri credit for 201&)17 compared to Rs 5.'5 lakh crore in the current #ear. "astern 9ndian states to get Rs 1,000 crore allocation for improving agricultural production. 4reen revolution in east 9ndia significant. Rice output increased in 1ssam, @disha, Eharkhand and :est 3engalF Rs 500 crore allocated for programme on crop diversification 9(*S gets Rs. 1','00 crore. 1verage annual gro!th rate of agriculture and allied services estimated at &.6 per cent in 2012)1& !hen 250 5T foodgrains !as produced Rs 2',07= crore allocation to the 1griculture 5inistr# in 201&)17 The target for farm credit for 201&.17 has been set at Rs. ',00,000 crore against Rs. 5,'5,000 crore during the current #ear.

Rs 17,/'& crore for E

$R5 for urban transportation in 201&)17 against Rs ',//0 crore in the current fiscal

>oodgrain production in 2012)1& !ill be over 250 million tons Rs 15,260 crore to be allocated to 5inistr# of *rinking :ater and Sanitation. Rs /0,1=7 crore allocation for 5inistr# of Rural *evelopment in 201&)17. 1bout Rs &&,000 crore for 54 R"41 Rs. 5,000 crore for 131R* for agri storage facilities 4odo!ns to be constructed !ith help of pancha#ats. >ood grain productions have been raised drasticall# and onl# increase !ith each #ear. Rs 1','00 crore to be allocated for 9ntegrated (hild *evelopment Scheme +9(*S,G >5. H ational >ood securit# bill is a promise of the $-1 government. 9 hope the bill be passed as soon as possible. 9 have set apart Rs 10,000 crore to the expected cost of the act.I 1n 9nstitute for agricultural biotechnolog# !ill be set up in Ranchi, Eharkhand. Rs 106= crore allocated to *epartment of 1r#ushG >5 Rs 7,'2' crore to be allocated for medical education and research. Rs 1,06= crore to be given to *epartment of 1#ush. 5edical colleges in six more 1995S)like institutions to start functioning this #earF Rs 1650 crore allocated for the purpose. Rs &',&&0 crore allocated for 5inistr# of ?ealth J >amil# :elfare. Rs 110 crore to be allocated to the department of disabilit# affairs, sa#s >5. 1dditional sum of Rs 200 crore to :omen and (hild :elfare 5inistr# to address issues of vulnerable !omen. Rs &511 crore allocated to 5inorit# 1ffairs 5inistr# !hich is 60 per cent of the revised estimates. Rs 1&215 crore for mid.da# meal programmeG (hidambaram The idea of setting up a - 4SK.2 causes uproar in the -arliament. The minister is interrupted the round of shouting, !ho clarifies that states that have completed - 4SK .1 !ill get the second version, the rest !ill continue under the first version The Right to "ducation 1ct is firml# in place, sa#s (hidambaram, !hile announcing Rs. 2',250 crore to Sarva Shikhsa 1bhi#aan in >K17. The ?uman Resources *evelopment ministr# mean!hile gets Rs. 65,/6' crore, a rise of 1'0 from revised estimates. 84overnment committed to reconstruction of alanda $niversit#8 . 3ut no specific funds for the proBect !as announced. (hidambaram announces additional fund allocation of Rs 200 crore to the :omen and (hild *evelopment 5inistr#. ?e sa#s !omen Dbelonging to the most vulnerable groups must be able to live !ith self.esteem and dignit#D.

