PC's 8th budget speech: highlights

Talks of constraints, difficult balancing act

PTI / GN Bureau | February 28, 2013



Current year's economic growth rate will be below India's potential growth rate of 8 per cent: Finance Minister P Chidambaram.

Average economic growth rate in 11th Plan period is 8 per cent, highest ever in any Plan period: FM.

Economic space constrains due to high fiscal deficit, lower savings and investment and tight monetary policy: FM.

Current account deficit continues to be high due to excessive dependence on oil, coal and gold imports and slowdown in exports.

India does not have choice between welcoming and spurning foreign investment; it is an imperative: Chidambaram.

Battle against inflation must be fought at all fronts: FM.

Faced with huge fiscal deficit, I have no choice but to rationalise expenditure: FM.

We have brought down headline WPI inflation to 7 per cent and core inflation to 4.2 per cent. Food inflation is worrying: FM.

Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96 per cent of budgeted expenditure.

Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore: FM.

The revised expenditure target is Rs 14,30,825 crore or 96 per cent of Budget estimate for this fiscal. In 2013-14, the budget estimate is Rs 16,65,297 crore.

One overarching goal to provide education and skills to youth for securing jobs in the 2013-14, says FM.

FM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.

Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.

Rs 110 crore to be allocated to the department of disability affairs, says FM.

FIIs will be allowed to participate in exchange traded currency derivatives: FM.

We will evolve schemes for cities to take up waste to energy projects, says FM.

Small and medium companies to be allowed to listed on MSME exchange without making a public offer, says FM.

Low interest rate funds to be provided from Clean Energy Fund for green projects for a period of five years, says FM.

Generation based incentives to wind energy projects reintroduced, Rs 800 crore provided for the purpose to Ministry of New & Renewable Energy.

Constraints will not come in the way for providing additional funds for security of the nation, says FM.

Rs 2,03,672 crore, including Rs 86,741 crore capital expenditure to Defence in 2013-14.

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

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

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

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

'Nirbhaya Fund' of Rs 1,000 crore to empower women and provide safety in the wake of the Delhi gang-rape incident.

11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme: FM.

Plan expenditure pegged at Rs 555,322 crore.

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

Surcharge of 10 per cent for individuals whose taxable income is over Rs 1 crore.

Education cess to continue at 3 per cent.

Contributions made to central and state government health scheme eligible to tax benefit.

Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalised.

Investor Protection Fund set up by depositories will be exempt from tax: FM.

Transactions on immovable properties usually undervalued. TDS of one per cent on value of properties above Rs 50 lakh.

Agriculture land exempted.

Securities Transaction Tax (STT) reduced on equity future, mutual fund.

Fiscal deficit will be 5.2 per cent in current year and 4.8 per cent in the next fiscal.

Will redeem our pledge to reduce fiscal deficit to 3 per cent by 2016-17 and revenue deficit to 1.5 per cent of GDP: FM.

Tax Administration Reform Commission to be set up to regularly review tax law applications.

Don't miss: Will the real Chidambaram please stand up?

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