Here are the highlights of Budget 2013-14 presented by Finance Minister P Chidambaram.
Amid high expectations of reversing the sharp slowdown in the country's economic growth, Finance Minister P. Chidambaram started presenting India's 82nd budget in the Lok Sabha today.
He began his speech by seeking the support of all parties and stakeholders to help navigate the Indian economy through the current crisis. He said getting back to the growth rates of over 8-9 per cent seen some years ago was the main challenge.
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Finance Minister P Chidambaram
"We have done it before, and we can do it again," Chidambaram said, in what is his 8th national budget for the country. "Whatever may be the final outcome, growth is below potential. But there is no need for gloom."
Highlights of Budget 2013-14:
* 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)
*u00a0Ten per cent surcharge on income exceeding Rs.1 crore (Rs.10 million/$180,000) a year; only 42,800 people have declared such income
*u00a0Collective 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
*u00a0Rs.1,000 crore allocated for establishing Nirbhaya Fund
*u00a0Rs.97,000 crore (Rs.970 billion/$18 billion) for women's development
*u00a0Defence allocated Rs.203,672 crore (Rs.2.03 trillion/$37 billion), an increase of five per cent
*u00a0Import duty on high-end vehicles raised from 75 per cent to 100 per cent
*u00a0Excise duty on cigarettes to be increased 18 per cent
*u00a0No change in service tax of 12 per cent
*u00a0No service tax on vocational courses run by institutes affiliated to state governments
*u00a0Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol
*u00a0No service tax on agricultural testing procedures
*u00a0Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST
*u00a0Concessions for encouraging MRO (maintenance repair overhaul) sector
*u00a0No change in customs duty on non-agricultural products
*u00a0Modified law to prevent tax avoidance to come into effect April 1, 2016
*u00a0100 per cent tax deduction for contributions to National Children's Fund
*u00a0Education cess to continue at 3 per cent
*u00a011 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)
*u00a0Property transactions skewered; TDS of one per cent where transaction exceeds Rs.50 lakh
*u00a0Tax on mutual fund redemptions reduced from .25 per cent to .001 per cent
*u00a0Tax Administrative Reforms Commission to be set up
*u00a0Cities to be encouraged to promote waste to energy projects
*u00a0Low interest funds to be provided for promoting clean energy
*u00a0Rs.800 crore provided to promoting wind energy
*u00a0Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity
*u00a0Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14
*u00a0State governments urged to sign restructuring plans with electricity discoms
*u00a0Tax-free infrastructure bonds of Rs.50,000 crore to be issued
*u00a0Textile ministry allocated Rs.50 crore for establishing apparel parks
*u00a0Handloom sector allocated Rs.96 crore to benefit 150,000 weavers
*u00a0Infrastructure debt funds to be encouraged
*u00a0Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14
*u00a0Incentive allowance of 15 per cent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects
*u00a0Rajiv Gandhi Equity Scheme to be liberalised
*u00a0Seven new cities identified along Delhi-Mumbai Industrial Corridor
*u00a0Preliminary work begun on Bangalore-Mumbai Industrial corridor
*u00a0Foodgrain production during 2013-13 estimated at 250 million tonnes
*u00a0Rs.500 crore allocated for promoting crop diversification
*u00a0Rs.200 crore allocated for promoting nutrient-rich crops
*u00a0Rs.50 crore allocated for farmer-producer organisations
*u00a0National Livestock Mission to be launched with allocation of Rs.307 crore
*u00a0Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation
*u00a0Human resource development ministry to get Rs.65,867 crore
*u00a0Rs.13,250 crore allocated for midday meals scheme
*u00a0Rs.17,700 crore allocated for Integrated Child Development Scheme
*u00a0Drinking water and sanitation ministry allocated Rs.15,260 crore
*u00a0Allocation of rural development ministry allocation raised by 46 per cent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme
*u00a0Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore
*u00a0Rs.41,000 crore for Scheduled Caste plan
*u00a0Rs.110 crore for department of disabilities
*u00a0Rs.37,330 crore for health ministry
*u00a0Average growth during UPA-1 was 8 per cent; high growth not a novelty
*u00a0Current account deficit a worry because of high oil and gold imports
*u00a0Will need $75 billion to finance current account deficit
*u00a0Need to encourage FDI in consonance with economic priorities
*u00a0WPI inflation down to 7 per cent; food inflation worrying.u00a0
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