16= crore given for development of 1#urveda, Siddha, $nani + atural medicine, and homeopath# Rs 71,561 crore for S( plan and Rs 27,5=/ crore for tribal plan. The move comes !ith a strong statement -lan "xpenditure placed at Rs. 5,55,&22 crore. 9t is &&.& percent of the total expenditure !hile on -lan "xpenditure is estimated at Rs. 11,0=,='5 crore. The plan expenditure in 201&.17 !ill be 2=.7 percent more than the R" of the #ear 2012.1&. >iscal *eficit for 201&.17 is pegged at 7./ percent of 4*-. The Revenue *eficit !ill be &.& percent for the same period. @n oil and gas exploration polic#, the 3udget proposes to move from the present profit sharing mechanism to revenue sharing. atural gas pricing polic# !ill be revie!ed. @n coal, the 3udget proposes adoption of a polic# of pooled pricing. 3enefits or preferences enBo#ed b# 5S5" to continue upto three #ears after the# gro! out of this categor#. Refinancing capacit# of S9*39 raised to Rs. 10,000 crore. Technolog# $pgradation >und Scheme +T$>S, for textile to continue in 12th -lan !ith an investment target of Rs. 1,51,000 crore. Rs. 17,000 crore !ill be provided to public sector banks for capital infusion in 201&.17. 1 grant of Rs. 100 crore each has been made to 7 institutions of excellence including 1ligarh 5uslim $niversit#, 3anaras ?indu $niversit#, Tata 9nstitute of Social Sciences, 4u!ahati and 9ndian ational Trust for 1rt and (ultural ?eritage +9 T1(?,. 1 surcharge of 10 pe rcent on persons +other than companies, !hose taxable income exceeds Rs.1 crore have been levied. 4eneration based incentives to !ind energ# proBects reintroduced, Rs /00 crore provided for the purpose to 5inistr# of e! J Rene!able "nerg# Rs 17,000 crore capital infusion into public sector banks in 201&)17 Standing (ouncil of "xperts in 5inistr# of >inance to examine transaction cost of doing business in 9ndia >inancial Sector Aegislative Reforms (ommission +>SAR(, to submit its report next month 9ncubators set up b# companies in academic institutions !ill Cualif# for (orporate Social Responsibilit# +(SR, activities Rs 500 crore !ould be allocated for addressing environmental issues faced b# textile industr# (oncessional six per cent interest on loans to !eavers. S"39 !ill simplif# procedures for entr# of foreign portfolio investors S9*39Ls re)financing facilit# to 5S5"s to be doubled to Rs 10,000 crore 5 million tons *abhol A 4 import terminal to be operated at full capacit# in 201&)17

(oal imports during 1pr)*ec 2012 crossed 100 million tonnes and expected to go up to 1/5 million tonnes in 2016)1', 4overnment !ill provide Rs 17000.crore capital infusion in state.run +public.sector, banks in 201&217 @il and gas exploration polic# !ill be revie!ed and moved from profit sharing to revenue sharing -olic# on exploration of shale gas on the anvilF natural gas pricing polic# !ill be revie!ed and uncertaint# removed Rs. =,000 crore earmarked as the first installment of balance of (ST compensations to different States2$Ts. 4ovt to construct po!er transmission s#stem from Srinagar to Aeh at the cost of Rs 1,/70 crore, Rs 226 crore provided Rs 2700 crore for textile technolog# upgradation T!o ne! ports in :est 3engal and 1ndhra -radesh 5an# manufacturing proBects stalled due to regulator# process 1 compan# investing Rs 100 crore or more in plant and machiner# in 1pril 1, 201& to 5arch &1, 2015 !ill be allo!ed 15 per cent investment deduction allo!ance apart from depreciation To provide appropriate incentives for semiconductors industr# including <ero customs dut# on plants and machineries. >resh push for 3angalore.(hennai industrial corridor. 5inister sa#s the corridor to be developed in co.operation !ith the Eapanese. *9-- and EapanLs E9(1 preparing plan for (hennai) 3engaluru 9ndustrial corridor -o!er sector gets a nod . States encouraged to restructure financial s#stems to improve sector as a !hole and sign 5o$s for the same effect. Rs 25,000 cr to be raised through tax free bondsG (hidambaram 8*oing business in 9ndia must be seen as eas#, friendl# and mutuall# beneficial8 . Second reference to increasing >*9 in 9ndia. 4overnment seems to betting heavil# on a large >*9 influx to help !ith the deficient 8:e !ill use innovative and ne! financial methods to increase investment in infrastructure,8 sa#s the 5inister. e! steps have been announced to increase availabilit# and amount of debts available for infrastructure proBects. The revised expenditure target is Rs 17,&0,/25 crore or =6 per cent of 3udget estimate for this fiscal. 9n 201&)17, the budget estimate is Rs 16,65,2=' crore. 3udget expenditure is Rs 16,65,2=' crore and -lan expenditure Rs 5,55, &22 croreG >5. -lan expenditure in 12th >ive Kear -lan revised to Rs 17,&0,/25 crore or =6 per cent of budgeted expenditure :e have brought do!n headline :-9 inflation to ' per cent and core inflation to 7.2 per cent. >ood inflation is !orr#ingG >5.

27.& 0 hike in expenditure for health care both rural and urban health mission. 12.5 0 hike in Scheduled caste and Scheduled tribe sub.plans @verarching goal to create opportunities for #outh to acCuire skills for self.emplo#ment 1ll flagship programmes adeCuatel# funded. 5inistries must take it for!ard. 1verage economic gro!th rate in 11th -lan period is / per cent, highest ever in an# -lan period. 3attle against inflation must be fought on all counts. >oreign investment is imperative (urrent account definict high due to dependence on oil , high gold imports eed M'5billion to bridge (1* -resent economic space is constrained b# economic climate and tight monetar# polic#