No revision in IncomeTax slabs Surcharge of 10% would be imposed on those earning over Rs 1 crore in a year, for 2013-14
Rs 1 lakh additional exemption for upto Rs 25 lakh home loans
Impact• The government expenditure is projected to increase by 30%, which will have a serious impetus on the GDP growth for the coming year.• Will provide financial power in the hands of rural population, indicating a dramatic impact on the semi – urban / rural growth.• The taxes, too have been increased, for the super rich.• The biggest aim now must be to reduce deficit, else inflation will reduce growth aspirations.
Health sector• Finance MinisterP Chidambaram said "Health for All" is a priority of the government.• In budget speech, Chidambaram said, "I propose to allocate Rs 37,330 crore to the Ministry of Health and Family Welfare.’’• the new National Health Mission that combines the rural mission and the proposed urban mission will get Rs 21,239 crore,
Impact• The Department of Health and Family Welfare got the majority share of Rs 33,278 crore,• The Department of AYUSH a total of Rs 1,259 crore and the department of Health Research Rs 1,008 crore.• However, there has been no allocation for the Reproductive and Child Health Project, Pulse Polio Immunisation and routine immunisation .
Special focus on medical education, training and researchNew National HealthMission to get Rs 21,239crore
Impact• The 17% increase in allocation to Human Resource Development is definitely a positive sign for the education sector in India.• This can provide a boost to building quality education resources at all levels in our country.• Hope this will be spent on modernizing curricula, investing in research and faculty development and building better education delivery mechanisms.
For YouthRs 1,000 crore for skill development of 10 lakh youth to enhance theiremployability *Image via Bing
Cont….• To meet the enormous challenge of skilling the Indian youth towards jobs.• It is imperative to have active participation of the industry; the budget is silent about this.• Thus the target of achieving 500million skilled workers by 2022 cannot be achieved without the active and effective cooperation of industry with governments at the Centre and the States.
Impact• New initiatives have been taken for bringing in more investment to this sector,• Promoting growth in key areas and farmers welfare• Food sector as a whole has also been supported with higher provision for food subsidies, market intervention and imports• Helps in food security and containing food inflation
Cont….• Green revolution to eastern India (GREI) has been a remarkable success• Assam, Bihar, Chhattisgarh, West Bengal have increased their contribution to rich product• The Rashtriya Krishi Vikas Yojna is intended to bridge yield gaps of major crops, has been provided Rs.2,250 crore
Pharmaceuticals• No major changes in the Budget 2013-14.• Investment allowance of 15% on new plant and machinery is a welcome step and is expected to increase investment in new projects• While simultaneously providing tax benefit to industry.• The increase in surcharge rates on both income tax as well as dividend distribution tax shall increase the tax outgo.• Directional guidance on GST and DTC also provides much awaited clarity.