Click here to load reader
Upload
versatilebschool
View
54
Download
2
Embed Size (px)
DESCRIPTION
Budget 2013
Citation preview
Budget & its impact
The Union Budget of India referred to as the Annual Financial Statement .
Budget is presented each year on the last working day of February by the Finance Minister of India in Parliament.
Budget comes into effect on April 1, the start of India's financial year.
Union budget
Fiscal deficit-total borrowings needed by the government
Fiscal deficit seen at 5.2% of GDP in 2012/13
Fiscal deficit seen at 4.8 % of GDP in 2013/14
The three challenges!!!
Current account deficit- imports more goods and services than exports
India's greater worry is current account deficit
Will need more than $75 bln this year and next year to fund current account deficit
Ways to overcome FDI, FII or External Commercial
Borrowing (ECB)
INFLATION Food inflation- possible steps taken to
augment supply side
Women All women bank by
November 2013 with an initial capital of RS1000 crore
RS1000 crore nirbhaya fund, named after Delhi gangrape victim to empower women
THREE PROMISES: TO WOMEN, YOUTH AND THE POOR
youth
RS1000 crore for skill development of 10lakh youth to enhance their employability
The people of India assured that the DBT scheme will be rolled out throughout the country…
“Aapka paisa aapkehaath”- The money is the money belonging to the people..
poor
The non-tax benefits to a MSME unit for three years after it graduates to a higher category
It enhance the refinancing capability of SIDBI from the current level of RS5,000 crore to 10,000 crore per year.
Micro,small and medium enterprises
An amount of 104 crore has been committed to 37 MFIs.
The Factoring Act 2011 ,provide a corpus of RS500 crore to SIDBI to set up a Credit Guarantee Fund for factoring.
The new Companies Bill obliges companies to spend 2 percent of average net profits under Corporate Social Responsibility (CSR).
Technology Upgradation Fund Scheme (TUFS) for textile sector extended to 12th Plan with an investment target of Rs151000 crore.
Modernisation of the powerloom sector with RS 2,400 crore
Handloom weavers to get working capital and term loans at a concessional interest of 6 percent.
TEXTILE
Import duty on raw silk increased from 5 percent to 15 percent.
Handmade carpets of coir will be totally exempted from excise duty.
The demand of readymade garment industry to restore the ‘zero excise duty route’ for cotton and manmade sector (spun yarn) at the yarn, fabric and garment stages.
Rs. 8.5 billion for Scheme of Fund for Regeneration of Traditional Industries (SFURTI) for promotion of Khadi, village and coir industries.
To provide RS6,000 crore to the Rural Housing Fund in 2013-14. All towns of India with a population of 10,000 will have an office of LIC. It is to be
achieved by 31.3.2014. Group insurance products will be offered to homogenous groups such as SHGs,
domestic workers associations, anganwadi workers, teachers in schools, nurses in hospitals etc.SAVINGS
Rajiv Gandhi Equity Savings Scheme will be liberalised to the first time investor A loan for first home from a bank or a housing finance corporation upto RS
25LAKH during the period 1.4.2013 to 31.3.2014 will be entitled to an additional deduction of interest of upto RS100,000.
Finance minister introduced instruments that will protect savings from inflation.These could be Inflation Indexed Bonds or Inflation Indexed National Security Certificates
Banking
It provide a tax credit of RS 2,000 to every person who has a total income upto RS 5lakh.
A surcharge of 10 percent on persons whose taxable income exceeds RS1 crore per year.
To increase the surcharge from 5 %to 10 % on domestic companies whose taxable income exceeds RS10 crore per year.
Dividend distribution tax or tax on distributed income to increase the current surcharge of 5 percent to 10 percent.
Direct Tax
Manufacture of environment-friendly vehicles, the period of concession available for specified parts of electric and hybrid vehicles upto 31.3.2015.
Reduction of duty on specified machinery for manufacture of leather and leather goods, including footwear, from 7.5 percent to 5 percent.
The increase in prices of marble, increase the duty from RS30 per sq. mtr to 60 per sqmtr
Indirect taxes