Indian budget 2013-14
-
Upload
mohan-kumar -
Category
Documents
-
view
217 -
download
0
Transcript of Indian budget 2013-14
-
8/12/2019 Indian budget 2013-14
1/83
BUDGET
2013-2014Key features
Major purposes
Sector wise discussion
Speech of P. Chidambaran
Macro Economic frameworkAnalysis
discussion
-
8/12/2019 Indian budget 2013-14
2/83
BUDGET
A FLASH BACK The budget process of our country predates the
independence
Budget was first introduced on 7th
April 1860 The first Finance Member,James Wilson presented the
budget
Liaquat Ali Khan, member of the interim Govt.
presented the budget of 1947-48After independence, Indias first Finance Minister R.K.
Shanmukhan Chetty, presented the 1stbudget on 26thNovember, 1947
-
8/12/2019 Indian budget 2013-14
3/83
MEANING OF BUDGET
The word budget has been derived from the Frenchword bougettswhich means a small bag. Itemphasizes a bag containing the financial proposals
The use of the term budget for the annual financialplans of the govt.dates back to 1733
In general, a budget shows financial accounts of the
previous year, the budget and revised estimates of thecurrent year and the budget estimates for theforthcoming year
Article 112 annual financial statement
-
8/12/2019 Indian budget 2013-14
4/83
THE ECONOMY & THE CHALLENGES
Global economic growthslowed from3.9% in 2011 to 3.2% in 2012
India is part of the global economy exports and imports amount to 43% of
GDP- International Transmission eg.Recent financial crisis
-
8/12/2019 Indian budget 2013-14
5/83
CURRENT GROWTH RATE OF THE
INDIAN ECONOMY
ESTIMATING
AUTHORITY
GROWTH RATE
(%)CSO 5%
RBI 5.5%
POTENTIAL GR 8%
GNP GAP 3% / 2.5%
-
8/12/2019 Indian budget 2013-14
6/83
CHALLENGE Getting back to that growth rate is the challenge that
faces the country
There is no reason for gloom or pessimism Even now, of the large countries of the world, only
China& Indonesiaare growing faster than India in2012-13
If we grow at the rate projected by many forecasters in2013-14only Chinawill grow faster than India
The average for the 11thplan period, entirely under theUPA Govt., was 8%, the highest ever in any plan period
-
8/12/2019 Indian budget 2013-14
7/83
STRATEGY / MANTRA OF THE BUDGET
Our goal is higher growth leading to inclusive andsustainable development
Growth is a necessary condition for economic dvpt
It is growth that will lead to inclusive dvpt
Without growth there will be neither dvpt norinclusiveness consider SC, ST, Minorities, Women
AsJoseph Stiglitz, Nobel Prize winning economist, said,There is a compelling moral case for equity; but it is alsonecessary if there is to be sustained growth. A countrysmost important resource is its people.
The UPA Govt believes in inclusive dvpt, with emphasis onimproving human dvpt indicators
-
8/12/2019 Indian budget 2013-14
8/83
FISCAL DEFICIT, CURRENT ACCOUNT
DEFICIT & INFLATION The purpose of a budget to create the economic
space and find the resources to achieve the socio-economic objectives
At present, the economic space is constrained due to:
1) High fiscal deficit
2) Reliance on foreign inflows to finance CAD
3)
Lower savings4) Lower investment
5) Tight monetary policy to contain inflation
6) Strong external headwinds
-
8/12/2019 Indian budget 2013-14
9/83
-
8/12/2019 Indian budget 2013-14
10/83
CURRENT ACCOUNT DEFICIT (CAD) It is defined as deficit b/w receipts on account of trade
& invisibles and payments on account of trade &invisiblesin the BoPs account of the country
TWIN DEFICIT
An economy is deemed to have a Twin Deficit if it hasCAD and Fiscal Deficit
-
8/12/2019 Indian budget 2013-14
11/83
FISCAL DEFICIT, CURRENT ACCOUNT
DEFICIT & INFLATION In September, 2012 Govt. accepted the
main recommendations of the Dr. Vijay
KelkarA new fiscal consolidation pathwas
announced
Red lines were drawn for the FD at 5.3% ofGDP in 2012-13and 4.8% in 2013-14
-
8/12/2019 Indian budget 2013-14
12/83
CAD; IS ANY AMICABLE SOLUTION The greater worry of the budget CAD
The CAD continues to be high mainly because of:
1) Our excessive dependence on oil imports2) High volume of coal imports
3) Our passion for gold
4) Slow down in exports This year, and perhaps next year too, we have to find
over USD 75 billion to finance the CAD
-
8/12/2019 Indian budget 2013-14
13/83
HOW CAN WE FINANCE CAD There are only 3 ways before us
Foreign Direct Investment (FDI)
Foreign Institutional Investment (FII), andExternal Commercial Borrowing (ECB)
Hence, we have no choice between welcoming andspurning foreign investment
Foreign investment is an imperative
What we can do to encourage foreign investment that isconsistent with our economic objectives
-
8/12/2019 Indian budget 2013-14
14/83
INFLATION: FOOD & NON-FOOD
Economic evils; namely: inflationand deflation Looming large over our efforts to stimulate growth is inflation.
