PRINTED AT BUDGET PRESS, MINISTRY OF FINANCE, NEW DELHI

2013-2014

Outlays for Outcomes+ÉlÉÇàÉÚãÉÆ BÉEɪÉÇàÉÂ

Ministry of FinanceGovernment of India

Outcome Budget

OU

TCOM

E BUD

GET 2013-14

MIN

ISTRY OF FIN

AN

CE

(i) Executive SummaryOutcome Budget 2011-2012

CONTENTS

Page No.

PREFACE (i)

EXECUTIVE SUMMARY (iii)-(xiii)

DEMAND NO. 33 - DEPARTMENT OF ECONOMIC AFFAIRS 1-27

DEMAND NO. 34 - DEPARTMENT OF FINANCIAL SERVICES 29-66

DEMAND NO. 39 - DEPARTMENT OF EXPENDITURE 67-78

DEMAND NO. 42 - DEPARTMENT OF REVENUE 79-107

DEMAND NO. 43 - DIRECT TAXES 109-143

DEMAND NO. 44 - INDIRECT TAXES 145-191

DEMAND NO. 45 - DEPARTMENT OF DISINVESTMENT 193-200

(ii)Outcome Budget 2011-2012 Executive Summary

The "Outcome Budget" reflects the endeavour of theGovernment to convert "Outlays" into "Outcomes" by planningexpenditure, fixing appropriate targets and quantifying deliverablesof each scheme. The "Outcome Budget" is an effort of the Governmentto be transparent and accountable to the people.

In addition to an Executive Summary, the Outcome Budget 2013-14contains seven separate sections relating to seven Demands underMinistry of Finance for which the Outcome Budget is to be prepared.These are Economic Affairs, Financial Services, Expenditure, Revenue,Direct Taxes, Indirect Taxes and Disinvestment. Each section discussesthe statement of outlays and outcomes; reform measures; policy initiativesand programmes initiated; review of past performance; financial reviewfor three years and a review of the performance of statutory andautonomous bodies.

PREFACE

(i)

(iii) Executive SummaryOutcome Budget 2013-2014

The Ministry of Finance is responsible for the administrationof the finances of the Central Government. It is concerned witheconomic and financial matters affecting the country as a whole.It mobilizes resources for development, regulates expenditureof the Central Government and deals with transfer of resourcesto States. It works with other Ministries/Departments, States/UTs, Reserve Bank of India, Public Financial Institutions andother stake holders for evolving policies for economicdevelopment, setting priorities for expenditure, seekingParliamentary approval to the Budget and ensuring propriety inutilisation of funds. The Ministry has strategic associations withmultilateral agencies and foreign Governments. The Ministryadministers the following thirteen Demands.

DEMAND DEPARTMENTNO.

33 Department of Economic Affairs

34 Department of Financial Services

35 Appropriation - Interest Payments

36 Transfers to State and Union Territory Governments

37 Loans to Government Servants, etc.

38 Appropriation - Repayment of Debt

39 Department of Expenditure

40 Pensions

41 Indian Audit and Accounts Department

42 Department of Revenue

43 Direct Taxes

44 Indirect Taxes

45 Department of Disinvestment

Six Demands viz; 35 - Interest Payments, 36 - Transfers toState and Union Territory Governments, 37 - Loans toGovernment Servants, etc., 38 - Repayment of Debt, 40 - Pensionsand 41 – Indian Audit and Accounts Department are specificallyexempted from the purview of outcome budgeting. Summary ofBudgetary Provisions for all 13 Demands under the Ministry isprovided in the Annexure to this Executive Summary.

A brief summary of the Outcome Budget 2013-14 of theMinistry is presented below:

Demand No. 33- Department of Economic Affairs

The Department of Economic Affairs is the nodal Departmentof the Union Government which formulates country’s economic

MINISTRY OF FINANCE

EXECUTIVE SUMMARY

policies and programmes having a bearing on domestic andinternational aspects of economic management. This Departmentprepares the Annual Union Budget (excluding the RailwayBudget) and the Economic Survey. Some key activities andprogrammes are mentioned below:-

Ø Contribution for Railway Safety Works (` 1102.45 crore)against additional levies on Motor Spirit & High SpeedDiesel (Plan) - Under this scheme during 2013–14,Ministry of Railways have targeted to strengthen the safetyat busy level crossing by proposing to construct 1000Road under bridges /subways and 225 Road over bridges.

Ø The Scheme for Financial Support to PPPs in Infrastructureprovides Viability Gap Funding (VGF) to PPP projects upto 20 per cent of the Total Project Cost (TPC) of the project.So far 145 projects have been granted approval with TotalProject Cost (TPC) of ` 80203.28 crore and VGF supportof `15672.68 crore. However, the actual level of VGFamount of these proposals will be known once the biddingprocess is completed. The financial closure has beenachieved for 45 projects. 14 projects in Madhya Pradeshand Gujarat have been awarded on premium where no VGFsupport will be required. An amount of 902.96 crore hasbeen disbursed till December, 2012 under the VGFScheme. A budget provision of ` 678.00 crore has beenmade in the BE 2013-14 based on sponsoring Authorityrequirements and the number of projects already grantedfinal approval.

Ø The India Infrastructure Project Development Fund(IIPDF) Scheme assists up to 75 per cent of the totalProject Development expenses of PPP projects. So far,49 projects have been approved with an IIPDF assistanceof `60.06 crore. ` 1.32 crore, ` 7.55 crore, `7.00 croreand `7.00 crore has been disbursed under the Scheme in2008-09, 2009-10, 2010-11 and 2011-12 respectively.Around ` 1.76 crore has been disbursed during 2012-13,up to December, 2012.

Ø A provision of `290.00 crore has been made for InterestEqualization Support to Exim Bank of India during 2013-14. The scheme was started in 2003-04. During the periodof 7 years, 137 Government of India supported lines ofcredit through Exim Bank of India involving collectiveamount of credit of US $ 6414.97 million have beenapproved. These lines of credit have been extended to 57developing countries situated in different continents of theworld. We have disbursed Interest Equalization Supportto Exim Bank of India amounting to ` 127.70 crore,`139.48 crore, and 145.97 crore in 2010-11, 2011-12 and2012-13 (up-to December, 2012) respectively.

OUTCOME BUDGET 2013-14

(iii)

(iv)Outcome Budget 2013-2014 Executive Summary

Demand No. 34- Department of Financial Services

The Department of Financial Services is responsible forissues relating to Public Sector Banks, Financial Institutions,Agricultural Credit, Public Sector Insurance Companies andPension Reforms. The key activities are summarized below:-

Ø `14588 crore was provided for capitalization of PublicSector Banks (PSBs) in BE 2012-13 to enable the PSBsto maintain their Capital to Risk Weighted Asset Ratio(CRAR) at comfortable level and to ensure that they remaincompliant with capital adequacy norms under BASEL-III.Having considered the requirement, the provision wasreduced to `12517 crore in RE 2012-13. A provision of`14000 crore is proposed for recapitalisation of PSBs in2013-14.

Ø Under the scheme of Interest Subvention for providingShort Term Credit to Farmers, the provision of 6000 crorein BE 2012-13 was reduced to `5400 crore in RE 2012-13. `4377.99 crore was released upto December, 2012.There is a provision of 6000 crore for this scheme during2013-14.

Ø Government provides equity support to Export Import(EXIM) Bank of India and India Infrastructure FinanceCo. Ltd. (IIFCL) to raise their paid up capital within theirauthorized capital. Entire provision of 200 crore for EXIMBank and `400 crore for IIFCL has been released during2012-13. Provision of `700 crore for EXIM Bank and`400 crore for IIFCL is proposed in BE 2013-14.

Ø `500 crore provided in BE 2012-13 towards capital supportto NABARD was raised to `1000 crore in RE 2012-13.`500 crore was released up to December, 2012. Furtherprovision of `700 crore is proposed in BE 2013-14

Ø `200 crore was provided for recapitalization of RegionalRural Banks (RRBs) in BE 2012-13 which was raised to`535 crore in RE 2012-13 keeping in view theproportionate share released by concerned StateGovernment and sponsor banks. `200 crore was releasedupto December, 2012. A further provision of `88 crore isproposed in BE 2013-14 for this purpose.

Ø To encourage people from unorganized sector to save fortheir retirement by enrolling under New Pension System(NPS) ‘Swavalamban Scheme’ was launched during 2010-11 with provision of Government’s contribution of 1000in the NPS account of the subscribers. A provision of` 220 crore for this scheme in BE 2012-13 was reduced to`128 crore in RE 2012-13 keeping in view the pace ofenrolment under the scheme. A further provision of 170crore is proposed for this Scheme in BE 2013-14.

Ø Provision of `400 crore in BE 2012-13 towards 1% interestsubsidy for Housing Loan through NHB was raised to 500crore in RE 2012-13. 200 crore was released to NHB upto December, 2012. Further provision of `200 crore isproposed in BE 2013-14.

Demand No.39 – Department of Expenditure

The Department of Expenditure is responsible for PublicExpenditure Management System in the Union Government andfor matters connected with State finances. It oversees theexpenditure management in the Central Ministries / Departmentsand monitors implementation of recommendations of theExpenditure Reforms Commission. It coordinates the OutcomeBudget of different Ministries/Departments, releases funds toState Governments for implementing developmental work andmonitors matters relating to the Central Plan. Key activities aresummarized below:

Ø Releases for schemes on the Plan side are made on therecommendation of the Planning Commission/nodalMinistry concerned. The important flagship schemes forwhich funds are being provided under the Plan head in2012-13 include Accelerated Irr igation BenefitsProgramme (AIBP), Jawaharlal Nehru National UrbanRenewal Mission (JNNURM), National Social AssistanceProgramme (NSAP), Border Area DevelopmentProgramme, Hill Area/Western Ghats DevelopmentProgramme, National e-Governance Programme,Backward Regions Grant Fund Scheme etc. Against ano u t l a y o f ` 99543.00 crore in BE 2012-13 for CentralAssistance to State Plans in Demand No.36 of Departmentof Expenditure, ` 53099.335 crore has been released ason 31.12.2012.

Ø An outlay of 4.00 crore under Revenue Section has beenprovided in 2013-14 for the Central Plan Scheme forenhancing training capacity of National Institute ofFinancial Management (NIFM). Out of this, the provisionof `3.00 crore is targeted to train 60 officers of the Central/State/UT Governments for high level professional coursecovering basic elements Post Graduate Diploma inBusiness Management (PGDBM) – Finance. In the year2012-13, 47 candidates were sponsored from variousCentral/State/UT Govts. The provision of 1.00 crore underRevenue Section is for providing one year trainingprogramme to 20 officers of Central / State / UTGovernments in Post Graduate Programme in FinancialMarkets, in collaboration with National Stock Exchange.

Demand No. 42 – Department of Revenue

Ø Under Demand No.42 – Department of Revenue, majorexpenditure is towards Compensation to States/UnionTerritory Governments on account of phasing out ofCentral Sales Tax (CST) which is budgeted at 9300 crorefor 2013-14. The second major expenditure is towardsGovt. Opium & Alkaloid Works (GOAWs), which isbudgeted at `260.14 crore. VAT/VAT related expenditureis budgeted at 132 crore for 2013-14. The other non-Planexpenditure included in the Outcome Budget is expenditurerelated to setting up of Tax Information Exchange System(TINXSYS) and Special Purpose Vehicle for Goods andServices Tax Network (GSTN).

(v) Executive SummaryOutcome Budget 2013-2014

Ø The successful implementation of VAT in all States hasbeen an achievement. So far, VAT Compensationamounting to `19002.82 crore has been released to theStates and claims of all the States have been settled.

Ø CST rate has been reduced from 4% to 3% w.e.f. 1st April,2007 and further from 3% to 2% w.e.f. 1.6.2008.Compensation amounting to ` 30860.42 crore has beenreleased to the States which includes ` 2168.88 crorereleased in 2007-08, `1950 crore in 2008-09, ` 8735.18crore in 2009-10, `13833.78 crore in 2010-11 and` 4172.58 crore in 2011-12.

Ø The Mission Mode Project for Computerization ofCommercial Taxes Administrations of the StateGovernment with overall cost of `1133.41 crore has beenapproved and an amount of `501.94 crore released asCentral share till 31st December 2012, which includes 145crore released in 2009-10, `206.32 crore in 2010-11 and`102.83 crore in 2011-12 and 47.79 crore in 2012-13 (tillDecember, 2012).

Ø Government has decided to set up a Special PurposeVehicle (SPV) for Goods and Service Tax Network(GSTN) to create enabling environment for smoothintroduction of GST. It will provide IT infrastructure andservices to various stakeholders, including the Centre andStates. A budget provision of `100 crore has been kept in2013-14 for GSTN: SPV.

Ø Government Opium & Alkaloid Works at Ghazipur andNeemuch are processing raw opium for exports,manufacturing of opium alkaloids and other relatedfunctions. They realized revenue of 383.54 crore in 2011-12 against the BE of `312 crore. In 2012-13, they haverealized a revenue of `265.79 crore (till December 2012)against the BE of `366.73 crore.

Ø The Smart Card Project for Poppy Cultivators has beenexpanded in 2007-08 to cover all 17 Opium Divisions.The project once fully and successfully implemented willenable monitoring of various cultivation activities andwould also be useful for policy level decisions.

Ø A system of monthly report by Administrative andCoordinating Units of respective items under OutcomeBudget has been introduced. Monthly and Quarterlyreview of trends of expenditure and progress underOutcome Budget is done at the Department/Ministry level.Project Monitoring/ Implementation Committee have beenestablished to review the implementation of major projectitems. For coordinated efforts and faster decision makingin massive computerization endeavours of CBDT andCBEC, an Empowered Committee is also functional whereeminent experts from Private Sector are also members.

Demand No. 43 – Direct Taxes

The Central Board of Direct Taxes (CBDT) is the apex bodyentrusted with the responsibility of administering direct tax laws

in India. The CBDT is also assisted by 17 Directorates whichfunction as its attached offices. Various Chief Commissioners ofIncome Tax supervise collection of direct taxes and providetaxpayers services across the country whereas Directors Generalof Income Tax (Investigation) supervise the investigationmachinery, with the aim to curb tax evasion and unearthunaccounted money. There are also appellate machineriescomprising of Commissioners of Income Tax (Appeals) whoperform the quasi-judicial task of deciding appeals against ordersof assisting officers. The key activities are summarized below:

Ø An outlay of ` 421.00 crore has been provided in BudgetEstimates 2013-14 under ‘Information Technology’ to bespent, inter alia, on following major programmes/schemes:

� Perspective Plan for Phase-III of ComprehensiveComputerisation Programme in the Income TaxDepartment-

- System Integration

- All India Tax network

- Hiring of Data Centers

- Physical Storage of arrear Pan forms of period2003-09.

- Scanning of arrear Pan forms of period2003-09.

� Tax Information Network (TIN)

� Taxpayers Services

� Aaykar Sampark Kendras

� e-filing of ITRs

� e-Payment of taxes

� on-line tracking of refunds

� Refund Banker

� Centralised Processing Cell(CPC)TDS

- (both paper based & e-filed)

� Centralized Processing Centre(CPC) Banglore.

� Data Warehouse and Business Intelligence(DW&BI)Solution

� New ITD Application.

Ø An outlay of 546.98 crore has been provided under Capitalsection in BE 2013-14 for purchase/construction of officeaccommodation at various places including completion ofacquisition of office space in MCD Civic Centre, NBCCPlaza, Saket at Delhi and Bhopal, construction of anadvanced training centre at National Academy of DirectTaxes, Nagpur, construction of office buildings at Noida,Firozabad, Bangalore, Srinagar, Nariman Point, Mumbai,Pune, Surat, Navasari and Daman, construction of RTI

(vi)Outcome Budget 2013-2014 Executive Summary

building at Mohali, construction of office cum residentialbuildings at Lucknow, Srinagar and Shahjahanpur,construction of guest house at Golf Links, New Delhi andPurchase of Land at Belgaom, Ahmedabad, Bangalore,Erode and Kochi.

Ø An outlay of 41.00 crore has been provided under Capitalsection in BE 2013-14 for construction of residentialquarters at Hadapsar, Jammu, Chennai and Surat and forup-gradation of quarters at Bhopal

Ø The initiatives and measures undertaken by the Departmenthas focused on simplification of tax laws and procedures,better facilities to taxpayers and minimizing the humaninterface between the taxpayers and the officials. These,inter alia, include facilities for online preparation and filingof Income Tax Returns, centralized processing of returns,Refund Banker scheme which includes direct credit ofrefunds to taxpayer’s account through ECS, e-payment oftaxes, on-line tracking of refunds, Tax Return PreparerScheme (TRPS), setting up of 60 Aaykar Sewa Kendrasfor single window Tax Payer Services, Aaykar SamparkKendras (call centres) etc. Also a “Sevottam’ scheme withthe view to bring in excellence in public service deliverybased on a newly rewritten Citizens’ Charter has beeninitiated.

Ø The Directorate of Infrastructure of the Income TaxDepartment has put in place a mechanism for preparationand monitoring of Asset Register containing the assets likeland, office buildings, residential quarters, vehicles andfurniture etc. whose book value is above `2.00 lakh each.The value of such assets as on 31.03.2012 is `4854.33crore.

Ø The actual expenditure in 2011-12 under this grant was`3239.85 crore against the Revised Estimates of 3315.78crore which shows an utilisation of 97.71%. In FY 2012-13, actual expenditure till Dec 31, 2012 stands at 2487.08crore against the Revised Estimates of `3735.51 crorewhich shows an utilization of 66.58 %.

Demand No.44 - Indirect Taxes

This demand relates to the establishment of field formationsunder the Central Board of Excise and Customs, formulation ofpolicy relating to levy and collection of customs and ExciseDuties, Service Tax, prevention of smuggling and evasion ofduties. Key activities are mentioned below:

Ø The revised cost of `598.97 crore for the InformationTechnology Infrastructure Consolidation Project of CBECwas approved by the CCEA and the project is underimplementation. Comprehensive computerizationcomprising of setting up of Wide Area/Local Area Networklinking all Offices, Seaports, Airports, Container Depots,setting up of Data Warehouse, Automation of CentralExcise and Service Tax, setting up of Risk ManagementSystems for easy clearance of imports etc. was taken up.Contracts for implementation of various components ofthe Project were awarded to the vendors. Most of the

components have almost been completed. `84.46 crore,`167.17 crore, `186.41 crore, `145.58 crore and ` 144.31have been spent for the years 2007-08, 2008-09 2009-10,2010-11 and 2011-12 respectively. During 2012-13, 77.21crore have been spent up December, 2012.

Ø The Risk Management System (RMS) is operational in allmajor Customs Ports/ Airports covering more than 95%of India’s international trade. A new upgraded version ofRMS is operational at 69 locations.

Ø Procurement of 7 more Container Scanners (3 MobileGamma Ray Scanners and 4 Fixed X-ray Scanners) forfacilitating cargo clearance is underway. Mobile and FixedScanners are expected to be commissioned in 2013-14.109 Marine Vessels for strengthening anti-smugglingoperations in the territorial waters have been procured. Atotal provision of `100.00 crores has been made for theyear 2013-14. `27.42 crore, `99.88 crore, `78.64 crore,`33.20 crore and `46.52 have been spent for the years2007-08, 2008-09, 2009-10, 2010-11 and 2011-12respectively under these schemes. During 2012-13, 1.44crore have been spent up December, 2012.

