Budget 2013 Factbox: Expectations from P. Chidambaram

* Spending on defence, rail, other development and welfare projects to be cut, according to Reuters sources

* FY13 public expenditure already reduced by 9 percent fromoriginal target

DIVESTMENT

* Likely to target 400 billion rupees via stake sales in FY14 in state-run companies versus estimated 300 billion rupees in FY13

TAXES

* Likely to lay out roadmap for implementation of goods and services tax (GST)

* Low expectations for increase in headline corporate tax rates

* Income tax slabs may be increased

MARKETS

* May remove cap on foreign institutional investments in rupee-denominated corporate bonds, or at least in infrastructure bonds

* May expand definition of term "infrastructure" to include companies that develop affordable housing

* May simplify processes for foreign investors

* Seen removing withholding tax on corporate bonds that have no restrictions on maturity or lock-in periods, or bring it down substantially

* May abolish or reduce securities transaction tax on equity investments

COMMODITIES

* May remove import duty on iron ore or raise duty on some steel imports to support domestic steel industry; could reduce iron ore export duty at behest of mines ministry

* May cap imports or cut number of companies authorised to import gold if purchases have not slowed by Feb. 28

* Production tax on jewellery and unveiling of gold saving schemes with some tax breaks seen

* May raise import tax to cut rising purchases of vegetable oils from Malaysia and Indonesia

* May levy transaction tax on commodity futures

* May give tax breaks to new LNG terminals, could also remove customs duty on LNG imports

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... contd.