budget 2013

India’s Finance Minister P. Chidambaram presented the Union Budget 2013-14 in Parliament on February 28, 2013.

Introduction

• Budget is an annual financial statement of constitution of India. Budget has to be passed by the Lok Sabha before it can come into effect on April 01.

• The Budget is the most extensive account of the Government’s finances, in which revenues from all sources and expenses of all activities undertaken are aggregated.

It is the amount by which expenses exceed income or costs outstrip revenues. Deficit essentially refers to the difference between cash inflows and outflows. It is generally prefixed by another term to refer to a specific situation – trade deficit or budget deficit, fiscal deficit.

GDP of India is 1.85 trillionFiscal Deficit is 5.2% of GDP in 2013 and its expected to be reduced to 4.8% of GDP in 2014.Current Account Deficit (CAD): 3.9% of GDP.

Macroeconomic View

Cont..

A tax credit of 2000 to every person with total income upto 5 lakhs.

No revision in Income Tax slabs.

Surcharge of 10% would be imposed on those earning over Rs 1 crore in a year, for 2013-14.

Rs 1 lakh additional exemption for upto Rs 25 lakh home loans.

Health Rs. 37,330 crore allocated to the Ministry of Health & Family Welfare.

4,727 crore for medical education, training and research.

1,650 crore allocated for six AIIMS-like institutions

150 crore provided for National Programme for the Health Care of Elderly

Education

Total allocation Rs 65,867 crore

Ssa GETS

*Image via Bing

Mid-day meal programme gets Rs 13,215 crore

SSA gets Rs 27,258 crore

Defence

Total Allocation: 2,03,672 crore

Agriculture

27,049 crore allocated to Ministry of Agriculture, an increase of 22 percent over the Revenue Expected of current year.

Average annual growth rate of agriculture and allied sector was 3.6%

Agricultural research provided 3,415 crore.

Target of agricultural credit kept

at 7 lakh crore.

14,000 Crore

provided in BE

2013-14 for

infusing capital.

All branches of

public sector

banks to have

ATM by 31.3.2014

Proposal to set up India’s

first Women’s Bank as a

public sector bank. Provision

of 1,000 crore as initial

capital.

An ambitious IT driven project to modernise the postal network at a cost of Rs. 4,909 crore. Post offices to become part of the core banking solution and offer real time banking services.

Rs 1,000 crore for skill development of 10 lakh youth to enhance their employability

For Youth

SUVs, imported cars to be costlier

Excise duty increased on these vehicles from 27 to 30 percent

Excise duty constant for all other cars at 12 per cent

Budget Impact on Sensex

*Image via Bing

Bombay Stock Exchange Sensex fell by 291 points to a 3-month low post budget

Three promises to woman, youth and poor.

• We pledge to do everything possible to empower our girl children and women to keep them safe and secure. A fund - “Nirbhaya Fund” - to be setup with Government contribution of ` 1,000 crore.

• National Skill Development Corporation to set the curriculum and standards for training in different skills. 1000 crore set apart for this scheme.

• To the poor of India direct benefit transfer scheme will be rolled out throughout the country during the term of the UPA Government with the motive “Äapka paisa aapke haath”.???

By Alok

12th five year plan focus is on