Highlights of the budget for 2013-14 presented by Finance Minister P Chidambaram in the Lok Sabha on Thursday:
1) No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.500,000 (approx $9,000)
2) Ten percent surcharge on income exceeding Rs.1 crore (Rs.10 million/$180,000) a year; only 42,800 people have declared such income
3) Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure
4) Rs.1,000 crore allocated for establishing Nirbhaya Fund
5) Rs.97,000 crore (Rs.970 billion/$18 billion) for women’s development
6) Defence allocated Rs.203,672 crore (Rs.2.03 trillion/$37 billion), an increase of five percent
7) Import duty on high-end vehicles raised from 75 percent to 100 percent
8) Excise duty on cigarettes to be increased 18 percent
9) No change in service tax of 12 percent
10) No service tax on vocational courses run by institutes affiliated to state governments
11) Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol
12) No service tax on agricultural testing procedures
13) Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST
14) Concessions for encouraging MRO (maintenance repair overhaul) sector
15) No change in customs duty on non-agricultural products
16) Modified law to prevent tax avoidance to come into effect April 1, 2016
17) 100 percent tax deduction for contributions to National Children’s Fund
18) Education cess to continue at 3 percent
19) 11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)
20) Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh
21) Tax on mutual fund redemptions reduced from .25 percent to .001 percent
22) Tax Administrative Reforms Commission to be set up
23) Cities to be encouraged to promote waste to energy projects
24) Low interest funds to be provided for promoting clean energy
25) Rs.800 crore provided to promoting wind energy
26) Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity
27) Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14
28) State governments urged to sign restructuring plans with electricity discoms
29) Tax-free infrastructure bonds of Rs.50,000 crore to be issued
30) Textile ministry allocated Rs.50 crore for establishing apparel parks
31) Handloom sector allocated Rs.96 crore to benefit 150,000 weavers
32) Infrastructure debt funds to be encouraged
33) Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14
34) Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects
35) Rajiv Gandhi Equity Scheme to be liberalised
36) Seven new cities identified along Delhi-Mumbai Industrial Corridor
37) Preliminary work begun on Bangalore-Mumbai Industrial corridor
38) Foodgrain production during 2013-13 estimated at 250 million tonnes
39) Rs.500 crore allocated for promoting crop diversification
40) Rs.200 crore allocated for promoting nutrient-rich crops
41) Rs.50 crore allocated for farmer-producer organisations
42) National Livestock Mission to be launched with allocation of Rs.307 crore
43) Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation
44) Human resource development ministry to get Rs.65,867 crore
45) Rs.13,250 crore allocated for midday meals scheme
46) Rs.17,700 crore allocated for Integrated Child Development Scheme
47) Drinking water and sanitation ministry allocated Rs.15,260 crore
48) Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme
49) Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore
50) Rs.41,000 crore for Scheduled Caste plan
51) Rs.110 crore for department of disabilities
52) Rs.37,330 crore for health ministry
53) Average growth during UPA-1 was 8 percent; high growth not a novelty
54) Current account deficit a worry because of high oil and gold imports
55) Will need $75 billion to finance current account deficit
56) Need to encourage FDI in consonance with economic priorities
57) WPI inflation down to 7 percent; food inflation worrying.
