The Union Budget of India referred to as theAnnual Financial Statement . Budget is presented each year on the lastworking day of February by the FinanceMinister of India in Parliament. Budget comes into effect on April 1, the startof Indias financial year.
Fiscal deficit-total borrowings needed bythe government Fiscal deficit seen at 5.2% of GDP in2012/13 Fiscal deficit seen at 4.8 % of GDP in2013/14
Current account deficit- importsmore goods and services thanexports Indias greater worry is currentaccount deficit Will need more than $75 blnthis year and next year to fundcurrent account deficitWays to overcome FDI, FII or External CommercialBorrowing (ECB)
INFLATIONFood inflation- possible steps taken toaugment supply side
Women All women bank byNovember 2013 with aninitial capital of RS1000crore RS1000 crore nirbhaya fund,named after Delhi gangrapevictim to empower women
RS1000 crore for skill development of 10lakh youth to enhance theiremployability
The people of India assured that the DBTscheme will be rolled out throughout thecountry… “Aapka paisa aapkehaath”- The money is themoney belonging to the people..
The non-tax benefits to a MSME unit for three years after itgraduates to a higher category It enhance the refinancing capability of SIDBI from the currentlevel of RS5,000 crore to 10,000 crore per year.
An amount of 104 crore has been committedto 37 MFIs. The Factoring Act 2011 ,provide a corpus ofRS500 crore to SIDBI to set up a CreditGuarantee Fund for factoring. The new Companies Bill obliges companies tospend 2 percent of average net profits underCorporate Social Responsibility (CSR).
Technology Upgradation Fund Scheme (TUFS)for textile sector extended to 12th Plan withan investment target of Rs151000 crore. Modernisation of the powerloom sector withRS 2,400 crore Handloom weavers to get working capital andterm loans at a concessional interest of 6percent.
Import duty on raw silk increasedfrom 5 percent to 15 percent. Handmade carpets of coir will betotally exempted from excise duty. The demand of readymade garmentindustry to restore the „zero exciseduty route‟ for cotton and manmadesector (spun yarn) at the yarn, fabricand garment stages. Rs. 8.5 billion for Scheme of Fundfor Regeneration of TraditionalIndustries (SFURTI) for promotion ofKhadi, village and coir industries.
To provide RS6,000 crore to the Rural Housing Fund in 2013-14. All towns of India with a population of 10,000 will have an office of LIC.It is to be achieved by 31.3.2014. Group insurance products will be offered to homogenous groups suchas SHGs, domestic workers associations, anganwadi workers, teachers inschools, nurses in hospitals etc.SAVINGS Rajiv Gandhi Equity Savings Scheme will be liberalised to the first timeinvestor A loan for first home from a bank or a housing finance corporation uptoRS 25LAKH during the period 1.4.2013 to 31.3.2014 will be entitled toan additional deduction of interest of upto RS100,000. Finance minister introduced instruments that will protect savings frominflation.These could be Inflation Indexed Bonds or Inflation IndexedNational Security Certificates
It provide a tax credit of RS 2,000 to everyperson who has a total income upto RS 5lakh. A surcharge of 10 percent on persons whosetaxable income exceeds RS1 crore per year. To increase the surcharge from 5 %to 10 % ondomestic companies whose taxable incomeexceeds RS10 crore per year. Dividend distribution tax or tax on distributedincome to increase the current surcharge of 5percent to 10 percent.
Manufacture of environment-friendly vehicles, the period ofconcession available for specifiedparts of electric and hybridvehicles upto 31.3.2015. Reduction of duty on specifiedmachinery for manufacture ofleather and leather goods,including footwear, from 7.5percent to 5 percent. The increase in prices of marble,increase the duty from RS30 persq. mtr to 60 per sqmtr