Major factors responsible for inflation:
Imported inflation Supply demand mismatch, eg. Oilseeds & pulses Excessive aggregate demand
Our efforts in the past few months have brought downheadline WPI inflationto about 7.0%and core inflation to
about 4.2% It is food inflation that is worrying, and we shall take all
possible steps to augment the supply side to meet thegrowing demand for food items
-
8/12/2019 Indian budget 2013-14
15/83
-
8/12/2019 Indian budget 2013-14
16/83
WHOLE PRICE INDEX (WPI)
SL.N
O.
COMPONENTS WEIGHTAGE
(%)1 MANUFATURE ITEMS 64.97
2 PRIMARY ARTICLES 20.12
3 FUEL & POWER 14.91
NO. OF COMMODITIES 676
BASE YEAR 2004-05
-
8/12/2019 Indian budget 2013-14
17/83
8 CORE INDUSTRIES1) COAL
2) FERTILIZERS
3) CEMENT4) ELECTRICITY
5) CRUDE OIL
6) NATURAL GAS7) REFINARY PRODUCTS
8) STEEL
-
8/12/2019 Indian budget 2013-14
18/83
GOVERNMENT EXPENDITURE
Govt. expenditure boosts AD and it has both good andbad consequences
Wisdom lies in finding the correct level of govt.
expenditure; some propsals:Rationalization of PE
Disciplined budget (tax & expenditure)
Market mechanism (forces of DD & SS)Review of certain tax policies
The dvpt must be sustainaleeconomically,ecologically, democratic legitimacy & approval
-
8/12/2019 Indian budget 2013-14
19/83
THE PLAN AND BUDGETARY ALLOCATIONS
Budget estimate of 2012-13BE Rs. 14,90,925 crore
Due to the slowdown & the austerity measures, therevised estimate is Rs. 14,30,825 crore96% of the BE
BE of 2013-14Rs. 16,65,297 crore & plan expenditureat Rs. 5,55,322 crore
Plan expenditure in 2013-14 will be 29.4%more than
the revised estimate of the current year All flagship programs have been fully & adequately
funded
-
8/12/2019 Indian budget 2013-14
20/83
MAIN GOAL OF THE BUDGET One side Economic policy and other side is
Economic welfare
The linkb/w policy and welfare can be expressed in afew words: opportunities, education, skills, jobs &incomes
One overarching goal: to create opportunities for our
youth to acquire education & skills that will get themdecent jobs or self employment that will bring themadequate incomes that will enable them to live withtheir families in a safe and secure environment
-
8/12/2019 Indian budget 2013-14
21/83
SC, ST, WOMEN & CHILDREN
The total (SC & ST sub plans) represents an increase of12.5% over the BE and 31% of the revised budget (RB)of the current year
Fund Allocation
CATEGORY FUND (in crore)
SC sub plan 41,561 - III
ST sub plan 24,598 - IVGender budget 97,134 _ I
Child budget 77,236 - II
Ministry of Minority
Affairs
3,511 - V
-
8/12/2019 Indian budget 2013-14
22/83
WOMENMinistry of Women & Child Dvpt has
been asked to design schemes that will
address gender discriminationeverywhere, especially at the work place additional sum of Rs. 200 crore
-
8/12/2019 Indian budget 2013-14
23/83
MAULANA AZAD EDUCATION FOUNDATION
Main vehicle to implement educational schemes andchannelize funds to non-govt. organizations for theminorities
Its corpus stands at Rs. 750 crore
Budget allocated Rs. 160 crore to the corpus fund ofthe institution to increase corpus fund to RS. 1,500
crore during the 12 FYP Rs. 100 crore to this foundation to launch medical aid
to its objectives
-
8/12/2019 Indian budget 2013-14
24/83
DISABLED PERSONSAllocate a sum of Rs. 110 crore to the
Department of Disability Affairs for the
ADIP Schemein 2013-14, as against theRE of Rs. 75 crore in 2012-13
-
8/12/2019 Indian budget 2013-14
25/83
HEALTH AND EDUCATION
Health for all and education for all remain ourpriorities
Allocate 37,330 crore to the Ministry of Health &
Family Welfare. Of this, the new National HealthMission(combines NRHM & proposed NUHM) willget 21,239 crore, an increase of 24.3% over the RE
Rs. 4,727 crore for medical education, training &
research Rs. 1,069 crore to the Department of AYUSH
