Budget 2013 highlights

New Delhi : Highlights of the budget for 2013-14 presented by Finance Minister P. Chidambaram in the Lok Sabha on Thursday:

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)

Ten percent surcharge on income exceeding Rs.1 crore (Rs.10 million/$180,000) a year; only 42,800 people have declared such income

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

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