budget overview 2013

7/28/2019 BUDGET OVERVIEW 2013

1/19


2/19

THE ECONOMY AND THE

CHALLENGES

Achieving growth rate of 8%

Indian economy : Slowdown :: Global economic : Slowdown

Only China and Indonesia growing faster than India

Between 2004 -11 the growth rate was over8% and crossed

9% in four of those six years

11th Plan period had average growth rate of 8%

Highergrowth inclusive and sustainable development Inclusive development improving human development

indicators specially of women, scheduled castes & tribes,

minorities and backward classes


3/19

FISCAL DEFICIT, CURRENT

ACCOUNT DEFICIT AND INFLATION

Fiscal deficit - 5.3 %of GDP 4.8 % of GDP

Current Account Deficit Foreign investment imperative FII, FDI,

ECB

Development - economically & ecologically sustainable

Battle against inflation

Efforts in the past few months have brought down headline WPI

inflation and core inflation

Food inflation

Faced with huge fiscal deficit, Government expenditure rationalised in

2012-13


4/19

THE PLAN AND BUDGETARY

ALLOCATIONS

Revised Expenditure

96% of Budget Estimates

Opportunities and employment

SC, ST, Women and Children Sub Plans

Rs. 97134 CrWomen

Rs. 77236 Cr - Children

Ministry ofMinority Affairs Maulana Azad Education FoundationRs. 160 Cr

Disabled PersonsRs. 75 Cr


5/19

HEALTH AND EDUCATION

Ministry of Health & Family WelfareRs. 37330 Cr New National Health MissionRs. 21239 Cr

Medical education, training and researchRs. 4727 Cr

National Programme for the Health Care of Elderly Rs. 150 Cr

AYUSH and AIIMS-like institutionsRs. 1069 Cr

Ministry of Human Resource Development Rs. 65867 Cr, SSA and RMSA

ScholarshipsRs.5284 Cr and MDMRs. 13215 Cr


6/19

THE PLAN AND BUDGETARY

ALLOCATIONS contd...

ICDSRs. 17700 Cr

Needs of children

Maternal and child malnutrition

Drinking Water

Rs. 15260 Cr

Water purification plants

Rural Development Rs. 80194 Cr

MGNREGA and PMGSY

PMGSY-II

JNNURMRs. 14873 Cr


7/19

AGRICULTURE

27,049 Cr allocated to Ministry of Agriculture

Increase of 22% over the RE of current year

Total food grain production will be over 250 milliontonnes

Target of agricultural credit kept at Rs 7 lakh Cr

Green revolution to eastern India

Rs 1,000 Cr allocated


8/19

AGRICULTURE

Rs. 500 crore allocated to start a program of crop

diversification

Rashtriya Krishi Vikas YojanaRs. 9,954 crore

National Food Security MissionRs. 2,250 crore

Allocation for integrated watershed programme

increased to Rs. 5,387 crore


9/19

AGRICULTURE

Credit Guarantee Fund to be created with an initial

corpus of Rs. 100 crore

National Livestock Mission to be set up

Provision of Rs. 307 crore

Additional provision of Rs. 10,000 crore for NationalFood Security Act


10/19

INVESTMENT AND INFRASTRUCTURE

Infrastructure Debt funds encouraged

Credit enhancement to Infra companies by IIFCL

Tax free Infrastructure Bonds upto Rs. 50,000 Cr

RGES Scheme will be liberalized

Interest deductions upto Rs. 1 lakh for first homeloan


11/19

INVESTMENT AND INFRASTRUCTURE

RIDF (Rural Infra Development Fund) operated by NABARD

Cabinet Committee on Investment to play important part

Industrial Corridor Development (DMIC, CBIC and BMIC)

Srinagar Leh Power Transmission link worth Rs. 1840 crores

3000 km of Road projects in different states


12/19

INDUSTRY

Coal PPP policy framework to reduce import dependence

Textile industries will benefit from zero excise duties

Doubling the outlay of SIDBI refinance facility for MSMEs

to Rs. 10,000 crore

MSME sector to get Non tax benefits for three more years


13/19

BANKING

Particulars Amount

Allocated

Remarks

Compliance of public

sector banks with Basel III

regulations

14,000 Crore Money provided for

Infusing capital

Proposal to set up Indias

first Womens Bank as a

public sector bank

1000 Crore It will help to increase

women employment and

will open a new banking

horizon for women

Rural Housing Fund in

2013-14

6000 crore

National Housing Bank to

set up Urban Housing Fund

2000 Crore


14/19

INSURANCE

A multi-pronged approach to increase the penetration

of insurance

Various number of proposals finalised, in consultation

with IRDA Rashtriya Swasthya Bima Yojana to be extended to

other categories

A comprehensive social security package to beevolved for unorganised sector


15/19

CAPITAL MARKETS

Proposal to amend the SEBI Act, to strengthen theregulator, under consideration

Proposal finalised in consultation with SEBI

Designated DP may register different classes ofportfolio investors

Simplify the procedures

Small and medium enterprises, to be permitted to list onthe SME exchange

Dedicated debt segment on the exchange

FIIs will be permitted to participate in the exchangetraded currency derivative segment


16/19

OTHER PROSPECTS

Backward Regions Grant Fund

Rs. 12500 crore has been allocated in this budget.

Defence

Increase allocation for defence to Rs. 203672 crores whichincludes Rs. 86741 crores for capital expenditure

Science & Technology

a few S&T innovations are identified

Institutions of Excellence

Rs. 100 crores each to four Universities

Sports

National Institute of Sports Coaching at Patiala at a cost ofRs. 250 crores over a period of 3 years


17/19

OTHER PROSPECTS

Broadcasting Population of more than 1 Lakh will be covered by private FM

radio services

Panchayati Raj

Importance of building capacity Rs. 455 Cr had been allocated and now additional Rs. 200 Cr

Post Offices

Part of core banking solution, offers real time banking services

Rs. 532 Cr has been allocated Central Schemes

Concern about proliferation of CSS & ACA

Restructuring into 70 schemes & reviewed once in two years


18/19

BUDGET ESTIMATES Plan ExpenditureRs. 5,55,322 crores

As a proportion of total expenditure, it will be 33.3 percent

Non Plan ExpenditureRs. 1,09,975 crores

Fiscal deficit for the CY - 5.2 %

Fiscal deficit for the year 2013-14 is estimated at 4.8 %.

Revenue deficit for the CY - 3.9 %

Revenue deficit for the year 2013-14 is estimated at 3.3 %

Aim - to bring down the fiscal deficit to 3%, revenue deficit to

1.5% & effective deficit to 0


19/19

budget overview 2013

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