Union Budget 2013-2014 Highlights

Union budget for the year 2013-2014 was presented by Finance minister P Chidambaram on 28th February 2013,11 am. 

ALLOTMENT	AMOUNT
Women Fund	1000 crore
Youth Fund	1000 crore
Nirbhaya fund	1000 crore
BHU (Varanasi)	100 crore
AMU (Aligarh)	100 crore
TISS (Guwahati)	100 crore
Ministry of Technology	Rs 6275 crore
Department of Space	Rs 5216 crore
Department of Energy	Rs 5280 crore
Defense	Rs. 2 trillion
Agriculture Ministry	Rs 27,049 crore
Ministry of Drinking Water and Sanitation	Rs 15,260 crore
Ministry of Rural Development	Rs 80,194 crore
Bharathiya Mahila Bank	Rs. 1,000 crore working capital
To Eastern states for improving agricultural production	Rs 1,000 crore
Programme on crop diversification	Rs 500 crore
ICDS	Rs. 17,700 crore
JNNURM	Rs 14,873 crore
MNREGA	Rs 33,000 crore
NABARD for agri storage facilities	Rs. 5,000 crore
Integrated Child Development Scheme (ICDS)	Rs 17,700 crore
National Food security bill	Rs 10,000 crore to the expected cost
Department of Aryush	Rs 1069 crore
Medical education and research	Rs 4,727 crore
Starting AIIMS-like  Medical college	Rs 1650 crore
Ministry of Health & Family Welfare	Rs 37,330 crore
department of disability affairs	Rs 110 crore
Women and Child Welfare Ministry to address issues of vulnerable women	Additional sum of Rs 200 crore
Minority Affairs Ministry	Rs 3511 crore
Mid-day meal programme	Rs 13215 crore
Sarva Shikhsa Abhiyaan	Rs. 27,250 crore
Human Resources Development ministry	Rs. 65,867 crore, a rise of 17% from revised estimates
Women and Child Development Ministry	additional fund allocation of Rs 200 crore
For development of Ayurveda, Siddha, Unani (Natural medicine) and homeopathy	169 crore
SC Plan	Rs 41,561 crore
Tribal plan	Rs 24,598 crore
Public sector banks for capital infusion	Rs. 14,000 crore
Aligarh Muslim University	Rs. 100 crore
Banaras Hindu University	Rs. 100 crore
Tata Institute of Social Sciences	Rs. 100 crore
Guwahati and Indian National Trust for Art and Cultural Heritage (INTACH)	Rs. 100 crore
Ministry of New & Renewable Energy	Rs 800 crore
Textile technology upgradation	Rs 2400 crore

HIGHLIGHTS

In 2013—14, the budget estimate is Rs 16,65,297 crore. The revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget estimate for this fiscal.

Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore. Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent

of budgeted expenditure

For land deals over Rs 50 lakh, Tax Deducted at Source to be fixed at 1%

5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore

Under Direct Benefit Transfer scheme, 11 lakh beneficiaries received benefit

GAAR norms which are modified to be introduced from April 1, 2016.

Administration reform commission proposed

Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 2013—14

Promise to women, youth and senior citizens

For income upto Rs. 5 lakh, tax credit of Rs. 2,000

For taxable incomes above Rs. 1 crore, Surcharge of 10%

Excise duty exempted for SUVs registered as taxis. Other SUV's excise to be increased to 30 per cent from 27 per cent.

Commodities transaction tax levied on non—agriculture commodities futures contracts at 0.01 per cent

Rs 532 crore has been allotted to make post offices part of core banking

Duty-free limits raised to Rs 1 lakh for women and Rs 50000 for men

Excise duty on Cigarattes, cigars and cheerots to be increased to 18%

Direct Taxes Code (DTC) bill to be introduced in current Parliament session

A/C restaurants to get Service tax

No change in peak custom, excise rates

Royalty tax hiked to 25% from 10%

Private radio FM stations for 289 cities

Proposal to launch Inflation Indexed National Security Certificates or Inflation Indexed Bonds to protect savings from inflation.

