Budget 2013: No changes in Income Tax rates; makes strong pitch for inclusive development

Budget 2013: No changes in Income Tax rates; makes strong pitch for inclusive development

mangaloretoday.com/NDTV / CNN-IBN

New Delhi, Feb 28, 2013: With an eye firmly on the Lok Sabha elections which are scheduled for early 2014, Finance Minister P Chidambaram focused on rural India while presenting Union Budget 2013-14 in Parliament on Thursday. He announced that the Ministry of Rural Development will be given Rs 80,194 crore in 2013-14 while about Rs 33,000 crore has been allotted for MGNREGA even as he cautioned that Indian economy was not out of the woods.

He announced that states which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II, others will continue with PMGSY-I, which led to uproar from the Opposition benches. The Agriculture Ministry has been given Rs 27,049 crore and the average annual growth rate of agriculture and allied services is estimated at 3.6 per cent in 2012-13 when 250 MT foodgrains was produced, said Chidambaram.

 

Admitting the Indian economy is still to get back on the track of fast growth, Finance Minister P Chidambaram while presenting Union Budget 2013-14 in Parliament on Thursday said that even though it remains a challenge but added that he was confident that the country would bounce back.

Pointing out that food inflation is also a major cause of worry, he said that government will take steps on production side to control it. FDI, FII and external commercial borrowings are our choice and tight monetary policy is needed to contain inflation. We have to encourage foreign investments which are in accordance to meet the economic objectives. I have no choice but to rationalise expenditure," he said.

"Our economy has also slowed after 2010 and getting back to 8 per cent growth rate is a challenge for the country. Achieving high growth is not a novelty, we can do it again," said Chidambaram. Pointing that only China and Indonesia are growing at a rate faster than India, Chidamabaram added that there is no reason for gloom.

While presenting the Budget, the Finance Minister said that achieving high growth is not a novelty and India can do it again. "I seek support of this House and people of the country to navigate our economy in the time global economic crisis," he said while beginning the speech.



Highlights of the budget speech:

    Surcharge of 10% on persons whose taxable income exceeds Rs. 1 crore
    The current slabs were introduced last year. Hence, there is no case of revision, says Chidambaram

    Tax Administraion Reforms Commission to be set up to review tax laws

    TDS of 1 per cent on land deals over Rs. 50 lakh

    I belive there is a little bit of the spirit of Mr Azim Premji in every affluent tax payer, says Chidambaram

    Faced with huge fiscal deficit, India had no choice but to rationalise expenditure

    India faces challenge of getting back to its potential growth rate of 8 pct

    India must unhesitatingly embrace growth as highest goal

    Excise duty on certain SUVs hiked to 30 per cent
    Specific excise duty on cigarettes increased by 18 per cent
   
On mobile phones priced at more than Rs. 2000, excise duty hiked to 6 per cent
   
Only China and Indonesia growing faster than India
   
Plan expenditure pegged at Rs. 555,322 crore
   
Non-plan expenditure pegged at Rs. 11,09,975 crore for 2013-14
   
Revised estimate for total expenditure is Rs. 14.3 trillion in 2012/13, which is 96 pct of budget estimate

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

    Food inflation is worrying, will take all steps to augment supply side
    Government has decided to constitute a regulator for the road sector
    3000 km of road projects to be awarded in the first six months
   
Refinancing capacity of SIDBI increased to Rs. 10,000 cr from Rs. 5,000 cr for MSMEs
   
Household sector must be incentivised  to save in financial instruments rather than gold
   
Person taking a loan for his first home during the period 2013-14 will be entitled to an additional deduction of Rs. 1 lakh
   
Excise rate, service tax rate unchanged
   
Allocation to defence spending up 4.5 per cent at Rs. 2.03 trillion
   
Cabinet committee on investment set up to monitor stalled projects and guide decision making
   
Govt committed to food security bill. Rs. 10,000 crore set apart for expenditure likely under the Act
  
 Clean drinking water and sanitation to get Rs. 15,260 crore
    Rs. 1,400 crore to set up water purification plants to fight fluoride affected areas
   
Oil and gas policy will be reviewed and changed from a profit-sharing structure to a revenue sharing structure
    Natural gas pricing policy will be reviewed
    NELP projects that were stalled will be cleared
   
A PPP policy framework is being devised with Coal India as a partner to provide coal to power producers. The Coal Ministry is working on it.
   
Non tax benefits to SME units to remain for 3 years after they outgrow from the category
   
SIDBI’s refinancing capacity increased to Rs. 10,000 crore
   
PSU banks to get Rs. 14,000 capital infusion in FY14
    Proposal to set up India’s first women’s bank as a PSU bank; initial capital to be Rs. 1,000 crore
   
Company investing Rs. 100 crore or more between now and 2015 will be entitled to deduct an investment allowance of 15 per cent in addition to depreciation
   
2 new ports to be set up in West Bengal and Andhra Pradesh
   
Insurance companies can open branches in Tier II cities without prior approval of IRDA
   
KYC of banks will be sufficient to acquire insurance policies, banks to act as brokers
   
The Insurance Law Amendment Bill and the PFRDA Bill are before the House, hope it gets passed in this session, says Chidambaram
   
FY13 fiscal deficit estimated at 5.2 per cent; FY14 fiscal deficit estimated at 4.8 per cent
   
A proposal to amend the SEBI Act to strengthen the regulator is under consideration, says the Finance Minister
   
10 per cent stake or less will be treated as FII, and stake of more than 10 to be treated as FDI
   
Nirbhaya fund set up with an allocation of Rs. 1,000 crore set up to ensure safety and security of women
   
FIIs can participate in Exchange Traded Currency Derivatives
   
Chidambaram: Rs. 6,275 cr allocated to Ministry of Science and Technology; Rs. 5,880 cr to Department of Atomic Energy
   
All cities with population of more than 1 lakh to be covered with FM radio services
   
11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme: FM
   
Rs. 5,87,082 crore to be transferred to states under share of taxes and non-plan grants in 2013-14, says FM
   
Rs. 532 crore to make post offices part of core banking
   
National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs. 250 crore
   
Grant of Rs. 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH.