Budget 2013 Highlights

  • Service Tax exemption granted to films exhibited in cinema halls.
  • New road projects will boost cement demand
  • Housing loan up to Rs 25L to get additional deduction
  • FM proposes to set up all women bank
  • Food inflation is worrying, will take all steps to augment supply side
  • FM proposes Rs 14,000 cr capital support to banks in FY14
  • FM allows Rs 1 lakh interest deduction for low cost housing
  • FM assures low cost infra funds, 3000 kms new road projects
  • FM enhances reach of Rajiv Gandhi Eq scheme
  •  To allocate 801.94 billion rupees to rural development in 2013/14
  •  Plan to allocate 270.49 billion rupees for agriculture in 2013/14
  • FM allows farmers to borrow from private banks at 4%
  •  To allocate 801.94 billion rupees to rural development in 2013/14
  •  Plan to allocate 270.49 billion rupees for agriculture in 2013/14
  • The tax credit of Rs 2,000 for income up to Rs 5 lakh
  • Set aside 100 billion rupees towards spending on food subsidies in 2013/14
  • Finance Minister will allocate additional Rs 10,000 crore for Food Security Bill in FY14.
  • For housing loans limit till Rs 25 lakh – additional Rs 1 lakh exemption for 2013-14 for first time loan takers
  • Rs 50,000 cr tax free bonds to be allowed by select institutes
  • Inflation indexed Bonds and NSCs to be issued
  • SMEs to enjoy benefits for 3 years after they outgrow category
  • Fiscal deficit contained at 5.2%; target set at 4.8%
  • Direct benefit transfer scheme – 11 lakh have received benefits directly to bank accounts
  • Revenue deficit estimated at 3.3%
  • Seek same support of everybody to navigate the Indian economy through crisis
  • Global economy has slowed from 3.9% to 3.2%
  • Not unaffected what happens in the world
  • Current year CSO has estimated growth at 5% and RBI at 5.5% – below India’s potential growth rate of 8%
  • No reason for gloom or pessimism
  • Only China and Indonesia are growing faster than India
  • In 2013-14 only China will grow faster than India
  • Indian economy growing below potential of 8%
  • Goal of higher growth leading to inclusive and sustainable growth
  • Plurality and diversity lead to inequitable distribution which needs to be addressed
  • Women, SCs/STs and other backwards need to be included
  • Need to create economic space and achieve socio-economic objective
  • New Fiscal Consolidation measures undertaken to achieve 5.3%
  • Current Account Deficit major worry
  • CAD due to higher coal, oil and gold imports
  • We have to find 75 bn dollar to finance current account deficit
  • No solution but FDI, FII, ECB to bridge CAD
  • Achieving high growth is not a novelty and beyond our capacity
  • Without growth there will be no development and inclusiveness
  • UPA govt believes in inclusive development with emphasis on improving human development index
  • At present economic space is constrained
  • India doesn’t have the choice between welcoming and spurning foreign investment
  • Development must be sustainable and must have democratic legitimacy
  • The battle against inflation must be fought on all fronts
  • Our battle has brought down headline inflation to 7% and core inflation to 4%
  • Wisdom lies in finding current level of govt expenditure
  • Faced with huge fiscal deficit no choice but rationalise expenditure
  • We have retrieved some economic space
  • Sufficient funds to each ministry and departments
  • One overarching goal of the budget is to create opportunities for youth
  • Estimated expenditure Rs 1490925 lakh cr; Revised Rs 1430825 lakh cr
  • Planned expenditure will be 29.4% more than previous; all projects to be fully funded
  • Onus on ministries to completely projects in timely manner
  • Rs 41561 cr for SC sub plan
  • Rs 24500 cr to ST sub plan
  • The funds for sub plan cannot be diverted
  • Rs 77236 cr for child budget
  • Rs 200 cr for gender equality
  • Maulana Azad education foundation corpus gets Rs 160 cr more
  • Rs 110 cr for dept of disable welfare
  • Rs 37330 cr to ministry of health and family welfare out of which new national health mission to get Rs 21239 cr
  • Rs 4727 cr for medical education, training
  • Rs 1069 cr to department of ayush
  • Rs 1650 cr to AIIMS like institutions
  • Rs 65867 cr to HRD ministry
  • Rs 27258 cr for Sarva Siksha Abhiyan
  • Rs 3983 cr for Rashtriya Madhyamik Shiksha Abhiyan
  • Rs 13215 cr for mid-day meal scheme
  • Rs 17700 cr for children care and education
  • Rs 15260 cr for clean drinking water
  • Rs 1400 cr for water purification/ clean arsenic
  • Rs 80195 cr for MNREGA, Indira Awas Yojna, NREGS
  • PMGSY II to benefit states like Haryana, Punjab, Andhra Pradesh, Karnataka
  • Rs 14800 cr for JNNURM
  • Foodgrains production will be 250 mn tonne
