New Delhi, February 28,2013:The Union Budget for 2013-14 aims at higher growth rate leading to inclusive and
sustainable development as ‘mool mantra’.
• Finance Minister makes three promises: to women, youth and the poor.
• Nirbhaya Fund to empower women and to keep them safe and secure.
• Proposal to set up India’s first Women’s Bank as a public sector bank.
• Rs. 1,000 crore for skill development of ten lakh youth to enhance their
employability and productivity.
• Direct Benefit Transfer (DBT) Scheme to be rolled out throughout the country
during the term of UPA Government.
• Fiscal Deficit for 2013-14 is pegged at 4.8 per cent of GDP. The Revenue Deficit
will be 3.3 per cent for the same period.
• Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3 per cent of the total
expenditure while Non Plan Expenditure is estimated at Rs. 11,09,975 crore. The
plan expenditure in 2013-14 will be 29.4 percent more than the RE of the current
year i.e. 2012-13.
• Substantial rise in allocation to the social sector. Allocation for Rural
Development Ministry raised by 46 per cent to Rs. 80,194 crore.
• The target for farm credit for 2013-14 has been set at Rs. 7,00,000 crore against
Rs. 5,75,000 crore during the current year.
• Rs. 10,000 crore earmarked for National Food Security towards the incremental
cost.
• Education gets Rs. 65,867 crore, an increase of 17 per cent over RE for 2012-13.
• ICDS gets Rs. 17,700 crore. This is 11.7 per cent more than the current year.
• Drinking water and sanitation will receive Rs. 15,260 crore. Rs. 1,400 crore is
being provided for setting up water purification plants to cover arsenic and
fluoride affected rural areas.
• Health and Family Welfare Ministry has been allotted Rs. 37,330 crore. National
Health Mission will get Rs. 21,239 crore which represents 24.3 per cent over the
RE.
• The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) will receive
Rs. 14,873 crore as against RE of Rs. 7,383 crore in the current year.
• Defence has been allocated Rs. 2,03,672 crore.
• Rs. 3,511 crore have been earmarked to Minority Affairs Ministry, 60 percent
higher than RE for 2012-13. 2
• The Government will encourage Infrastructure Debt Fund (IDF) and allow some
institutions to raise tax free bonds up to Rs. 50,000 crore which is 100 percent
more than the current year.
• India Infrastructure Finance Corporation (IIFC), in partnership with ADB will
help infrastructure companies to access bond market to tap long term funds.
• Income limit under Rajiv Gandhi Equity Savings Scheme (RGESS) will be raised
from Rs. 10 lakh to Rs. 12 lakh.
• First home loan from a bank or housing finance corporation up to Rs. 25 lakh
entitled to additional deduction of interest up to Rs. 1 lakh.
• Proposal to launch Inflation Indexed Bonds or Inflation Indexed National Security
Certificates to protect savings from inflation.
• On oil and gas exploration policy, the Budget proposes to move from the present
profit sharing mechanism to revenue sharing. Natural gas pricing policy will be
reviewed.
• On coal, the Budget proposes adoption of a policy of pooled pricing.
• Benefits or preferences enjoyed by MSME to continue up to three years after they
grow out of this category.
• Refinancing capacity of SIDBI raised to Rs. 10,000 crore.
• Technology Upgradation Fund Scheme (TUFS) for textile to continue in 12th Plan
with an investment target of Rs. 1,51,000 crore.
• Rs. 14,000 crore will be provided to public sector banks for capital infusion in
2013-14.
• A grant of Rs. 100 crore each has been made to 4 institutions of excellence
including Aligarh Muslim University, Banaras Hindu University, Tata Institute of
Social Sciences, Guwahati and Indian National Trust for Art and Cultural
Heritage (INTACH).
• New taxes to yield Rs. 18,000 crore.
• A surcharge of 10 per cent on persons (other than companies) whose taxable
income exceeds Rs.1 crore have been levied.
• Tobacco products, SUVs and Mobile Phones to cost more.
• Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs.
• ‘Voluntary Compliance Encouragement Scheme’ launched for recovering service
tax dues.
• Rs. 9,000 crore earmarked as the first installment of balance of CST
compensations to different States/UTs.