Ø Single Window Service for Large Tax Payers paying exciseduty, income tax/corporate tax and service tax has beenset up at Bengaluru, Chennai, Mumbai and Delhi. Anyperson or company who has paid income tax/corporate taxof more than 10 crore or excise duty of 5 crore or servicetax of `5 crore during any previous year can opt to functionas large taxpayer by giving consent to the concerned LargeTaxpayer Unit.

Ø In pursuance to Department of Expenditure’s guidelines/instructions on expenditure management permittingrevenue generating departments to prepare scheme toutilize 1% of incremental revenue to encourage greaterefforts at garnering revenue, enhancing organizationalefficiency, infrastructure and wherewithal, CBEC hassanctioned/allocated `160.44 crores upto 31.01.2013 forvarious purposes such as Capacity building/improvementof infrastructure in Central Excise and Customs Ranges,hiring of vehicles for increasing organisational efficiencyand outdoor preventive activities etc.

Demand No. 45 – Department of Disinvestment

Mandate

Department of Disinvestment is mainly responsible fordisinvestment of Government shareholding in CPSEs.Additionally, it deals with all matters relating to sale of CentralGovernment equity through offer for sale or private placementin erstwhile CPSEs.

Approach

Presently, the following approach has been adopted fordisinvestment:

i. Already listed profitable Central Public Sector Enterprises(CPSEs) not meeting the mandatory public shareholding

(vii) Executive SummaryOutcome Budget 2013-2014

of 10% are to be made compliant by public offering out ofGovernment shareholding or issue of fresh equity by theCPSEs concerned or a combination of both;

ii. All unlisted CPSEs having positive net worth, noaccumulated losses and having earned net profit for threepreceding consecutive years, are to be listed through publicofferings out of Government shareholding or issue of freshequity by the company or a combination of both;

iii. Further public offerings by listed CPSEs taking intoconsideration their capital investment requirements withGovernment of India simultaneously or independentlyoffering a portion of its shareholding in such CPSEs.

iv. All cases of disinvestment are to be decided on a case bycase basis as each CPSE has different equity structure,financial strength, fund requirement, sector of operation,etc., factors that will not permit a uniform pattern.

v. Government retains at least 51 per cent equity andmanagement control in all cases of disinvestment throughpublic offerings.

Benefits of disinvestment –

(i) Disinvestment and listing of CPSEs on stock exchangestakes the economic reform agenda forward and inter alia,

Ø Improves corporate governance

� Higher disclosure levels as mandated by SEBI/stockexchanges and under Company Law bring in greatertransparency and answerability. The oversight mechanismtherefore becomes robust and multilayered.

� Enhanced corporate governance with the induction ofindependent Directors.

� Higher levels of investor focused scrutiny and researchdemand adherence to professional conduct of businessresulting in improved corporate culture.

� The company will be subject to market discipline that helpsimprove the working culture both at the managerial levelas well as at the shop floor level. Day to day variations intrading price not only benchmarks the performance butalso signifies the impact of everyday events.

Ø Develops and deepens the capital market throughspread of equity culture

� The process of listing of CPSEs on stock exchangesfacilitates development and deepening of capital marketand spread of equity culture.

� Resources locked in sectors developed enough to raisemoney from the market are channelized into areas ofeconomy that are less likely to access resources from themarket because of their stage of economic development.

� When more resources are used for infrastructuredevelopment, it creates jobs for large number of

unemployed and simultaneously provides platform forhigher economic growth.

(i) This also creates fiscal space for relocation of resourceslocked in CPSEs.

Ø Unlocks true value of the Enterprises for allstakeholders, namely, investors, employees of the CPSEconcerned, the Company and the Government

� Consequent to listing, the CPSEs will be able to approachthe capital market to raise resources for their capitalexpenditure requirements as is the case among privatecompanies. Thus, the dependence on Government fundingwill be reduced.

(ii) Raise budgetary resources for the Government.

Utilization of Disinvestment proceeds

� The resources mobilized through disinvestment arechannelized into the `National Investment Fund’ (NIF).The income of the fund is used to finance social sectorschemes which promote education, health and employmentand also to meet the capital investment requirements ofprofitable and revivable CPSEs to finance their expansion/diversification.

� However, in view of the difficult economic situation causedby the global slowdown of 2008-09 and a severe droughtthat was likely to adversely affect the 11th Plan growthperformance, the Government in November, 2009 decidedthat all proceeds from disinvestment of CPSEs will beutilized in full to meet capital expenditure requirementsof social sector schemes decided by Planning Commission/Department of Expenditure. This one time exemption fromdepositing the proceeds into NIF which was for a threeyear period 1 April, 2009 to 31 March 2012, was furtherextended for one more year till 31 March 2013.

Thus, from April 2009 onwards, till date the disinvestmentproceeds are being used in full for funding capital expenditureof the following social sector programmes of the Government,namely:-

(i) Mahatma Gandhi National Rural Employment GuaranteeScheme

(ii) Indira Awas Yojana

(iii) Rajiv Gandhi Gramin Vidyutikaran Yojana

(iv) Jawaharlal Nehru National Urban Renewal Mission

(v) Accelerated Irrigation Benefits Programme

(vi) Accelerated Power Development and Reform Programme

Budget target

The budgetary target for disinvestment for 2012-13 is `30,000crore. The Government has, till December, 2012, realized anamount of `6905.20 crore from disinvestment in NationalBuilding Construction Corporation Ltd., Hindustan Copperlimited and National Mineral Development Corporation.

(ix) Executive Summary

Des

crip

tion

Act

uals

201

1-20

12 B

udge

t E

stim

ates

201

2-20

13R

evis

ed E

stim

ates

201

2-20

13B

udge

t E

stim

ates

201

3-20

14Pl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

l

Outcome Budget 2013-2014

Des

crip

tion

Act

uals

201

1-20

12 B

udge

t E

stim

ates

201

2-20

13R

evis

ed E

stim

ates

201

2-20

13B

udge

t E

stim

ates

201

3-20

14Pl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

l

SUM

MA

RY

OF

BU

DG

ETA

RY

PR

OV

ISIO

NS

UN

DE

R M

INIS

TR

Y O

F FI

NA

NC

E

Ann

exur

e

(In

Cror

es o

f Rup

ees)

DE

MA

ND

NO

. 33

DE

PA

RT

ME

NT

OF

EC

ON

OM

IC A

FF

AIR

S

Tot

al-R

even

ue S

ecti

on36

85.5

834

00.1

970

85.7

747

04.9

043

76.4

590

81.3

538

24.9

039

12.0

477

36.9

444

64.4

544

00.6

788

65.1

2C

harg

ed...

......

......

......

......

......

...

Vot

ed36

85.5

834

00.1

970

85.7

747

04.9

043

76.4

590

81.3

538

24.9

039

12.0

477

36.9

444

64.4

544

00.6

788

65.1

2

Tot

al-C

apit

al S

ecti

on30

0.00

1350

5.68

1380

5.68

437.

5558

523.

5358

961.

0843

7.55

1678

2.84

1722

0.39

678.

0065

730.

8966

408.

89C

harg

ed...

......

......

......

......

......

...

Vot

ed30

0.00

1350

5.68

1380

5.68

437.

5558

523.

5358

961.

0843

7.55

1678

2.84

1722

0.39

678.

0065

730.

8966

408.

89

Tot

al (

Rev

enue

&C

apita

l)39

85.5

816

905.

8720

891.

4551

42.4

562

899.

9868

042.

4342

62.4

520

694.

8824

957.

3351

42.4

570

131.

5675

274.

01C

harg

ed...

......

......

......

......

......

...

Vot

ed39

85.5

816

905.

8720

891.

4551

42.4

562

899.

9868

042.

4342

62.4

520

694.

8824

957.

3351

42.4

570

131.

5675

274.

01

Tot

al-R

even

ue S

ecti

on20

0.00

6311

.61

6511

.61

200.

0083

35.2

385

35.2

3...

7459

.42

7459

.42

200.

0072

68.9

974

68.9

9C

harg

ed...

......

......

......

......

......

...

Vot

ed20

0.00

6311

.61

6511

.61

200.

0083

35.2

385

35.2

3...

7459

.42

7459

.42

200.

0072

68.9

974

68.9

9

Tot

al-C

apit

al S

ecti

on14

297.

4314

.00

1431

1.43

1588

8.00

14.0

115

902.

0114

652.

001.

0014

653.

0029

888.

0012

.40

2990

0.40

Cha

rged

......

......

......

......

......

......

Vot

ed14

297.

4314

.00

1431

1.43

1588

8.00

14.0

115

902.

0114

652.

001.

0014

653.

0029

888.

0012

.40

2990

0.40

Tot

al (

Rev

enue

& C

apita

l)14

497.

4363

25.6

120

823.

0416

088.

0083

49.2

424

437.

2414

652.

0074

60.4

222

112.

4230

088.

0072

81.3

937

369.

39C

harg

ed...

......

......

......

......

......

...

Vot

ed14

497.

4363

25.6

120

823.

0416

088.

0083

49.2

424

437.

2414

652.

0074

60.4

222

112.

4230

088.

0072

81.3

937

369.

39

Tot

al-R

even

ue S

ecti

on...

2871

82.1

828

7182

.18

...32

4769

.43

3247

69.4

3...

3339

97.4

933

3997

.49

...38

5000

.46

3850

00.4

6

Cha

rged

...28

7182

.18

2871

82.1

8...

3247

69.4

332

4769

.43

...33

3997

.49

3339

97.4

9...

3850

00.4

638

5000

.46

Vot

ed...

......

......

......

......

......

...

Tot

al-C

apit

al S

ecti

on...

......

......

......

......

......

...C

harg

ed...

......

......

......

......

......

...

Vot

ed...

......

......

......

......

......

...

Tot

al (

Rev

enue

& C

apita

l)...

2871

82.1

828

7182

.18

...32

4769

.43

3247

69.4

3...

3339

97.4

933

3997

.49

...38

5000

.46

3850

00.4

6C

harg

ed...

2871

82.1

828

7182

.18

...32

4769

.43

3247

69.4

3...

3339

97.0

033

3997

.00

...38

5000

.46

3850

00.4

6

Vot

ed...

......

......

......

......

......

...

DE

MA

ND

NO

. 34

DE

PA

RT

ME

NT

OF

FIN

AN

CIA

L S

ER

VIC

ES

AP

PR

OP

RIA

TIO

N N

O. 3

5IN

TE

RE

ST P

AY

ME

NT

S

Des

crip

tion

Act

uals

201

1-20

12 B

udge

t E

stim

ates

201

2-20

13R

evis

ed E

stim

ates

201

2-20

13B

udge

t E

stim

ates

201

3-20

14Pl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

l

(x)Outcome Budget 2013-2014 Executive Summary

DE

MA

ND

NO

. 36

TR

AN

SFE

RS

TO

ST

AT

E A

ND

UN

ION

TE

RR

ITO

RY

GO

VE

RN

ME

NT

S

Tot

al-R

even

ue S

ecti

on74

056.

9152

842.

5912

6899

.50

9590

8.00

6802

2.46

1639

30.4

680

435.

0064

420.

3514

4855

.35

9195

7.00

7205

9.40

1640

16.4

0C

harg

ed...

4397

2.67

4397

2.67

...58

357.

4658

357.

46...

5503

1.80

5503

1.80

...62

134.

4062

134.

40

Vot

ed74

056.

9188

69.9

282

926.

8395

908.

0096

65.0

010

5573

.00

8043

5.00

9388

.55

8982

3.55

9195

7.00

9925

.00

1018

82.0

0

Tot

al-C

apit

al S

ecti

on99

95.3

5...

9995

.35

1100

0.00

1000

.00

1200

0.00

1100

0.00

1000

.00

1200

0.00

1100

0.00

1000

.00

1200

0.00

Cha

rged

9995

.35

...99

95.3

511

000.

0010

00.0

012

000.

0011

000.

0010

00.0

012

000.

0011

000.

0010

00.0

012

000.

00

Vot

ed...

......

......

......

......

......

...

Tot

al (

Rev

enue

& C

apita

l)84

052.

2652

842.

5913

6894

.85

1069

08.0

069

022.

4617

5930

.46

9143

5.00

6542

0.35

1568

55.3

510

2957

.00

7305

9.40

1760

16.4

0C

harg

ed99

95.3

543

972.

6753

968.

0211

000.

0059

357.

4670

357.

4610

000.

0056

031.

8066

031.

8010

000.

0063

134.

4073

134.

40

Vot

ed74

056.

9188

69.9

282

926.

8395

908.

0096

65.0

010

5573

.00

8043

5.00

9388

.55

8982

3.55

9195

7.00

9925

.00

1018

82.0

0

Tot

al-R

even

ue S

ecti

on...

......

......

......

......

......

...C

harg

ed...

......

......

......

......

......

...

Vot

ed...

......

......

......

......

......

...

Tot

al-C

apit

al S

ecti

on...

212.

6821

2.68

...25

0.00

250.

00...

235.

0023

5.00

...22

5.00

225.

00C

harg

ed...

......

......

......

......

......

...

Vot

ed...

212.

6821

2.68

...25

0.00

250.

00...

235.

0023

5.00

...22

5.00

225.

00

Tot

al (

Rev

enue

& C

apita

l)...

212.

6821

2.68

...25

0.00

250.

00...

235.

0023

5.00

...22

5.00

225.

00C

harg

ed...

......

......

......

......

......

...

Vot

ed...

212.

6821

2.68

...25

0.00

250.

00...

235.

0023

5.00

...22

5.00

225.

00

Tot

al-R

even

ue S

ecti

on...

......

......

......

......

......

...C

harg

ed...

......

......

......

......

......

...

Vot

ed...

......

......

......

......

......

...

Tot

al-C

apit

al S

ecti

on...

3495

928.

7034

9592

8.70

...37

8607

4.35

3786

074.

35...

3301

906.

0033

0190

6.00

...40

1424

8.55

4014

248.

55C

harg

ed...

3495

928.

7034

9592

8.70

...37

8607

4.35

3786

074.

35...

3301

906.

0033

0190

6.00

...40

1424

8.55

4014

248.

55

Vot

ed...

......

......

......

......

......

...

Tot

al (

Rev

enue

& C

apita

l)...

3495

928.

7034

9592

8.70

...37

8607

4.35

3786

074.

35...

3301

906.

0033

0190

6.00

...40

1424

8.55

4014

248.

55C

harg

ed...

3495

928.

7034

9592

8.70

...37

8607

4.35

3786

074.

35...

3301

906.

0033

0190

6.00

...40

1424

8.55

4014

248.

55

Vot

ed...

......

......

......

......

......

...

DE

MA

ND

NO

. 37

LO

AN

S T

O G

OV

ER

NM

EN

T S

ER

VA

NT

S E

TC

.

AP

PR

OP

RIA

TIO

N N

O. 3

8R

EP

AY

ME

NT

OF

DE

BT

(xi) Executive Summary

Des

crip

tion

Act

uals

201

1-20

12 B

udge

t E

stim

ates

201

2-20

13R

evis

ed E

stim

ates

201

2-20

13B

udge

t E

stim

ates

201

3-20

14Pl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

l

Outcome Budget 2013-2014

DE

MA

ND

NO

. 39

DE

PA

RT

ME

NT

OF

EX

PE

ND

ITU

RE

Tot

al-R

even

ue S

ecti

on2.

4511

5.25

117.

704.

0013

1.25

135.

252.

8812

1.97

124.

854.

0013

6.12

140.

12C

harg

ed...

......

......

......

......

......

...

Vot

ed2.

4511

5.25

117.

704.

0013

1.25

135.

252.

8812

1.97

124.

854.

0013

6.12

140.

12

Tot

al-C

apit

al S

ecti

on1.

03...

1.03

......

......

......

......

...C

harg

ed...

......

......

......

......

......

...

Vot

ed1.

03...

1.03

......

......

......

......

...

Tot

al (

Rev

enue

& C

apita

l)3.

4811

5.25

118.

734.

0013

1.25

135.

252.

8812

1.97

124.

854.

0013

6.12

140.

12C

harg

ed...

......

......

......

......

......

...

Vot

ed3.

4811

5.25

118.

734.

0013

1.25

135.

252.

8812

1.97

124.

854.

0013

6.12

140.

12

Tot

al-R

even

ue S

ecti

on...

1797

7.51

1797

7.51

...19

800.

0019

800.

00...

1956

4.00

1956

4.00

...21

049.

0021

049.

00C

harg

ed...

75.4

375

.43

...90

.00

90.0

0...

90.0

090

.00

...95

.00

95.0

0

Vot

ed...

1790

2.08

1790

2.08

...19

710.

0019

710.

00...

1947

4.00

1947

4.00

...20

954.

0020

954.

00

Tot

al-C

apit

al S

ecti

on...

......

......

......

......

......

...C

harg

ed...

......

......

......

......

......

...

Vot

ed...

......

......

......

......

......

...

Tot

al (

Rev

enue

& C

apita

l)...

1797

7.51

1797

7.51

...19

800.

0019

800.

00...

1956

4.00

1956

4.00

...21

049.

0021

049.

00C

harg

ed...

75.4

375

.43

...90

.00

90.0

0...

90.0

090

.00

...95

.00

95.0

0

Vot

ed...

1790

2.08

1790

2.08

...19

710.

0019

710.

00...

1947

4.00

1947

4.00

...20

954.

0020

954.

00

Tot

al-R

even

ue S

ecti

on...

2421

.17

2421

.17

...25

58.4

925

58.4

9...

2618

.16

2618

.16

...27

94.5

427

94.5

4C

harg

ed...

74.0

274

.02

...78

.83

78.8

3...

86.6

186

.61

...97

.69

97.6

9

Vot

ed...

2347

.15

2347

.15

...24

79.6

624

79.6

6...

2531

.55

2531

.55

...26

96.8

526

96.8

5

Tot

al-C

apit

al S

ecti

on...

0.61

0.61

...10

.00

10.0

0...

5.00

5.00

...10

.00

10.0

0C

harg

ed...

......

......

......

......

......

...

Vot

ed...

0.61

0.61

...10

.00

10.0

0...

5.00

5.00

...10

.00

10.0

0

Tot

al (

Rev

enue

& C

apita

l)...

2421

.78

2421

.78

...25

68.4

925

68.4

9...

2623

.16

2623

.16

...28

04.5

428

04.5

4C

harg

ed...

74.0

274

.02

...78

.83

78.8

3...

86.6

186

.61

...97

.69

97.6

9

Vot

ed...

2347

.76

2347

.76

...24

89.6

624

89.6

6...

2536

.55

2536

.55

...27

06.8

527

06.8

5

DE

MA

ND

NO

. 40

PE

NSI

ON

S

DE

MA

ND

NO

. 41

IND

IAN

AU

DIT

& A

CC

OU

NT

S D

EP

AR

TM

EN

T

Des

crip

tion

Act

uals

201

1-20

12 B

udge

t E

stim

ates

201

2-20

13R

evis

ed E

stim

ates

201

2-20

13B

udge

t E

stim

ates

201

3-20

14Pl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

l

(xii)Outcome Budget 2013-2014 Executive Summary

DE

MA

ND

NO

. 42

DE

PA

RT

ME

NT

OF

RE

VE

NU

E

Tot

al-R

even

ue S

ecti

on...

