What is Union Budget? The Union Budget is the financial annual report of India as a country. It contains the government of Indias revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31 It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year.
What is economic survey? The FM presents the economy survey in the parliament every year just before the union budget
Sector Impact-Textiles Excise Duty on readymade garments exempted +ve for textile sectorBombay Rayon 240.45 0.95Mandhana Ind 249.60 3.2
Auto - Negative Excise Duty on SUVs raised negative Higher allocation to defence +veMah and Mah 878.00 -19.55Maruti Suzuki 1424.45 -6.3
Banks 4% farm loan scheme extended to private sector banksHDFC Bank 630.50 -2.45ICICI Bank 1108.35 14.75Axis Bank 1402.15 -1.05
Cigarettes Excise Duty on cigarettes up 18% negative for ITCITC 287.05 -5.55
Construction & Contracting -Real Estate Excise Duty on marble slabs increased negative for real estate
Budget Interpretations Branded apparels will be cheaper it has been removed from excise duty regime 18% rise in excise duty on cigarettes, cigars and cheroots. More duty free gold items can be purchased by the NRIs now. However, they must have been outside India for more than a year.
Import duty on luxury cars, motorcycles and yachts is increased from 75% to 100%. FinMin has provided a tax credit of Rs 2,000 to individual tax payers with taxable income of up to Rs 5 lakh. Indias first womens bank as a PSU has been proposed with Rs. 1,000 crore working capital. P. Chidambaram has also proposed to provide Rs. 1,000 crore for Nirbhaya fund for women.
Smartphones will become dearer as the excise duty on mobile instruments priced above Rs 2,000 has been raised to six per cent. Super-rich tax was levied as a 10 per cent surcharge on "relatively prosperous" persons with an income over Rs 1 crore
P. Chidambaram re-introduced the generation based incentives to wind energy. Rs 800 crore has been provided for this purpose to Ministry of New & Renewable Energy The excise duty on Sports Utility Vehicles (SUV) will be raised to 30 per cent from 27 per cent
FISCAL DEFICIT* Fiscal deficit seen at 5.2 point of GDP in2012/13* Fiscal deficit seen at 4.8 point of GDP in2013/14
SUBSIDIES * 2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees * Petroleum subsidy seen at 650 billion rupees in 2013/14 * Revised petroleum subsidy for 2012/13 at 968.8 billion rupees * Estimated 900 billion rupees spending on food subsidies in 2013/14 * Revised food subsidies at 850 billion rupees in 2012/13 * Revised 2012/13 fertiliser subsidy at 659.7 billion rupees
INFLATION* Food inflation is worrying, will take allsteps to augment supply side
FOREIGN TRADE* To cut duty on exports of precious andsemi-precious stones to 2 point from 10point* No duty on import of ships, vessels
STT Securities Transaction Tax on mutual fund and ETF redemptions, equity futures reduced to 0.01%;
one million is equal to 10 lakhs 1 billion = 100 crore 1 trillion = 100,000 crore http://www.moneycontrol.com/news/