IMPACT ON BUDGET 2013-2014By

G.Mahalakshmi

Budget

Definition:

A budget is a financial document used to project future income and expense.

Mr. P. Chidambaram, minister of finance made budget on feb 28, 2013 for the year 2013-14.

Fiscal deficit Dr. Vijay Kelkar committee made its recommendations to government in September 2012. A new fiscal consolidation path with fiscal deposit at 5.3% of GDP of this year and 4.8% of GDP in 2013-2014 announced by the government.

Income Tax Relief in tax credit of Rs.2000 to

be provided to every person with an annual income up to Rs.5 lakhs around 1.8 Crore people will benefit.

Personal income tax slab have been increase or decrease those with an income of Rs. 1crore or above 10% Surcharge applicable.

Service Tax

Service tax remains untouched at 12% rate.

Service tax on all air conditioned restaurants.

No service tax to be changed on vocational courses offered by government institution.

No service tax on agriculture testing procedure.

Women’s development

1000 crore to be used for establishing Nirbhaya funds in order to ensure dignity, safety and security of women various measures of safety has been introduced.

Health and Education

37,330 crore allocated to the ministry of health and family.

New National health mission that combines rural and urban mission 21,239 crore.

4,727 for medical education, training and research.

Rural development

80,194 crore in 13-14 for Ministry of rural development marking an increase of 46% over 12-13.

To carve out PMGSY-II and allocate portion of the funds to new programme that will benefit states such as Andhra Pradesh, Haryana, Karnataka, Maharashtra, Punjab and Rajasthan.

JNNURM

Jawaharlal Nehru National Urban renewal Mission(JNNURM)

14,000 buses sanctioned in 2009 to 2012 contribute to urban transport.

14,873 crore for JNNURM support up to 10,000 buses especially by the hill station.

Agriculture

27,049 allocate to the Ministry of agriculture an increase 22% over the current year.

In this 3,415crore for agriculture research

Agriculture exports increase in April to December 2012 have crossed 1,38,403crore

New Investment

To attract new investment and quicken implementation of project propose to introduce an investment allowance for new high value investment.

A company investing 100crore or more in plants and machinery during period of 1.4.14 to 31.3.15 will entitled to deducted investment allowance 15% of the investment.

Foreign trade

• Budget 13-14 India is to cut duty on exports of precious stones and semi-precious stones from 10 points to 2 points.

• There is no import duty of ship, vessels.

Oil gas and coal A policy to encourage exploration and production of shale gas will be announced.

Coal:• Import during period of April to December have crossed

100million tonnes.• It estimate the will rise to 185 million tonnes in year 2016-17.

MSME

• Micro small medium enterprise (MSME) have a large share of job, production and exports.

• Too many of them do not grow because of the fear of losing benefits and stay with small or medium enterprise.

• 3years made to grow with benefits so non-tax benefits available to MSME units for 3years after it graduates to a higher category.

• To support MSME and enhance refinancing capabilities of SIDBI current level of 5000 to 10,000 crore each per year.

Banking

• Compliance of public sector banks with Base III regulations to be ensured.

• 14,000 crore provided in 2013-14 for infusing capital.• Proposed to set up India’s first women’s bank as public sector

provision of 1,000 crore as initial capital.• 6,000 crore to rural housing fund in 2013-14.

Defence

• Increasing allocation for defence to 2,03,672crore. • This will included 86,741crore for capital expenditure.

Science and Technology

• 6,275 crore for Ministry science and technology.• 5,615 crore for department of space.• 5,880 crore for department of atomic energy.

Budget estimates

• Plan expenditure 5,55,322 crore.• Non-plan expenditure 11,09,975 crore.

Year Fiscal deficit

Revenue deficit

2012-13 5.5 3.9

2013-14 4.8 3.3

2016-17 3 1.5

Referenceswww.Indiabudget.nic.in

www.finmin.nic.in

www.economictimes.com

Thank you…