Budget Highlights
Neha Dave / 28 Feb 2013
Budget Highlights
FM begins with an overview of the overall economic situation.
Final growth will be below India's potential - FM
Higher Growth leading to inclusive and sustainable development is our mantra - FM
High fiscal deficit is constraining the economic growth - FM
Lower saving and Investment are a challenge
"Countries most important resource is its people" Chidambaram
Current Account Deficit is a greater worry - FM
FDI, FII or ECB are the Only ways to Raise Funds. Foreign investment is imperative
Excessive coal, gold and oil imports have been responsible for a wider CAD - FM
Augment the Supply Side to meet the demand
Need USD 75 billion to finance the CAD over the next 2 years
Wisdom lies in correct govt. expenditure - FM
FII, FDI and ECB will be imperative towards bridge the CAD - FM
More ambitious for FY13-14
BE for total expenditure at Rs 1665297 crore
Food inflation is worrying - FM
Planned expenditure for FY13 was 29.4% more than the revised estimates of the current year
Main focus - opportunities, education, skills, jobs, income - FM
Job creation to be a key feature of policies - FM
Rs 41561 crore for the SC sub plans and Rs 24598 crore for the Tribal sub plan
Planned expenditure for FY14 29.4% more than the revised estimates of the current fiscal
FY14 planvExpendiure To be 30 per cent higher than FY13
Rs 41561 crore for the SC sub plans and Rs 24598 crore for the Tribal sub plan
Rs 3511 crore allocated to ministry of minority affairs
Additional Rs 200 crore allocated for women's safety - FM
Rs 37330 crore allocated to the Ministry of Health and Family Welfare
Rs 65867 for Ministry of HRD
Rs 97,134 crore for gender budget 2013-14
Education Stocks to move up following higher allocation to education..
Mid-day meal scheme to be provided Rs 13215 crore - FM
Rs 17700 crore allocated to ICD
Rs 77236 crore for child budget 2013-14
Rs 15260 crore to the Minsitry of Drinking Water and Sanitation
Rs 100 crore to medical facilities at educational institutions
Rs 4,427 crore for medical education, training and research
Rs 169 crore for the department of AYUSH
Rs 80194 crore allocated to Ministry of Rural Develpment
Rs 15260 crore to Ministry of Water, Rs 1200 crore for water purification plants - FM
Rs 80194 crore allocated to Ministry of Rural Develpment
Indira Awas Yojna to get Rs 15189 Crore
Outlay increased For social spending. Opposition reacts immediately. Markets also React negatively
Markets off day highs....
The JNNURM being continued in the XIIth plan. Porpose to provide Rs 14873 crore as against Rs 7383 crore in the current year.
Auto stocks to benefit. Commercial Vehicle sales to go up.
MSP for every agricultural produce has gone up under the UPA... Rs 27049 crore allocated to the Agricultural ministry...
Rs 3415 crore for agricultural research
Proposed Rs 33000 crore for MGNREGS
Increased social spending to help the FMCG sector.
Interest subvention scheme for farmers extended to private sector banks..
Banking stocks likely to see a downside...
Rs 1000 crore allocation to Eastern States to encourage the production of rice
Rashtriya Krishi Vikas Yojana allocated Rs 9954 crore
National Livestock Mission to be launched in 2013-14, Rs 307 crore for the same.
Focus on Live stock and Allocation of Rs 307 crore to feed stock will help Venky’s
Rs 10000 crore allocated to take care of incremental cost that the Food Security Bill entail
New and innovative instruments needed to mobilise resources for infra funding
Infra Debt funds to be encouraged.. we can Expect more bond issues in the coming year
Some institutions will be allowed to raise money from capital markets based on need to an extent of Rs 50000 crore - FM
Corpus of RIDF to be raised to Rs 20,000 crore
IIFCL to give credit enhancement to companies
A regulatory authority to be constituted for the road sector ...
Watch IRB, GVK, GMR and Reliance Infra
3000 km of road projects will be awarded in the first 6 months of fiscal - FM
A company investing Rs 100 crore or more will allot 15% in tax deduction on investments
Import of Plant & Machinery for semi conductor industry to attract zero per cent customs duty.
Household sector to be incentivised to invest in markets and mutual funds rather than buy gold - FM
Scope of RGESS extended for three successive years instead of one
Savings to be protected from inflation by introducing inflation indexed bonds ...
Industrial Corridor projects planned in 7 new cities - FM
If Housing loan is availed for first house,deduction amount in the taxation Will be increased by Rs 1 lakh in... http://t.co/AtClBYISNy
Propose to launch inflation index investments to protect the masses. Details to be announced soon.
Proposed to launch two new ports at West Bengal and Andhra Pradesh with a capacity of 1 million tonnes.
Construction of a transmission system from Srinagar to Leh - FM
Policy to explore shale gas will be introduced
NELP blocks taht were stalled will cleared
Coal imports will rise to 185 million tonnes in 2016-17 - FM
Natural Gas Pricing Policy to be reviewed
To import coal And blending Coal. further Device PPP policy along with Coal India to increase coal supply
Financial restructuring plans for discoms to be reviewed.
Micro, Small and Medium Enterprises: Benefits of preferences to be extended to three years after they graduate to... http://t.co/ik73uqNuf2
Power Generation Companies to be benefited by increased coal supply.
Rs 500 crore allocated to SIBDI to set up a factoring fund..