  • Earned Rs 138403 cr due to agri exports
  • Rs 27049 cr for agri ministry
  • New scheme for rural road development
  • Rs 500 cr for crop diversification
  • The avg growth of agri was 3.6%
  • Agriculture to get over Rs 3000 cr
  • Green Revolution in eastern India has been a remarkable success – Rs 1000 cr to these states
  • Original Green Revolution states to get Rs 500 cr for crop diversification
  • Watershed management to get Rs 5387 cr
  • Rs 7 lakh agri credit target
  • National Institute for Biotech in Raipur, Chhattisgarh
  • National Livestock Mission to be launched in 2014 for which Rs 307 cr allocated
  • National biotech centre at Ranchi
  • National food security bill gets Rs 10000 cr towards incremental cost
  • Rs 50 cr for FPOs
  • Equity grants of Rs 10 lak per FPO
  • Rs 1000 cr for eastern Indian states
  • Rs 55 lakh cr needed for infra including private funds
  • Infra Debt Funds will be encouraged; 4 already floated
  • Rs 25,000 cr raised by institutions as tax free bonds in 2012-13
  • WB help to be taken for NE states to be connected with Myanmar
  • Godowns to be constructed with help of panchayats
  • USD 1 trillion investment in infrastructure
  • 47% of the cost will be shared by private sector
  • Infrastructure debt funds will be encouraged
  • 4 IDFs have been registered with SEBI
  • To allow some institutions to raise money through tax free bonds to the total of Rs 50000 cr
  • Rs 5000 cr for construction of warehouses
  • Regulatory Authority to oversee road projects
  • Zero CD for semi conductors/ electronics
  • First time Rs 12 lakh income limit increased from Rs 10 lakh for MF s
  • Rajiv Gandhi Equity scheme raised Rs 2 lakh cr
  • Rs 5000 cr to NABARD to finance construction of warehouses, silos, cold storages
  • New regulatory authority for road sector
  • 3000 km of road projects in some states will be awarded in first 6 months of 2013-14
  • Cabinet committee on investment to take up more projects
  • FM to approve Rs 50,000 cr tax-free bonds in FY14; moving on to infra, he says CCI is the answer to all policy hurdles
  • New instrument to save savings from inflation called as Inflation Index Bonds details of which will announced in due course
  • Seven new cities on Delhi-Mumbai corridor
  • New corridor is Bangalore-Mumbai industrial corridor
  • Two new ports – in Sagar in WB and one in AP
  • New outer harbour at Tuticorin through PPP
  • 5 inland waterways have been declared as national waterways, one more announced in Assam
  • Natural gas pricing policy would be reviewed
  • 5 MMTPA terminals will be fully operational
  • Non-tax benefits to be made available to MSMEs after they graduate to higher units
  • Textile tech upgradation to get Rs 2400 cr
  • Handloom workers to get working capital at concessional rates
  • SIDBI gets Rs 500 cr
  • Standing council of experts in ministry finance to analyse competitiveness of Indian financial sector
  • 13 PSU banks to get Rs 14000 cr in 2013-14 as capital infusion
  • All cooperative banks to be brought under CBS
  • All PSU banks to have ATMS at their premises
  • India’s first women bank as a PSU bank with Rs 1000 cr as initial capital
  • New fund for urban housing to get Rs 2000 cr
  • All towns with a population of 10000 or more will have a branch of LIC and one general insurance company
  • Group insurance schemes to be available for teachers, nurses
  • RSBY to be extended to rickshaw, autorickshaw, sanitation and mine workers
  • Rs 50 cr for textile ministry for apparel park
  • Rs 6000 cr for Rural Housing Fund
  • SEBI Act amendment under consideration
  • Investor with stake less than 10% will be taken as FII; more than that it will be taken as FDI
  • New scheme to encourage waste to energy projects
  • Clean and green energy is a priority
  • KYC of banks sufficient for insurance
  • Debt segment to be set up in Exchange
  • Rs 800 cr for Ministry of Non Renewable Energy
  • Hope Insurance and Pension Bills are passed soon
  • Rs 6000cr for Rural Housing Fund
  • Banks can act as insurance brokers
  • Defense expenditure at Rs 2 lakh cr appx
  • Rs 6275 cr for science and tech ministry
  • Rs 5580 cr for dept for atomic energy
  • Rs 100 cr each to AMU, BHU, Tata Institute of Social Sciences Guwahati, INTACH
  • National Institute of Sports Coaching in Patiala
  • Rs 532 cr for post offices to undertake banking activities
  • Rs 5880 cr to DAE
  • Over 800 FM channels will be auctioned
  • Gadar memorial in San Francisco to be upgraded
  • Donations to academic institutions and R&D to be treated as CSR
  • Mutual Fund distributors can now become members of Stock Exchange
  • Nirbhaya Fund for women’s security at Rs 1000 cr
  • Insurance, Provident Funds can trade directly in debt segments of stock exchanges