The National Program for the Health Care of Elderly isbeing implemented in 100 selected districts of 21 states
-
8/12/2019 Indian budget 2013-14
26/83
EDUCATION Allocate Rs. 65,867 crore to the Ministry of Human
Resource Development
Sarva Shiksha Abhiyan(SSA) Rs. 27,258 crore
Right to Eductaion Act (1stApril, 2010, Article 21A)
Rashtriya Madhyamik Shiksha Abhiyan (March 2009)alloted Rs. 3,983 crore
Scholarships 5,284 crore
Mid-Day Meal Scheme (15thAugust,1995) Rs. 13,215 crore
The Govt. is committed to the creation of NalandaUniversityas a centre of educational excellence
-
8/12/2019 Indian budget 2013-14
27/83
ICDSAllocate Rs. 17,700 crore in 2013-14
(15,850- 2012-13) representing an
increase of 11.7%The focuswill continue to be on early
childhood care & education
-
8/12/2019 Indian budget 2013-14
28/83
DRINKING WATERAllocate Rs. 15,260 crore to the Ministry of
Drinking Water and Sanitation
Provide rs. 1,400 crore towards setting upwater purification plants
-
8/12/2019 Indian budget 2013-14
29/83
RURAL DEVELOPMENTAllocated Rs. 80,194 crore
MGNREGS(Feb,2006) - Rs. 33,000 crore
PMGSY(25 Dec, 2000) - Rs. 21,700 IAY (1985-86) - Rs. 15,184
The budget proposed to carve out PMGSY-IIandallocate a portion of the funds to the new programs
that will benefit states such asAP, Haryana,Karnataka, Maharashtra, Punjab & Rajasthan
-
8/12/2019 Indian budget 2013-14
30/83
JNNURMJawaharlal Nehru National Urban Renewal Mission is
being continued in the 12thplan (2005-2012) -
Allote Rs. 14,873 crore
-
8/12/2019 Indian budget 2013-14
31/83
AGRICULTURE The average annual growth rate of agriculture
9thFYP - 2.5%
10thFYP - 2.4%
11thFYP - 3.6%
Total food grain production 2012-13- over 250 MTs
Agricultural exports from April to December, 2012have crossed Rs. 138,403 crore
Allocate Rs. 27,049 crore to the Ministry of Agriculture
Of this, agricultural research will be provided Rs. 3,415crore
-
8/12/2019 Indian budget 2013-14
32/83
AGRICULTUREAgricultural credit is the driver of agricultural
production
It is a state subject
Agricultural credit target for 2013-14 Rs. 700,000crore
Interest subvention scheme for short-term crops loan
continued 4% per annum The budget proposed to extend the scheme to crop
loans borrowed from private sector scheduledCommercial Banks
-
8/12/2019 Indian budget 2013-14
33/83
GREEN REVOLUTION Continue to support the eastern Indian stateswith an
allocation of Rs. 1000 crore in 2013-14
Crop diversification Punjab & Haryana
Rashtriya Krishi Vikas Yojana (RKVY-Aug 16, 2007) 9,954 crore to mobilize higher investment inagriculture 11thplan allocation was 25,000 crore
National Food Security Mission (NFSM-Rabi, 2007-08)2,250 crore intended to bridge yield gaps
Integrated Watershed Program Rs. 5,387 crore
-
8/12/2019 Indian budget 2013-14
34/83
PROPOSED INSTITUTIONS National Institute of Biotic Stress Management for
addressing plan protection issues will be established atRaipur, Chhattisgarh
Indian Institute of Agricultural bio-technologywill beestablished at Ranchi, Jharkhand
-
8/12/2019 Indian budget 2013-14
35/83
NATIONAL LIVESTOCK MISSION NLM will be launched in 2013-14 to attract investment
and to enhance productivity taking into account localagro-climatic conditions
The budget proposed to provide Rs. 307 crore for themission
There will be a submission for increasing the
availability of feed and fodder
-
8/12/2019 Indian budget 2013-14
36/83
FOOD SECURITY National Food Security Billis a promise of the UPA
Government
The budget set apart Rs. 10,000 crore, over and abovethe normal provision for food subsidy, towards theincremental cost that is likely under the Act
-
8/12/2019 Indian budget 2013-14
37/83
INVESTMENT, INFRASTRUCTURE & INDUSTRY
The growth rate of an economy is correlated with theinvestment rate
Investment is an act of faith. Doing business in Indiamust be seen as easy, friendly and mutually beneficial.