Rs 100 crore more for MFIs
Rs 2400 crore for Powerloom sector
Additional sum of Rs 96 crore to textile industry for interest subvention - FM
Working capital and term loan at concessional rate of 6% for Handloom sector
FSLRC's report to be presented next month which will help strengthen the financial sector...
Rs 14000 crore to be infused in PSBs over the next fiscal....
Allocation towards fund infusion in PSBs is lower than expected...
Guns for setting up a bank for the women by the women.... dubs it as India's first Public Sector Bank for women...
Re-capitalisation amount of Rs 14000 crore for PSU is lower than the expectatios of Rs 18000-20000 Crore
Rs 6000 crore to Rural Housing fund in 2013-14
New fund for Urban housing on the lines of Rural Housing Fund to be set up next yar...
Looks at improving penetration of Insurance
Insurance companies, both life and general, to open branches in Tier II cities or lower without prior approval of IRDA
All towns with a population of 10,000 and more will have an LIC office.
Group insurance will now be offered to homogenous groups - FM
Cross Selling of Insurance Products at Rural Public Sector Banks
first all-women public sector bank to be set up
Designated depository participants will be allowed to register foreign investors.....
Uniform KYC Registration for Foreign funds to help attract more foreign Funds
Less than 10% stake held by foreigners will be treated as FII and above that will be treated as FDI.......
FIIs allowed to participate in the currency derivatives segment
Small and medium companies can list on SME exchange without an IPO...
Stock exchanges to be allowed to open dedicated debt segment
Mutual Fund distributors can become members on the stock exchanges....
Clean and green energy - cities and municipalities will be encouraged to take waste into energy projects - FM
Generation based incentives for wind energy projects. Rs 800 allocated for the same ....
Suzlon and Premier among companies to benefit from this proposal...
Addition of Rs 1000 crore to LW affected districts
What do you think should be the name of the #allwomenbank proposed in
Rs 2,03,672 crore for Defence sector
National Institute of Sports Coaching at a cost of Rs 250 crore to be set up in Patiala
839 new Radio Channels will be auctioned in 2013 - 14.... cities with population over 100000 to be covered by... http://t.co/BDMhiI8Jn2
ENIL, DB Corp and Reliance Mediaworks among stocks that can benefit out of this...
Over Rs 5 Lakh Crore allocated to states.....
'Nirbhaya' Fund to be set up - govt to contribute Rs 1000 crore
Shock laga laga, shock laga - Markets In Red ....Higher social expenditure drags the market Down
Rs 1000 crore for skill development of youth on the assumption that 10 lakh youth will be motivated per year
Direct Benefit Transfer Scheme will be rolled out throughout the country
Plan expenditure estimated to be at Rs 5.5 lakh crore
Fiscal deficit contained at 5.2%
Fiscal Deficit for FY14 estimated at 4.8 %
Rs 11,9,975 crore: non-plan expenditure estimation for FY2013-14
Clarity in tax laws, stable tax regime and an independent judiciary is a must - FM
Tax Administration and Reforms Commission to be set up -
Tax to GDP ratio to go up...
Tax slabs left unchanged...Tax credit to be provided of Rs 2000 for persons with income up to Rs 5 Lakhs...
An additional surcharge of 10 per cent on those earning in excess of Rs 1 crore...,
On domestic companies earning more than Rs 10 crore per annum, surcharge to be increased from 5% to 10%
Dividend Distribution Tax hiked to 10% from 5%... to be applicable only for FY14
Tax on Super Rich brought in ...
Profitability of the companies may get impacted on Account of additional surcharge
Education Cess to be continued at 3 per cent
Sec 80 IA extended to the Power sector for another year....
Securitisation Trust to be exempt from Income Tax -
TDS @ 1% for transactions on Immovable Properties upto Rs 50 lakh
Final Withholding Tax to be levied on unlisted companies to the tune of 20% on distributed profits...
Jor ka jhatka ...Markets Witnessing a steep Fall...
Reductions in STT
Equity futures to 0.01%
MT ETF Sale/Purchase 0.001% (only on seller)
CTT becomes a reality.... to be levied on non-agricultural commodities at the same rate as is levied on equities.....
MCX and Financial Technologies slide in the aftermath of introduction of CTT....
Will make e-filing of IT returns mandatory for more categories
No Change in peak customs duty...
No change in normal rate excise Duty of 12 per cent
Customs duty to stay at 10%....
No changes in service tax, to be maintained at 12%
Import duty on raw silk to be increased from 5% to 15%
Import duty on set top boxes increased from 5% to 10% to encourage domestic production
Markets remain unimpressed ....
Import duty on motor vehicles and motor cycles goes up ...
Duty free limit for bringing in gold from abroad hiked to the extent of Rs 50000 for males and Rs 1 lakh for females ...
Customs duty for motorcycles with engine capacity of 800 cc or more @ 75%
Zero excise duty on cotton at fibre stage
Specific excise duty on cigarettes increased by 18%
Duties on ships and vessels remain unchanged
To raise excise duty on non-taxi SUVs to 30%. M&M to go down!
Smart phones to cost more ... excise duty hiked to 6% ...
Service tax on all air conditioned restaurants from now on...
Specialty Rest and Jubillant Food to be impacted negatively
One-time voluntary compliance scheme to encourage filing of tax returns
Rs 9000 crore set apart in the budget towards compensation to states for CST...
Sops for Low cost Housing to continue. Will help the Smaller realty players
BUDGET 2013-14 : NEITHER REFORMIST NOR POPULIST. NOTHING FOR THE MARKETS....
DSIJ RATING : 5 / 10
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