Budget Highlights 2013-14

Highlights of the budget for 2013-14 presented by Finance Minister P. Chidambaram in the Lok Sabha on Thursday 28th 2013:

·         No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.500,000 (approx $9,000)

·         Ten percent surcharge on income exceeding Rs.1 crore (Rs.10 million/$180,000) a year; only 42,800 people have declared such income

·         Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure

·         Rs.1,000 crore allocated for establishing Nirbhaya Fund

·         Rs.97,000 crore (Rs.970 billion/$18 billion) for women's development

·         Defence allocated Rs.203,672 crore (Rs.2.03 trillion/$37 billion), an increase of five percent

·         Import duty on high-end vehicles raised from 75 percent to 100 percent

·         Excise duty on cigarettes to be increased 18 percent

·         No change in service tax of 12 percent

·         No service tax on vocational courses run by institutes affiliated to state governments

·         Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

·         No service tax on agricultural testing procedures

·         Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST

·         Concessions for encouraging MRO (maintenance repair overhaul) sector

·         No change in customs duty on non-agricultural products

·         Modified law to prevent tax avoidance to come into effect April 1, 2016

·         100 percent tax deduction for contributions to National Children's Fund

·         Education cess to continue at 3 percent

·         11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)

·         Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh

·         Tax on mutual fund redemptions reduced from .25 percent to .001 percent

·         Tax Administrative Reforms Commission to be set up

·         Cities to be encouraged to promote waste to energy projects

·         Low interest funds to be provided for promoting clean energy

·         Rs.800 crore provided to promoting wind energy

·         Two new ports to be set up in West Bengal and Andhra Pradesh to add 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

·         Rs.500 crore allocated for promoting crop diversification

·         Rs.200 crore allocated for promoting nutrient-rich crops

·         Rs.50 crore allocated for farmer-producer organisations

·         National Livestock Mission to be launched with allocation of Rs.307 crore

·         Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation

·         Human resource development ministry to get Rs.65,867 crore

·         Rs.13,250 crore allocated for midday meals scheme

·         Rs.17,700 crore allocated for Integrated Child Development Scheme

·         Drinking water and sanitation ministry allocated Rs.15,260 crore

·         Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme

·         Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore

·         Rs.41,000 crore for Scheduled Caste plan

·         Rs.110 crore for department of disabilities

·         Rs.37,330 crore for health ministry

·         Average growth during UPA-1 was 8 percent; high growth not a novelty

·         Current account deficit a worry because of high oil and gold imports

·         Will need $75 billion to finance current account deficit

·         Need to encourage FDI in consonance with economic priorities

·         WPI inflation down to 7 percent; food inflation worrying.

 

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