Thursday, February 28, 2013

Main points of Union Budget for the financial year 2013-14

Highlights of Union Budget 2013-14.

1. Proposal to set up India’s first Women’s Bank as a public sector bank.
2. Nirbhaya Fund to empower women…
3. Rs. 1,000 crore for skill development of ten lakh youth to enhance their employability and productivity.
4. Direct Benefit Transfer (DBT) Scheme to be rolled out throughout the country during the term of UPA Government.
5. Fiscal Deficit for 2013-14 is pegged at 4.8% of GDP. The Revenue Deficit will be 3.3% for the same period.
6. Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3% of the total expenditure while Non Plan Expenditure is estimated at Rs. 11,09,975 crore. The plan expenditure in 2013-14 will be 29.4% more than the RE of the current year i.e. 2012-13.
7. … Allocation for Rural Development Ministry raised by 46% to Rs. 80,194 crore.
8. The target for farm credit for 2013-14 has been set at Rs. 7,00,000 crore against Rs. 5,75,000 crore during the current year.
9.  Rs. 10,000 crore earmarked for National Food Security towards the incremental cost.
10. Education gets Rs. 65,867 crore, an increase of 17% over RE for 2012-13.

11. ICDS gets Rs. 17,700 crore. This is 11.7% more than the current year.
12. Drinking water and sanitation will receive Rs. 15,260 crore. Rs. 1,400 crore is being provided for setting up water purification plants to cover arsenic and fluoride affected rural areas.
13. Health and Family Welfare Ministry has been allotted Rs. 37,330 crore. National Health Mission will get Rs. 21,239 crore which represents 24.3% over the RE.
14. … JNNURM will receive Rs. 14,873 crore… against RE of Rs. 7,383 crore in the current year.
15. Defence has been allocated Rs. 2,03,672 crore.
16. Rs. 3,511 crore … to Minority Affairs Ministry, 60% higher than RE for 2012-13.
17. The Government will encourage Infrastructure Debt Fund (IDF) and allow some institutions to raise tax free bonds up to Rs. 50,000 crore which is 100% more than the current year.
18. India Infrastructure Finance Corporation (IIFC), in partnership with ADB will help infrastructure companies to access bond market to tap long term funds.
19. Income limit under Rajiv Gandhi Equity Savings Scheme (RGESS) will be raised from Rs. 10 lakh to Rs. 12 lakh.
20. First home loan from a bank or housing finance corporation up to Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh.

21. Proposal to launch Inflation Indexed Bonds or Inflation Indexed National Security Certificates to protect savings from inflation.
22. On oil and gas exploration policy, the Budget proposes to move from the present profit sharing mechanism to revenue sharing. Natural gas pricing policy will be reviewed.
23. On coal, the Budget proposes adoption of a policy of pooled pricing.
24. Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category.
25. Refinancing capacity of SIDBI raised to Rs. 10,000 crore.
26. Technology Upgradation Fund Scheme (TUFS) for textile to continue in 12th Plan with an investment target of Rs. 1,51,000 crore.
27. Rs. 14,000 crore will be provided to public sector banks for capital infusion in 2013-14.
28. A grant of Rs. 100 crore each has been made to 4 institutions of excellence including Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural Heritage (INTACH).
29. New taxes to yield Rs. 18,000 crore.
30. A surcharge of 10% on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied.

31. Tobacco products, SUVs and Mobile Phones to cost more.
32. Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs.
33. ‘Voluntary Compliance Encouragement Scheme’ launched for recovering service tax dues.
34. Rs. 9,000 crore earmarked as the first installment of balance of CST compensations to different States/UTs.
35. The Backward Regions Grant Fund (BRGF) has been allocated Rs. 11,500 crore.
36. Plans for seven new cities have been finalized for industrial corridors and work on two new smart industrial cities at Dholera (Gujarat) and Shendra Bidkin (Maharashtra) will start during 2013-14.
37. Two new ports will be established in Sagar (West Bengal) and in Andhra Pradesh.
38. New outer harbour will be developed in the VOC port at Thoothukkudi (Tamil Nadu) through PPP at an estimated cost of Rs 7,500 crore.
39. Grant of investment allowance at the rate of 15% to manufacturing companies that invest more than Rs. 100 crore in plant and machinery during the period 1.4.2013 to 31.3.2015
40. Rashtriya Swasthiya Bima Yojana, which cover 34mn families below the poverty line, will now be extended to other categories such as rickshaw, auto-rickshaw and taxi-drivers, sanitation workers, rag pickers and mine workers.

Courtesy: Ministry of Finance, GOI.

'RE' stands for Revised Estimates


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