5256

.94

5256

.94

...11

67.0

511

67.0

5...

855.

2485

5.24

...10

117.

1910

117.

19C

harg

ed...

......

...0.

020.

02...

0.02

0.02

...0.

020.

02

Vot

ed...

5256

.94

5256

.94

...11

67.0

311

67.0

3...

855.

2285

5.22

...10

117.

1710

117.

17

Tot

al-C

apit

al S

ecti

on...

3.57

3.57

...11

.54

11.5

4...

8.91

8.91

...10

0.71

100.

71C

harg

ed...

......

......

......

......

......

...

Vot

ed...

3.57

3.57

...11

.54

11.5

4...

8.91

8.91

...10

0.71

100.

71

Tot

al (

Rev

enue

& C

apita

l)...

5260

.51

5260

.51

...11

78.5

911

78.5

9...

864.

1586

4.15

...10

217.

9010

217.

90C

harg

ed...

0.02

0.02

...0.

020.

02...

0.02

0.02

...0.

020.

02

Vot

ed...

5260

.51

5260

.51

...11

78.5

711

78.5

7...

864.

1386

4.13

...10

217.

8810

217.

88

Tot

al-R

even

ue S

ecti

on...

2971

.85

2971

.85

...30

71.1

830

71.1

8...

3301

.51

3301

.51

...37

71.9

137

71.9

1C

harg

ed...

......

......

......

......

......

...

Vot

ed...

2971

.85

2971

.85

...30

71.1

830

71.1

8...

3301

.51

3301

.51

...37

71.9

137

71.9

1

Tot

al-C

apit

al S

ecti

on...

260.

9926

0.99

...80

9.28

809.

28...

434.

0043

4.00

...58

9.98

589.

98C

harg

ed...

......

......

......

......

......

...

Vot

ed...

260.

9926

0.99

...80

9.28

809.

28...

434.

0043

4.00

...58

9.98

589.

98

Tot

al (

Rev

enue

& C

apita

l)...

3232

.84

3232

.84

...38

80.4

638

80.4

6...

3735

.51

3735

.51

...43

61.8

943

61.8

9C

harg

ed...

......

......

......

......

......

...

Vot

ed...

3232

.84

3232

.84

...38

80.4

638

80.4

6...

3735

.51

3735

.51

...43

61.8

943

61.8

9

Tot

al-R

even

ue S

ecti

on...

3193

.66

3193

.66

...34

81.8

834

81.8

8...

3535

.78

3535

.78

...38

30.2

538

30.2

5C

harg

ed...

0.16

0.16

...0.

500.

50...

0.50

0.50

...0.

500.

50

Vot

ed...

3193

.50

3193

.50

...34

81.3

834

81.3

8...

3535

.28

3535

.28

...38

29.7

538

29.7

5

Tot

al-C

apit

al S

ecti

on...

47.3

447

.34

...11

9.20

119.

20...

34.8

334

.83

...14

9.25

149.

25C

harg

ed...

......

......

......

......

......

...

Vot

ed...

47.3

447

.34

...11

9.20

119.

20...

34.8

334

.83

...14

9.25

149.

25

Tot

al (

Rev

enue

& C

apita

l)...

3241

.00

3241

.00

...36

01.0

836

01.0

8...

3570

.61

3570

.61

...39

79.5

039

79.5

0C

harg

ed...

0.16

0.16

...0.

500.

50...

0.50

0.50

...0.

500.

50

Vot

ed...

3240

.84

3240

.84

...36

00.5

836

00.5

8...

3570

.11

3570

.11

...39

79.0

039

79.0

0

DE

MA

ND

NO

. 43

DIR

EC

T T

AX

ES

DE

MA

ND

NO

. 44

IND

IRE

CT

TA

XE

S

(xiii) Executive Summary

Des

crip

tion

Act

uals

201

1-20

12 B

udge

t E

stim

ates

201

2-20

13R

evis

ed E

stim

ates

201

2-20

13B

udge

t E

stim

ates

201

3-20

14Pl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

lPl

anN

on-P

lan

Tota

l

Outcome Budget 2013-2014

DE

MA

ND

NO

. 45

DE

PA

RT

ME

NT

OF

DIS

INV

EST

ME

NT

Tot

al-R

even

ue S

ecti

on...

35.2

635

.26

...63

.24

63.2

4...

25.8

325

.83

...63

.24

63.2

4

Cha

rged

......

......

......

......

......

......

Vot

ed...

35.2

635

.26

...63

.24

63.2

4...

25.8

325

.83

...63

.24

63.2

4

Tot

al-C

apit

al S

ecti

on...

......

......

......

......

......

...C

harg

ed...

......

......

......

......

......

...

Vot

ed...

......

......

......

......

......

...

Tot

al (

Rev

enue

& C

apita

l)...

35.2

635

.26

...63

.24

63.2

4...

25.8

325

.83

...63

.24

63.2

4C

harg

ed...

......

......

......

......

......

...

Vot

ed...

35.2

635

.26

...63

.24

63.2

4...

25.8

325

.83

...63

.24

63.2

4

DEPARTMENT OF ECONOMIC AFFAIRSINTRODUCTION

The Department of Economic Affairs formulates andmonitors the country's economic policies and programmes havinga bearing on domestic and international aspects of economicmanagement. One of the principal responsibilities of thisDepartment is the preparation of the Annual Union Budget(excluding the Railway Budget) and the Economic Survey. Otherkey functions include:

Ä Formulation and monitoring of macro-economicpolicies including issues relating to fiscal policy andpublic finance, inflation, public debt management andthe functioning of Capital Markets, including StockExchanges; ways and means to raise internal resourcesthrough market borrowings and mobilization of smallsavings;

Ä Monitoring and raising of external resources throughmultilateral and bilateral Official DevelopmentAssistance and sovereign borrowings abroad, foreigninvestments and monitoring of foreign exchangeresources including balance of payments;

Ä Production of bank notes and coins of variousdenominations, postal stationery, postal stamps etc.

1 Department of Economic Affairs

Ä Cadre management, career planning and training of theIndian Economic Service (IES).

In this Demand, the major portion of the Budget is towardssubsidy to Railways for dividend relief and reimbursement oflosses to Railways on operating strategic railway lines,contribution to Railway Safety Works, investments in theInternational Monetary Fund (IMF)/Asian Development Bank(ADB)and other financial institutions, Interest EqualisationSupport to EXIM Bank for Government of India concessionalLines of Credit (LOCs) to other developing countries and costof supply of coins to Reserve Bank of India. Apart from this, theexpenditure includes establishment related expenditure of theDepartment and its subordinate offices eg National SavingsInstitute (NSI), Securities Appellate Tribunal (SAT); the 14thFinance Commission and the Financial Sector LegislativeReforms Commission(FSLRC) and GOI contributions towardsInternational bodies. Therefore there are very few activities/outlays for which Outcome/targets can be set in tangible,quantifiable/measureable terms. The activities under Plan andNon Plan, indicating 'Outlays' and 'Outcomes' for the financialyear 2013-14 are depicted in the following Statements:

STAT

EM

EN

T O

F O

UT

LAY

S A

ND

OU

TC

OM

ES

2013

- 14

S. No. 1

1.

Nam

e of

the

Sche

me/

Prog

ram

me

2

Maj

or H

ead

3054

-Con

trib

utio

n fo

rR

ailw

ay S

afet

yW

orks

aga

inst

addi

tiona

l lev

ies

on M

otor

Spi

rit

and

Hig

h Sp

eed

Die

sel.

(Pla

n)

3 Department of Economic Affairs

Obj

ectiv

e/O

utco

me

3

Obj

ectiv

e/O

utco

me

3

Und

er th

is S

chem

e mon

eyun

der C

entra

l Roa

d Fu

ndis

use

d fo

r fi

nanc

ing

cons

truc

tion

of r

ailw

ayov

er/ u

nder

br

idge

s an

dra

ilway

saf

ety

wor

ks a

tun

man

ned

rail

way

cros

sing

s to

ensu

re sa

fety

and

prov

ide

smoo

th a

ndsa

fe p

assa

ge fo

r tra

ffic.

Out

lay

2013

-14

(` In

Cro

re)

44(

i)4(

ii)4(

iii)

Non

-Pl

anC

EB

RPl

an ...11

02.4

5...

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

- M

anni

ng

at

1600

loca

tions

.

- in

terl

ocki

ng

at 3

00lo

catio

ns

- al

l m

anne

d ga

tes

to b

epr

ovid

ed te

leph

ones

.

- Con

struc

tion

of 1

000

Nos

Roa

d un

der

brid

ges/

Subw

ays.

- Con

stru

ctio

n of

225

Nos

of R

oad

Ove

r Br

idge

s.

Proj

ecte

dO

utco

mes

6

Ens

ure

safe

ty

atun

man

ned

leve

lcr

ossi

ng a

nd p

rovi

desm

ooth

pas

sage

for

road

tra

ffic

and

rail

oper

atio

ns.

Fuel

is

save

d an

d ca

rbon

emis

sion

s re

duce

dw

here

RO

Bs/

RU

Bs

are c

onstr

ucte

d.

Proc

esse

s/Ti

mel

ines

7

-For

m

anni

ng

ofun

man

ned l

evel

cros

sing,

gate

d/li

ftin

g ba

rrie

rsha

ve t

o be

ere

cted

and

duty

hut

s/ga

te l

odge

sco

nstr

ucte

d fo

r ga

te-

keep

ers.

-Lay

ing

of ca

ble b

etw

een

stat

ion/

leve

l cr

ossi

nglo

catio

n fo

r co

nnec

ting

sign

alli

ng s

yste

m &

tele

phon

es.

-RO

B/R

UB

s ar

epr

ovid

ed in

lieu

of b

usy

leve

l cr

ossi

ng o

n co

stsh

arin

g ba

sis. P

ropo

sal o

fR

OB

/RU

B w

ith

Trai

nVe

hicl

e U

nits

(TV

Us)

abov

e 1 la

kh is

spon

sore

dby

Sta

te G

ovt.

/lo

cal

bodi

es w

ith u

nder

taki

ngs,

i.e.

co

nsen

t su

ch a

scl

osur

e of

LC

af

ter

com

plet

ion

of R

OB

,50

:50

cost

sh

arin

g,ar

rang

emen

t of

enc

um-

bran

ce's

free

land

, etc

.

Rem

arks

/R

iskFa

ctor

s

8

Con

stru

ctio

n of

RO

B/R

UB

is

ajo

int

wor

k of

Railw

ay an

d/St

ate

Gov

t/loc

al b

odie

s.So

me

time

com

-pl

etio

n of

RO

Bw

orks

get

del

ayed

due

to c

ontra

ctua

lpr

oble

m,

non-

avai

labi

lity

of

land

, d

elay

in

dive

rsio

n of

roa

dtra

ffic,

shi

fting

of

leve

l cr

ossi

ngga

tes,

fund

crun

chw

ith S

tate

Gov

t,br

idge

por

tion

and

appr

oach

por

tion

of

RO

B

bein

gco

nstr

ucte

d b

ytw

o ag

enci

es.

*CEB

R - C

ompl

emen

tary

ext

ra b

udge

tary

reso

urce

s i.e

., ex

pend

iture

s com

mitt

ed fo

r the

pur

pose

by

entit

ies o

ther

than

the

Cen

tral

Gov

ernm

ent.

12

34

4(i)

4(ii)

4(iii

)N

on-

Plan

CE

BR

Plan

56

78

Ther

e is t

ime l

ag be

twee

ngr

ant

of '

in p

rinc

iple

'ap

prov

al a

nd t

he f

inal

disb

urse

men

t.

The

prov

isio

n is

to

beut

ilise

d up

to 3

1st M

arch

,20

14.

Dis

burs

emen

t of

fund

tak

es p

lace

afte

r co

mm

ence

-m

ent

of c

onst

ruc-

tion

wor

k of

the

proj

ect

and

only

afte

r th

e pr

ivat

epa

rty,

se

lect

edth

roug

h co

mpe

-ti

tive

bi

ddin

gin

vest

s its

shar

e of

equi

ty.

If th

e rep

aym

ent i

sde

faul

ted

by t

here

cipi

ent

coun

try,

GO

I w

ill h

ave

tore

pay

the

amou

ntto

EX

IM B

ank,

as

coun

ter-

guar

ante

eof

GO

I, ha

s be

engi

ven

to E

XIM

Bank

for t

he li

nes

of c

redi

t.

Dev

elop

men

t of

Infra

struc

ture

thro

ugh

Publ

ic

Priv

ate

Partn

ersh

ip m

ode.

Inte

rest

equ

aliz

atio

nsu

ppor

t to

Exim

Ban

kof

Ind

ia h

as t

o be

give

n by

G

OI

inre

spec

t of

the

GO

Isu

ppor

ted

Exim

Ban

kof

Ind

ia L

ines

of

Cre

dit

exte

nded

for

grow

th o

f In

dian

expo

rts, d

evel

opm

ent

of

stra

tegi

c an

dec

onom

ic r

elat

ion-

ship

with

dev

elop

ing

coun

tries

like

Ang

ola,

Bur

kina

Fa

so,

Cam

bodi

a,

Cha

d,Co

ngo,

Cot

e d' I

voire

,D

jibo

uti,

G

uine

aBi

ssau

, Guy

ana,

etc.

145

prop

osal

s ha

ve b

een

gran

ted

'in p

rinci

ple/

final

appr

oval

' for

tot

al p

roje

ctco

st o

f `8

0203

.28

cror

ean

d V

GF

gran

t of `

1567

2.6

8 cr

ore

The

to

tal

appr

oval

s for

VG

F gr

ant t

illno

w i

s of

the

ord

er o

f`1

1996

.87

cror

e. T

heac

tual

lev

el o

f V

GF

for

thes

e pr

opos

als

wil

l be

know

n on

ce t

he b

iddi

ngpr

oces

s is c

ompl

eted

.

Line

s of

Cre

dit (

LOC

s) to

othe

r dev

elop

ing

coun

tries

thro

ugh

EXIM

Ban

k fo

rex

ports

of In

dian

goo

ds an

dse

rvic

es.

To p

rom

ote P

ublic

Priv

ate

Part

ners

hip

(PPP

) in

the

infr

astr

uctu

re

sect

orth

roug

h pr

ovis

ion

ofV

iabi

lity

Gap

Fun

ding

(VG

F).

The

obje

ctiv

e is

to p

roje

ctIn

dia's

stra

tegi

c eco

nom

icin

tere

sts

abro

ad a

nd t

ode

velo

p lo

ng s

tand

ing

econ

omic

rel

atio

nshi

p.T

he s

chem

e in

ter-

alia

,pr

ovid

es

inte

rest

equa

lisat

ion

supp

ort

toEX

IM B

ank

of I

ndia

for

GO

I su

ppor

ted

Line

s of

Cred

it.

...67

8.00

...

416.

50...

...

Maj

or H

ead

5475

-A

ssis

tanc

e fo

rIn

fras

truc

ture

Dev

elop

men

tPu

blic

Pri

vate

Part

ners

hip

(PPP

)in

Infr

astr

uctu

re(P

lan

Sche

me)

.

Maj

or H

ead

3475

- Int

eres

tE

qual

isat

ion

Supp

ort t

o E

xim

Ban

k of

Indi

a.(N

on-P

lan)

Outcome Budget 2013-2014 4

2. 3.

1.1 Assistance for Infrastructure Development (Plan)This scheme puts in place an innovative funding mechanism

Public Private Partnership (PPP) in Infrastructure sector forViability Gap support. The Government recognizes the need forsignificantly improving the availability and quality of criticalinfrastructure in the country in order to make the economycompetitive and take it on to a high growth trajectory. It has beendecided to encourage Public Private Partnership in infrastructuresectors in order to augment the pace of development of physicalinfrastructure through enhanced investment. Provision has beenmade for extending support for viability gap funding, for publicprivate partnerships projects in various infrastructure sectors suchas roads, seaports, airports, railways, convention centres, power,water supply, sewage and solid waste disposal in urban areasetc. To intensify and deepen the capacity building of publicfunctionaries at the State and municipal level and integrate thecapacity building programme on PPPs in the ongoing programmesat the State level, a comprehensive National Capacity BuildingProgramme has been developed by DEA, which has been rolledout at the State level in collaboration with KfW DevelopmentBank. Around 65 Training programmes have been conducted totrain 155 Trainers, who have trained over 1975 publicfunctionaries who deal with PPPs in their domain. An OnlineToolkits for PPP projects, risk and contingent liability frameworksand communication strategy for PPPs have been developed. Theseare available at this Department's website on PPPs, i.e.www.pppinindia.com. The PPP Toolkit is a web-based resourcethat has been designed to help improve decision-making forinfrastructure PPPs in India and to improve the quality of theinfrastructure PPPs that are implemented in India. To promotePPPs and to ensure that the PPP projects are procured andimplemented by following laid down process and observingprinciples of transparency, competitive bid process, affordabilityand value for money, the draft PPP Policy and draft PPP Ruleshave been prepared. These are undergoing extensive consultationprocess at the Central and State Governments level before theirfinalization.1.2 Scheme for Financial Support to PPPs in Infrastructure

(Plan)A unique characteristic of infrastructure projects is that the

positive externalities caused by projects cannot be captured byproject revenues alone. Hence, a project may be economicallyessential but commercially unviable. Such projects, which aremarginally viable or unviable, can be made financially attractivethrough a grant. The Government has created a Viability GapFunding arrangement for such project in the infrastructure sector.So far 145 projects have been granted approval with Total ProjectCost (TPC) of `80203.28 crore and VGF support of `15672.68crore. However, the actual level of VGF amount of these proposalswill be known once the bidding process is completed. Thefinancial closure has been achieved for 45 projects and is underconsideration. 14 projects in Madhya Pradesh and Gujarat havebeen awarded on premium where no VGF support will berequired. An amount of `902.9623 crore has been disbursed tillDecember, 2012 under the VGF Scheme. A budget provision of`678.00 crore has been made in the BE 2013-14 based onsponsoring Authority requirements and the number of projectsalready granted final approval.

