The presentation of Union Budget 2013-14 finished about two hours back and we present to you the comprehensive key highlights of the budget. Do check out the Infographic featured at the end of article created by Futurewise to get a snapshot of most important points announced in this budget.
1) Currently, among all the economies in the world, only China and Indonesia growing faster than India in 2012-13. In 2013-14, only China projected to grow faster than India
2) 11th Five year plan had average growth rate of 8 percent, highest till date under UPA Government.
3) The Budget stressed on the inclusive development with emphasis on improving human development indicators specially of women, the scheduled castes, the scheduled tribes, the minorities and some backward classes.
Fiscal Deficit, Current Account Deficit and Inflation
1) A new fiscal consolidation path with fiscal deficit at 5.3 per cent of GDP this year and 4.8 per cent of GDP in 2013-14 was announced.
2) Food Inflation is a worrying factor and steps have been taken to augment the supply side to meet the growing demand for food items.
1) Rs. 97,134 crore allocated for programmes relating to women and 77,236 crore allocated for programmes relating to children
2) Women & Child development ministry will design schemes that will address the concern of single women and widows. Additional sum of Rs. 200 crore has been proposed.
3) Allocation of Rs. 160 crore to the corpus of Maulana Azad Education Foundation to raise its corpus to 1,500 crore during 12th plan.
4) Rs. 110 crore has been allocated to the Department of Disability Affairs in 2013-14 against Rs. 75 crore in 2012-13.
5) Rs. 37,330 crore has been allocated to the Ministry of Health & Family Welfare
6) New National Health Mission will get an allocation of Rs. 21,239 crore
7) Rs. 4,727 crore for medical education, training and research.
8) Ayurveda, Unani, Siddha and Homoeopathy are being mainstreamed. Allocation of Rs. 1,069 crore to Department of AYUSH.
9) New six AIIMS-like institutions will come up and 1,650 crore has been allocated for that purpose.
10) Rs. 65,867 crore has been allocated to the Ministry of Human Resource Development, an increase of 17 percent over current year
11) Rs. 27,258 crore provided for Sarva Shiksha Abhiyaan (SSA)
12) Rs. 5,284 crore allocated to Ministries/Departments in 2013-14 for scholarships to students belonging to SC, ST, OBC, Minorities and girl children
13) Rs. 13,215 crore allocated to Mid Day Meal Scheme (MDM)
14) Rs. 300 crore allocated for a multi-sectorial programme aimed at overcoming maternal and child malnutrition
15) Rs. 15,260 crore allocated to Ministry of Drinking Water and Sanitation
16) Rs. 1,400 crore provided for setting-up of water purification plants in arsenic and fluoride-affected rural areas.
17) Rs. 80,194 crore allocated to Ministry of Rural Development, a 46 percent rise over 2012-13.
18) Rs. 27,049 crore allocated to Ministry of Agriculture, an increase of 22 per cent over 2012-13
19) Rs. 3415 crore has been allocated for Agricultural research
20) Target of agricultural credit kept at Rs. 7 lakh crore.
20) Rs. 1000 crore has been allocated for bringing in green revolution
21) Rs. 500 allocated to start programme on crop diversification and promoting technological innovation in agriculture.
22) Rs. 9,954 crore allocated to Rashtriya Krishi Vikas Yojana and Rs. 2250 crore to National Food Security Mission
23) Equity grants of upto 10 lakh rupees to be given to FPO registered farmers.
24) initial corpus of Rs. 100 crore allocated to create Credit Guarantee Fund in the Small Farmers’ Agri Businesses Corporation
25) Provision of Rs. 307 crore to setup National Livestock mission
Investment, Infrastructure and Industry
1) Infrastructure Debt Funds (IDF) to be encouraged,
2) IIFCL to offer credit enhancement
3) Infrastructure tax-free bonds worth Rs. 50,000 crore to be created in 2013-14.
4) Thrust to be given to build roads in North eastern states and connect them to Myanmar
5) Rural Infrastructure Development Fund corpus raised to Rs. 20,000 crore
6) Rs. 5000 crore allocated to NABARD to finance construction of warehousing.
7) 3000 kms of road projects in Gujarat, Madhya Pradesh, Maharashtra, Rajasthan and U.P will be awarded in the first half of 2013-14.
8) Companies investing Rs. 100 crore or more in plant and machinery during the period April 2013 and March 2015 will be entitled to deduct an investment allowance of 15 per cent of the investment.
9) Incentives for semiconductor wafer fab manufacturing facilities announced, including zero customs duty for plant and machinery.
1) Rajiv Gandhi Equity Savings Scheme to be liberalized.
2) Additional deduction of interest upto Rs. 1 Lakh for persons taking first home loan upto Rs. 25 lakh during period April 2013 to March 2014
3) Instruments to protect savings from inflation to be introduced.
1) 2 New smart cities to come up at Dholera, Gujarat and Shendra Bidkin, Maharashtra. Plan for 7 new cities has been finalized.
2) Chennai Bengaluru Industrial Corridor to be developed
Micro, Small and Medium Enterprises
1) Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category.
2) SIDBI refinancing capacity raised to Rs. 10,000 crore.
3) Additional sum of Rs. 100 crore to be provided to India Microfinance Equity Fund.
4) Funds provided to Tech incubators within academic institutions will qualify as CSR expenditure.