It is the infrastructure that needs large volumes ofinvestment
The 12th
plan projectsan investment of USD 1 trillionor Rs. 55, 00,000 crore in infrastructure
The plan envisages that private sector will share 47%of the investment
-
8/12/2019 Indian budget 2013-14
38/83
INVESTMENT IN INFRASTRUCTURE
Govt. has taken or will take the following measures toincrease investment in infrastructure:1) Infrastructure Dept Funds (IDF) will be encouraged
2) India Infrastructure Finance Corporation Ltd (IIFCL), inpartnership with theADB
3) In the last two years, a number of institutions were allowedto issue tax free bonds
4) Multilateral Development Banks ADB, World Bank
5) NABARD operates the Rural Infrastructure DevelopmentFund (RIDF). RIDF has successfully utilized 18 tranches sofar. The budget proposed to raise the corpus of RIDF-XIX in2013-14 to Rs. 20,000 crore
-
8/12/2019 Indian budget 2013-14
39/83
ROAD CONSTRUCTION Govt. has decided to constitute a regulatory authority
for the road sector
-
8/12/2019 Indian budget 2013-14
40/83
CABINET COMMITTEE ON INVESTMENT (CCI)
Revival of investment in the industrial sector,especially manufacturing, is a key challenge
CCI has been set up to monitor investment proposalsas well as projects under implementation, includingstalled projects, and guide decision-making in order toremove bottlenecks and quicken the pace ofimplementation
-
8/12/2019 Indian budget 2013-14
41/83
NEW INVESTMENTA company investing Rs. 100 crore or more in plant
and machinery during the period 1/4/2013 to 31/3/2015will be entitled to deduct an investment allowance of
15% of the investmentaim to attract newinvestment and to quicken the implementation ofprojects
The National Electronics Policy, 2012 is intended topromote manufacture of electronic goods in India
-
8/12/2019 Indian budget 2013-14
42/83
SAVINGS Increasing savings and their optimal allocation for
productive uses lead for higher economic growth
High saving rate 36.8% - 2007-08
Gross domestic saving fell by 6% points in 2011-12
The private, comprising households and corporate,remains the main contributor to saving
The household sector must be incentivized to save infinancial instruments rather than buy gold
-
8/12/2019 Indian budget 2013-14
43/83
MEASURES TO INCREASE THE AMOUNT OF
SAVING Rajiv Gandhi Equity Savings Scheme (proposed in the
budget, 2012-13 income tax deduction of 50% onretail investments of up to Rs. 50,000 made directly in
equities by those earning an annual income of lessthan Rs. 10 lakh)will be liberalized to enable the firsttime investor to invest in mutual funds as well as listedshares
Home loan interest deduction
Inflation Indexed Bonds or Inflation Indexed NationalSecurity Certificates
-
8/12/2019 Indian budget 2013-14
44/83
INDUSTRIAL CORRIDORS Delhi Mumbai Industrial Corridor (DMIC)project has
made rapid progress
Work on two new smart industrial cities at Dholera,
Gujaratand Shendra Bidkin, Maharashtrawill startduring 2013-14 support of Japan
The department of Industrial Policy and Promotion(DIPP) & the Japan International Cooperation Agency
(JICA) are currently preparing a comprehensive planfor the Chennai Bengaluru Industrial Corridor
The next corridor will be the Bengaluru MumbaiIndustrial Corridor
-
8/12/2019 Indian budget 2013-14
45/83
LEH-KARGIL TRANSMISSION LINE To improve power supply in the Leh-Kargil region and
connect the Ladakh region to the northern grid, thegovt. will construct a transmission system from
Srinagar to Leh at a cost of Rs. 1,840 crore. The budgetproposed to provide Rs. 226 crore in 2013-14for theproject
-
8/12/2019 Indian budget 2013-14
46/83
CURRENT AFFAIRS
HEAD IIBrazilian Roberto Azevedo new head ofWTO
Replaced Frenchman Pascal LamyAzevedo Brazilian career diplomat
159 member WTOs Geneva based
He has been Brazils WTO Ambassadorsince 2008
-
8/12/2019 Indian budget 2013-14
47/83
CURRENT AFFAIRS - SPORTSSir Alex Ferguson Manchester United