1.3 India Infrastructure Project Development Fund (IIPDF)(Non - Plan)The Union Finance Minister, in his Budget Speech for

2007-08, announced the setting up of a Revolving Fund with acorpus of 100 crore to quicken the process of project preparation.The Government of India notified the Scheme and Guidelinesfor India Infrastructure Project Development Fund tooperationalise financial support for quality project developmentactivities to the States and the Central Ministries. The objectiveis to fund project development expenses of potential PublicPrivate Partnership projects' including cost of engagingconsultants and transaction advisor, thus increasing the qualityand quantity of successful PPPs and allowing informed decisionmaking by the Government based on good quality feasibilityreports. The IIPDF will assist projects that closely support thebest practices in PPP project identification and preparation. Sofar, 49 projects have been approved with an IIPDF assistance of`60.06 crore. `1.32 crore, `7.55 crore, `7.00 crore and `7.00crore respectively has been disbursed under the Scheme in2008-09, 2009-10, 2010-11 and 2011-12. Around 1.762 crorehas been disbursed till December, 2012 and amount of `4.00crore has been provided for the FY 2013-14.1.4 Technical and Economic Cooperation with other

Countries - Interest Equalisation support to EXIM Bankof IndiaGOI provides concessional Lines of Credit (LOCs) to foreign

countries through EXIM Bank India. Under this Scheme, interestequalization support (i.e. the difference between Exim Bank'srate of interest and the concessional rate of interest on whichLOC is extended) is paid to the EXIM Bank. In most of the casesGOI counter guarantee for repayment of principal and paymentof interest is also given to EXIM Bank. Interest equalizationsupport has been provided to the tune of `145.96 crore duringthe period from April to October, 2012. During 2012-13 fourGOI supported EXIM Bank of India Lines of Credit (LOCs) fora total amount of US$ 310.52 million have been approved bythis Department.1.5 National Clean Energy Fund (NCEF)

National Clean Energy Fund has been created for fundingresearch and innovative projects in clean technologies. CleanEnergy Cess is being levied on coal produced in India, as well ason imported coal. The cess so collected is transferred to NCEF,as per requirement. The provision for expenditure on identifiedschemes is being made in the Demand for Grants of differentMinistries/Departments.1.6 Financial Sector Legislative Reforms Commission

The Government has also set up the Financial SectorLegislative Reforms Commission (FSLRC) under thechairmanship of Retd. Supreme Court Justice, Shri B.N.Srikrishna. This has been done with a view to help rewriting andharmonizing the financial sector legislation, rules and regulationsto address the contemporaneous requirements of the sector. TheCommission is expected to submit its report within its 24-monthtime-frame which would fall in March, 2013.1.7 Cabinet Committee on Investments (CCI)

The Government has set up the Cabinet Committee onInvestments (CCI) with the Prime Minister as the Chairman toexpedite decisions on approvals/clearances for implementation

5 Department of Economic Affairs

Reform Measures and Policy Initiatives

of projects. The CCI will monitor and review the implementationof major projects to ensure accelerated and time-bound grant ofvarious licenses, permissions and approvals. This is likely toimprove the investment environment by bringing transparency,efficiency and accountability in accordance of various approvalsand sanctions. This will also help in attracting private sectorinvestments and generation of productive employment andimprovement in economy and infrastructure.

1.8 Infrastructure Debt Funds (IDFs)One major problem faced by banks while disbursing loans

to infrastructure projects is the asset liability mismatch inherentwith these projects. Therefore many such projects are deniedfinancing by banks. Infrastructure Debt Funds (IDFs) throughinnovative means of credit enhancement is expected to providelong-term low-cost debt for infrastructure projects by tappinginto source of savings like Insurance and Pension Funds whichhave hitherto played a comparatively limited role in financinginfrastructure in India. Further, the IDFs set up as NBFC shallinvest only in PPP projects which have successfully completedone year of commercial operation. The income of InfrastructureDebt Funds has been exempted from income tax. Reduction inwithholding tax has also been allowed on interest payment onborrowings of IDFs from existing 20% to 5%. Buy-out Guaranteefrom Project Authority will enable IDF-NBFC to maintain zeroNPAs and raising funds at cheaper rates. The cost and tariff ofInfrastructure services would go down as a result of low costlong term debt provided by IDFs. The taking over of existingbank debts by IDFs will release an equivalent volume for freshlending by banks to infrastructure projects. Thus the IDFs wouldpresent an attractive option for such entities who wish to investfor long term in comparatively secure instruments.

1.9 Tax Free BondsThe Government has also allowed the issue of Tax Free

Bonds amounting to 54,500 crore for the FY 2012-13, doubledfrom 30,000 crore in FY 2011-12. These bonds would mobilizemuch needed long-term funds for the infrastructure developmentof the country by offering attractive coupon rates to the retailand non-retail investors, linked to Government Securities rates.

1.10 Rajiv Gandhi Equity Savings Scheme (RGESS)The Government on 23rd November 2012 notified a new

tax saving scheme called "Rajiv Gandhi Equity SavingsScheme"(RGESS) exclusively, for the first time retail investorsin securities market. This Scheme would give 50% deduction ofthe amount invested from the taxable income for that year, tonew investors, who invest up to 50,000 and whose annual incomeis below `10 lakh. The operational guidelines were issued bySEBI on 6th December 2012.

1.11 Electronic Voting Facility made mandatory for top listedcompaniesUnion Budget 2012-13 has made it mandatory for top listed

companies to offer electronic voting facility to its shareholders.On 13 July 2012, SEBI has come out with necessary amendmentsto be made to the equity listing agreement by stock exchanges inthis regard. To make a beginning electronic voting is now mademandatory for top 500 listed companies at Bombay StockExchange (BSE) and National Stock Exchange (NSE), chosenbased on market capitalization, in respect of those businesses tobe transacted through postal ballot. This was made applicablefor the shareholders' meetings, for which notices were issued onor after October 01, 2012.1.12 Launched SME Exchange/Platform

Separate trading platforms for small and medium scaleenterprises (SMEs) were launched and became functional at BSEand NSE in March, 2012 and September 2012 respectively. Ason 14th January 2013, the number of equities listed on the BSEand NSE SME platforms is 12 and 2, respectively.1.13 Reduced Securities Transaction Tax (STT) for cash

delivery transactions by 20%Following the Union Budget announcement of 2012-13 the

rate of STT has been revised downwards by 20% to 0.1% from0.125%, for delivery based transactions in the cash market, witheffect from 1st July 2012.1.14 Reformed the regulatory framework for governance and

ownership of stock exchanges, clearing corporations anddepositories:Based on the recommendations of the Dr. Bimal Jalan

Committee, a revised policy for the ownership structure andgovernance of securities market infrastructure institutions (MIIs)like, depositories, clearing corporations (CCs) and stockexchanges (SEs) was finalised on 2 April 2012. Based on thesame, a new Regulation - Securities Contracts (Regulation) (StockExchanges and Clearing Corporations) Regulations, 2012, - wasnotified on June 20, 2012 to regulate recognition, ownership andgovernance in stock exchanges and clearing corporations. Further,the Securities and Exchange Board of India (Depositories andParticipants) (Amendment) Regulations, 2012 has been broughtin w.e.f. 11 September 2012 to regulate the ownership andgovernance norms of depositories.1.15 Revised Guidelines with respect to Exit Policy for De-

recognized/Non-operational Stock Exchanges:Securities and Exchange Board of India (SEBI) vide its

Circular dated on 30 May 2012 (CIR/MRD/DSA/14/2012) hasrevised the policy on "Exit Policy for De-recognized/Non-operational Stock Exchanges" for stock exchanges. The policyprovides for de-recognition (voluntary/compulsory) of non-performing stock exchanges.

Outcome Budget 2013-2014 6

Maj

or H

ead

3054

-C

ontr

ibut

ion

for

Rai

lway

Saf

ety

Wor

ks a

gain

stad

ditio

nal l

evie

son

Mot

or S

piri

tan

d H

igh

Spee

dD

iese

l. (P

lan)

Nam

e of

the

Sche

me/

Prog

ram

me

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2011

-12

(` In

Cro

re)

44(

i)4(

ii)BE

RE

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Proc

esse

s/Ti

mel

ines

6

Risk

Fact

ors

7

Stat

us a

s on

31st

Mar

ch 2

012

8

Und

er th

is S

chem

e mon

eyun

der C

entra

l Roa

d Fu

ndis

use

d fo

r fi

nanc

ing

cons

truct

ion

of R

oad

over

/un

der

brid

ges

in li

eu

ofbu

sy

man

ned

leve

lcr

ossi

ngs

an

d ra

ilway

safe

ty w

orks

at u

nman

ned

railw

ay cr

ossin

gs to

ensu

resa

fety

and

smoo

th p

assa

gefo

r tra

ffic.

- M

anni

ng at

800

(rev

ised

targ

et

1500

) loc

atio

ns.

- Li

ftin

g B

arri

er a

t 16

0lo

catio

ns.

- B

asic

inf

rast

ruct

ure

at10

11

loca

tions

.-

all

man

ned

gate

s to

be

prov

ided

tele

phon

es.

- in

terl

ocki

ng

at 3

86lo

catio

ns-

Con

stru

ctio

n of

1

50N

os

lim

ited

he

ight

Subw

ays.

-Co

nstru

ctio

n of

100

Nos

of

Road

Ove

r an

d U

nder

Brid

ges.

-Fo

r m

anni

ng o

fun

man

ned

leve

lcr

ossin

g, g

ated

/lifti

ngba

rrie

rs h

ave

to b

eer

ecte

d an

d du

ty h

uts/

gate

lodg

es co

nstru

c-te

d fo

r ga

teke

eper

s.Q

uali

fied

/sui

tabl

ew

illin

g ga

te k

eepe

rsar

e to

be se

lect

ed a

ndpo

sted

at t

he g

ates

.-

Layi

ng o

f ca

ble

betw

een

stat

ion/

leve

lcr

ossi

ng lo

catio

n fo

rco

nnec

ting

signa

lling

syst

em &

tele

phon

es.

Con

stru

ctio

n o

f R

oad

Ove

r/Und

er br

idge

s is t

hejo

int w

ork o

f Rai

lway

and

Stat

e G

over

nmen

t/Loc

alB

odie

s an

d so

met

ime

wor

k is

del

ayed

due

to

cont

ract

ual

prob

lem

s,no

n av

aila

bilit

y of

land

,St

ate/

loca

l bo

dies

not

star

ting

the w

ork

in ti

me

beca

use

of e

ncro

ach-

men

ts/

finan

cial

cru

nch

etc.

The

entir

e ou

tlay

of `

1059

.56

cror

eha

s bee

n re

leas

ed.

The

fo

llow

ing

outp

ut h

as b

een

achi

eved

:-

Man

ning

at

1258

loca

tions

.-

Lifti

ng B

arri

erat

117

loca

tions

.-

Bas

ic

infr

a-st

ruct

ure

at 9

58lo

catio

ns c

ompl

e-te

d.-

Inte

rloc

king

at

422

loca

tions

.-

Tele

phon

es a

t65

0 lo

catio

ns.

-C

onst

ruct

ion

of65

3 su

bway

s com

-pl

eted

.-

Con

stru

ctio

n of

83

Roa

d O

ver/

Und

er

brid

ges

com

plet

ed in

clud

-in

g ap

proa

ches

done

by

the

Stat

eG

over

nmen

t.

Rev

iew

of P

ast P

erfo

rman

ceST

ATU

S O

F O

UT

CO

ME

WIT

H R

EFE

RE

NC

E T

O O

UT

LAY

S 20

11-1

2

S. No. 1

1040

.63

1059

.56

1.

7 Department of Economic Affairs

Maj

or H

ead

5475

-A

ssis

tanc

e fo

rIn

fras

truc

ture

Dev

elop

men

tPu

blic

Pri

vate

Part

ners

hip

(PPP

)in

Infr

astr

uctu

re

Maj

or H

ead

3475

- Int

eres

teq

ualis

atio

nsu

ppor

t to

Exi

mB

ank

of In

dia

To p

rom

ote P

ublic

Priv

ate

Part

ners

hip

(PPP

) in

the

infr

astr

uctu

re

sect

orth

roug

h pr

ovis

ion

ofV

iabi

lity

Gap

Fun

ding

(VG

F).

The

obje

ctiv

e is

to p

roje

ctIn

dia’

s stra

tegi

c eco

nom

icin

tere

sts

abro

ad a

nd t

ode

velo

p lo

ng s

tand

ing

econ

omic

rel

atio

nshi

p.T

he s

chem

e in

ter-

alia

,pr

ovid

es

inte

rest

equa

lisat

ion

supp

ort

toEx

im B

ank

of I

ndia

for

GO

I su

ppor

ted

Line

s of

cred

it.

84 p

ropo

sals

und

er th

esc

hem

e w

ere

give

n 'in

prin

cipl

e' ap

prov

al b

yth

e Em

pow

ered

Ins

ti-tu

tion.

Fin

anci

al cl

osur

eha

s bee

n ac

hiev

ed fo

r 25

prop

osal

s ou

t of w

hich

14 p

ropo

sals

hav

e be

enaw

arde

d on

pre

miu

mw

here

no V

GF

wou

ld be

requ

ired.

Inte

rest

equ

aliz

atio

nsu

ppor

t to E

xim

Ban

k of

Indi

a is g

iven

by G

OI i

nre

spec

t of

the

GO

Isu

ppor

ted

Exim

Ban

k of

Indi

a Li

nes

of C

redi

tex

tend

ed fo

r gr

owth

of

Indi

an ex

ports

, dev

elop

-m

ent

of s

trat

egic

and

econ

omic

rel

atio

nshi

pw

ith

coun

trie

s li

keA

ngol

a, B

urki

na F

aso,

Cam

bodi

a,

Cha

d,C

ongo

, C

ote

d' I

voire

,D

jibou

ti, e

tc.

Ther

e is a

tim

e lag

betw

een

'inpr

inci

ple'

appr

oval

and

final

dis

burs

e-m

ent a

nd n

orm

ally

it ta

kes

12 t

o 18

mon

ths

from

the

proc

ess o

f bid

ding

to fi

nanc

ial c

losu

reaf

ter

givi

ng i

n -

prin

cipl

e ap

prov

alto

a p

ropo

sal.

The

prov

isio

n w

asto

be

utili

sed

upto

31st M

arch

, 201

2.

Dis

burs

emen

t of f

und

take

s pl

ace

afte

rco

mm

ence

men

t of

cons

truc

tion

wor

k of

the

proj

ect,

and

the

Priv

ate

party

sel

ecte

dth

roug

h co

mpe

titiv

ebi

ddin

g pr

oces

s inv

ests

its sh

are o

f equ

ity.

If t

he r

epay

men

t is

defa

ulte

d by

th

ere

cipi

ent c

ount

ry, G

OI

will

hav

e to

rep

ay th

eam

ount

to E

XIM

Ban

kas

coun

ter-g

uara

ntee

ofG

OI

have

bee

n gi

ven

to E

XIM

Ban

k fo

r the

lines

of c

redi

t.

The

BE

20

11-1

2 of

`499

.37

cror

e w

asfr

amed

on

the

basi

s of

requ

irem

ent

soug

ht b

ySp

onso

ring

Aut

horit

ies.

The

pr

ovis

ion

was

redu

ced

to

300.

00 cr

ore

at R

E 2

011-

12.

The

redu

ctio

n is

due

to d

elay

in im

plem

enta

tion

of th

eM

umba

i M

etro

Lin

e 2

Proj

ect

whe

re

VG

Fam

ount

ing

to

`200

.00

cror

e was

estim

ated

to be

requ

ired

in

201

1-12

.H

owev

er t

here

is

nore

quire

men

t of V

GF

for

this

pro

ject

in

2011

-12

.The

ent

ire a

mou

nt o

f`3

00.0

0 cr

ore

was

disb

urse

d.

`139

.48

cror

e hav

e bee

npa

id t

o Ex

im B

ank

ofIn

dia

as

inte

rest

equa

lisa

tion

su

ppor

tdu

ring

2011

-12.

499.

3730

0.00

(Pla

n)(P

lan)

139.

6913

9.00

2. 3.

23

44(

i)4(

ii)BE

RE

56

78

1

Outcome Budget 2013-2014 8

Maj

or H

ead

3605

-Tec

hnic

al a

ndE

cono

mic

Coo

pera

tion

with

othe

r co

untr

ies,

Tech

nica

l aid

toSo

uth

Eas

t Asi

aun

der

the

Col

ombo

Pla

n;C

ontr

ibut

ion

Prov

ide

tech

nica

l ai

d to

coun

tries

und

er C

olom

boPl

an, b

y pro

vidi

ng su

ppor

tto

H

uman

R

esou

rce

Dev

elop

men

t, t

hrou

ghco

urse

s co

nduc

ted

byIn

dian

Insti

tute

s.

Hum

an R

esou

rce D

evel

op-

men

t th

roug

h te

chni

cal

educ

atio

n to

410

stu

dent

sev

ery

year

fro

m C

olom

boPl

an co

untri

es.

Dev

elop

men

t of l

ong

stan

ding

eco

nom

icre

latio

nshi

p th

roug

hco

ntin

ues

tech

nica

las

sist

ance

to

Col

ombo

Pl

anco

untri

es.

Ther

e is

no

risk

fac

tor

invo

lved

as th

e fun

ds ar

ebe

ing

util

ized

for

the

obje

ctiv

e m

entio

ned

inC

ol.3

.

` 1.

70 c

rore

hav

ebe

en i

ncur

red

for

mee

ting

finan

cial

liab

ilit

ies

ontra

inin

g of s

tude

nts

from

va

riou

sC

olom

bo

Plan

coun

tries

.

3.00

1.10

4.

23

44(

i)4(

ii)BE

RE

56

78

1

9 Department of Economic Affairs

STAT

US

OF

OU

TC

OM

E W

ITH

RE

FER

EN

CE

TO

OU

TL

AYS

2012

-13

Nam

e of

the

Sche

me/

Prog

ram

me

2

Maj

or H

ead

3054

-C

ontr

ibut

ion

for

Rai

lway

Saf

ety

Wor

ks a

gain

stad

ditio

nal l

evie

son

Mot

or S

piri

tan

d H

igh

Spee

dD

iese

l. (P

lan)

Obj

ectiv

e/O

utco

me

3

Und

er th

is S

chem

e mon

eyun

der C

entra

l Roa

d Fu

ndis

use

d fo

r fi

nanc

ing

cons

truct

ion

of ro

ad o

ver/

unde

r brid

ges a

nd ra

ilway

safe

ty w

orks

at u

nman

ned

rail

way

cr

ossi

ngs

topr

ovid

e sm

ooth

and

saf

epa

ssag

e for

traf

fic.

Out

lay

2012

-13

(` In

Cro

re)

44(

i)4(

ii)4(

iii)

BER

EC

EB

R

1102

.45

1102

.45

...

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

-M

anni

ng

at

2500

(rev

ised

ta

rget

17

35)

loca

tions

.-

Lifti

ng B

arri

er a

t 20

0lo

catio

ns.

-Ba

sic

infr

astr

uctu

re a

t75

5 lo

catio

ns.

-al

l man

ned

gate

s to

be

prov

ided

tele

phon

es.

-in

terl

ocki

ng a

t 30

0lo

catio

ns.

-Co

nstru

ctio

n of

821

Nos

Subw

ays.

-Co

nstru

ctio

n of

100

Nos

of R

oad

Ove

r an

d U

nder

Brid

ges.

Proc

esse

s/Ti

mel

ines

6

-Fo

r m

anni

ng o

fun

man

ned

leve

lcr

ossin

g, ga

ted/

liftin

gba

rrie

rs h

ave

to b

eer

ecte

d an

d du

ty h

uts/

gate

lod

ges

cons

-tr

ucte

d fo

r ga

te-

keep

ers.

Q

ualif

ied/

suita

ble

will

ing

gate

keep

ers

are

to b

ese

lect

ed an

d po

sted

atth

e gat

es.

-La

ying

of

cabl

ebe

twee

n st

atio

n/le

vel

cros

sing

loca

tion

for

conn

ectin

g sig

nalli

ngsy

stem

& te

leph

ones

.

