Highlights of the Union Budget 2013-14
State

Highlights of the Union Budget 2013-14

sarkarimirror

by staff reporter

 

Highlights of the Union Budget 2013-14:


FISCAL DEFICIT

*Fiscal Deficit seen at 5.2 point of GDP IN 2102/13
* Fiscal deficit seen at 4.8 point of GDP in 2013/14

BORROWING

* Gross market borrowing seen at 6.29 trillion rupees in 2013/14

* Net market borrowing seen at 4.84 trillion rupees in 2013/14

* Short-term borrowing seen at 198.44 billion rupees in 2013/14

* To buy back 500 billion rupees worth of bonds in 2013/14

SUBSIDIES

* 2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees

* Petroleum subsidy seen at 650 billion rupees in 2013/14

* Revised petroleum subsidy for 2012/13 at 968.8 billion rupees

* Estimated 900 billion rupees spending on food subsidies in 2013/14

* Revised food subsidies at 850 billion rupees in 2012/13

* Revised 2012/13 fertiliser subsidy at 659.7 billion rupees

GROWTH

*India faces challenge of getting back to its potential growth of 8 point

* India must unhesitatingly embrace growth as highest goal

SPENDING

* Total budget expenditure seen at 16.65 trillion rupees in 2013/14

* Non-plan expenditure estimated at about 11.1 trillion rupees in 2013/14

* India’s 2013/14 plan expenditure seen at 5.55 trillion rupees

* Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 point of budget estimate

* Set aside 100 billion rupees towards spending on food subsidies in 2013/14

REVENUE

* Expect 133 billion rupees through direct tax proposals in 2013/14

* Expect 47 billion rupees through indirect tax proposals in 2013/14

* Target 558.14 billion rupees from stake sales in state-run firms in 2013/14

* Expect revenue of 408.5 bln rupees from airwave surcharges, auction of telecom spectrum, licence fees in 2013/14

CURRENT ACCOUNT DEFICIT

* India’s greater worry is the current account deficit – will need more than $75 billion this year and next year to fund deficit

INFLATION

* Food inflation is worrying, will take all steps to augment supply side

TAX

* Propose surcharge of 10 points on rich tax payers with annual income of more than 10 million rupees a year.

* To increase surcharge to 10 point on domestic companies with annual income of more than 100 million rupees

* For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 pct to 5 per cent.

* To continue 15 point tax concession on dividend received by India companies from foreign units for one more year

* Propose to impose withholding tax of 20 point on profit distribution to shareholders

* Amnesty on service tax non-compliance from 2007

* 10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment

* Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point

* Time to introduce commodities transaction tax (CTT)

* CTT on non-agriculture futures contracts at 0.01 point

CORPORATE SECTOR AND MARKETS

* To issue inflation -indexed bonds

* Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupees

* Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements

* Insurance, provident funds can trade directly in debt segments of stock exchanges

* FIIs can hedge forex exposure through exchange-traded derivatives

* Investor with less than 10 point stake in a company will be regarded as FII, more than 10 point stake as FDI (foreign direct investment)

* Stock exchange regulator will simply know your customer norms for foreign portfolio investors.

* To implement quickly recommendations of financial sector legislative reforms commission

* To cut factory gate duty on trucks to 13 pct from 14 pct

POWER AND ENERGY SECTOR

* Zero customs duty for electrical plants and machinery

* Move to revenue-sharing from profit-sharing policy in oil and gas sector

* To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing duty)

FOREIGN TRADE

* To cut duty on exports of precious and semi-precious stones to 2 point from 10 point

* No duty on import of ships, vessels

BANKING

* To provide 140 billion rupees capital infusion in state-run banks in 2013/14

DEFENCE

* To allocate 2.03 trillion rupees to defence in 2013/14

AGRICULTURE

* To allocate 801.94 billion rupees to rural development in 2013/14

*Plan to allaocate 270.49 billion rupees for agriculture in 2013/14

FINANCE MINISTER COMMENTS

*”Faced with a huge fiscal deficit,I have no choice but to rationalize expenditure.We took a dose of bitter medicine .It seems to be working”