1) Basel III compliance of PSU Banks will be ensure and will see infusion of Rs. 14000 crore in 2013-14
2) All branches of PSU banks will have ATMs by March 2013.
3) India’s first Women’s Bank as a public sector bank will be setup in 2013-14 and Rs. 1,000 crore provision of initial capital has been made.
4) Rs. 6000 crore has been allocated to Rural housing fund in 2013-14
1) Amendment of SEBI act proposed to strengthen the regulator.
2) SEBI will simplify the procedures and prescribe uniform registration and other norms for entry for foreign portfolio investors.
3) The division between FII (Foreign Institutional Investor) and FDI (Foreign Direct Investor) has been made clear. An investor with stake less than 10 percent will be treated as FII, while an investor with stake more than 10 percent would be treated as FDI.
4) FIIs will be permitted to participate in the exchange traded currency derivative segment.
5) FIIs will also be permitted to use their investment in corporate bonds and Government securities as collateral.
6) Small and medium enterprises will be permitted to list on the SME exchange without being required to make an initial public offer (IPO).
1) Defense Allocation increased to Rs. 2,03,672 crore including Rs. 86,741 crore for capital expenditure.
1) A grant of Rs. 100 crore each made to 4 institution of excellence.
2) National Institute of Sports Coaching to be set up at Patiala at cost of Rs. 250 crore.
3) All cities having more than one lakh population will be covered by private FM radio services.
4) Rs. 200 crore to be set apart to fund organizations that will scale up S&T innovations and make these products available to the people.
5) Post Offices to become part of core Banking solution and they will be modernized at the cost of Rs. 4909 crore.
1) Plan expenditure is placed at Rs. 5,55,322 crore while Non Plan Expenditure is estimated at Rs. 11,09,975 crore.
2) Fiscal Deficit for current year contained at 5.2 percent and is expected it to come down to 4.8 percent in 2013-14
3) Revenue deficit to come down from 3.9 percent this year to 3.3 in 2013-14
1) Tax Administration Reforms Commission to be set up.
2) In short term efforts will be made to achieve 11.9 per cent of tax GDP ratio.
3) No revisions in either the slabs for rates for Personal Income Tax
4) Slight relief to Tax Payers in the bracket between Rs. 2 lakhs to Rs. 5 lakhs. A tax credit of Rs. 2000 to every person with total income upto Rs. 5 lakhs.
5) Surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs. 1 crore.
6) Increase in surcharge from 5 percent to 10 percent for companies exceeding Rs. 10 crore income.
7) For foreign companies, the surcharge increased from 2 percent to 5 percent, if taxable income exceeds 10 crore.
8) Surcharge increased from 5 percent to 10 percent in all other cases such as dividend distribution tax or tax on distributed income.
9) These additional surcharge will be in force only for One year.
10) Education Cess to continue at 3 percent
11) Donations made to National Children Fund eligible for 100 percent deduction.
12) Investment allowance at the rate of 15 percent for companies investing more than 100 crore in plant an machinery between April 2013 to March 2014
13) Securitisation Trust to be exempted from Income
14) A Category I AIF set up as Venture capital fund allowed pass through status under Income-tax Act.
15) 1 percent TDS levied for transfer of immovable properties who value exceeds Rs. 50 lakh. Agricultural Land exempted from it.
16) 20 percent withholding tax for profits distributed by unlisted companies through buy-back of shares.
17) Proposal to increase the rate of tax on payments by way of royalty and fees for technical services to non-residents from 10 percent to 25 percent.
18) STT or Securities Transaction Tax reduced to 0.1 percent.
19) GAAR will be introduced with effect from April 2016.
1) No change in normal rates of 12% for excise duty and service tax
2) No change in the peak rate of basic customs duty of 10 percent
1) current concessions on electric and hybrid vehicles increased upto March 31st 2015.
2) Duties on machinery required from manufacture of Leather and leather goods reduced from 7.5 percent to 5 percent.
3) Duty on raw precious and semi-precious stones reduced from 10 percent to 2 percent.
4) Duty on Set Top Boxes increased from 5 to10 percent.
5) Duty on raw silk increased from 5 to 15 percent.
6) Duty on imported motor vehicles, motor cycles, yachts and similar vessels increased.
7) Duty free gold limit increased to Rs. 50,000 in case of male and Rs. 1,00,000 in case of a female passengers.
1) Readymade Garment Industry get relief on excise duty and zero excise duty for cotton at fibre stage as well.
2) Handmade carpets and textile floor coverings of coir and jute totally exempted from excise duty.
3) Ship building industry gets relief with ships and vessels exempted from excise duty.
4) Excise duty on cigarettes increased by about 18 percent.
5) Excise duty on SUVs increased from 27 to 30 percent
6) Excise duty on Marble doubled.
7) 4 percent excise duty levied on silver manufactured from smelting zinc or lead.
8) For mobile costing Rs. 2000 or more, duty increased to 6 percent.
1) Exemption of Service Tax on copyright of cinematography limited to films exhibited in cinema halls.
2) Air Conditioned restaurants will be levied service tax.
3) Rate of abatement reduced from from 75 to 70 percent for homes and flats with carpet area more than 2000 sq. ft or having value more than 1 crore.[Get full details on Official India Budget portal]
Union Budget 2013 [Infographic]
The above infographic has been made by folks at Futurewise, who have been following today’s budget closely as well.