BudgetDefinition:A budget is a financialdocument used to projectfuture income and expense.Mr. P. Chidambaram, ministerof finance made budget on feb28, 2013 for the year 2013-14.
Fiscal deficitDr. Vijay Kelkar committee made its recommendations togovernment in September 2012. A new fiscal consolidation pathwith fiscal deposit at 5.3% of GDP of this year and 4.8% of GDPin 2013-2014 announced by the government.
Income Tax Relief in tax credit of Rs.2000 tobe provided to every person withan annual income up to Rs.5 lakhsaround 1.8 Crore people willbenefit. Personal income tax slab havebeen increase or decrease thosewith an income of Rs. 1crore orabove 10% Surcharge applicable.
Service Tax Service tax remains untouchedat 12% rate. Service tax on all airconditioned restaurants. No service tax to be changedon vocational courses offeredby government institution. No service tax on agriculturetesting procedure.
Women’s development1000 crore to be used for establishing Nirbhayafunds in order to ensure dignity, safety and security ofwomen various measures of safety has been introduced.
Health and Education 37,330 crore allocated to theministry of health andfamily. New National healthmission that combines ruraland urban mission 21,239crore. 4,727 for medicaleducation, training andresearch.
Rural development 80,194 crore in 13-14 for Ministry of rural developmentmarking an increase of 46% over 12-13. To carve out PMGSY-II and allocate portion of the funds tonew programme that will benefit states such as AndhraPradesh, Haryana, Karnataka, Maharashtra, Punjab andRajasthan.
JNNURM Jawaharlal Nehru National Urbanrenewal Mission(JNNURM) 14,000 buses sanctioned in 2009to 2012 contribute to urbantransport. 14,873 crore for JNNURMsupport up to 10,000 busesespecially by the hill station.
Agriculture 27,049 allocate to the Ministry ofagriculture an increase 22% overthe current year. In this 3,415crore for agricultureresearch Agriculture exports increase inApril to December 2012 havecrossed 1,38,403crore
New Investment To attract new investment and quicken implementation ofproject propose to introduce an investment allowance for newhigh value investment. A company investing 100crore or more in plants andmachinery during period of 1.4.14 to 31.3.15 will entitled todeducted investment allowance 15% of the investment.
Foreign trade• Budget 13-14 India is to cutduty on exports of preciousstones and semi-preciousstones from 10 points to 2points.• There is no import duty ofship, vessels.
Oil gas and coalA policy to encourage exploration and production of shale gaswill be announced.Coal:• Import during period of April to December have crossed100million tonnes.• It estimate the will rise to 185 million tonnes in year 2016-17.
MSME• Micro small medium enterprise (MSME) have a large share ofjob, production and exports.• Too many of them do not grow because of the fear of losingbenefits and stay with small or medium enterprise.• 3years made to grow with benefits so non-tax benefitsavailable to MSME units for 3years after it graduates to ahigher category.• To support MSME and enhance refinancing capabilities ofSIDBI current level of 5000 to 10,000 crore each per year.
Banking• Compliance of public sector banks with Base III regulations tobe ensured.• 14,000 crore provided in 2013-14 for infusing capital.• Proposed to set up India’s first women’s bank as public sectorprovision of 1,000 crore as initial capital.• 6,000 crore to rural housing fund in 2013-14.
Defence• Increasing allocation for defence to 2,03,672crore.• This will included 86,741crore for capital expenditure.
Science and Technology• 6,275 crore for Ministry science and technology.• 5,615 crore for department of space.• 5,880 crore for department of atomic energy.