P. Chidambaram tags China as the biggest competitor. (Express photo)The 2013/14 budget caps an intensive seven-month campaign by the energetic Chidambaram, who was appointed last August, to turn around India's fortunes after years of policy drift and global economic turmoil:
Highlights:
* Duty free limit on gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female
* Duty on mobile phones above Rs 2,000 raised from one to six per cent, based on their maximum retail prices
* Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted.
* Specific excise duty on cigarettes and cigars raised by 18 per cent.
* Service tax to be levied on all a/c restaurants
* Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent
* No review of income tax slabs for this year, propose tax credit of Rs 2,000 for incomes up to Rs 5 lakh.
* Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore
* 'Nirbhaya Fund' of Rs 1,000 crore to empower women and provide safety in the wake of the Delhi gangrape incident.
* Investor with stake of 10 per cent or less will be treated as FII; any stake more than 10 per cent will be treated as FDI
* FIIs will be allowed to participate in exchange traded currency derivatives
* National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard, says FM.
* Securities Transaction Tax (STT) reduced on equity future, mutual fund.
* Education cess to continue at 3 per cent Investor Protection Fund set up by depositories will be exempt from tax
* Contributions made to central and state government health scheme eligible to tax benefit.
* Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14.
* Plan expenditure pegged at Rs 555,322 crore
* Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalised
* Transactions on immovable properties usually undervalued.
* TDS of one per cent on value of properties above Rs 50 lakh. Agriculture land exempted
* Fiscal deficit will be 5.2 per cent in current year and 4.8 per cent in the next fiscal.
* Will redeem our pledge to reduce fiscal deficit to 3 per cent by 2016-17 and revenue deficit to 1.5 per cent of GDP
* Tax Administration Reform Commission to be set up to regularly review tax law applications
* In 2011-12, tax-GDP ratio was 5.5 per cent for direct taxes and 4.6 per cent for indirect taxes.
* Tax credit of Rs 2000 to be provided to every person to having income of up to Rs 5 lakh, this will benefit 1.8 crore people
* 5 to 10 per cent surcharge on domestic companies whose taxable income exceeds Rs 10 crore
* All Regional Rural Banks and cooperative banks to be e-linked by this year-end
* Insurance companies will be empowered to open branches in Tier-II cities with approval of IRDA
* KYC in banks sufficient for acquiring insurance policy.
* PSU banks to have ATMs at all their branches by March 31, 2014.
* Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities
* Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month
* Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India
* Rs 14,000 crore capital infusion into public sector banks in 2013-14
* First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14
* Policy on exploration of shale gas on the anvil; natural gas pricing policy will be reviewed and uncertainty removed
* Govt to set up India's first women's bank as a public sector bank by October
* Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 2016-17
* Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity
* Rs 10,000 crore set aside for incremental cost for National Food Security Bill over and above food subsidy.
* Four Infrastructure debt fund have been registered
* Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14 strictly on capacity to raise funds from the market,
* Rs 5,000 crore will be made available to NABARD to finance construction of godowns and warehouses
* To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries
* Government has decided to constitute a regulatory authority for the road sector
* Many manufacturing projects stalled due to regulatory process
* Green revolution in east India significant. Rice output increased in Assam, Odisha, Jharkhand and West Bengal; Rs 1,000 crore allocated for eastern states.
* Rs 5,387 crore to be allocated for integrated watershed programme for farmers in 2013-14, an increase from Rs 3,050 crore in the current fiscal.
* Indian Institute of Biotechnology will be set up at Ranchi.
* Average annual agriculture and allied services growth rate estimated at 3.6 per cent in 2012-13 when 250 MT foodgrains was produced
* Rs 27,049 crore allocation to the Agriculture Ministry in 2013-14
* Rs 7 lakh crore target fixed for agri credit for 2013-14 compared to Rs 5.75 lakh crore in the current year.
* Eastern Indian states to get Rs 1,000 crore allocation for improving agricultural production.
* Rs 500 crore allocated for programme on crop diversification
* P. Chidambaram says India is facing many challenges, tags China as the biggest competitor
* Average economic growth rate in 11th Plan period is 8 per cent, highest ever in any Plan period
* Job of FM is to find the resources to fund the efforts to bring minorities, the poor and others left behind in the race to make India to wealthier and a more equitable country.
