budget 2013 final

7/27/2019 Budget 2013 Final

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What is budget?

A budget is a financial document used to project futureincome and expenses.

A budget plans future saving and spending as well as plannedincome and expenses.

A budget is drawn up for each financial year and contain

information on the estimated value of sales and value ofcosts.

Different budgets can be created depending on whatparticular aspect of the business requires focus.


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Things That Make The Budget

How much money Govt has ?

Where the money comes from ?

What Govt spends money on ?

Other essentials of budget include:

To control resources

To communicate plans to various responsible ministers

To provide visibility into the countries performance


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Budget types

Sales budget an estimate of future sales, often broken down into both units andcurrency. It is used to create company sales goals. Production budget an estimate of the number of units that must be

manufactured to meet the sales goals. The production budget also estimates thevarious costs involved with manufacturing those units, including labor andmaterial. Created by product oriented companies.

Capital budget - used to determine whether an organization's long term

investments such as new machinery, replacement machinery, new plants, newproducts, and research development projects are worth pursuing. Cash flow/cash budget a prediction of future cash receipts and expenditures for

a particular time period. It usually covers a period in the short term future. Thecash flow budget helps the business determine when income will be sufficient tocover expenses and when the company will need to seek outside financing.

Revenue budget consists of revenue receipts of government and the expenditure

met from these revenues. Tax revenues are made up of taxes and other duties thatthe government levies. Expenditure budget includes spending data items.


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Highlights of BUDGET 2013.

Announced on February 28 every year.

Tax exemption of up to Rs5,000 for health insurance forannual preventive health checkup.

Exemption from interest for saving bank accounts up toRs10,000

All services to be taxed except 17 items listed in the negativelist. Income Tax deduction of 50% on investments of up toRs50,000 in savings scheme named after Rajiv Gandhi.

10000 crores allocated to NABARD to fund RRBs


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Agri credit target for FY12-13 at Rs5.75 lakh crore, up Rs1 lakhcrore

Allocation to National Rural Livelihood Mission for womenincreased by 34%

Credit guarantee fund for loans to students

Current account deficit to be at 3.6%; Expect current accountdefict to decrease next year

Defence Budget hiked by more than 17%


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Economy to grow at 7.6% in 2012/13

Govt to fully provide for food subsidy and food security act in2012-13

New Income Tax Slab:

upto Rs.2 Lakh NIL,Rs.2Lakh to 5Lakh 10%,

Rs.5Lakh to Rs.10Lakh 20%,

Above Rs.10Lakh 30%

New Rajiv Gandhi Equity scheme to allow for 50% deductionto small investors

No change in corporate tax rates


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School education exempt from service tax

Service tax up from 10% to 12%

To introduce new Rajiv Gandhi equity scheme

12% excise duty imposed on branded retail garments The target for non-plan expenditure is set at Rs 11.09 lakh

crore. Expenses like salaries, pension, administrative costs,defence expenses, subsidies are all under non plan

expenditure. A total of Rs 9.7 lakh crore was estimated to bespent under the non-plan expenditure in 2012-13. In the yeargone by, India has spent more than Rs 10 lakh crore.


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Customs

Period of concession available for specified part of electricand hybrid vehicles extended upto 31 March 2015.

Duty on specified machinery for manufacture of leather andleather goods including footwear reduced from 7.5 to 5

percent. Duty on pre-forms precious and semi-precious stones reduced

from 10 to 2 percent.

Export duty on de-oiled rice bran oil cake withdrawn.

Duty of 10 percent on export of unprocessed ilmenite and 5percent on export on ungraded ilmenite.

Concessions to air craft maintenaince, repair and overhaul(MRO) industry.


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Customs

Duty on Set Top Boxes increased from 5 to10 percent.

Duty on raw silk increased from 5 to 15 percent.

Duties on Steam Coal and Bituminous Coal equalised and 2

percent custom duty and 2 percent CVD levied on both kindscoal.

Duty on imported luxury goods such as high end motorvehicles, motor cycles, yachts and similar vessels increased.

Duty free gold limit increased to ` 50,000 in case of malepassenger and `1,00,000 in case of a female passengersubjectto conditions.


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Three promises: Promises made to woman,

youth and poor

Nirbhaya Fund as the first public sector womens bank to be setupto benefit girl child welfare with Government contribution. Thebank will be served by women bankers and address the financialneeds of women citizens.

Youth to be motivated to voluntarily join skill developmentprogrammes as the target here is to motivate1 million youth overthe next year

National Skill Development Corporation to set the curriculum andstandards for training in different skills for youth and and generateemployment so 1000cr has been set apart for this scheme.

To the poor of India, direct benefit transfer scheme will be rolledout throughout the country during the term of theUPA Government with the motive apka paisa aapke sath


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FARMERS

Rs27049cr allocated to the

agricultural ministry includingagricultural credit

Rs200cr allocated to pilotprojects for introducing new

crop varities Loans scheme in which

farmers who repay their loanson time get credit at 4%

SPECIAL GROUPS

Rs41561cr allocated toscheduled caste sub-plan

Rs5284cr for schlorships toscheduled castes, scheduledtribes, other backward classesand girl children

Rs110cr allocated to thedepartment of disablity affairsas against the revised estimateof rs75cr in the current year


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Budget Estimates

Plan expenditure is placed at ` 5,55,322 crore.

Non Plan Expenditure is estimated at ` 11,09,975 crore.

Fiscal deficit for the current year contained at 5.2 percent and for the year 2013-14 at 4.8 per cent.

Revenue deficit for the current year at 3.9 per cent andfor the year 2013-14 at 3.3 per cent.

By 2016-17 fiscal deficit to be brought down to 3 percent, revenue deficit to 1.5 per cent and effectiverevenue deficit tozero per cent.


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Railway budget 2013-14: Highlights

Railway Minister concludes his budget speech

67 new express trains to be introduced; 27 passenger trains.

Operating ratio of 88.8 percent achieved

72 additional suburban services in Mumbai and 18 in Kolkata Railway hopes to end 2013-14 with a balance of Rs 12,506

crore

Rs.100 crore for improving stations in New Delhi

Railways to set up a Debt Service Fund


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Marginal increase in cancellation, reservation charges

No fresh hike in passenger fares

47,000 vacancies for weaker sections and physicallychallenged to be filled up soon

New train Azadi Express to places linked with the freedomstruggle to be introduced, fares to be concessional

There has been significant drop in train accidents

Free wi-fi facility to be provided in select trains Plan to allow e-ticketing via mobile phones

Fire extinguishers to be kept in guard vans


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Internet booking to be provided from 0030 hours to 2330

hours

Internet booking to be strengthened with next-generation e-ticketing system to eliminate delays

Special A/C coaches Anubhuti, to be introduced in selectShatabdi and Rajdhani trains to give excellent ambience withcommensurate fare

Railways will use Aadhar data base for bookings and validationof passengers

SMS alert service being rolled out shortly to intimatepassengers about reservation status


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budget 2013 final

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