UNION BUDGET 2013-14

Union Budget is a comprehensive display of the Government’s finances. The Finance Minister puts down a report that contains Government of India’s revenue and expenditure for one fiscal year(Presented by : Finance Minister of India )

INTRODUCTION…..

4.8 percent of GDP

FISCAL DEFICIT

Gross market borrowing - 6.29 trillion rupees

Net market borrowing - 4.84 trillion rupees

Short-term borrowing - 198.44 billion rupees

To buy back 500 billion rupees worth of bonds

BORROWING

Major subsidies bill -2.48 trillion rupees (earlier 1.82 trillion rupees)

Petroleum subsidy -650 billion rupees

Food subsidies – 900 billion rupees

Fertilizer subsidy - 659.7 billion rupees

SUBSIDIES

Total budget expenditure - 16.65 trillion rupees

Non-plan expenditure - about 11.1 trillion rupees

Plan expenditure - 5.55 trillion rupees

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

EXPECTED EXPENDITURE

Direct tax proposals – 133 billion rupees

Indirect tax proposals – 47 billion rupees

Stake sales in state-run firms – 558.14 billion rupees

Revenue from airwave surcharges, auction of telecom spectrum, licence fees- 408.5 billion rupees

EXPECTED REVENUE

 Proposes surcharge of 10 percent on rich taxpayers with annual income of more than 10 million rupees a year

To increase surcharge to 10 percent 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.

TAX

Contd.. 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

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

CORPORATE SECTOR AND MARKETS

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 simplify know-your-customer norms for foreign portfolio investors

To implement quickly recommendations of financial sector legislative reforms commission

Contd..

Zero customs duty for electrical plants and machinery

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

POWER AND ENERGY SECTOR

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

No duty on import of ships, vessels

FOREIGN TRADE

To provide 140 billion rupees capital infusion in state-run banks

Proposal to set up India’s first Women’s Bank as a public sector bank

BANKING

To allocate 2.03 trillion rupees to defense

DEFENCE

To allocate 801.94 billion rupees to rural development

 Plan to allocate 270.49 billion rupees for agriculture

AGRICULTURE

HEALTH SECTOR

2.03 Trillion Rupees New Health Care Mission for which 21239/- crore expense is being projected

Education

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Total allocation Rs 65,867 crore

Mid-day meal programme gets Rs 13,215/- crore

Ssa GETS

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SSA gets Rs 27,258 crore

97,134/- crore allocated for programmes related to women

77,236/- crore allocated for the children

110/- crore to the department of Disability Affairs for ADIP scheme as against 75/- crore in the last fiscal year

Women, Children and Disabled