UNION BUDGET-2013

By-Mrs.Binny Bhogal Rawat

Prof. Finance-HLCPE

Finance Minister-Chidambaram Palaniappan

What is Union Budget? The Union Budget is the financial annual

report of India as a country. It contains the government of India's revenue

and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31

It comprises the revenue budget and the capital budget.

It also contains estimates for the next fiscal year.

What is economic survey? The FM presents the economy survey in

the parliament every year just before the union budget

Sector Impact-Textiles

Excise Duty on readymade garments exempted +ve for textile sector

Bombay Rayon 240.45 0.95

Mandhana Ind 249.60 3.2

Auto - Negative

Excise Duty on SUV's raised negative Higher allocation to defence +ve

Mah and Mah 878.00 -19.55

Maruti Suzuki 1424.45 -6.3

 

Banks

HDFC Bank 630.50 -2.45

ICICI Bank 1108.35 14.75

Axis Bank 1402.15 -1.05

4% farm loan scheme extended to private sector banks    

Cigarettes

Excise Duty on cigarettes up 18% negative for ITC

ITC 287.05 -5.55

 Construction & Contracting - Real Estate

Excise Duty on marble slabs increased negative for real estate

Budget Interpretations

Branded apparels will be cheaper it has been removed from excise duty regime

18% rise in excise duty on cigarettes, cigars and cheroot's.

More duty free gold items can be purchased by the NRIs now. However, they must have been outside India for more than a year.

Import duty on luxury cars, motorcycles and yachts is increased from 75% to 100%.

FinMin has provided a tax credit of Rs 2,000 to individual tax payers with taxable income of up to Rs 5 lakh.

India's first women's bank as a PSU has been proposed with Rs. 1,000 crore working capital. P. Chidambaram has also proposed to provide Rs. 1,000 crore for Nirbhaya fund for women.

Smartphones will become dearer as the excise duty on mobile instruments priced above Rs 2,000 has been raised to six per cent.

'Super-rich' tax was levied as a 10 per cent surcharge on "relatively prosperous" persons with an income over Rs 1 crore

P. Chidambaram re-introduced the generation based incentives to wind energy. Rs 800 crore has been provided for this purpose to Ministry of New & Renewable Energy

The excise duty on Sports Utility Vehicles (SUV) will be raised to 30 per cent from 27 per cent

FISCAL DEFICIT

* Fiscal deficit seen at 5.2 point of GDP in 2012/13

* Fiscal deficit seen at 4.8 point of GDP 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

INFLATION

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

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

STT

Securities Transaction Tax on mutual fund and ETF redemptions, equity futures reduced to 0.01%;

one million is equal to 10 lakhs 1 billion = 100 crore

1 trillion = 100,000 crore http://www.moneycontrol.com/news/