Risk

Fact

ors

7

Con

stru

ctio

n o

f R

oad

Ove

r/U

nder

bri

dges

is

the j

oint

wor

k of

Rai

lway

and

Stat

e G

over

nmen

t/Lo

cal B

odie

s an

d so

me-

time w

ork

is de

laye

d du

eto

con

tract

ual p

robl

ems,

non

avai

labi

lity

of l

and

,Sta

te/

loca

l bo

dies

not

star

ting

the w

ork

in ti

me

beca

use

of e

ncro

ach-

men

ts/ f

inan

cial

cru

nch

etc.

Stat

us a

s on

31st

Dec

embe

r 201

2

8

An

amou

nt

of`

551.

22

cr

ore

has

been

rel

ease

dup

to

Dec

embe

r,12

.T

he

foll

owin

gou

tput

has

bee

nac

hiev

ed:

-M

anni

ng at

647

loca

tions

. At

520

plac

es

infr

a-st

ruct

ure

is r

eady

but n

ot m

anne

d.-

Lifti

ng B

arrie

rat

97

loca

tions

.-

Bas

ic i

nfra

s-tr

uctu

re a

t 63

0lo

catio

ns c

ompl

e-te

d.-

Inte

rlock

ing

at32

1 lo

catio

ns.

-Te

leph

ones

at

241

loca

tions

.-

Con

struc

tion

of28

0

subw

ays

com

plet

ed u

p to

Dec

,12.

-C

onstr

uctio

n of

42

Roa

d O

ver/

unde

r br

idge

sco

mpl

eted

.

S. No. 1

1.

Outcome Budget 2013-2014 10R

evie

w o

f Pas

t Per

form

ance

Maj

or H

ead

5475

-Ass

ista

nce

for

Infr

astr

uctu

reD

evel

opm

ent

Publ

ic P

riva

tePa

rtne

rshi

p(P

PP) i

nIn

fras

truc

ture

(Pla

n)

To p

rom

ote P

ublic

Priv

ate

Partn

ersh

ip (

PPP)

in

the

infr

astr

uctu

re

sect

orth

roug

h pr

ovis

ion

ofV

iabi

lity

Gap

Fun

ding

(VG

F).

145

prop

osal

s w

ere

give

n'in

prin

cipl

e' ap

prov

al b

yth

e Em

pow

ered

Insti

tutio

n.Fi

nanc

ial c

losu

re h

as b

een

achi

eved

for

45 p

ropo

sals

out o

f whi

ch 1

4 pr

opos

als

have

be

en

awar

ded

prem

ium

whe

re

no V

GF

wou

ld b

e re

quire

d.

Ther

e is

a t

ime

lag

betw

een

'in p

rinci

ple'

appr

oval

and

fin

aldi

sbur

sem

ent

and

norm

ally

it ta

kes 1

2 to

18 m

onth

s fr

om t

hepr

oces

s of

bid

ding

tofin

anci

al cl

osur

e afte

rgi

ving

In-

pri

ncip

leap

prov

al

to

apr

opos

al.

Dis

burs

emen

t of

fund

tak

es pl

ace

only

af

ter

com

men

cem

ent

of c

onst

ruct

ion

of w

ork

of t

hepr

ojec

t an

d th

epr

ivat

e pa

rty

sele

cted

thro

ugh

com

pet

itiv

ebi

ddin

g pr

oces

sha

s in

vest

ed i

tssh

are

of e

quity

.

The

B

E

2012

-13

of`

437.

55 c

rore

cro

re

was

fram

ed o

n th

e ba

sis

ofre

quir

emen

t so

ught

by

Spon

sorin

g Aut

horit

ies a

ndth

e bal

ance

VG

F re

mai

ning

to b

e di

sbur

sed

for

the

appr

oved

pro

ject

s. T

ill

Dec

embe

r,

2012

an

amou

nt o

f `3

51.6

5 cr

ore

has

been

dis

burs

ed t

o 12

road

pro

ject

s tot

allin

g 49

2K

m a

nd 1

10 K

m o

f Pow

erTr

ansm

issio

n lin

e.

2.

23

56

78

1

11 Department of Economic Affairs

4(i)

4(ii)

4(iii

)BE

RE

CE

BR

437.

5543

7.55

...(P

lan)

(Pla

n)

Maj

or H

ead

3475

–Int

eres

teq

ualis

atio

nsu

ppor

t to

Exi

mB

ank

of In

dia

(Non

-Pla

n)

Maj

or H

ead

3605

–Tec

hnic

al a

ndE

cono

mic

Coo

pera

tion

with

othe

r co

untr

ies,

Tech

nica

l aid

toSo

uth

Eas

t Asi

aun

der

the

Col

ombo

Pla

n.C

ontr

ibut

ion

The

obje

ctiv

e is t

o pr

ojec

tIn

dia’

s stra

tegi

c eco

nom

icin

tere

sts

abro

ad a

nd t

ode

velo

p lo

ng s

tand

ing

econ

omic

rel

atio

nshi

p.T

he s

chem

e in

ter-

alia

,pr

ovid

es i

nter

est

equa

li-sa

tion

supp

ort

to E

xim

Ban

k of

Ind

ia f

or G

OI

supp

orte

d Li

nes o

f cre

dit.

Prov

ide

tech

nica

l ai

d to

coun

tries

und

er C

olom

boPl

an, b

y pro

vidi

ng su

ppor

tto

H

uman

R

esou

rce

Dev

elop

men

t, t

hrou

ghco

urse

s co

nduc

ted

byIn

dian

Insti

tute

s.

Inte

rest

eq

uali

zati

onsu

ppor

t to

Exi

m B

ank

ofIn

dia

has

to b

e gi

ven

byG

OI i

n re

spec

t of t

he G

OI

supp

orte

d Ex

im B

ank

ofIn

dia

Lin

es o

f C

redi

tex

tend

ed f

or g

row

th o

fIn

dian

exp

orts

, de

velo

p-m

ent

of s

trat

egic

and

econ

omic

rela

tions

hip

with

coun

trie

s li

ke A

ngol

a,Bu

rkin

a Fa

so, C

ambo

dia,

Cha

d, C

ongo

, C

ote

d’Iv

oire

, Djib

outi,

etc

.

Hum

an R

esou

rce D

evel

op-

men

t th

roug

h te

chni

cal

educ

atio

n to

410

stu

dent

sev

ery

year

fro

m C

olom

boPl

an co

untri

es.

The p

rovi

sion

is to

be

util

ised

upt

o 31

stM

arch

, 201

3.

Dev

elop

men

t of l

ong

stan

ding

eco

nom

icre

latio

nshi

p th

roug

hco

ntin

ued

tech

nica

las

sist

ance

to

coun

trie

s li

keA

fgha

nista

n, B

angl

a-de

sh,

Bhu

tan,

Fiji

,In

done

sia,

Ir

an,

Kor

ea,

Mal

aysi

a,L

aos,

N

epal

,M

aldi

ves,

Man

golia

,M

yanm

ar,

Srila

nka,

Papu

a N

ew G

uine

a,T

hail

and

and

Viet

nam

.

If t

he r

epay

men

t is

defa

ulte

d by t

he re

cipi

ent

coun

try, G

OI w

ill h

ave t

ore

pay

the

amou

nt t

oEX

IM B

ank

as c

ount

er-

guar

ante

e of

GO

I ha

vebe

en g

iven

to

EX

IMB

ank

for

the

Line

s of

Cred

it.

Ther

e is

no

risk

fac

tor

invo

lved

as th

e fun

ds ar

ebe

ing

util

ized

for

the

obje

ctiv

e m

entio

ned

inC

ol.3

.

` 14

5.97

cr

ore

have

bee

n pa

id to

Exi

m

Ban

k of

Indi

a as

int

eres

teq

ua

lisa

tio

nsu

ppor

t du

ring

2012

- 13

upto

31s

tD

ecem

ber,

12.

Wor

k rel

ated

to th

eC

olom

bo P

lan

has

been

tran

sfer

red

toM

EA w

.e.f

Apr

il,20

10. `

0.2

6 cr

ore

has

been

incu

rred

duri

ng 2

012-

13up

to D

ecem

ber,

2012

for

mee

ting

the

bala

nce

finan

cial

liab

ilitie

son

stu

dent

s fr

omva

riou

s C

olom

bopl

an co

untri

es w

hoha

d un

derg

one

trai

ning

in

diffe

rent

Inst

itute

sin

In

dia

upto

2009

-10.

3. 4.

23

44(

i)4(

ii)4(

iii)

BER

EC

EB

R

225.

0029

0.00

...

1.00

1.62

...

56

78

1

Outcome Budget 2013-2014 12

SUM

MA

RIZ

ED

PO

SIT

ION

OF

SC

HE

ME

S U

ND

ER

DE

MA

ND

NO

. 33

– D

EP

AR

TM

EN

T O

F E

CO

NO

MIC

AF

FA

IRS

(` in

Cro

re)

2011

- 20

1220

12 -

2013

2013

-201

4S.

No

Sche

me

BE

RE

Act

ual

BE

RE

Act

uals

BE

Up-

toD

ec. 1

2*

1.Pu

blic

Pri

vate

Par

tner

ship

(PPP

) In

infr

astr

uctu

re, P

rovi

sion

of

Via

bilit

y G

ap F

undi

ng (

VG

F) (M

H 5

475)

– P

lan

499.

3730

0.00

300.

0043

7.55

437.

5535

1.65

678.

00

2.C

ontr

ibut

ion

for R

ailw

ay S

afet

y W

orks

aga

inst

add

ition

al le

vies

on

mot

or s

piri

t and

hig

h sp

eed

dies

el a

nd; (

MH

305

4) -

Plan

1040

.63

1059

.56

1059

.56

1102

.45

1102

.45

551.

2211

02.4

5

3.In

tere

st E

qual

isat

ion

Supp

ort t

o E

XIM

Ban

k of

Indi

a(M

H 3

475)

Non

-Pla

n13

9.69

139.

0013

9.48

225.

0029

0.00

145.

9741

6.50

4.T

echn

ical

Eco

nom

ic C

oope

rati

on w

ith o

ther

Cou

ntri

es -

Tec

hnic

al a

id to

Sou

th &

Sou

th E

ast A

sia

unde

r Col

ombo

Plan

(MH

360

5) N

on-P

lan

3.00

1.10

1.70

1.00

1.62

0.26

0.50

Tot

al16

82.6

914

99.6

615

00.7

417

66.0

018

31.6

210

49.1

021

97.4

5

* P

rovi

sion

al

13 Department of Economic Affairs

MA

JOR

HE

AD

WIS

E A

CT

UA

L E

XP

EN

DIT

UR

E V

IS-À

-VIS

BE

/RE

PR

OV

ISIO

NS

FO

R T

HE

YE

AR

S 20

10-1

1, 2

011-

12 A

ND

201

2-13

` in

cro

re

2010

-11

2011

-12

2012

-13

Des

crip

tion

Maj

orB

.E.

R.E

.A

ctua

lB

.E.

R.E

.A

ctua

lB

.E.

R.E

.A

ctua

lsH

ead

upto

Dec

, 201

2 1

23

45

67

89

1011

PA

RT

- A

NO

N-P

LA

N IT

EM

SSe

cret

aria

t-G

ener

al S

ervi

ces

2052

70.3

779

.30

71.3

784

.71

76.6

875

.80

81.0

388

.23

60.6

7O

ther

Fis

cal S

ervi

ces

Nat

iona

l Sav

ings

Inst

itute

2047

11.4

812

.25

11.2

112

.40

12.4

513

.61

12.9

412

.41

10.1

5In

tere

sts

on d

epos

its

unde

rC

ompu

lsor

y D

epos

its (I

ncom

eT

ax P

ayer

s Sc

hem

e, 1

974)

2047

0.10

0.05

0.00

0.03

0.03

0.01

0.05

0.03

0.01

Oth

er E

xpen

ditu

re20

470.

210.

210.

200.

230.

240.

470.

210.

200.

03T

otal

2047

11.7

912

.51

11.4

112

.66

12.7

214

.09

13.2

012

.64

10.1

9O

ther

Adm

inst

rati

ve S

ervi

ces

14th

Fin

ance

Com

mis

sion

2070

0.00

0.00

0.00

0.00

0.00

0.00

3.00

6.34

0.04

Fina

ncia

l Sec

tor L

egis

lativ

eR

efor

ms

Com

mis

sion

(FSL

RC

)20

700.

000.

000.

001.

004.

404.

215.

104.

861.

50O

ther

Exp

endi

ture

(SA

T)

2070

3.72

3.88

3.28

3.28

3.87

3.24

4.05

5.57

1.46

Tot

al20

703.

723.

883.

284.

288.

277.

4512

.15

16.7

73.

00M

isce

llane

ous G

ener

al S

ervi

ces

Gua

rant

ee R

edem

ptio

n Fu

nd20

7530

0.00

300.

0030

0.00

300.

0030

0.00

300.

0030

0.00

300.

0020

0.00

Oth

er P

rogr

amm

es20

750.

030.

010.

010.

010.

010.

000.

010.

010.

01T

otal

2075

300.

0330

0.01

300.

0130

0.01

300.

0130

0.00

300.

0130

0.01

200.

01G

ener

al E

duca

tion

Soci

al S

ecur

ity

and

Wel

fare

Prot

ecte

d Sa

ving

s Sc

hem

es(o

ther

cha

rges

)22

350.

100.

140.

030.

140.

050.

000.

100.

050.

00T

otal

2235

0.10

0.14

0.03

0.14

0.05

0.00

0.10

0.05

0.00

Inte

rnat

iona

l Fun

d fo

r Agr

icul

tura

lD

evel

opm

ent

[IFA

D]

2416

40.0

035

.52

35.5

240

.00

39.7

639

.76

50.0

054

.00

0.00

Tot

al24

1640

.00

35.5

235

.52

40.0

039

.76

39.7

650

.00

54.0

00.

00O

ther

Tra

nspo

rt S

ervi

ces

Subs

idy

to R

ailw

ays

tow

ards

div

iden

dre

lief

s an

d ot

her c

once

ssio

ns30

7528

29.8

821

90.8

720

13.2

730

22.6

125

98.2

620

34.3

730

03.8

923

84.2

310

01.2

7

Outcome Budget 2013-2014 14

Los

sses

on

Stra

tegi

c R

ailw

ay L

ines

3075

600.

0064

8.97

634.

3865

7.92

652.

0065

2.00

600.

0063

7.00

200.

00T

otal

3075

3429

.88

2839

.84

2647

.65

3680

.53

3250

.26

2686

.37

3603

.89

3021

.23

1201

.27

Inte

rnat

iona

l Fin

anci

al I

nsti

tuti

ons

Ass

esm

ent C

harg

es p

ayab

le to

Inte

rnat

iona

l Mon

etar

y Fu

nd34

662.

190.

220.

000.

230.

390.

380.

420.

380.

38A

fgha

nist

an R

econ

stru

ctio

n T

rust

Fun

d34

661.

000.

930.

930.

000.

000.

000.

000.

000.

00W

orld

Ban

k PP

A34

6612

.50

6.00

8.09

7.50

1.87

1.78

0.01

0.00

0.00

Sout

h E

xper

ienc

e E

xcha

nge

Tru

st F

und

(SE

ET

F)34

660.

002.

400.

000.

000.

000.

000.

000.

000.

00T

otal

3466

15.6

99.

559.

027.

732.

262.

160.

430.

380.

38O

ther

Gen

eral

Eco

nom

ic S

ervi

ces

Inte

rnat

iona

l Coo

pera

tion

3475

9.23

19.3

318

.64

19.3

320

.73

19.9

120

.55

21.2

30.

22O

ther

cha

rges

/IE

S/E

mba

ssy

of In

dia,

Tok

yo, B

eiji

ng a

nd W

ashi

ngto

n34

7511

.61

16.5

813

.22

20.2

517

.92

15.9

419

.80

18.6

915

.36

Gra

nt-i

n-ai

d-G

ener

al to

oth

er in

stitu

tion

s34

752.

602.

772.

752.

9322

.93

22.9

03.

2328

.22

1.71

Cus

tom

and

Im

port

Dut

ies

on N

on-I

ndia

npe

rson

nel i

n U

N a

genc

ies

3475

0.03

0.01

0.00

0.03

0.03

0.00

0.03

0.02

0.00

Exc

hang

e lo

ss u

nder

NR

I Bon

ds34

750.

500.

502.

850.

500.

500.

000.

500.

000.

00In

tere

st e

qual

isat

ion

supp

ort t

oE

XIM

Ban

k34

7513

0.00

127.

7712

7.70

139.

6913

9.00

139.

4822

5.00

290.

0014

5.97

Wai

ver o

ff o

utst

andi

ng d

ues

inre

spec

t of

line

of c

redi

t ext

ende

dto

Gov

ernm

ent o

f Yem

en34

750.

000.

000.

000.

000.

000.

000.

002.

070.

00W

aive

r of o

utst

andi

ng d

ues

and

inte

rest

/pen

al in

tere

st o

n lo

ans

outs

tand

ing

agai

nst t

he li

ne o

fcr

edit

exte

nded

in 1

995

toG

over

nmen

t of T

urkm

enis

tan

3475

0.00

24.5

024

.44

0.00

0.00

0.00

0.00

0.00

0.00

Wai

ver o

f out

stan

ding

loan

and

inte

rest

on

loan

s to

Rep

ublic

of S

eych

elle

s34

750.

000.

000.

0018

.00

6.22

6.24

3.53

3.56

1.79

Wai

ver o

f out

stan

ding

due

s an

din

tere

st/p

enal

inte

rest

on

loan

sou

tsta

ndin

g ag

ains

t the

line

of

cred

it ex

tend

ed in

199

3 to

Gov

ernm

ent o

f Kaz

akhs

tan

3475

0.00

0.00

0.00

0.00

34.9

134

.91

0.00

0.00

0.00

12

34

56

78

910

11

15 Department of Economic Affairs

Wai

ver o

f out

stan

ding

due

s an

din

tere

st/p

enal

inte

rest

on

loan

sou

tsta

ndin

g ag

ains

t the

line

of

cred

it ex

tend

ed in

199

4 to

Gov

ernm

ent o

f Uzb

ekis

tan

3475

0.00

0.00

0.00

0.00

0.40

0.39

0.00

0.00

0.00

Tot

al34

7515

3.97

191.

4618

9.60

200.

7324

2.64

239.

7727

2.64

363.

7916

5.05

Tec

hnic

al a

nd E

cono

mic

coo

pera

tion

wit

h ot

her

coun

trie

sC

ontr

ibut

ion

to U

ND

P36

0522

.55

21.5

921

.55

22.5

521

.21

21.2

022

.55

24.7

20.

00C

oope

ratio

n w

ith o

ther

cou

ntri

es36

0519

.52

18.5

85.

9214

.06

12.6

71.

761.

071.

680.

26G

loba

l Eno

viro

nmen

t Fac

ility

(GE

F)36

050.

000.

0010

.10

0.00

0.00

11.7

511

.00

12.5

412

.54

46th

AG

M o

f A

DB

3605

0.00

0.00

0.00

0.00

0.15

0.07

8.38

16.0

00.

59T

otal

3605

42.0

740

.17

37.5

736

.61

34.0

334

.78

43.0

054

.94

13.3

9C

apit

al O

utla

y of

Cur

renc

y,C

oina

ge a

nd M

ints

Purc

hase

of

Coi

ns fr

om S

PMC

IL40

4610

63.2

018

52.0

014

63.4

215

84.8

012

25.0

012

25.0

016

45.3

510

00.0

048

4.70

Cap

ital

Out

lay

on M

isce

llane

ous

Gen

eral

Ser

vice

sPu

rcha

se o

f M

achi

nes

for B

udge

t Pre

ss40

753.

