HIGHLIGHTS OF BUDGET 2013-14 Presented by Rajib Deb M.Com. 3rd sem. Roll No:29 Department of Commerce Tripura University
INTRODUCTION Union Finance Minister P Chidambaram presented the much awaited finance budget for 2013-14 in the Lok Sabha, stressing on the fact that India is not unaffected by what happens in the world, the main reason why the countrys economy too has slowed down. Chidambaram stressed that the UPA Government believes in inclusive development, while adding that India faces challenge of getting back to its potential growth rate of 8%. Health and education for all remain the Governments priorities, and that the main aim of the budget 2013-14 is to create opportunity for the youth, added Chidambaram.
What is Budget?The dictionary meaning of budget is systematic plan for the expenditure of a usually fixed resource during a given period.Budget means estimation of revenue and of expenditure suchas source and application of revenue and expenditure. In simpleBudget provides; A forecast of revenue and expenditures, that is, construct amodel of how financial plans are carried out.
Budget 2013-14 includes the followingimportant proposals:To allocate 2.03 trillion rupees to defencesector in 2013-14To allocate 801.94 billion rupees to ruraldevelopment in 2013-14To provide 140 billion rupees capitalinfusion in state-run banks in 2013-14To cut duty on exports on precious andsemi precious stones to 2 point from 10point.
Cont…… Zero customs duty for electrical plants and machinery. Plan to allocate 270.49 billion rupees for agriculture in 2013-14. Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupees.
A Quick Highlights of Budget 2013-14: * No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.500,000 (approx $9,000) * Ten per cent surcharge on income exceeding Rs.1 crore (Rs.10 million/$180,000) a year; only 42,800 people have declared such income * Rs.1,000 crore allocated for establishing Nirbhaya Fund * Rs.97,000 crore (Rs.970 billion/$18 billion) for womens development
Cont….. * Import duty on high-end vehicles raised from 75 per cent to 100 per cent. * Excise duty on cigarettes to be increased 18 per cent * No change in service tax of 12 per cent * No service tax on vocational courses run by institutes affiliated to state governments * Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol * No service tax on agricultural testing procedures * Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST
Cont…. * No change in customs duty on non-agricultural products * Modified law to prevent tax avoidance to come into effect April 1, 2016 * 100 per cent tax deduction for contributions to National Childrens Fund * Education cess to continue at 3 per cent * 11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014) * Tax on mutual fund redemptions reduced from .25 per cent to .001 per cent * Rs.800 crore provided to promoting wind energy
Cont….. * Tax-free infrastructure bonds of Rs.50,000 crore to be issued * Rajiv Gandhi Equity Scheme to be liberalised * Human resource development ministry to get Rs.65,867 crore * Rs.13,250 crore allocated for midday meals scheme * Rs.17,700 crore allocated for Integrated Child Development Scheme * Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore * Rs.41,000 crore for Scheduled Caste plan * Rs.110 crore for department of disabilities * Rs.37,330 crore for health ministry
ConclusionFrom the above discussion, we can say that it’s a good budget presented by Finance Minister because it targeting the rich people in the country and giving tax benefit to the lower tax bracket groups. So that Tax revenue can be increased without harming lower income groups people. And overall development can be possible by concentrating in health and education sector.