Budget 2013: Highlights

Hello friends. The 82^nd Union Budget invoked a mixed response and the BSE and NSE fell by 1.52% and 1.79% respectively. The highlights of the budget are given below. I hope the readers find it useful.

• The average economic growth rate in 11th Plan period is 8%, highest ever in any Plan period
• During the last one fiscal year, headline WPI inflation brought down to 7% and core inflation to 4.2%.
• Aim to reduce fiscal deficit to 3% by 2016-17 and revenue deficit to 1.5% of GDP.
• A TDS (Tax Deducted at Source) of one per cent will be levied on value of properties above Rs 50 lakh, with an exemption to agriculture land.
• A surcharge of 10 per cent is imposed on individuals whose taxable income is over Rs 1 crore and a 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore.
• Fiscal deficit estimated at 5.2 per cent in current year and 4.8 per cent in FY 2013-14.
• The Plan expenditure in 12th Five Year Plan has been revised to Rs 14,30,825 crore or 96% of budgeted expenditure and Budget expenditure is Rs 16,65,297 crore and Plan expenditure is Rs 5,55, 322 crore.
• In 2013-14, the budget estimate is Rs 16,65,297 crore.
• Rs 37,330 crore has been allocated for Ministry of Health & Family Welfare in FY14.
• Rs 3,511 crore allocated to Minority Affairs Ministry.
• Rs 65,867 crore allocated to Ministry of HRD.
• Rs 4,727 crore allocated for medical education and research and Rs 1,069 crore to be given to department of Ayush.
• Rs 27,049 crore allocated to agriculture.
• Rs 80,194 crore set aside for rural development programs.
• Around Rs 33,000 crore has been provided to National Rural Employment Guarantee Act.
• A target of Rs 7 lakh crore agricultural credit in 2013-14 (as compared to Rs 5.75 lakh crore in the current year).
• A provision of Rs 13,215 crore to the mid-day meal scheme.
• Foodgrain production in 2012-13 expected to exceed 250 million tonnes.
• Jawaharlal Nehru National Urban Renewal Mission allocated Rs 14,873 crore for urban transportation for FY14 as against Rs 7,880 crore in the current fiscal.
• Plan to issue inflation-indexed bonds and a capital allowance of 15% has been proposed to companies on investments of more than Rs 100 crore.
• To encourage SMEs, a company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15 % investment deduction allowance apart from depreciation.
• SIDBI's re-financing facility to MSMEs will be doubled to Rs 10,000 crore.
• Rs 10,000 crore have been set aside for incremental cost for National Food Security Bill over and above food subsidy.
• Rs 5,387 crore to be allocated for integrated watershed program for farmers in 2013-14 as compared to Rs 3,050 crore in the current fiscal.
• A first housing loan of up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14.
• Two new major ports to be set up in West Bengal and Andhra Pradesh.
• The government will set up India's first women's bank as a public sector bank by October 2013.
• A 'Nirbhaya Fund' of Rs 1,000 crore to be set up to empower women and provide safety to them.
• A capital infusion of Rs 14,000 crore aimed in public sector banks in FY14 and Rs 6,000 crore to be allocated for rural housing fund in 2013-14.
• The Foreign Institutional Investors (FIIs) will be allowed to participate in exchange traded currency derivatives. (An investor with stake of 10% or less will be treated as FII and any stake more than 10% will be treated as FDI).
• Rs 86,741 crore capital expenditure allocated to Defence in 2013-14.
• Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH. 
• Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 2013-14.
• No change in slabs and rate for personal income tax. A tax credit of Rs 2,000 will be provided to every person to having income of up to Rs 5 lakh. The move, Chidambaram says, will benefit 1.8 crore people. In 2011-12, tax-GDP ratio was 5.5 per cent for direct taxes and 4.6 per cent for indirect taxes.
• The import duty on set-top boxes has been raised from 5 to 10 per cent to safeguard interests of domestic producers.
• The duty free limit on gold has been raised to Rs 50,000 in case of male and Rs 100,000 in case of female.
• Import duty increased from 75 to 100 per cent on luxury vehicles. Excise duty on SUVs has been increased to 30 per cent from 27 per cent but SUVs registered as taxis have been exempted.
• The Specific excise duty on cigarettes and cigars has been raised by 18 per cent.
• The direct tax proposals are expected yield Rs 13,300 crore and indirect tax proposal is expected to yield Rs 4,700 crore. 
• The duty on mobiles above Rs 2,000 has been raised from one to six per cent, based on their maximum retail prices and a service tax will be levied on all air-conditioned restaurants.