2. BUDGET
• A budget (from old French bougette, purse) is a
quantified financial plan for a forth coming accounting
period.
• A budget is an organizational plan stated in monetary
terms.
The purpose of budgeting is to:
• Provide a forecast of revenues and expenditures, that
is, construct a model of how a business might perform
financially if certain strategies, events and plans are
carried out.
• Enable the actual financial operation to be measured
against the forecast.
3. BUDGET
• The budget of a government is a summary or plan of
the intended revenues and expenditures of that
government. There are three types of government
budget : the operating or current budget, the capital or
investment budget, and the cash or cash flow budget.
• The budget is prepared by the Budget Division of
Department of Economic Affairs of the Ministry of
Finance annually. This includes supplementary excess
grants and when a proclamation by the President as to
failure of Constitutional machinery is in operation in
relation to a State or a Union Territory, preparation of
the Budget of such State.
4. BORROWING
Gross market borrowing seen at 6.29 trillion
rupees in 2013/14
Net market borrowing seen at 4.84 trillion
rupees in 2013/14
Short-term borrowing seen at 198.44 billion
rupees in 2013/14
To buy back 500 billion rupees worth of bonds
in 2013/14
5. SUBSIDIES
• 2013/14 major subsidies bill estimated at 2.48 trillion
rupees from 1.82 trillion rupees
• Petroleum subsidy seen at 650 billion rupees in
2013/14
• Revised petroleum subsidy for 2012/13 at 968.8 billion
rupees
• Estimated 900 billion rupees spending on food
subsidies in 2013/14
• Revised food subsidies at 850 billion rupees in 2012/13
• Revised 2012/13 fertiliser subsidy at 659.7 billion
rupees
6. GROWTH
• India faces challenge of getting back to its
potential growth rate of 8 point
• India must unhesitatingly embrace growth as
highest goal
7. SPENDING
• Total budget expenditure seen at 16.65 trillion
rupees in 2013/14
• Non-plan expenditure estimated at about 11.1
trillion rupees in 2013/14
• India's 2013/14 plan expenditure seen at 5.55
trillion rupees
• Revised estimate for total expenditure is 14.3
trillion rupees in 2012/13, which is 96 point of
budget estimate
• Set aside 100 billion rupees towards spending on
food subsidies in 2013/14
8. REVENUE
• Expect 133 billion rupees through direct tax
proposals in 2013/14
• Expect 47 billion rupees through indirect tax
proposals in 2013/14
• Target 558.14 billion rupees from stake sales
in state-run firms in 2013/14
• Expect revenue of 408.5 bln rupees from
airwave surcharges, auction of telecom
spectrum, licence fees in 2013/14
9. CURRENT ACCOUNT DEFICIT
• India's greater worry is the current account
deficit - will need more than $75 billion this
year and next year to fund deficit
10. TAX
• Proposes surcharge of 10 point on rich taxpayers with
annual income of more than 10 million rupees a year
• To increase surcharge to 10 point on domestic
companies with annual income of more than 100
million rupees
• For foreign companies, who pay the higher rate of
corporate tax, the surcharge will increase from 2 pct to
5 per cent.
• To continue 15 point tax concession on dividend
received by India companies from foreign units for one
more year
• Propose to impose withholding tax of 20 point on
profit distribution to shareholders
11. TAX
• * Amnesty on service tax non-compliance from 2007
* 10 billion rupees for first installment of balance of
GST (Goods and Services Tax) payment
* Propose to reduce securities transaction tax on
equity futures to 0.01 point from 0.017 point
* Time to introduce commodities transaction tax (CTT)
* CTT on non-agriculture futures contracts at 0.01
point
13. AGRICULTURE
• To allocate 801.94 billion rupees to rural
development in 2013/14
• Plan to allocate 270.49 billion rupees for
agriculture in 2013/14
• About Rs 33,000 crore for MGNREGA.
• Rs 7 lakh crore target fixed for agriculture
credit for 2013-14
14. Highlights
• Leather products get cheaper
• Mobile phones, dinning out, cigarettes, SUVs,
motorbikes, set-up boxes get expensive
• Excise duty on cigarettes raised by 18 per cent
• Mobile Phones, SUVs to get more
expensive: On mobile phones priced at more
than Rs.2000, excise duty hiked to 6%. Excise
duty on SUVs raised from 27% to 30%
15. Highlights
• No change in slabs and rate for personal
income tax.
• A tax credit of Rs. 2000 for every person who
has an annual income of upto Rs. 5 lakh
• Rs. 6,275 crore to ministry of science and
technology, Rs. 5,880 crore to Department of
Atomic Energy
• Tax-free infrastructure bonds of Rs.50,000
crore to be issued
16. Highlights
• Re-financing capacity of SIDBI increased
to Rs. 10,000 crore from Rs. 5,000 crore for
Ministry of Small and Medium Enterprises
• 5 to 10 per cent surcharge on domestic
companies whose taxable income exceeds Rs
10 crore.
• Import duty raised on set-top boxes from 5 to
10 per cent to safeguard interest of domestic
producers.
17. Highlights
• Import duty raised from 75 to 100 per cent on
luxury vehicles.
• Duty free limit on gold raised to Rs 50,000 in
case of male and Rs 100,000 in case of female.
• Duty on mobiles above Rs 2,000 raised from
one to six per cent, based on their maximum
retail prices
• Service tax to be levied on all a/c restaurants
18. Highlights
• Direct tax proposals to yield Rs 13,300 crore,
indirect tax proposal to give Rs 4,700 crore
• Education cess to continue at 3 per cent
• TDS of one per cent on value of properties
above Rs 50 lakh. Agriculture land exempted
• Surcharge of 10 per cent for individuals whose
taxable income is over Rs 1 crore
19. Highlights
• Rs 14,873 crore for JNNURM for urban
transportation in 2013-14 against Rs 7,880
crore in the current fiscal.
20. Hospitality & Tourism
• The allocation for the Ministry this year is Rs
1,297.66 crore while it was Rs 1210 crore in
the Union Budget 2012-13 and Rs 1110.96
crore in 2011-12.
• The budget allocation for plan projects/
schemes for the benefit of North East region
and Sikkim has been hiked from Rs 121 crore
to Rs 129 crore.
21. Hospitality & Tourism
• The allocation under tourist infrastructure is for
construction of budget hotels, wayside amenities,
tourist reception centers, refurbishment of
monuments, special tourism projects, adventure
and sports facilities, sound and light shows,
illuminations of monuments, providing for
improvement in solid waste management and
sewerage management, procurement of
equipments directly related to tourism and rural
tourism projects etc.
22. Hospitality & Tourism
• This provision also relates to large revenue generating
projects, generating revenue through levy of fees or
user charges like tourist trains, cruise vessels, cruise
terminals, convention centre, golf courses etc. and
creation of land bank for hotels to provide hotel
accommodation by purchasing land and build hotels
through public private partnerships.
• The provision also includes Externally Aided Projects
including UNDP Endogenous Tourist Projects and
assistance to central agencies for tourism
infrastructural development.
23. Eating out to become more expensive
• Your happy meal and chicken zinger burger is set to
turn costlier by about 10-12%, with the Finance
Minister levying a service tax of 12.36% on all air-
conditioned restaurants in the country.
• The eating out industry is estimated at Rs 60,000 crore,
with the organised food retail segment valued at over
Rs 8,000 crore. The industry has been clocking growth
of 20-25% a year, but the last two quarters have seen
growth slowing down on account of cautious consumer
sentiment.
Till now, a service tax of 4.9% was levied