First home loan from a bank or housing finance corporation upto Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh.

On oil and gas exploration policy, the Budget had proposed to move to revenue sharing from the present profit sharing mechanism. Natural gas pricing policy will be

reviewed.

Without prior approval Insurance companies can now open branches in Tier 2 cities and below. Towns with a population of 10000 or more will have one other public sector

insurance company and an LIC branch.

All public-sector banks will have ATMs in their branch areas by 2014

In partnership with ADB, India Infrastructure Finance Corporation (IIFC) will help infrastructure companies to access bond market to tap long term funds.

Regulatory authority will be set up for road sector

Income limit for the tax-saving Rajiv Gandhi Equity Savings Scheme is raised to Rs. 12 lakh from Rs. 10 lakh

Rs 7 lakh crore target for agri credit for next year (2013-14) compared to Rs 5.75 lakh crore in 2012-13

Rice output increased in Assam, Odisha, Jharkhand and West Bengal; Green revolution in east India significant.

Four Infrastructure debt funds have been registered

The target for farm credit for next year (2013-14) has been set at Rs. 7,00,000 crore against Rs. 5,75,000 crore during the current year(2012-13).

Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category.

5 million tons Dabhol LNG import terminal to be operated at full capacity in 2013—14

Technology Upgradation Fund Scheme (TUFS) for textile is decided to continue in 12th Plan with an investment target of Rs. 1,51,000 crore.

A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied.

Incentives to wind energy projects based on generation reintroduced.

Foodgrain production to be over 250 million tons in 2012—13.

Godowns to be constructed with help of panchayats

In Ranchi, Jharkhand an Institute for agricultural biotechnology to be set up .

Refinancing capacity of SIDBI raised to Rs. 10,000 crore.

The Right to Education Act is firmly in place

Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3 percent of the total expenditure. Non Plan Expenditure is estimated at Rs. 11,09,975 crore. The plan

expenditure in 2013-14 will be 29.4 percent more than the RE of the year 2012-13.

The Revenue Deficit will be 3.3 percent for the same period. Fiscal Deficit for 2013-14 is pegged at 4.8 percent of GDP.

The Budget proposes to move from the present profit sharing mechanism to revenue sharing on oil and gas exploration policy.

The Budget proposes adoption of a policy of pooled pricing on coal

Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities

For examining transaction cost of doing business in India a Standing Council of Experts in Ministry of Finance

SIDBI’s re—financing facility to MSMEs to be doubled to Rs 10,000 crore

SEBI will simplify procedures for entry of foreign portfolio investors

For addressing environmental issues faced by textile industry, Rs 500 crore would be allocated 

6% interest concession on loans to weavers.

12.5 % hike in Scheduled caste and Scheduled tribe sub-plans

Many manufacturing projects stalled due to regulatory process

Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided

Coal imports during April to December 2012 crossed 100 million tonnes. It is expected to go up to 185 million tonnes in 2016—17.

Rs 14000-crore capital infusion will be provided by Govt, in state-run (public-sector) banks in 2013/14

West Bengal and Andhra Pradesh to get new ports each

Present economic space is constrained by economic climate and tight monetary policy

15 per cent investment deduction allowance allowed apart from depreciation for a company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to

March 31, 2015.

Rs. 9,000 crore earmarked as the first installment of balance of CST compensations to different States/UTs.

To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries.

The Bangalore-Chennai industrial corridor to be developed in co-operation with the Japanese.DIPP and Japan’s JICA preparing plan for Chennai— Bengaluru Industrial

corridor

Power sector gets a nod - States encouraged to restructure financial systems to improve sector as a whole and sign MoUs for the same effect.

Rs 25,000 cr to be raised through tax free bonds

New steps have been announced to increase availability and amount of debts available for infrastructure projects.

Average economic growth rate in 11th Plan period is 8 per cent, highest ever in any Plan period.

Present headline WPI inflation is 7 per cent and core inflation to 4.2 per cent.

24.3 % hike in expenditure for health care both rural and urban health mission.

Need $75 billion to bridge Current Account Deficit