Budget 2013: Chidambaram offers minor sops to income tax payers, targets super-rich

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FM aims at higher growth rate for inclusive, sustainable development, manufacturing revival. (Reuters) FM aims at higher growth rate for inclusive, sustainable development, manufacturing revival. (Reuters)
SummaryFM aims at higher growth rate for inclusive, development, manufacturing revival.

with the capacity to spend the funds," he said in his Budget speech that lasted over 100 minutes.

However, during the current year the revised estimate for total expenditure was reduced to Rs 14,30,825 crore, down from Rs 14,90,925 crore.,

The fiscal deficit for the current year has been contained at 5.2 per cent and for the coming year it is estimated at 4.8 per cent. The current year estimate is less than previously predicted 5.3 per cent.

Chidambaram expressed optimism that 2016-17 the government would bring down the fiscal deficit to 3 per cent, the revenue deficit to 1.5 per cent of GDP and effective revenue deficit to zero.

Unusually, the Budget does not make any economic growth rate prediction for the current as well as next fiscal.

Presenting his eighth budget, the first after coming back to Finance Ministry last year, Chidambaram brought down the subsidy for 2013-14 to Rs 2,31,084 crore from Rs 2,57,654 crore.

He raised the target from disinvestment proceeds to over Rs 55,000 crore from current year's revised estimate of about Rs 24,000 crore.

In a bid to revive manufacturing, the Finance Minister announced the grant of investment allowance at the rate of 15 per cent to manufacturing companies that invest more than Rs 100 crore in plant and machinery between April 2013 and March 2015. This will be over and above currently allowable depreciation.

The Budget proposes three measures to promote household savings. The income limit for Rajiv Gandhi Equity Saving Scheme for first time investors is being raised from Rs 10 lakh to Rs 12 lakh.

To wean away investments in securities like gold, instruments such as inflation indexed bonds will be introduced to protect savings from inflation.

In order to encourage infrastructure sector, Chidambaram said the government will allow certain companies to raise tax free bonds up to Rs 50,000 crore and encourage infrastructure debt fund.

The Budget has increase allocation for education to Rs 65,867 crore, on health and family welfare scheme to Rs 37,330 crore, backward region grant fund to Rs 11,500 crore, drinking water and sanitation Rs 15,260 crore and on Jawarhar Lal Nehru Urban Renewal Mission to Rs

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