Managerretirement
Took over from Ron Atkinson in 1986and has won 13 league titles - 5 FA
cups 2 Champions League
-
8/12/2019 Indian budget 2013-14
48/83
-
8/12/2019 Indian budget 2013-14
49/83
NATIONAL WATERWAYS Five inland waterways have been declared as national
waterways
Move a Bill Lakhipur Bhanga stretch of river Barakin Assamas the 6thnational waterway
The first transport contract has been awarded in WBfrom Haldia to Farakka
-
8/12/2019 Indian budget 2013-14
50/83
COALWe must reduce our dependence on
imported coal
Coal imports during the periodApril-December, 2012 have crossed 100 MTs
It is estimated that imports will rise to 185
MTs in 2016-17
-
8/12/2019 Indian budget 2013-14
51/83
MICRO, SMALL & MEDIUM ENTERPRISES
Enhance the refinancing capability ofSIDBI(April,2,1990)from the current level of
Rs. 5,000 crore to Rs. 10,000 crore per yearSIDBI set up the India Microfinance Equity
Fund in 2011-12Rs. 100 crore
-
8/12/2019 Indian budget 2013-14
52/83
TEXTILES
Continue the Technology Upgradation FundScheme (TUFS) for the textile sector in the 12thplan with an investment target of Rs. 151,000 crore
The major focus would be on modernization of thepowerloom sector. The budget provide Rs. 2,400crore in 2013-14 for the purpose
Textile parks have been set up under Scheme forIntegrated Textile Parks (SITP)
-
8/12/2019 Indian budget 2013-14
53/83
TEXTILESA new scheme with an outlay of Rs. 500
crore called the Integrated Processing
Development Schemewill be implementedin the 12thplan to address the environmentalconcerns of the textile industry, includingimproving the effluent treatmentinfrastructure. The budget provide Rs. 50crore in 2013-14 for the scheme
-
8/12/2019 Indian budget 2013-14
54/83
FINANCIAL SECTOR Financial sector is at the heart of the economy
Govt. constituted the Financial Sector LegislativeReforms Commission (FSLRC) in 2011
-
8/12/2019 Indian budget 2013-14
55/83
BANKING Rs. 12,517 crore to infuse additional capital into 13public sector banks
In 2013-14 budget allocated further amount of Rs.
14,000 crore for capital infusion Ensure that public sector banks always meet the Basel
III regulations
Bring all banks under core banking solutions (CBS)
CBS and e-payment systems by 31/12/2013 Rs. 1000 crore to set up Indias 1stWomens Bank as a
PS bank
-
8/12/2019 Indian budget 2013-14
56/83
HOUSING SECTOR BANKING
The Rural Housing Fund set upthrough the NHBis used to refinance
lending institutions, including RRBs,that extend loans for rural housing
Budget proposed to start a fund forurban housing to mitigate the hugeshortage of houses in urban areas
-
8/12/2019 Indian budget 2013-14
57/83
INSURANCE IRDA
Rashtriya Swasthiya Bima Yojana
ULIPs (Unit Linked Insurance Plans), a highly popularhybrid financial product marketed by the insurancecompanies
The SEBIs case that ULIPs with a large investment
component were oriented more towards the capitalmarket than to life insurance and, therefore, should beregulated by SEBI and not IRDA
Ordinance ULIPs will be regulated by IRDA
-
8/12/2019 Indian budget 2013-14
58/83
CAPITAL MARKET Best regulated market SEBIs (1988 as per the recommendations of the G.S. Patel
Committee in 1992- statutory body through an Act) silverjubilee year2013 - SEBI set up a new Committee headed by
former Chief Justice of Karnataka HC,Justice N.K. Sodhi toreview insider trading norms (6/3/13) Some proposals simplify the procedures In order to remove the ambiguity that prevails on FDI & FII
adopt international practice and lay down a broad principle where an investor has a stake of 10% or less in company treatedas FII
More than 10% - treated as FDI A committee will be constituted to examine the application of
the principle and to work out the details expeditiously
-
8/12/2019 Indian budget 2013-14
59/83
ENVIRONMENT
Waste to energy project promotion
Clean & Green energy is a priority of the Govt.
