Finance minister P Chidambaram presents Budget 2013 in the parliament on Thursday. It was Chidambaram’s 8th budget.
He focused on inclusive development and targeted fiscal deficit at 4.8% of GDP in 2013/14.
India’s current account deficit is worry for the government and he said India need more than $75 billion this year and also next year to fund the deficit.
“Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working,” he said
Government expects 133 billion rupees through direct tax proposals and 47 billion rupees through indirect tax proposals in 2013/14.
– Education gets Rs 65,867 crore, an increase of 17 per cent over RE for 2012-13.
Health and Family Welfare Ministry has been allotted Rs 37,330 crore.
National Health Mission will get Rs 21,239 crore.
Government will set up India’s first special Public Sector Unit bank for women by 2013.
“I…propose to set up India’s first women bank as the public sector. I shall provide Rs 1,000 crore as initial capital. I hope to obtain the necessary approval and banking licence by October, 2013,” he said.
Although he urged for strong measures to curb the deficit however he lifts expenditure. There are no changes in tax slabs. However super riches who pay more than 1 crore tax will now have to pay 10% surcharge for one year.
Government announced its priority on women’s safety by allocating Rs, 1000-crore on safety fund for women, to be named after Delhi Braveheart Nirbhaya who was killed in gang-rape on a moving bus in Delhi.
“I announce the setting up of the Nirbhaya Fund of Rs. 1,000 crore. I request the ministry of women and child development to plan the structure, scope and application of this fund,” Chidambaram said.
Prime minister Manmohan Singh in his initial reaction said Chidambaram has done a commendable job.
The highlights of 2013 Budget are:
- There are no changes in tax slab for year 2013-14
- Surcharge of 10% on super rich taxpayers with annual income of more than 1 crore rupees a year
- 2.03 trillion rupees to defence sector for 2013-14
- Allocation of 801.94 billion rupees for rural development in 2013-14
- Allocation of Rs 15,260 crore for drinking water and sanitation
- Allocation of Rs. 270.49 billion for agriculture in 2013-14
- Set up of all-women bank by 2013 with an initial capital fund of Rs 1,000 crore
Rs 10,000 crore allocated for National Food Security- Cigarettes, SUV cars and Mobile Phones to cost more
- No duty on import of ships, vessels
- Zero customs duty for electrical plants and machinery
- Rs. 1000-crore fund for women’s safety
- Income limit under Rajiv Gandhi Equity Savings Scheme (RGESS) will be raised from Rs 10 lakh to Rs 12 lakh.
- Proposal to launch Inflation Indexed Bonds to protect savings from inflation
- A grant of Rs 100 crore each for 4 institutions – Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural Heritage.
- Medical colleges in six AIIMS-like institutions to start functioning in 2013
- Plan for Direct Benefit Transfer (DBT) Scheme
- Proposes capital allowance of 15to companies on investments of more than 1 billion rupees
- Rs 14,000 crore will be provided to public sector banks for capital infusion in 2013-14
- Proposes to move to revenue-sharing from profit-sharing policy in oil and gas sector
- Duty on exports of precious and semi-precious stones to 2% `
