Budget 2013- Highlights

Finance Minister P Chidambaram done a good job with multiple objectives without directly hurting any section of the pyramid , so it is a election budget. The highlights are here  

• Finance Minister P Chidambaram presented the Union Budget 2013-14 
• Global economic growth slowed from 3.9% in 2011 to 3.2% in 2012 
• Global GDP has slowed India's exports 
• China and Indonesia only large economies growing faster than India 
• Goal remains higher growth leading to inclusive change 
• We have examples of states growing at a faster rate, but leaving behind women, marginalized and underprivileged 
• Current account deficit remains high due to high oil, coal and goal imports 
• Government believes in inclusive growth leading to human development 
• Plan expenditure seen at Rs 5.53 lakh crore 
• FY 14 Total expenditure at Rs 16.65 lakh crores Budget 2013 
• To allocate more than Rs 25000 core for tribal welfare 
• FY14 plan expenditure to be 30% higher 
• To expand medicare facilities for women, differently abled 
• Propose to allocate rs 65,867 crore to HRD ministry 
• Average economic growth rate in 11th Plan period is 8 per cent, highest ever in any Plan period 
• To allocate Rs 65867 crore to education ministry, up 17% 
• To allocate Rs 13215 crore for mid day meal scheme 
• To allocate Rs 17700 core for child and women welfare 
• Allocation of Rs 37330 crore for healthcare 
• Rs 14873 crore allocated to JNURM 
• To allocate Rs 27,049 crore to Agri Ministry 
• A farmer who repays his loan will get credit at 4% 
• Rs 1000 core allocated for Green revolution in East India 
• Rs 250 crore allocated for Food security mission 
• FY 14 farm credit target at Rs 7 lakh crore 
• Rs 10,000 cr additional funds set aside for Food Security 
• Targets Rs 1 trillion in infrastructure in the 12th plan 
• Home loans under Rs 25 lakh to get additional 1 lakh deduction 
• To allocate Rs 14,000 crore for capital infusion for public sector banks 
• India's first women's Public sector bank to be set up 
• All PSU banks branches to have ATMs by March, 2014 
• Rs 500 crore to start programme of crop diversification 
• Propose to provide Rs 600 cr to rural housing fund in 2013-14 
• To allocate Rs 2000 crore for Urban Housing fund 
• Bank’s correspondents allowed to sell micro finance 
• Increased allocation in defense to Rs 2.03 lakh crore in FY 14 
• Govt to set up National Institute of Sports Coaches 
• To auction 839 licenses for FM network to cover all India 
• To transfer Rs 5.87 lakh crore to states and Union Territories 
• To allocate 532 crores for core banking at post offices 
• Fiscal deficit for current fiscal estimated at 5.2% 
• FY14 fiscal deficit at 4.8% 
• FY14 revenue deficit at 3.3% 
• Chidambaram announces inflation-indexed bonds 
• No revision in the tax slabs 
• Tax GDP ratio is one of the lowest in the world; should reclaim 11. 9% Tax GDP ratio in the short term 
• Surcharge of 10% on Rs 1 crore plus income earners 
• Only 42,800 people with taxable income over Rs 1 crore in India. That's just the declared ones 
• Education cess to continue 
• Imposes 5-10% surcharge on local companies income above Rs 10 crore 
• Key takeaways for Food Security, Infrastructure and Investment 
• Immovable Property transaction: TDS of 1% to be levied on transactions above Rs 50 lakh 
• STT rates cut on equity futures to 0.01% from 0.017% 
• FM offers an additional Rs 100 crore dose to help MFIs raise capital 
• Securities Transaction Tax on shares cut. Could have been scrapped though. CTT on non-farm commodities would be a dampener too. Nothing new on GAAR. Deferment was announced much earlier. 
• Direct Tax Code remains work in progress 
• Modified GAAR to come into effect from Apr, 1 2016 
• No change in peak basic customs duty 
• Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers, auto and taxi drivers and sanitation workers 
• FM says to reintroduce generation based incentive for wind power projects 
• Duty cut on leather, leather good machines 
• Excise duty raised by18% for cigarettes 
• Luxury imported items to be cost more 
• DTC proposals to raise Rs 13,300 crore, indirect tax to fetch Rs 4700 crore 
• India to become a $5 trillion economy by 2025 
• Need for state and central govt to pass a GST law 
• FY 14 petroleum subsidy at Rs 65000 crore 
• Increased allocation in defence to Rs 2.03 lakh crore in FY 14