The budget proposed to reintroduce generation-basedincentive for wind energy projects and provide Rs. 800crore to the Ministry of Non Renewable Energy for thepurpose.
-
8/12/2019 Indian budget 2013-14
60/83
OTHER PROPOSALS
Backward Regions Grant Fund (BRGF) is a vital sourceof gab funding Rs. 11,500 crore in 2013-14
BRGF will include a state component for Bihar, theBundelkand region, WB, the KBK districts of Odishaand 82 districts under the Integrated Action Plan
Skill Development NSDC
We have set an ambitious target of skilling 50 millionpeople in the 12thplan period, including 9 million in2013-14
NRLM& NULMreleasing funds
-
8/12/2019 Indian budget 2013-14
61/83
DEFENCEAllocation for defence to Rs. 203,672 crore
-
8/12/2019 Indian budget 2013-14
62/83
SCIENCE & TECHNOLOGY Rs. 6,275 crore to the Ministry of S&T
Rs. 5,615 crore to the Department of Space
Rs. 5,880 crore to the Department of Atomic Energy
Problemwe do not pay enough attention to S & T forthe common man
Institutions of Excellence
-
8/12/2019 Indian budget 2013-14
63/83
SPORTSThe budget proposed to set up the
National Institute of Sports Coaching
at Patiala
-
8/12/2019 Indian budget 2013-14
64/83
PANCHAYATI RAJThe Rajiv Gandhi Panchayat Sashaktikaran
(RGPSA)was started in 2013with a modest
allocation of Rs. 50 croreAllocated Rs. 455 crore to the Ministry of
Panchayati Raj in 2013-14
-
8/12/2019 Indian budget 2013-14
65/83
GHADAR MEMORIALTo mark the centenary of the Ghadar
movement, the Govt. will fund the
conversion of the Ghadar memorial in SanFrancisco into a museum and library
-
8/12/2019 Indian budget 2013-14
66/83
CENTRAL SCHEMESReduced from 173 in number (11thplan)
to 70 schemes
As a part of fiscal consolidation
-
8/12/2019 Indian budget 2013-14
67/83
MAKE THREE PROMISES 1stis the face of the woman Nirbhaya Fund
2ndis the face of the Youth - NSDC
3rdface of the poor Direct Benefit Transfer scheme
-
8/12/2019 Indian budget 2013-14
68/83
BUDGET ESTIMATES Plan Expenditure Rs. 5,55,322 crore 33.3% of
total expenditure
Non plan Expenditure Rs.11,09,975 crore
FD 5.2% (2012-13) - 4.8% (2013-14)
RD 3.9 ,, - 3.3% ,,
By 2016-17bring down the FD 3% - RD 1.5% and
the Effective RD to zero FRBM Act
-
8/12/2019 Indian budget 2013-14
69/83
PART- B : TAX PROPOSALS
An emerging economy must have a tax system thatreflects best global practices
The budget propose to set up a Tax Administration
Reform Commission to review the application of taxpolicies and tax laws and submit periodic reports thatcan be implemented to strengthen the capacity of ourtax system
-
8/12/2019 Indian budget 2013-14
70/83
TAX GDP RATIO
In 2011-12, the ratio was 5.5% for Direct Taxesand 4.4% fro Indirect TaxesAggregate
9.9% (lowest ratio we must reclaim thatpeak)
In 2007-08the ratio touched a peak of
11.9%Laffer Curve
-
8/12/2019 Indian budget 2013-14
71/83
DIRECT TAXES Current slabs of personal income tax were introduced
only last year no change in the budget
The budget give some relief to the tax payers in the
first bracket of 2 lakh to 5 lakh tax credit of Rs. 2,000
1.8 crore tax payers are expected to benefit to the valueof Rs. 3,600 crore
Fiscal consolidation both PE cut & augment PR
-
8/12/2019 Indian budget 2013-14
72/83
SUPERRICH TAX
The budget proposed to impose a surchargeof 10% onpersons whose taxable income exceeds Rs. 1 crore 42,800 persons
Increased the surcharge from 5% to 10% on domesticcompanies whose taxable income exceeds Rs. 10 crore
