Budget 2013-14an Ambitious Budget

Moody’s Rating

• The Union Budget 2013-14 unveiled last week offers a "realistic" plan to meet the country's fiscal deficit target, and should be a credit positive for its sovereign ratings.

Best Stocks to Invest

• Automotive Industry• Banking and Finance Sector• FMCG• Oil & Gas• Power / Capital Goods

Automotive Industry

• Increase in excise duty for SUVs.

• Additional purchase of 10,000 buses under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Banking and Finance Sector

• Additional capital of Rs 14,000 crore for PSU banks in 2013-14.

• The 4% interest subvention for crop loans repaid on time extended to private sector banks as well.

• Banks to become insurance brokers.

FMCG

• Excise duty on cigarettes increased by 18%.

• Excise duty removed on readymade garments.

• Allocation for rural development enhanced .

Oil & Gas

• Exploration policy to be shifted from profit sharing to revenue sharing.

Power / Capital Goods

• Re-introduction of investment allowance.

• Increase in allocation for defence, science & tech, atomic energy, space exploration, etc.

Gold in Gulf

• Raise the limit on duty-free gold ornaments that can be carried back to the country by NRIs is set to boost jewellery sales in Oman and other countries in the Gulf region.

• Male passengers can carry gold worth Rs.50,000 compared to Rs 10,000.

• Female passengers can carry Rs 1 lakh compared to the earlier limit of Rs 20,000.

Investors

• 16.5 percent projected increase in the government's total annual spending is faster than the growth in nominal GDP, which is projected to rise by 13.5 percent.

Taxing the Rich

• Surcharge of 10 percent for one year on taxpayers with an annual taxable income of more than 1 crore (10 million) rupees.

Women’s Group

• $186 million allocated for a women-only bank • $186 million for a fund for women's security

called Nirbhaya (meaning fearless)

• Women's rights groups questioned the need for a women-only bank that has such a small amount of funding.

Youth

• Proposal to give Rs 10,000 to each youth for skill training may make 150 million youths job-ready.

Criticism

This Budget should have reduced exemptions, not raised tax rates

References

• Rediff.com• Reuters.com• Inc.com• Indiatimes.com

Questions