business ppt-budget 2013-14 (highlights , provisions & analysis) -an assignment of macro...

Budget 2013-14 (Highlights , Provisions & Analysis)

By: Ankita BhartiRajeev Kumar Manish Ranjan

Budget (2013-14) – At a Glance

• Being the last budget of the current government ;UPA –II, and also before the next upcoming Lok Sabha elections in 2014,this budget is was surely seen as a last trump card to make their vote bank strong and to send some positive vibes in the masses.

• In this budget the government has tried to win hearts of masses with it’s policies but also tried to fill financial gaps through some direct or back door strategies.

• Looking forward we would try to focus on some highlights and provisions made in this budget and try to analyse that where this budget stands.

Budget (2013-14) – Highlights

• The current slabs which were introduced last year are retained and there is no case of revision.

Serial Number Salary Slab Tax Applied

1) Rs. 2,00,000/-

Nil

2) Rs. 2,00,000 -Rs. 5,00,000/-

10 % and the amount by which the total income exceeds Rs. 2,00,000/-

3) Rs. 5,00,000- Rs. 10,00,000/-

30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-


Serial No. Salary Slab Tax Percentage

4) Rs. 10,00,000/- Rs. 1,30,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-.•These are the Normal Rates of tax for the financial year

2012-13 and assessment year 2013-14 but the same slab is maintained for this year as well with minute inclusions of add ons.

• Surcharge of 10% on persons whose taxable income exceeds Rs. 1 crore


• TDS of 1 per cent on land deals over Rs. 50 lakh

• Excise duty on certain SUVs hiked to 30 per cent

• Specific excise duty on cigarettes increased by 18 per cent

• On mobile phones priced at more than Rs. 2000, excise duty hiked to 6 per cent

• Plan expenditure pegged at Rs. 555,322 crore

• Non-plan expenditure pegged at Rs. 11,09,975 crore for 2013-14


• Revised estimate for total expenditure is Rs. 14.3 trillion in 2012/13, which is 96 pct of budget estimate

• Person taking a loan for his first home during the period 2013-14 will be entitled to an additional deduction of Rs. 1 lakh

• Excise rate, service tax rate unchanged

• Import duty on rice bran oilcake withdrawn

• Commodities futures contracts at 0.01 per cent

• No change in basic customs duty rate of ten per cent and service tax rate of 12 per cent

Budget (2013-14) – Provisions

• Tax Administraion Reforms Commission to be set up to review tax laws

• Revised estimate for total expenditure is Rs. 14.3 trillion in 2012/13, which is 96 pct of budget estimate

• 3000 km of road projects to be awarded in the first six months

• Refinancing capacity of SIDBI increased to Rs. 10,000 cr from Rs. 5,000 crore for MSMEs

• Allocation to defense spending up 4.5 per cent at Rs. 2.03 trillion


• Cabinet committee on investment set up to monitor stalled projects and guide decision making

• Govt committed to food security bill. Rs. 10,000 crore set apart for expenditure likely under the Act

• Clean drinking water and sanitation to get Rs. 15,260 crore

• Rs. 1,400 crore to set up water purification plants to fight fluoride affected areas

• Oil and gas policy will be reviewed and changed from a profit-sharing structure to a revenue sharing structure


• Natural gas pricing policy will be reviewed

• NELP projects that were stalled will be cleared

• A PPP policy framework is being devised with Coal India as a partner to provide coal to power producers. The Coal Ministry is working on it.

• Non tax benefits to SME units to remain for 3 years after they outgrow from the category

• SIDBI's refinancing capacity increased to Rs. 10,000 crore


• PSU banks to get Rs. 14,000 capital infusion in FY14

• Proposal to set up India's first women's bank as a PSU bank; initial capital to be Rs. 1,000 crore

• Company investing Rs. 100 crore or more between now and 2015 will be entitled to deduct an investment allowance of 15 per cent in addition to depreciation

• 2 new ports to be set up in West Bengal and Andhra Pradesh

• Insurance companies can open branches in Tier II cities without prior approval of IRDA


• KYC of banks will be sufficient to acquire insurance policies, banks to act as brokers

• The Insurance Law Amendment Bill and the PFRDA Bill are before the House, hope it gets passed in this session, says Chidambaram

• FY13 fiscal deficit estimated at 5.2 per cent; FY14 fiscal deficit estimated at 4.8 per cent

• A proposal to amend the SEBI Act to strengthen the regulator is under consideration, says the Finance Minister


• 10 per cent stake or less will be treated as FII, and stake of more than 10 to be treated as FDI

• Nirbhaya fund set up with an allocation of Rs. 1,000 crore set up to ensure safety and security of women

• FIIs can participate in Exchange Traded Currency Derivatives

• Rs. 6,275 cr allocated to Ministry of Science and Technology; Rs. 5,880 cr to Department of Atomic Energy

• All cities with population of more than 1 lakh to be covered with FM radio services


• 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme

• Rs. 5,87,082 crore to be transferred to states under share of taxes and non-plan grants in 2013-14

• Rs. 532 crore to make post offices part of core banking

• National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs. 250 crore

• Grant of Rs. 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH.


• Direct Taxes Code (DTC) bill to be introduced in current Parliament session

• No change in peak rate of customs duty for non-agriculture products

• Modified GAAR norms to be introduced from April 1, 2016

• Commodities transaction tax levied on non-agriculture

Budget (2013-14)- Analysis

• Instead of spending money on roads , Education, and Power , UPA has been wasting nations resources on these vote catching schemes

Free Loans ..Farm Loan waiver .. 1 lakh crore ?Free Jobs ..NREGA .. 50,000 crore /yearFree food.. Food security bill . 2 lakh crore /yearFree Money.. Direct Cash Transfer .. ? lakhcrore /year

All these schemes for Congress to get votes is to be paid by Middle class , through higher Taxes , higher Interest rates , and higher Fuel/power prices ...


• Food Inflation is a big issue which is intolerance to middle & below middle class people.

• But no clear picture drawn to cut the food inflation.

• Again the middle class salaried person gonna suffered most,with no increase in tax exemption limit, commutation allowances, medical allowances Finance Minister has just shown a mirage of Rs.2000 tax rebate, as what they had taken is much more.

• With manifold increase in prices of almost everything, there is nothing left with common man to save.


• Mr Chidambaram should give more incentives for Exports - which he has failed to do so.

• Higher export earnings are the only way to curb the falling rate of Indian Rupee

business ppt-budget 2013-14 (highlights , provisions & analysis) -an assignment of macro...

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