002.

502.

171.

501.

471.

443.

003.

910.

00In

vest

men

t in

Gen

eral

Fin

anci

al a

ndT

radi

ng In

stitu

tions

Nat

iona

l Fin

anci

al H

oldi

ngs C

omp

any

Lim

ited

5465

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.00

0.00

Secu

rity

Pri

ntin

g an

d M

inti

ngC

orpo

ratio

n of

Indi

a L

imit

ed(S

PMC

IL)

5465

0.00

0.00

0.00

400.

000.

000.

0040

0.00

0.00

0.00

Nat

iona

l Ski

ll D

evel

opm

ent

Cor

pora

tion(

NSD

C)

5465

0.00

0.00

0.00

0.00

501.

9050

1.90

0.00

0.00

0.00

Tot

al54

650.

000.

000.

0040

0.00

501.

9050

1.90

400.

001.

000.

00In

vest

men

t in

Inte

rnat

iona

lF

inan

cial

Inst

itut

ions

Subc

ript

ion

to th

e IB

RD

5466

0.00

0.00

0.00

183.

6518

3.65

206.

1118

3.65

205.

040.

00Su

bscr

iptio

n to

Inte

rnat

iona

lD

evel

opm

ent A

ssoc

iatio

n54

660.

010.

010.

000.

019.

179.

180.

000.

000.

00Su

bscr

iptio

n to

Asi

an D

evel

opm

ent B

ank

5466

216.

1919

9.85

199.

8519

9.85

205.

5220

5.52

205.

5323

4.95

234.

95Su

bscr

iptio

n to

Afr

ican

Dev

elop

men

t Fun

d54

6614

.93

37.3

737

.36

22.1

222

.12

22.1

122

.21

22.1

10.

00

12

34

56

78

910

11

Outcome Budget 2013-2014 16

Paym

ent o

f Mul

tilat

eral

Deb

tR

elie

f Ini

tati

ve o

f Afr

ican

Dev

elop

men

t Fun

d54

660.

000.

000.

001.

831.

831.

832.

132.

110.

00Su

bscr

ipti

on to

Afr

ican

Dev

elop

men

t Ban

k54

660.

015.

215.

035.

210.

010.

005.

355.

855.

89Su

bscr

iptio

n to

Inte

rnat

iona

lM

onet

ary

Fund

[In

Secu

riti

es]

5466

0.01

0.00

6243

.43

1172

9.41

0.00

2444

.53

4200

0.00

0.00

0.00

Subs

crip

tion

to In

tern

atio

nal

Mon

etar

y Fu

nd [I

n C

ash]

5466

0.00

0.00

0.00

0.00

0.00

0.00

1400

0.00

0.00

0.00

Mai

nten

ance

of V

alue

[MO

V] O

blig

atio

n54

660.

010.

000.

000.

0116

09.7

916

09.7

80.

0140

05.4

440

05.4

4In

dia'

s C

ontr

ibut

ion

to w

ards

lend

ing

reso

urce

s of

IMF

5466

63.6

763

.67

2.85

50.0

025

.00

0.00

50.0

02.

160.

00T

otal

5466

294.

8330

6.11

6488

.52

1219

2.09

2057

.09

4499

.06

5646

8.88

4477

.66

4246

.28

Cap

ital

Out

lay

on O

ther

Gen

eral

Eco

nom

ic S

ervi

ces

Act

iviti

es fo

r mai

nstr

eam

ing

PPPs

5475

2.10

1.12

0.83

0.80

2.67

1.70

1.30

1.17

0.32

Indi

a In

fras

truc

ture

Pro

ject

Dev

elop

men

t Fun

d (I

IPD

F)54

757.

007.

006.

755.

009.

007.

005.

004.

500.

43T

otal

5475

9.10

8.12

7.58

5.80

11.6

78.

706.

305.

670.

75L

oans

for O

ther

Eco

nom

ic S

ervi

ces

Loa

ns to

IMF

unde

r N

ewA

rran

gem

ents

to B

orro

w (N

AB

)74

750.

000.

000.

000.

0090

03.0

472

69.5

80.

0011

294.

600.

00T

otal

7475

0.00

0.00

0.00

0.00

9003

.04

7269

.58

0.00

1129

4.60

0.00

Adv

ance

s to

For

eign

Gov

ernm

ent

Srila

nka

7605

0.01

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Tot

al N

on-P

lan

5437

.76

5681

.11

1126

7.15

1855

1.59

1676

6.85

1690

5.86

6289

9.98

2069

4.88

6385

.69

PA

RT

- B

PL

AN

IT

EM

SN

atio

nal S

ocia

l Sec

urity

Fun

d fo

rU

norg

anis

ed S

ecto

r wor

kers

2235

1000

.00

1000

.00

1000

.00

500.

0050

0.00

500.

0010

00.0

012

0.00

0.00

New

and

Ren

ewab

le E

nerg

y28

100.

000.

000.

000.

0010

66.4

610

66.4

615

00.0

015

00.0

075

0.00

Roa

ds a

nd B

ridg

es30

5417

53.4

618

65.6

218

65.6

220

81.2

621

19.1

221

19.1

222

04.9

022

04.9

011

02.4

4A

ssis

tanc

e fo

r inf

rast

ruct

ure

deve

lopm

ent -

VG

F54

7548

0.26

125.

0012

5.00

499.

3730

0.00

300.

0043

7.55

437.

5535

1.65

TO

TA

L P

LA

N32

33.7

229

90.6

229

90.6

230

80.6

339

85.5

839

85.5

851

42.4

542

62.4

522

04.0

9G

rand

Tot

al86

71.4

886

71.7

314

257.

7721

632.

2220

752.

4320

891.

4468

042.

4324

957.

3385

89.7

8

12

34

56

78

910

11

17 Department of Economic Affairs

OB

JEC

T H

EA

D -

WIS

E A

CT

UA

L E

XP

EN

DIT

UR

E V

IS-À

-VIS

BE

/RE

PR

OV

ISIO

NS

FO

R T

HE

YE

AR

S 20

10-1

1, 2

011-

12 A

ND

201

2-13

(Gro

ss)

` in

cro

re

2010

-11

2011

-12

2012

-13

Obj

ect H

ead

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

uals

upto

Dec

, 201

2 1

23

45

67

89

10

RE

VE

NU

E S

EC

TIO

N01

Sala

ries

52.9

657

.30

53.6

559

.17

52.3

258

.99

59.5

066

.23

51.7

8

02W

ages

0.43

0.36

0.36

0.45

0.28

0.39

0.31

0.44

0.30

03O

vert

imes

Allo

wan

ce0.

400.

300.

240.

410.

170.

130.

220.

160.

05

06M

edic

al T

reat

men

t1.

120.

961.

021.

351.

170.

771.

431.

220.

77

11D

omes

tic T

rave

l Exp

ense

s1.

752.

382.

002.

152.

542.

102.

542.

291.

22

12Fo

reig

n T

rave

l Exp

ense

s4.

775.

074.

495.

825.

825.

006.

956.

043.

90

13O

ffic

e E

xpen

ses

8.36

8.18

8.41

8.38

8.99

8.73

9.00

8.14

5.36

14R

ent,R

ates

& T

axes

3.45

4.19

2.08

4.65

4.30

2.49

4.80

8.99

0.70

16Pu

blic

atio

ns4.

203.

753.

694.

375.

274.

965.

275.

194.

73

20O

ther

Adm

inis

trat

ive

Exp

ense

s0.

842.

911.

814.

995.

253.

9611

.00

20.7

12.

81

21Su

pplie

s and

Mat

eria

l1.

051.

050.

771.

050.

850.

740.

850.

770.

19

26A

dver

tisin

g an

d Pu

blic

ity0.

560.

720.

530.

650.

611.

860.

650.

500.

04

27M

inor

Wor

ks1.

061.

380.

952.

161.

971.

342.

952.

540.

77

28Pr

ofes

sion

al S

ervi

ces

5.20

3.61

2.22

4.30

5.18

3.78

5.80

8.45

1.80

31G

rant

-in-

aid-

Gen

eral

2.61

2.79

2.75

2.95

22.9

522

.90

3.25

28.2

30.

56

32C

ontib

utio

n92

.47

98.5

399

.90

96.1

194

.55

94.8

510

5.34

114.

3712

.84

33Su

bsid

ies

3559

.88

2967

.61

2775

.34

3820

.22

3389

.26

2825

.84

3828

.89

3311

.23

1347

.23

42L

umps

um0.

020.

000.

000.

000.

010.

000.

010.

010.

01

44E

xcha

nge

vari

atio

n0.

500.

502.

850.

500.

500.

000.

500.

000.

00

45In

tere

st0.

140.

080.

030.

090.

090.

020.

090.

040.

01

50O

ther

Cha

rges

1023

.22

21.2

313

.32

26.3

619

.91

17.1

220

.27

17.9

015

.29

Outcome Budget 2013-2014 18

12

34

56

78

910

51M

otor

Veh

icle

s0.

130.

100.

090.

120.

110.

110.

120.

110.

11

52M

achi

nery

and

Equ

ipm

ent

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

53M

ajor

Wor

ks87

6.73

932.

8193

2.81

1040

.63

1059

.56

1059

.56

1102

.45

1102

.45

551.

22

63In

ter-

acco

unt t

rans

fer

1176

.73

2232

.81

2232

.81

1840

.63

2926

.02

2926

.02

3902

.45

3022

.45

1501

.22

64W

rite

off

/Los

ses

0.00

24.5

024

.44

18.0

041

.52

41.5

43.

535.

631.

78

50In

form

atio

n T

echn

olog

y-O

ther

Cha

rges

2.50

4.88

4.51

3.15

3.06

2.56

3.18

2.85

1.71

TO

TA

L R

EV

EN

UE

SE

CT

ION

6821

.08

6378

.00

6171

.07

6948

.66

7652

.26

7085

.77

9081

.35

7736

.94

3506

.40

CA

PIT

AL

SE

CT

ION

32C

ontr

ibut

ion

0.00

0.00

0.00

0.00

500.

0050

0.00

0.00

0.00

0.00

42L

umps

um48

0.26

125.

0012

5.00

499.

3730

0.00

300.

0043

7.55

437.

5535

1.65

52M

achi

nery

and

Equ

ipm

ent

3.00

2.50

2.17

1.50

1.47

1.45

3.00

3.91

0.00

55L

oans

and

adv

ance

0.01

0.00

0.00

0.00

9003

.04

7269

.58

0.00

1129

4.60

0.00

60O

ther

Cap

ital E

xpen

ditu

re11

26.8

719

15.6

714

66.2

716

34.8

012

50.0

012

25.0

016

95.3

510

04.0

048

4.70

63In

ter-

acco

unt t

rans

fer

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

50O

ther

Cha

rges

9.10

8.12

7.58

5.80

11.6

78.

696.

305.

670.

75

54In

vest

men

t23

1.16

242.

4464

85.6

812

542.

0920

33.9

945

00.9

656

818.

8844

74.6

642

46.2

8

TO

TA

L C

AP

ITA

L S

EC

TIO

N18

50.4

022

93.7

380

86.7

014

683.

5613

100.

1713

805.

6858

961.

0817

220.

3950

83.3

8

GR

AN

D T

OT

AL

8671

.48

8671

.73

1425

7.77

2163

2.22

2075

2.43

2089

1.44

6804

2.43

2495

7.33

8589

.78

19 Department of Economic Affairs

NON-PLANMH-2052 - Secretariat General Services

The provision under this head is kept for the Secretariatexpenditure of the Department of Economic Affairs, G-20Secretariat and Directorate of Currency. During 2010-11 the REhas been increased for the newly created Directorate of Currency.At RE 2011-12 the decrease is due to non filling up of posts forthe G-20 Secretariat as well as for the Directorate of Currency.RE 2012-13 has been enhanced to provide for increasedrequirement on account of salaries ,Other Administrative expensesfor organising various conferences including the Delhi EconomicConclave and also payment for Professional services. The flowof expenditure up to December, 2012 is satisfactory.MH-2047 - Other Fiscal Services

The provision under this head is for expenditure of NationalSavings Institute with its network of regional offices. It alsoincludes provision in respect of interests on deposits underCompulsory Deposits (Income Tax Payers) Scheme, 1974; Rentalcost of IMF Residents office and Indias' contribution toInternational Saving Bank Institutions. The flow of expenditureup to December, 2012 is satisfactory.MH-2070 - Other Administrative Services

The provision under this head is for expenditure ofInvestment Commission, 14th Finance Commission, SecurityAppellate Tribunal (SAT) and Financial Sector LegislativeReforms Commission (FSLRC). The decrease in expenditure in2010-11 is due to winding up of 13th Finance Commission inJanuary, 2010 as well as due to winding up of InvestmentCommission. The increase in 2011-12 is due to provision for thenewly created FSLRC. There is an increase at BE 2012-13 toprovide for the Advance Cell of the 14th Finance Commission.BE 2012 -13 has been enhanced at RE 2012-13 to provide forrental charges etc. for the 14th Finance Commission subsequentto its constitution as also revision of rent and payment of rentand arrears in respect of SAT.MH-2075 - Miscellaneous General Services

The provision is for interest payments on Central Securitiesin time barred cases and payment in connection with unclaimedsecurities credited to Government accounts. A provision of`300.00 crore is kept for transfer to the Guarantee RedemptionFund.MH-2235 - Social Security & Welfare

The provision has been kept for Protected Savings Schemes.MH-2416 - Agriculture Financial Institutions

International Fund for Agricultural Development (IFAD):India is one of the founder members of International Fund forAgricultural Development (IFAD) and has so far contributed US$ 114 million to IFAD resources till the 8th Replenishment. Since1979, IFAD has assisted in 25 projects in the agriculture, ruraldevelopment, tribal development, women's empowerment, naturalresources' management and rural finance sector with thecommitment of US$ 797.3 million (approx.). Out of these, 15projects have already been closed. Presently, ten projects with atotal assistance of US$ 378.8 million are under implementation.For the 9th Replenishment, India has committed to contribute

ANALYSIS OF EXPENDITURE DURING 2010-11, 2011-12 AND 2012-13

US$ 30 million. The payment is to be made in three instalmentsof US$ 10 million in 2012-13, 2013-14 and 2014-15. India hascontributed US$ 10 million as 1st instalment of the 9thReplenishment towards IFAD resources in December 2012.TheBE 2012-13 provision of 50.00 crore was enhanced to `54.00crore on account of exchange rate fluctuation. India has beenallocated US$ 133 million for Performance Based AllocationSystem (PBAS) Cycle 2013-15 for projects under areas ofoperation of IFAD.MH - 3075: Other Transport Services (Subsidy to Railways

towards Dividend Reliefs & Other Concessions)Subsidy to Railways for Dividend Relief and other

concession is based on the dividend paid by the Ministry ofRailways, to the General Revenues, on the entire capital(excluding dividend free capital) invested on Railways from theGeneral Revenues. The rate of dividend for 2011-2012, payableby Railways to General Revenues, was reduced from 6% to 5%vide recommendation no.77 contained in Second Report ofRailway Convention Committee (2009) on 'Rate of Dividend for2011-2012 and other ancillary matters'. The subsidy providedtowards dividend relief and other concessions is also dependenton capital work in progress. Similarly the reimbursement of losseson operating 'strategic' lines is dependent on the working expensesof the Railways on operating such lines. As such, there arevariations in the actual expenditure vis-à-vis the provisions made.MH - 3466 - International Financial Institutions

The provision is for annual Assessment charges payable toInternational Monetary Fund, Afghanistan Reconstruction TrustFund (ARTF), World Bank Technical assistance loan andcontribution to South South Experience Exchange Trust Fund(SEETF). At RE 2010-11 and at RE 2011-12 the provision forthe World Bank TA Loan was reduced due to less requirement. Atoken Supplementary was obtained in the first batch 2010-11 formaking a one-time payment of US $ 500,000 as Indias'contribution to World Bank South - South Experience ExchangeTrust Fund (SEETF).During 2010-11 a token Supplementary wasalso obtained for contribution towards Cultural Heritage andSustainable Tourism Trust Fund (CHSTTF).MH - 3475 - Other General Economic Services

The provision under this Head includes contribution toCommonwealth Fund for Technical Cooperation (CFTC) andother international organisations , Economic Wing of the Embassyof India at Washington, Tokyo and Beijing, Training of IndianEconomic Service Officers, India Trust Fund in ADB , ExchangeVariation and Grants-in-Aid to Other Institutions and provisionfor Interest Equalization support to EXIM Bank. The provisionfor Interest Equalization support to EXIM Bank of 130.00 croreat BE 2010-11 was reduced to 127.77 crore at RE 2010-11 dueto less claims received. The provision for BE 2011-12 and2012-13 is `139.69 crore and `225.00 crore respectively. Theactual expenditure during 2010-11 and 2011-12 is 127.70 croreand `139.48 crore respectively. The provision of `225.00 crorewas enhances at RE2012-13 stage to `290.00 crore due toincrease of LIBOR rate from 0.5%to 0.64% ,upward exchangerate fluctuation and also due to approval of new Lines of Credit(LOCs).There is an overall increase under the Major Head at RE

Outcome Budget 2013-2014 20

2010-11 due to the newly created Economic and CommercialWing of the Embassy of India, Beijing; enhanced expenditureon training of Indian Economic Service Officers; contribution (`10.00 crore) towards technical cooperation with AfricanDevelopment Bank;Voluntary membership contribution of Euro15000 (`0.10 crore) to FATF for the year 2010; and waiver ofoutstanding dues , interest & penal interest ( 24.50 crore) againstthe concessional Line of Credit extended to Government ofTurkmenistan by GOI. There is an enhancement of the BE2011-12 provision at the RE 2011-12 stage on account of waiverof outstanding dues/interest against LOC extended to Governmentof Kazakhstan (`34.92 crore) & Uzbekistan (`0.40 crore); grantsin aid to the Madras School of Economics and the Delhi Schoolof Economics in implementation of one of the Budget (2011-12)announcements; contribution to Eurasian Group on CombatingMoney Laundering and Terrorism Financing (EAG) and upwardexchange rate fluctuation in respect of contribution to CFTC.BE 2012-13 has been enhanced at RE 2012-13 to provide forWaiver of outstanding dues (`2.07 crore) in respect of Line ofcredit extended to Government of Yemen in 1981; providingGrant in aid to National Council for Applied Economic Research(`15.00 crore) and Rajiv Gandhi University, Deptt of Economics,Itanagar (`10.00 crore);MH-3605 - Technical & Economic Cooperation with Other

CountriesThe provision under this Head includes contribution to

United Nations Development Programme (UNDP), GlobalEnvironment Facility (GEF) Technical Aid under Colombo Planand for Development Assistance. A provision (`0.15 crore) hadbeen kept under BE 2011-12 for the 46th Annual General Meeting(AGM) of the Board of Governors of the Asian DevelopmentBank which is scheduled to be held in Delhi in May,2013 forinitial preparatory expenses. The provisions for the 46th AGMhave been increased at BE and RE 2012-13 stage. The schemerelating to Technical Aid to South and South-East Asia under theColombo Plan has been transferred to the Ministry of ExternalAffairs w.e.f April, 2010. However, provisions have been kept in2011-12 and 2012-13 for settlement of pending bills relating totraining of students from various Colombo Plan countries up-to2009-10. There is an increase in the BE 2012-13 provision keptfor contribution to UNDP and GEF at the RE stage on accountof additional requirement due to upward exchange ratefluctuation.MH-4046 - Capital Outlay of Currency, Coinage & Mint

