Budget 2013 Asifa

Budget 2013 Asifa

• 1.
  & its impact
• 2.
   The UnionBudget of India referred to as the Annual Financial Statement .  Budget is presented each year on the last working day of February by the Finance Minister of India in Parliament.  Budget comes into effect on April 1, the start of India's financial year.
• 3.
  Fiscal deficit-total borrowingsneeded by the government  Fiscal deficit seen at 5.2% of GDP in 2012/13  Fiscal deficit seen at 4.8 % of GDP in 2013/14
• 4.
  Current account deficit-imports more goods and services than exports  India's greater worry is current account deficit  Will need more than $75 bln this year and next year to fund current account deficit Ways to overcome  FDI, FII or External Commercial Borrowing (ECB)
• 5.
  INFLATION Food inflation- possiblesteps taken to augment supply side
• 6.
  Women  All womenbank by November 2013 with an initial capital of RS1000 crore  RS1000 crore nirbhaya fund, named after Delhi gangrape victim to empower women
• 7.
  RS1000 crore forskill development of 10lakh youth to enhance their employability
• 8.
   The peopleof India assured that the DBT scheme will be rolled out throughout the country…  “Aapka paisa aapkehaath”- The money is the money belonging to the people..
• 9.
   The non-taxbenefits to a MSME unit for three years after it graduates to a higher category  It enhance the refinancing capability of SIDBI from the current level of RS5,000 crore to 10,000 crore per year.
• 10.
   An amountof 104 crore has been committed to 37 MFIs.  The Factoring Act 2011 ,provide a corpus of RS500 crore to SIDBI to set up a Credit Guarantee Fund for factoring.  The new Companies Bill obliges companies to spend 2 percent of average net profits under Corporate Social Responsibility (CSR).
• 11.
   Technology UpgradationFund Scheme (TUFS) for textile sector extended to 12th Plan with an investment target of Rs151000 crore.  Modernisation of the powerloom sector with RS 2,400 crore  Handloom weavers to get working capital and term loans at a concessional interest of 6 percent.
• 12.
   Import dutyon raw silk increased from 5 percent to 15 percent.  Handmade carpets of coir will be totally exempted from excise duty.  The demand of readymade garment industry to restore the „zero excise duty route‟ for cotton and manmade sector (spun yarn) at the yarn, fabric and garment stages.  Rs. 8.5 billion for Scheme of Fund for Regeneration of Traditional Industries (SFURTI) for promotion of Khadi, village and coir industries.
• 13.
   To provideRS6,000 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 such as SHGs, domestic workers associations, anganwadi workers, teachers in schools, nurses in hospitals etc. SAVINGS  Rajiv Gandhi Equity Savings Scheme will be liberalised to the first time investor  A loan for first home from a bank or a housing finance corporation upto RS 25LAKH during the period 1.4.2013 to 31.3.2014 will be entitled to an additional deduction of interest of upto RS100,000.  Finance minister introduced instruments that will protect savings from inflation.These could be Inflation Indexed Bonds or Inflation Indexed National Security Certificates
• 14.
   It providea tax credit of RS 2,000 to every person who has a total income upto RS 5lakh.  A surcharge of 10 percent on persons whose taxable income exceeds RS1 crore per year.  To increase the surcharge from 5 %to 10 % on domestic companies whose taxable income exceeds RS10 crore per year.  Dividend distribution tax or tax on distributed income to increase the current surcharge of 5 percent to 10 percent.
• 15.
   Manufacture ofenvironment- friendly vehicles, the period of concession available for specified parts of electric and hybrid vehicles upto 31.3.2015.  Reduction of duty on specified machinery for manufacture of leather and leather goods, including footwear, from 7.5 percent to 5 percent.  The increase in prices of marble, increase the duty from RS30 per sq. mtr to 60 per sqmtr