* Current year's economic growth rate will be below India's potential growth rate of 8 per cent
* Economic space constraints due to high fiscal deficit, lower savings and investment and tight monetary policy
* Current account deficit continues to be high due to excessive dependence on oil, coal and gold imports and slowdown in exports
* India does not have choice between welcoming and spurning foreign investment; it is an imperative
* Battle against inflation must be fought at all fronts
* Faced with huge fiscal deficit, I have no choice but to rationalise expenditure
* We have brought down headline WPI inflation to 7 per cent and core inflation to 4.2 per cent. Food inflation is worrying
* Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent of budgeted expenditure.
* Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore:
* The revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget estimate for this fiscal. In 2013-14, the budget estimate is Rs 16,65,297 crore.
* One overarching goal to provide education and skills to youth for securing jobs in the 2013-14, says FM.
* FM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.
* Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.
* Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.
* Rs 110 crore to be allocated to the department of disability affairs, says FM.
* Rs 37,330 crore allocated for Ministry of Health & Family Welfare.
* Rs 4,727 crore to be allocated for medical education and research.
* Rs 1,069 crore to be given to Department of Ayush.
* Rs. 65,867 crore allocated to Ministry of HRD in 2013-14
* Medical colleges in six more AIIMS-like institutions to start functioning this year; Rs 1650 crore allocated for the purpose.
* Rs 5,284 crore to various Ministries for scholarships for SC/ST, OBC and minority students.
* Rs 5,284 crore to various Ministries for scholarships for SC/ST, OBC and minority students.
* Rs 13,215 crore to be provided for mid-day meal scheme
* Rs 17,700 crore provided for Integrated Child Development Scheme
* Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS)
* Rs 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation
* Rs 80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs 33,000 crore for MGNREGA
* Rs 80,194 crore allocated for rural development schemes
* States which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II, others will continue with PMGSY-I.
* Rs 14,873 crore for JNNURM for urban transportation in 2013-14 against Rs 7,880 crore in the current fiscal
* Foodgrain production in 2012-13 will be over 250 million tons
* Govt to construct power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget
* DIPP and Japan's JICA preparing plan for Chennai-Bengaluru Industrial corridor
* Two new major ports to be set up in West Bengal and Andhra Pradesh, says FM.
* Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing
* 5 million tons Dabhol LNG import terminal to be operate at full capacity in 2013-14.
* FM asks state governments to prepare financial restructuring plan for power distribution companies at the earliest.
* SIDBI's re-financing facility to MSMEs to be doubled to Rs 10,000 crore, says FM
* Rs 500 crore would be allocated for addressing environmental issues faced by textile industry
* Concessional six per cent interest on loans to weavers
* Rs 6,000 crore to be allocated for rural housing fund in 2013-14.
* Public sector general insurance companies to set up adalats to clear disputes related to claims
* Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers, auto and taxi drivers and sanitation workers
* Comprehensive social security package being evolved by convergence of several schemes run by various ministries
* We will evolve schemes for cities to take up waste to energy projects
* Small and medium companies to be allowed to listed on MSME exchange without making a public offer
* Low interest rate funds to be provided from Clean Energy Fund for green projects for a period of five years
* Generation based incentives to wind energy projects reintroduced, Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy
* Constraints will not come in the way for providing additional funds for security of the nation
* Rs 2,03,672 crore, including Rs 86,741 crore capital expenditure to Defence in 2013-14.
* Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH
* National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs 250 crore.
* Rs 532 crore to make post offices part of core banking.
* Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 2013-14
* 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme
* Modified GAAR norms to be introduced from April 1, 2016.
* No change in peak rate of customs duty for non-agriculture products.
* Direct Taxes Code (DTC) bill to be introduced in current Parliament session
* No change in basic customs duty rate of ten per cent and service tax rate of 12 per cent.
* Import duty on rice bran oilcake withdrawn.
* Series of concessions granted to Maintenance, Repair and Overhaul (MRO) business in the aviation sector.
* Import duty raised on set-top boxes from 5 to 10 per cent to safeguard interest of domestic producers
* 10 per cent customs duty to be levied on unprocessed illuminate
* Import duty raised from 75 to 100 per cent on luxury vehicles
* No countervailing duty on ships and vessels. Vocational courses offered by state-affiliated institutes to be exempted from services tax.
* One time voluntary compliance scheme for service tax defaulters to be introduced. Interest and penalties to be waived.
* Direct tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700 crore