The provision is for purchase of coins from Security Printingand Minting Corporation of India Limited (SPMCIL). BE2010-11 provision of 1063.20 crore was increased to 1852.00crore at RE 2010-11. Out of this 1463.42 crore was spent. Lessexpenditure was incurred as the mark up applied on cost of coinswas reduced to 7.5 % from 10% applied earlier. During 2011-12and 2012-13 the BE provisions have been reduced at RE stagedue to the provisional downward price of coins. There is no cashoutgo under this Head as the entire amount is deducted as recoveryfrom the credit received from Reserve Bank of India on circulationof coins.MH-4075 - Capital Outlay on Miscellaneous General ServicesA provision of `3.00 crore was kept at BE 2010-11 forprocurement of Gathering machine for the Budget Press, whichwas reduced to `2.50 crore at RE 2010-11 as only part payment

was released for purchase of the Gathering machine. A provisionof `1.50 crore was kept in BE 2011-12 for release of balancepayment. A provision of 3.00 crore was kept under BE 2012-13for procurement of a Perfect Binding Machine. The provisionhas been enhanced to `3.91 at the RE 2012-13 stage.MH-5465 - Investment in General Financial and Trading

InstitutionsA provision of `400.00 crore was kept in the Budget

Estimates 2011-12 towards expansion and modernization of Mintsand Presses. It was anticipated that the procedural requirements/formalities would get completed within the Financial Year.However, the exercise could not be completed and the amountwas surrendered at the RE 2011-12 stage. Since the exercise couldnot be completed during 2011-12 provision of `400.00 crorewas kept in BE 2012-13. Subsequently the matter was re-examined and a decision was taken that there was no requirementof providing financial assistance to SPMCIL at this stage nd theBE 2012-13 was surrendered at the RE 2012-13. The provisionfor 2011-12 under this Major Head also included `500.00 croretowards providing additional contribution to the Corpus ofNational Skill Development Fund Technical Assistance and 1.90crore towards Government of India Equity in the National SkillDevelopment Corporation (NSDC), for which a total of 501.90crore obtained in the second batch of Supplementary Demandsfor Grants 2011-12. `1.00 crore has been obtained through thefirst batch of supplementary Demands for grants 2012-13 forGOIs share of paid up capital in the newly created NationalFinancial Holdings Company Limited (NFHCL).MH-5466 - Investment in International Financial Institutions

The provision is for payment of subscription to InternationalBank for Reconstruction and Development (IBRD), InternationalDevelopment Association (IDA), Asian Development Bank(ADB), African Development Bank (AfDB), AfricanDevelopment Fund, subscription to International Monetary Fund(IMF), Maintenance of Value (MoV) Obligation and India'sContribution towards Lending Resources of IMF. During the year2010-11 a supplementary of `11327.15 crore was obtained forIndia's quota increase at International Monetary Fund (IMF).Based on information from the IMF that the IMFs Resolution onQuota Increase might not get ratified within the Financial Year,it was decided to surrender this provision in RE2010-11 andprovide for it in BE 2011-12. The IMFs Quota Resolutionhowever became effective on 3rd March,2011 and India wasrequired to make the payment by 4th April,2011. The paymentwas therefore made in the FY 2010-11 itself and the provisionkept for the purpose, in BE 2011-12 surrendered at RE 2011-12.For 2010-11 a token provision of `0.01 crore was kept forsubscription to IMF for Maintenance of Value (MoV) towardsvaluation adjustment of Indian Rupees receivable by IMF. Thiswas not required to be enhanced as India received payments dueto the movement of SDR exchange rate in favour of the Rupee. Asupplementary of `1609.79 crore and `4005.44 crore wasobtained during 2011-12 and 2012-13 for IMF/MoV. The amounthas been fully utilized. A provision of `183.65 crore has beenkept at BE 2012-13 for investment International Bank forReconstruction and Development (IBRD). The BE provision hasbeen increased to `205.04 crore at RE 2012-13 on account ofupward exchange rate fluctuation. A supplementary of 9.17 crorehas been obtained in 2011-12 for subscription to International

21 Department of Economic Affairs

Development Association (IDA). In BE 2010-11 a provision of`63.67 crore has been kept for Indias contribution towards lendingresources of IMF. This provision is made for transferring theRupee equivalent of SDRs received as interest to the ReserveBank of India (RBI). The actual expenditure of `2.85 crore wasdue to less requirement for making payments towards interest onsecurities under Note Purchase Agreement (NPA).Similarly, theBE 2011-12 and BE 2012-13 provisions have been reduced atRE 2011-12 and RE 2012-13 respectively.

MH-5475 - Capital Outlay on Other General EconomicServicesThe provision is for India Infrastructure Project Development

Fund (IIPDF) and activities for mainstreaming Public PrivatePartnership (PPP) projects. For IIPDF the BE 2011-12 provisionof `5.00 crore has enhanced to `9.00 crore for providingadditional financial support to Jaipur Metro Rail Project andProjects of Delhi Jal Board, Government of Madhya Pradeshand Karnataka. BE 2012-13 provision of `5.00 crore was basedon requirements of funds by the sponsoring authorities. Theprovision has been reduced to 4.50 crore at RE 2012-13. 2.10crore has been provided for activities for mainstreaming PPP inBE 2010-11. The provision of `2.10 crore has been reduced to`1.12 crore due to non approval of consultancy services. BE2011-12 provision of `0.80 crore was increased to `2.67 crorefor additional support for which supplementary was obtained.BE 2012-13 provision of `1.30 crore is for expenditure onmaintenance of data base/pppindia.com, workshop/conferencesand other activities for promoting PPPs. The provision has beenreduced at RE2012-13 to `1.17 crore on account of economy/cut in Non-Plan expenditure.MH-7475: Loans to Other Economic Services

A provision of `9003.04 crore was made at RE 2011-12through supplementary Demands for Grants for providing loansto the International Monetary Fund (IMF) under NewArrangements to Borrow (NAB). Transactions amounting to`7269.58 crore took place during the year under the NAB. During2012-13 a provision of `11294.60 crore has been obtainedthrough supplementary Demands for Grants for NAB.

PLANMH-2235- Social Security and Welfare

As a follow up to the Unorganized Sector Workers SocialSecurity Act, 2008, the National Social Security Fund forUnorganized sector workers has been setup with an initial

allocation of `1000.00 crore at BE 2010-11. For 2011-12 anamount of `500.00 crore was transferred to the Fund. During2012-13 the BE provision of `1000.00 crore has been reducedto `120.00 crore at RE 2012-13.MH-2810- New and Renewable Energy

A provision of `1066.46 crore has been obtained throughthe First supplementary Demand for Grants 2011-12 for initialtransfer to the 'National Clean Energy Fund' to be maintained inthe Public account of India for meeting expenditure to financevarious new projects relating to research in clean energy, etc tobe implemented by different Ministries/departments. A provisionof 1500.00 crore has been kept for 2012-13. 750.00 crore hasbeen transferred to the Fund up-to December, 2012.MH-3054 -Roads & Bridges

The provision is for Railway Safety Work. The cess beinglevied on petrol and diesel is allocated in terms of the CentralRoad Fund Act , 2000 for financing construction of Railway over/under bridges and other safety works. The provision is madestrictly as per requirements from Railways and their share ofcess collections. An equivalent amount is transferred to CentralRoad Reserve Fund as Inter Account transfer. A provision of`876.73 crore was kept during 2010-11. The provision wasenhanced at RE 2010-11 to `932.81 crore on greater demandfrom the Railways. The provision has been fully utilized. During2011-12 a provision of `1040.63 crore was kept. The provisionwas increased to 1059.56 crore at RE 2011-12 and fully utilised.The BE 2012-13 provision is 1102.45 crore. Up-to December,12 an amount of 551.22 crore has been released to the Railways.MH-5475 - Capital Outlay on Other General Economic

ServicesThe provision is for Assistance for Infrastructure

Development-Viability Gap Funding (VGF) for PPP. During2010-11 the provision of `480.26 crore has been reduced to`125.00 crore at RE 2010-11 due to slow closure of financialproposals of the projects granted in principle approval. The REprovision has been fully utilized. A provision of 499.37 crore atBE 2011-12 has been reduced to `300.00 crore at RE 2011-12.The reduction is due to delay in implementation of the MumbaiMetro Line 2 Project where VGF amounting to `200.00 crorewas estimated to be required in 2011-12. However there was norequirement of VGF for this project in 2011-12. The BE 2012-13provision of `437.55 crore has been retained at RE 2012-13.The actual expenditure incurred up-to December, 12 is `351.65crore.

Outcome Budget 2013-2014 22

Development Association (IDA). In BE 2010-11 a provision of`63.67 crore has been kept for Indias contribution towards lendingresources of IMF. This provision is made for transferring theRupee equivalent of SDRs received as interest to the ReserveBank of India (RBI). The actual expenditure of `2.85 crore wasdue to less requirement for making payments towards interest onsecurities under Note Purchase Agreement (NPA).Similarly, theBE 2011-12 and BE 2012-13 provisions have been reduced atRE 2011-12 and RE 2012-13 respectively.

MH-5475 - Capital Outlay on Other General EconomicServicesThe provision is for India Infrastructure Project Development

Fund (IIPDF) and activities for mainstreaming Public PrivatePartnership (PPP) projects. For IIPDF the BE 2011-12 provisionof `5.00 crore has enhanced to `9.00 crore for providingadditional financial support to Jaipur Metro Rail Project andProjects of Delhi Jal Board, Government of Madhya Pradeshand Karnataka. BE 2012-13 provision of `5.00 crore was basedon requirements of funds by the sponsoring authorities. Theprovision has been reduced to 4.50 crore at RE 2012-13. 2.10crore has been provided for activities for mainstreaming PPP inBE 2010-11. The provision of `2.10 crore has been reduced to`1.12 crore due to non approval of consultancy services. BE2011-12 provision of `0.80 crore was increased to `2.67 crorefor additional support for which supplementary was obtained.BE 2012-13 provision of `1.30 crore is for expenditure onmaintenance of data base/pppindia.com, workshop/conferencesand other activities for promoting PPPs. The provision has beenreduced at RE2012-13 to `1.17 crore on account of economy/cut in Non-Plan expenditure.MH-7475: Loans to Other Economic Services

A provision of `9003.04 crore was made at RE 2011-12through supplementary Demands for Grants for providing loansto the International Monetary Fund (IMF) under NewArrangements to Borrow (NAB). Transactions amounting to`7269.58 crore took place during the year under the NAB. During2012-13 a provision of `11294.60 crore has been obtainedthrough supplementary Demands for Grants for NAB.

PLANMH-2235- Social Security and Welfare

As a follow up to the Unorganized Sector Workers SocialSecurity Act, 2008, the National Social Security Fund forUnorganized sector workers has been setup with an initial

allocation of `1000.00 crore at BE 2010-11. For 2011-12 anamount of `500.00 crore was transferred to the Fund. During2012-13 the BE provision of `1000.00 crore has been reducedto `120.00 crore at RE 2012-13.MH-2810- New and Renewable Energy

A provision of `1066.46 crore has been obtained throughthe First supplementary Demand for Grants 2011-12 for initialtransfer to the 'National Clean Energy Fund' to be maintained inthe Public account of India for meeting expenditure to financevarious new projects relating to research in clean energy, etc tobe implemented by different Ministries/departments. A provisionof 1500.00 crore has been kept for 2012-13. 750.00 crore hasbeen transferred to the Fund up-to December, 2012.MH-3054 -Roads & Bridges

The provision is for Railway Safety Work. The cess beinglevied on petrol and diesel is allocated in terms of the CentralRoad Fund Act , 2000 for financing construction of Railway over/under bridges and other safety works. The provision is madestrictly as per requirements from Railways and their share ofcess collections. An equivalent amount is transferred to CentralRoad Reserve Fund as Inter Account transfer. A provision of`876.73 crore was kept during 2010-11. The provision wasenhanced at RE 2010-11 to `932.81 crore on greater demandfrom the Railways. The provision has been fully utilized. During2011-12 a provision of `1040.63 crore was kept. The provisionwas increased to 1059.56 crore at RE 2011-12 and fully utilised.The BE 2012-13 provision is 1102.45 crore. Up-to December,12 an amount of 551.22 crore has been released to the Railways.MH-5475 - Capital Outlay on Other General Economic

ServicesThe provision is for Assistance for Infrastructure

Development-Viability Gap Funding (VGF) for PPP. During2010-11 the provision of `480.26 crore has been reduced to`125.00 crore at RE 2010-11 due to slow closure of financialproposals of the projects granted in principle approval. The REprovision has been fully utilized. A provision of 499.37 crore atBE 2011-12 has been reduced to `300.00 crore at RE 2011-12.The reduction is due to delay in implementation of the MumbaiMetro Line 2 Project where VGF amounting to `200.00 crorewas estimated to be required in 2011-12. However there was norequirement of VGF for this project in 2011-12. The BE 2012-13provision of `437.55 crore has been retained at RE 2012-13.The actual expenditure incurred up-to December, 12 is `351.65crore.

Outcome Budget 2013-2014 22

23 Department of Economic Affairs

Object Head Wise Major Constituents of Grant of DEA 2012-13

Lumpsum Capital0.64%

Others0.22%

Contribution0.15%

Subsidies5.63%

Major Works1.62%

Inter-Account Transfer5.74%

Other Capital Expenses

2.49%

Investment83.51%

Lumpsum Capital Others Contribution

Subsidies Major Works Inter-Account Transfer

Other Capital Expenses Investment

- Investment - The major portion is forpayment to IMF for Indias Quota Increase(`56000.00 cr), Subscription to AsianDevelopment Bank and AfricanDevelopment Fund, Subscription to IBRD -General/Selective Capital Increase -(`205.53 cr) SPMCIL - (`400.00 cr). (Total-`56818.88 cr).- Subsidies - The major part of the subsidygoes to Railways towards Dividend Reliefand Other Concessions and for InterestEqualization Support to Exim Bank (`225.00cr). (Total -`3828.89).- Provision for Major Works is for financingconstruction of Railways over/under bridgesand other Railway Safety Works. (Total -`1102.45 cr).- Inter - Account Trasfer is for transfer offunds to the Central Road Fund, SocialSecurity Fund for Unorganized SectorWorkers, National Clean Energy Fund andGuarantee Redemption Fund. (Total -`3902.45 cr).- Other Capital Expenses is for purchase ofcoins from SPMCIL and payment towardsLending Resources of IMF. (Total - 1695.35cr).- Contribution to various international bodiesand organizations. (Total - `105.35 cr).- Others - Includes Salaries and OtherEstablishment Expenditure. (Total - 151.51cr).- Lumpsum Capital is for promoting PPP ininfrastructure development through ViabilityGap Funding. (Total - `437.55 cr).

Outcome Budget 2013-2014 24STATEMENT ON SURRENDER AND SAVING DURINGTHE FINANCIAL YEAR 2011-12

During the Financial Year 2011-12, the original grant was`21632.22 crore. This was augmented to ` 33874.81 crore byobtaining supplementary grant of 12242.59 crore. Against this,the actual expenditure was `20891.44 crore, resulting in net

savings of `12983.37 crore.2. The savings of `12983.37 crore was the net effect of totalsavings of 13065.56 crore and total excess of 82.19 crore underthe various sub heads of the grant.Major Savings have been categorized into the followingcategories:-

(i) Normal savings due to economical usage of the resources (` in crore)

S. Sub Head/ Scheme/ Savings Remarks/ ReasonsNo. Programme1. Department of Economic Affairs 2.34 Fewer requirements for Salary, Wages, Office Expenses, Travelling

(Secretariat) Allowance and Economy in expenditure.2. Subsidy to Railways towards 988.24 Subsidy to Railways for Dividend Relief is based on the Dividend

Dividend Relief paid by the Railways on Capital invested on Railways from GeneralRevenues. The rate for Dividend for 2011-12 payable by Railwayswas reduced from 6% to 5%. The reduction in rate resulted insavings.

3. Training of IES Officers 0.93 Economizing of cost in organizing various training programmes.4. Contribution to UNDP 1.35 Favorable Exchange rate variation.5. Purchase of Coins form SPMCIL 359.80 Downward cost of coins

(ii) Savings due to non-implementation/ delay in execution of projects/schemes

1. G-20 Secretariat 2.41 Newly created units and did not become fully operational.2. Dte. of Currency 4.16 Saving was due to non-filling up of vacant posts, non-finalization

of office accommodation and economy measures.3. Waiver of Loan to Republic of Seychelles 11.62 The provision was made to make full payment to EXIM Bank in

one go. Subsequently it was decided to make payment as perrepayment schedule spread over 6 years.

4. Economic and Commercial Wing of 3.52 Newly created wing which started functioning in January, 2011.Embassy of India, Beijing All appointments could not be made hence savings.

5. Reimbursement of losses to Railways on 5.92 Reimbursement of Losses on operating strategic lines is dependentoperating strategic Railway line on the working expenses of the Railways on operating such lines.

Savings was due to less amounts required to be reimbursed to theRailways.

6. Budgetary Support/Investment in SPMCIL 400.00 All formalities could not be completed.7. Subscription to African Development Bank 5.21 Payment was not required to be made.8. Assistance for Infrastructure Development – 199.37 Delay in implementation of Mumbai Metro Line 2 Project.

Viability Gap Funding9. India Infrastructure Project Development Fund 2.00 Fewer Requirements.10. Subscription to IMF towards India 9284.88 The provision was kept as it was not certain whether India would

Quota Increase be called upon to make the payment in 2010-11. The paymentwas however made in March, 2011, hence savings in 2011-12

11. India’s Contribution towards Lending 50.00 Provision is for transferring the Rupee equivalent of SDRs receivedResources of IMF as interest to the RBI on Note Purchase Agreement (NPA)/ New

Arrangements to Borrow (NAB). There was no requirement ofpayment towards interest. Hence amount remained unutilized.

12. Loans to IMF under New Arrangements 1733.46 Projections were based on calls and estimates furnished by IMFto Borrow (NAB) and RBI. However, actual calls and drawing by the Fund on India

were lower, leading to savings.

(iii) Surrender/ Savings due to obsolete/ defunct project/ scheme or due to completion of project/ scheme

1. World Bank PPA Project 5.71 Closure of Project.2. Technical Aid to South and South East 1.30 Scheme transferred to MEA in 2010. Provision was for balance

Asia under Colombo Plan payments. Savings due to non-receipt of Bills.

Note :- This annexure is included in compliance of O.M. No. 7(1)-B(AC)/2011 dated 23rd March, 2012 of Budget Division regarding segregationof savings due to normal savings, Under/non – utilization, & surrender of funds for the financial year 2011-12 as desired by the StandingCommittee on Finance in its 33rd Report.

