HIGHLIGHT - BUDGET - 2013-14

Finance Minister P Chidambaram presented one of the most highly anticipated budgets of recent
years today, a blueprint for austerity that forms the centrepiece of India's efforts to stave off a
damaging credit ratings downgrade. Here are the highlights of this year's budget:
Leather products get cheaper
Mobile phones, dinning out, cigarettes, SUVs, motorbikes, set-up boxes get
expensive (Read)
Excise duty on cigarettes raised by 18 per cent
Mobile Phones, SUVs to get more expensive: On mobile phones priced at more than
Rs. 2000, excise duty hiked to 6%. Excise duty on SUVs raised from 27% to 30% (Read:
How you are affected)
Duty free limit for Gold raised to Rs. 50,000 in case of a male passenger and Rs. 1 lakh
for female passengers
The current slabs were introduced last year. Hence there is no case of revising either
(Read)
Some tax credit of Rs. 2000 for every person who has an annual income of upto Rs. 5
lakh (Read: High earners say not fair)
Tax Administration Reforms Commission to be set up to review tax laws
In 2007-08 Tax GDP ratio touched a peak; in short term we must regain that peak
The current slabs were introduced last year. Hence there is no case of revising them
But will give some tax relief of Rs. 2000 for every person who has an annual income of
up to Rs. 5 lakh
Rs. 1000-crore Nirbhaya Fund announced for the empowerment of women (Read)
All Regional Rural Banks and cooperative banks to be e-linked by this year-end
National Housing Bank (NHB) to set up urban housing bank fund and Rs. 2,000 crore
will be allocated in this regard
Standing Council of Experts in Ministry of Finance to examine transaction cost of doing
business in India
Rs. 14,000 crore capital infusion into public sector banks in 2013-14
PSU banks to have ATMs at all their branches by March 31, 2014
Rs. 6,000 crore to be allocated for rural housing fund in 2013-14
Defence allocation increased to Rs. 2.03 lakh crore (Read)
Rs. 6,275 crore to ministry of science and technology, Rs. 5,880 crore to Department of
Atomic Energy
Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to
185 million tonnes in 2016-17
Finance Minster asks state governments to prepare financial restructuring plan for power
distribution companies at the earliest.
Simpler SEBI rules:Securities and Exchange Board of India to simplify procedures for
foreign portfolio investors
Two new ports to be set up in West Bengal and Andhra Pradesh to ad 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
Household sector must be incentivised to save in financial instruments rather than gold.
Person taking a home loan for his first home during the period 2013-14 will be
entitled to an additional deduction of Rs. 1 lakh, announces Mr Chidambaram (Read)
Re-financing capacity of SIDBI increased to Rs. 10,000 crore from Rs. 5,000 crore for
Ministry of Small and Medium Enterprises
Rs. 27,049 crore allocation to the Agriculture Ministry in 2013-14
Rs. 7 lakh crore target fixed for agriculture credit for 2013-14 compared to Rs. 5.75 lakh
crore in the current year.
Eastern Indian states to get Rs. 1,000 crore allocation for improving agricultural
production
Infrastructure Development Funds will be encouraged
Funds to raise resources for the development
Govt committed to food security bill. 10,000 crores set apart for expenditure likely under
the act
Rs. 37,330 crore allocated for Ministry of Health & Family Welfare
Rs. 110 crore to be allocated to the department of disability affairs
Rs. 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised
estimates
Additional sum of Rs. 200 crore to Women and Child Welfare
Ministry to address issues of vulnerable women
Rs. 37,330 crore allocated for Ministry of Health & Family Welfare
Faced with huge fiscal deficit, I have no choice but to rationalise expenditure
Development must be sustainable - economically and ecologically
Cannot spurn foreign investments, that is an imperative
Great worry is the current account deficit (Read)
Without growth, there will be neither development nor inclusiveness
The job of a finance minister is to create the economic space and find resources to
achieve it
Only China and Indonesia growing faster than India
By 2013 only China will grow faster than India
I seek support as we navigate the Indian economy through crisis that has enveloped the
whole world I intend