highlights on budget 2013-14

7/29/2019 Highlights on Budget 2013-14

1/12

HIGHLIGHTS OF UNION BUDGET2013-14

Presented byRajib Deb

M.Com. 3rd sem.

Roll No:29

Department of Commerce

Tripura University
http://www.visualbee.com/upgrade.html


2/12

INTRODUCTIONUnion 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 country's economy too has slowed

down. Chidambaram stressed that the UPAGovernment 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 Government's priorities, and thatthe main aim of the budget 2013-14 is to create

opportunity for the youth, added Chidambaram.


3/12

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 such

as source and application of revenue and expenditure. In simple

Budget provides;

A forecast of revenue and expenditures, that is, construct a

model of how financial plans are carried out.


4/12

To allocate 2.03 trillion rupees to defencesector in 2013-14

To allocate 801.94 billion rupees to ruraldevelopment in 2013-14

To provide 140 billion rupees capitalinfusion in state-run banks in 2013-14

To cut duty on exports on precious andsemi precious stones to 2 point from 10point.

Budget 2013-14 includes the following

important proposals:


5/12

Zero customs duty for electrical plants andmachinery.

Plan to allocate 270.49 billion rupees for agriculturein 2013-14.

Proposes capital allowance of 15 point to companieson investments of more than 1 billion rupees.

Cont


6/12

A Quick Highlights of Budget 2013-14:

* No revision of personal incometax 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 ;

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 women's

development


7/12

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

* 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 fordifferential in central sales tax and GST


8/12

Cont.* No change in customs duty on non-agricultural products

* Modified law to prevent tax avoidance to come into effectApril 1, 2016

* 100 per cent tax deduction for contributions to National

Children's 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 percent to .001 per cent

* Rs.800 crore provided to promoting wind energy


9/12

Cont..

* Tax-free infrastructure bonds of Rs.50,000 crore to be

issued* 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 ChildDevelopment 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


10/12

Challenges: Getting back to potential growth rate of 8 percent is the

challenge facing the country.

Slowdown in Indian economy has to be seen in the context

of slowing global economic growth from 3.9 per cent to 3.2

per cent in 2012.

However, only China and Indonesia growing faster than

India in 2012-13. In 2013-14, only China projected to grow

faster than India.

Food inflation is worrying but all possible steps to be taken

to augment the supply side to meet the growing demandfor food items.


11/12

Conclusion

From the above discussion, we can say that its a good

economic budget presented by Finance Minister

stressing on more development activities and more

allocation of funds compare to previous budget as well

as better tax proposals.


12/12

Thank You

highlights on budget 2013-14

Documents