- Global growth slowed to 3.2% vs 3.9% yoy. CSO estimated GDP growth at 5% for FY13. Biggest concern is high current account deficit; we need $75 billion to finance CAD. Current account deficit a bigger worry than Fiscal Deficit. FII, FDI or external commercial borrowing to finance CAD, is the only way forward
- FY14 plan expenditure to be 30% more than in FY13. Total Budget estimate for FY14 16.44 lakh crore.
- Rs 1,069 cr proposed to be allocated to AYUSH to promote Ayurveda, Homoeopathy, Siddha and Unani
- Increase allocation to Defence at 2,30,672 cr
- Plan exp: Rs 5.55 lakh cr, Non plan exp at Rs 11 lakh cr
- Fiscal deficit contained at 5.2% in FY13, pegged at 4.8% in FY14
- Rs 27,330 cr to Min of Health and Family Affairs. Rs 4,727 crore to medical education, training and research.
- 17% hike in allocation to Education. Rs 65,877 cr allocated to education.
- Clean drinking water, sanitation: 15,260 cr allocated Ministry of drinking water and sanitation.Allocation for integrated water programme from 3,050 cr to 5,387 cr next year. Higher allocation for water treatment
- Credit guarantee fund for small farmers, with initial corpus of Rs 100 cr. Rs 500 cr to start program of crop diversification to enrich farmers. Farmer who repays loan on time will be given financial assistance at 4%
- Rs 27048 cr to agriculture dept, agricultural research to be given Rs 3450 cr. Indian Institute of Agri-Biotechnology to be established at Ranchi, Jharkhand.
- 250 million tonnes food grain produced; MSP increased significantly. Food Security Bill introduced with an allocation of Rs 10,000 crore.
- 12th plan infrastructure outlay at Rs 55 lakh cr. Announcement of 3,000 km of Road projects. 3,000 km of road projects in Gujarat, Maharashtra, Karnataka in first 6 months of 2013-14. 2 major ports in Bengal and Andhra to add 1 mn tonnes of capacity.
- Seek assistance of World bank, Asian Devt Bank to build roads in north east states connect to Myanmar. IIFCL, Asian Devt Bank will give credit enhancement to infra companies to tap bond markets
- 14,000 buses sanctioned between 2009-12 under JNNURM. Rs 14,873 cr for FY14; significant use for purchase of 10,000 buses
- Manufacturing sector needs revival — cabinet authority set up to review stalled projects, guide new projects
- Wind energy sector to get generation based incentives; Rs 800 cr allocated to the dept.
- To approve Rs 50,000 crore for tax-free bonds in FY14. Will introduce inflation-indexed instruments. Income limit for RGESS raised to Rs 12 lakh from Rs 10 lakh.
- Focus on TUFF scheme, textile parks, handloom sector. 1,50,000 weavers, 1,800 co-op societies to benefit on allocation of additional sum of Rs 96 cr to ministry of textiles for internal subvention
- Funding by companies for tech research in colleges and educational institutions to be treated as part of mandatory CSR under Companies Act
- To provide Rs 14,000 cr for Public Sector Bank recap
- To constitute panel on transaction costs, finance policies
- Will ensure PSU Banks always meet Basel III norms
- All women’s bank to be set up via PSU route
- Banks to be permitted to act as insurance brokers. KYC of banks sufficient for buying insurance policies.
- Loans for rural housing: last Budget Rs 4,000 cr, this time Rs 6000 cr to rural housing fund in 2013-14
- Tax credit of Rs 2,000 to every tax payer in the 2,00,000-5,00,000 bracket. Leaves tax slabs and rates untouched
- 2011-12: Tax GDP ratio at 5.5% for direct taxes and 4.4% of GDP for indirect taxes
- Only 42,000 people who have been known to have income of more than Rs 1 cr a year. Tax surcharge of 10% on such income
- Tax surcharge raised from 5% to 10% on companies with annual income of more than Rs 10 crore
- Additional tax surcharge on taxes only for one yea
- Will continue with Educational cess at 3%
- Dividend distribution tax surcharge raised from 5% to 10%. Indian company not to pay dividend distribution tax for income coming from foreign subsidiary
- Extends Section 80IA by one year
- TDS at 1% on the transfer of immoveable properties worth more than Rs 50 lakh
- Tax holiday for power plants extended to FY14.
- Commodities Transaction tax on non-agricultural commodity derivatives
- STT reduced from 0.17% to 0.1%
- Import duty on set-top boxes raised from 5% to 10%
- No change in standard rate of Excise duty
- Excise on leather goods to be reduced from 7.5% to 5%
- To introduce DTC Bill in Budget session of Parliament
- 20% final withholding tax on unlisted companies’ share buyback
- Customs duty on imported cars hiked from 75% to 100%
- Excise duty to be hiked from 27% to 30% on SUVs; those registered as Taxis to escape hike
- SED on cigarettes hiked by 18%.
- 4% excise duty on silver for manufacturing zinc or lead
- To include 2 services in negative list of service tax.