In the case of foreign companies, who pay the higherrate of corporate tax, the surcharge will increase from2% to 5%
Dividend distribution tax or tax on distributed incomeincrease the current surcharge of 5% to 10%
Educational cess for all tax payers shall continue at 3%
-
8/12/2019 Indian budget 2013-14
73/83
INCOME TAX SLABBASE OF THE TAX RATE OF THE TAX
Up to 2 lakh Nil2.1 lah t0 5 lakh 10%
5.1 lakh to 10 lakh 20%
Above 10 lakh 30%60-79 age group 2.5 lakhs nil
80 & above age 5 lakh - nil
-
8/12/2019 Indian budget 2013-14
74/83
SOME FACTS
Venture Capital Funds the relevant regulations of SEBIhave been replaced byAlternative Fund Regulationsregistered with SEBI
Introduced Commodities Transaction Tax (CTT) on non-
agricultural commodities futures contracts The Finance Act, 2012 introduced the General Anti
Avoidance Rules (GAAR) An expert committeewas constituted to consult
stakeholders and finalize the GAAR guidelines Impermissible tax avoidance arrangements will be
subjected to tax The budget proposed to bring the modified provisions into
effect from 1/4/2016
-
8/12/2019 Indian budget 2013-14
75/83
SOME FACTS The Rangachary Committeewas appointed to look
into tax maters relating Development Centers & ITsector and Safe Harbor Rules for a number of sectors
The 5thLarge Tax payer Unitwill be opened at Kolkatashortly
Income tax department is rapidly moving towardstechnology based processing (e-filing) CentralProcessing Cellset up at Bengaluru & CentralProcessing Cell-TDSinaugurated a few days ago atVaishali, Ghazibad
-
8/12/2019 Indian budget 2013-14
76/83
DIRECT TAX CODE (DTC) Income Tax Act 1961 2011 marked the 50thyear Proposed to a new code based on the best
international practices that will be compatible with
the needs of a fast developing economy
-
8/12/2019 Indian budget 2013-14
77/83
INDIRECT TAXES Customs duty peak rate 10% - no change Excise duty - 12% ,,
Service tax - 12% ,,
As a measure of relief to the ship building industry exempt ships and vessels from excise duty
Increased the specific excise duty on cigarettes by
about 18% Items under service tax enlarged levy service tax all
air conditioned restaurants
-
8/12/2019 Indian budget 2013-14
78/83
ESTIMATES T he budget proposals on the Direct Taxes side areestimated to yield Rs. 13,300 crore
Indirect Taxes side Rs. 4,700 crore
-
8/12/2019 Indian budget 2013-14
79/83
GOODS AND SERVICES TAX (GST) GST first mentioned in the budget of 2007-08 and
planned to implement on 1/4/2010
Need constitutional amendment
GST council
Compensation
-
8/12/2019 Indian budget 2013-14
80/83
CONCLUSION India 10thlargest economy in the worldWe can become 8th,or perhaps 7thlargest by 2017
By 2025, we could become a USD 5 trillion economyand among the top five in the world
Swami Vivekananda (Jan 12th1863), whose 150thbirthanniversary we celebrate in 2013, told the people: All
the strength and succour you want is withinyourself. Therefore, make your own future.
-
8/12/2019 Indian budget 2013-14
81/83
RUPEES COMES FROM
1. Borrowing & other liabilities - 27
2. Corporate Tax - 21
3. Income Tax - 12
4. Union Excise Duties - 10
5. Customs Duties - 9
6. Service Tax & other Taxes - 9
7. Non-Tax Revenue - 98. Non-Debt Capital Receipts - 3
-
8/12/2019 Indian budget 2013-14
82/83
RUPEES GOES TO1. Central Plan - 212. Interest Payments - 18
3. States share of taxes & duties - 17
4. Subsidies - 12
5. Other non-plan expenditure - 11
6. Defence - 10
7. Plan assistance to states & UTs - 78. Non-plan assistance to states & UTs - 4
-
8/12/2019 Indian budget 2013-14
83/83