Statutory and Autonomous Bodies under Department ofEconomic Affairs

Securities and Exchange Board of India (SEBI) is the onlyAutonomous Body under the administrative control of theDepartment of Economic Affairs. No Government grant is givento SEBI. Security Printing and Minting Corporation of IndiaLimited (SPMCIL) is a Government owned Corporation, underthe administrative control of the Department of Economic Affairs.The details about this organisation are as under:-Security Printing and Minting Corporation of India Ltd.

Ä Security Printing & Minting Corporation of IndiaLimited (SPMCIL) was incorporated on 13.1.2006 withits headquarters at Jawahar Vyapar Bhawan, New Delhi.Commencement of business was approved w.e.f. 10thFebruary, 2006. This is a wholly owned Public SectorUndertaking of Govt of India under Ministry of Finance,Department of Economic affairs headed by Chairmanand Managing Director. There are three functionaldirectors on the Board in addition to Directorsrepresenting Government and user departments.

Ä SPMCIL was formed after corporatization of all nineMints/Presses/Mill which were earlier working underCurrency and Coins Division of the Department ofEconomic Affairs, Ministry of Finance, Government ofIndia. These units are:India Government Mint, MumbaiIndia Government Mint, KolkataIndia Government Mint, HyderabadIndia Government Mint, NoidaSecurity Printing Press, HyderabadIndia Security Press, NasikCurrency Note Press, NasikBank Note Press, DewasSecurity Paper Mill, Hoshangabad

Ä Provisionally, the company had assets and equivalentliability amounting to `3237 crore. The employeestrength of all the nine units of SPMCIL at present isabout 12800. Client of two currency presses is RBI forcurrency notes. For another two security presses, clientsare State Governments for non judicial stamp papersand allied stamps and Postal Department for postalstationery, stamps etc. Security presses also producevarious security items like cheques for various clientsand passport, visa stickers and other travel documentsfor Ministry of External Affairs. For mints, major workrelates to making coins for RBI and medal productionfor distribution through corporate entities though smallpayments are received from individuals forcommemorative coins etc.

Ä As on 31-3-2012, SPMCIL has an asset base of`5250.05 crores and profit after tax for the above periodis `582.47 crore. The company has paid a dividend of`116.49 crores & dividend distribution tax of`18.90crores during Financial Year 2011-12.

Ä During the current financial year SPMCIL has been ableto meet the indents received from RBI for productionof the currency/bank notes. It has achieved the targetfor minting of coins for Government of India, postal

25 Department of Economic Affairsstationery for Department of Post and printed stamppapers for State and other agencies.

Ä Nine units of SPMCIL are engaged in the production ofsecurity paper, printing of security documents andminting of coins, medals etc. Details of the productionof major products during the current year is as under:

Details of Production for the period from01.04.2012 to 31.12.2012

Sl. Products Production (inNo. million pieces)1. Bank Notes 5253.1282. Coins 4911.363. Post Cards 72.264. Envelopes 45.125. Inland Letter Cards 16.126. Postage Stamps & Indian Postal Orders 37.4997. Adhesive Stamps 11.4258. N.J & Allied Stamps 292.7749. Saving Instruments 31.45610. Non MICR Cheques .78711. MICR Cheques 17.18612. Misc. Security Forms &Court fee stamps 206.45613. Passport & Allied Booklets 3.4414. Stickers/Labels/I.Cards/Seals 2.839

Details of Sales of major products for the period from01.04.2012 to 31.12.2012

Sl. Main Products Sales (` in Crore)No.1. Bank Notes 1017.632. Coins and Medals 1286.703. Other Security Products 433.86

TOTAL 2738.19

The company is setting up of a new Bank Note Paper Lineat Security Paper Mill, Hoshangabad (M.P.) including stockpreparation plant. Varnishing coating machine for bank notescommissioned at Currency Note Press at Nasik

The company has also taken a major step for Indigenizationof currency paper in India by entering into a joint venture withBank Note Paper Mill India Private Limited (BNPMIPL) atMysore. The total cost of the project is about `1200 crore and itis targeted to be completed in the financial year 2014-15.Onimplementation of the project the company will meet its majorpart of the requirement of currency paper indigenously and reducethe import of Bank Note Paper.

During the year the company also implemented R&Dprojects in the field of security paper, security printing and coin

Details of Important projects under implementation/to be undertaken in the year 2013-14

(` in crore)Name of project Sanctioned Scheduled Total Total Likely Output/ Remarks

Cost date of cumulative exp. date of Outcomecompletion exp. till planned completion

beginning duringof the year 2013-14

1 2 3 4 5 6 7 8

Paper mill/pressesOne line of paper 494 30.06.2014 340 100 30.06.2014 6000 MT/ As replacement

mill at SPM, Year of one oldHoshangabad existing line.

Presently underprogress.

Upgradation of paper 67 31.03.2016 - - 31.03.2016machine at SPM,Hoshangabad

New pulp plant (clextral, 58 30.06.2013 50 8 30.06.2013France) at SPM,Hoshangabad

Replacement of old 400 31.03.2016 - 31.03.2016 Replacement ofprinting & finishing two old existingplant & machinery line.at CNP/ BNP.

On line inspection system 25 31.03.2014 - 25 31.03.2014 Upgrading(SOI) at CNP, Nasik currency printing

machine.

Online jogging equipment 10 31.03.2014 - 10 31.03.2014 Upgradingat BNP Dewas currency printing

machine.

J.V. with BRBNMPL for 1200 30.10.2014 200 100 30.10.2014 12000MT/ Production ofsetting new security (SPMCIL Year Paper as importpaper mill share 50%) (SPMCIL substitute in joint

share 50%) venture withBRBNMPL.

6 colour offset sheet fed 30 31.03.2014 - 30 31.03.2014 Replacement ofmachine at ISP, Nasik outlived machine.

Mini finishing machines 12 31.03.2013 12 - 31.03.2013 Modernisation to(counting, banding, reduce manualshrink wrap & labeling handling of cutmachine) at CNP, Nasik notes.

Outcome Budget 2013-2014 26metallurgy and innovative CSR projects undertaken in the fieldof education, health & family welfare, environment and socialdevelopment. Mobile van for health services under rural areasof Maharashtra supported through Indian Red Cross Society wasalso undertaken.

The company is hopeful of meeting RBI indent for printingof circulation notes as well as for minting of coins. There hasbeen a decline in requirement of pass port on account of delay insecurity clearance of E- Passport, postal stationery due to changein communication tools and non judicial papers on account ofintroduction of E- stamping by some State Governments.

SPMCIL has envisaged modernization of security paper mill,capacity enhancement of security paper production,modernization of currency printing units and automation ofvarious activities being carried out in a traditional manner. Thisorganization is currently a profit making organization. In orderto meet strategic initiatives to prevent counterfeit currency andin the interest of the country the support for the projects ofindigenization of bank note paper, ink & R&D etc has been agreedby the Government as per the Memorandum of Settlement datedSeptember, 2008. Government of India has agreed to providefinancing of about Rs 1200-1500 crore for the above investments.

Computer aided design 40 31.03.2014 20 20 31.03.2014 Creating capacity(CAD)& computer to to design bank offset plate (CTOP) notes in house asat CNP/BNP R&D effort.

Shredding & briquetting 5 31.03.2014 5 31.03.2014 For making bricksmachine at ISP, Nasik out of waste paper

generated duringprinting &processing.

TOTAL (A) 1741 622 298MintsMulti strike medal press 37 31.12.2014 - 15 31.12.2014

for proof medals &coins-(3 nos)

Coining presses at 50 30.09.2014 - 20 30.09.2014 Replacement ofvarious units (8 nos)-2 old machineseach at all mints combined with

additionalcapacity.

Centrifugal Finishing line 30 30.09.2014 - 10 30.09.2014 For polishing of(Coin polishing)- 3 nos coins.

Automatic Visual inspection 10 30.09.2014 - 5 30.09.2014 To improve themachine for coin blanks quality of coins.

Gold/silver Refining plant 9 31.03.2013 9 - 31.03.2013 To create refiningat Mumbai/ Hyderabad capacity at

MumbaiHyderabad.

CCTV & other security 17 31.03.2013 17 - 31.03.2013 To strengthen thesystems in mints existing security

system at mints.

Annealing/hardening 20 31.03.2015 - 5 31.03.2015 For softening/electric furnance with hardening ofintregated Nitrogen metals.plant-4 nos

Hydraulic hobbying 45 31.03.2015 - 5 31.03.2015press – 3 nos

TOTAL (B) 218 26 60

MiscellaneousERP Project 70 30.06.12 32 20 30.06.2013 To assess the data

on-line of differentunits to initiatedecision withoutany loss of time incollection ofinformation.

TOTAL (C) 70 32 20

GRAND TOTAL(A+B+C) 2029 680 378

27 Department of Economic Affairs

1 2 3 4 5 6 7 8

29

DEPARTMENT OF FINANCIAL SERVICESINTRODUCTION

The Department of Financial Services (DFS) is mainlyresponsible for policy issues relating to Public Sector Banks(PSBs) and Financial Institutions including their functioning,appointment of Chairman cum Managing Directors (CMDs) &Executive Directors (EDs), legislative matters, internationalbanking relations, appointment of Governor/Deputy Governor ofReserve Bank of India, matters relating to National Bank forAgriculture and Rural Development (NABARD), AgricultureFinance Corporation, co-operative banks, Regional Rural Banks(RRBs), rural/agriculture credit, Financial Inclusion, mattersrelating to Insurance sector and performance of public sectorinsurance companies, administration of various Insurance Acts,pension reforms including the New Pension System (NPS),legislative and other issues regarding the Pension FundRegulatory and Development Authority (PFRDA) etc.

Major Schemes administered by DFS are as under:-

(i) Interest Subvention for providing Short Term Credit toFarmers - The Government subsidizes the interest rate on loansto farmers through an Interest Subvention Scheme so that short-term crop loans upto ` 3.00 lakh are available to farmers at aninterest rate of 7% per annum. This scheme has been underimplementation since 2006-07 and it is continued year after year.NABARD implements the scheme in respect of CooperativeBanks and Regional Rural Banks and RBI implements thescheme in respect of Public Sector Banks. As per approval tothe continuation of the scheme during 2011-12, in addition tointerest subvention to provide short term crop loans to farmersupto ` 3.00 lakhs @ 7% p.a., following components have beenadded:a. Additional interest subvention of 3% to those farmers whorepay on time.b. Interest subvention to small and marginal farmers havingKisan Credit Cards for six months post harvest on the same rateas for short term crop loan against negotiable warehouse receiptsfor keeping their produce in warehouses.

During 2010-11 an amount of ` 3531.19 crore and during2011-12, a sum of ` 3282.70 crore was released under theScheme. An amount of ` 4377.99 crore was released under thescheme during 2012-13 (Upto December 2012) as againstprovision of ` 6000 crore in BE . A further provision of 6,000crore is proposed in BE 2013-14.

(ii) Capitalization of Public Sector Banks - As capital is a keymeasure of banks’ capacity for generating loan assets and is essentialfor balance sheet expansion, Government of India has regularlybeen investing additional capital in the Public Sector Banks (PSBs)to support their growth and keep them financially sound and healthyso as to ensure that the growing credit needs of the economy areadequately met. To enable the Public Sector Banks (PSBs) tomaintain their Tier 1 Capital to Risk weighted Assets Ratio (CRAR)at 8% as also to raise Government of India’s holding in all PSBs to58% the Government infused a sum of 20,117.23 crore in variousPSBs in 2010-11. A further sum of ` 12,000 core was infused inseven PSBs during 2011-12 for the same purpose.

For the year 2012-13 also, the Government has approvedinfusion of capital in PSBs to augment their Tier-I CRAR so asto maintain their Tier-I CRAR at comfortable level and to ensurethat they remain compliant with the capital adequacy norms underBASEL-III as well as to support internationally active PSBs fortheir national and international banking operations undertakenthrough their subsidiaries and associates. For this purpose anamount of ` 12,517 Crore is being released to 13 PSBs. For2013-14, a sum of ` 14,000 crore has been proposed forcapitalization of PSBs.

(iii) Recapitalization of Regional Rural Banks (RRBs) - Witha view to bring the CRAR of RRBs to at least 9%, Dr. K.C.Chakrabarty Committee, inter-alia, recommendedrecapitalization support to the extent of ` 2200 crore to 40RRBs in 21 States, to be shared by the stakeholders in proportionto their shareholding in RRBs i.e. 50% by the CentralGovernment, 15% by the concerned State Government and 35%by the concerned sponsor banks. The Central Government shareworked out to be ` 1100 crore. After approval of the Cabinet,the recapitalization process was started in 2010-11, to becompleted by 2011-12. The Cabinet decision required theGovernment of India to release its share upon release of theproportionate share by the concerned State Government and theSponsor Bank.

An amount of ` 468.92 crore was released to 21 RRBsupto 2011-12 (` 66.49 crore in 2010-11 and ` 402.43 crore in2011-12). The process of recapitalization could not becompleted by 2011-12 as all the State Governments did notrelease their share towards recapitalization. Therefore, therecapitalization scheme has been extended with the approval ofthe Cabinet up to March, 2014.

A provision of 200 crore was made in BE 2012-13 whichwas raised to 535 crore in RE keeping in view the proportionateshare released by State Governments and Sponsor Banks.` 200 crore has been released during 2012-13 (upto December,2012). A provision of ` 88 crore is proposed in BE 2013-14.

(iv) Interest Subvention on Housing Loans upto ` 15.00lakh - Under this Scheme, 1% interest subvention on housingloans upto ` 15.00 lakh, with cost of dwelling unit not exceeding` 25 lakhs, is provided through nodal agency, i.e. NationalHousing Bank to the scheduled commercial banks and thehousing finance companies registered with the National HousingBank. ` 38.54 crore was released to nodal agency under thescheme in 2010-11 and ` 300 crore in 2011-12. In 2012-13,provision of ` 400 crore in BE was raised to ` 500 crore in RE2012-13 keeping in view the likely claims and an amount of` 200 crore was released to NHB (upto December, 2012). Aprovision of ` 200 crore is proposed in BE 2013-14.

(v) Swavalamban Scheme under New Pension System(NPS) - The pension sector reforms were initiated in India toestablish a robust and sustainable social security arrangementin the country since only about 12-13 per cent of the total work-force was covered by any formal social security system. With a

Department of Financial Services

30

view to providing adequate retirement income, the New PensionSystem (NPS) was introduced by the Government of India andmade mandatory for all new recruits in the Government (exceptArmed Forces) with effect from 1st January, 2004.

To extend the benefit of NPS to the unorganized sector,‘Swavalamban Scheme’ was approved by the Government asannounced in the Budget Speech of 2010-11. The Scheme isaimed at encouraging the people from unorganized sector tovoluntarily save for their retirement by enrolling themselvesunder the NPS. Any citizen in the unorganized sector, who joinsNPS with an annual contribution of minimum ` 1000 andmaximum ` 12000, will receive a Government contribution of` 1,000 in his NPS account. The Government of India has,therefore, become a direct stakeholder in the old age incomesecurity of every citizen. ` 53.50 crore was released under thescheme in 2010-11 and a sum of ` 40 crore in 2011-12. Budgetprovision of ` 220 crore in 2012-13 was reduced to ` 128 crorein RE 2012-13 keeping in view the pace of enrolment under thescheme and an amount of ` 15 crore was released (uptoDecember, 2012). A further sum of ` 170 crore is proposed forthe scheme in BE 2013-14.

(vi) Varishtha Pension Bima Yojana (VPBY) - VPBY meantfor senior citizens aged 55 years and above was launched on14.7.2003 and withdrawn on 09.07.2004. Under the Scheme,Pensioners get an effective yield of 9% per annum on theirinvestment. The difference between the effective yield of 9%paid to the pensioners and that earned by LIC is compensated toLIC as subsidy by the Government of India. A sum of ` 175.70crore was released to LIC in 2010-11 and ` 182.04 crore wasreleased in 2011-12. A sum of ` 182.25 crore provided in BE2012-13 has been reduced to 140 crore in RE 2012-13 keepingin view the likely claims from LIC. Further, a provision of` 134.23 crore is proposed in BE 2013-14.

(vii)Aam Aadmi Bima Yojana (AABY) – Government hasmerged the two social sector life insurance schemes viz. JanshreeBima Yojana and the Aam Aadmi Bima Yojana into the AamAadmi Bima Yojana (AABY). The merger would enable betteradministration and services in providing life insurance cover tothe economically backward sections of society. The scheme isbeing implemented through Life Insurance Corporation of India.

The scheme extends life and disability cover to personsbetween the age of 18 years to 59 years, living below and

marginally above the poverty line under 47 identified vocational/occupational groups, including ‘rural landless households’. TheScheme has also been extended to Rashtriya Swasthya BimaYojana (RSBY) beneficiaries provided they meet the eligibilityconditions. The member should be the head of the family or oneearning member of the family under the eligible groups.

The Scheme provides for insurance cover for the sum of` 30,000/- in case of natural death, ` 75000/- on death due toaccident, ` 37,500/- for partial permanent disability (loss of twoeyes or two limbs or loss of one eye and one limb) due to accidentand ` 75,000/- on death or total permanent disability (loss oftwo eyes or two limbs or loss of one eye and one limb) due toaccident. The Scheme also provides an add-on benefit, whereinscholarship of ` 100/- per month per child is paid on a half-yearly basis to a maximum of two children per member, studyingin 9th to 12th standard (including ITI courses).

The total annual premium under the scheme is ` 200/- perbeneficiary of which 50 per cent is contributed from the SocialSecurity Fund created by the Central Government and maintainedby LIC. The balance 50 per cent of the premium is contributedby the State Government/UTs in the case of ‘Rural LandlessHouseholds’ and for the other groups, it is contributed by theState Government/Nodal agency/Individual. The CentralMinistry/Dept./ State Government/Union Territories/any otherinstitutionalized arrangement/registered NGOs may act as nodalagencies under the Scheme. However, in case of ‘Rural LandlessHouseholds’ category, it is the State Government/UT which willbe the Nodal Agency. A provision of ` 5.01 crore is proposedin BE 2013-14 for this scheme.

(viii) Women’s SHGs Development Fund – To empowerwomen and promote their Self Help Groups (SHGs) a “WomenSHGs Development Fund” has been created, which is beingoperated by NABARD. The scheme was announced in the year2011-12. It is being operationalized in 150 most backwarddistricts including Left Wing Extremism (LWE) districts.NABARD has intimated that 10.61 crore grant assistance (ason 28/12/2012) during the year has been released. 23071 SHGshave been formed and out of which 14969 SHGs have beencredit linked. A provision of ` 100 crore was released for thispurpose in 2011-12. Further, a provision of ` 100 crore isproposed in BE 2013-14.

Outcome Budget 2013-2014

S. No. 1

1. 2. 3.

Nam

e of

the

Sche

me/

Prog

ram

me

2

Maj

or H

ead

2235

-Pa

ymen

t to

Lif

eI

ns

ur

an

ce

Cor

pora

tion

of

Indi

a fo

r Pe

nsio

nPl

an

for

Seni

orCi

tizen

s

Maj

or H

ead

2235

-S

wa

va

lam

ba

nSc

hem

e.

Maj

or H

ead

2235

-G

ov

ern

men

t's

cont

ribut

ion

to A

amA

adm

i Bim

a Yoj

ana

Obj

ectiv

e/O

utco

me

3

Subs

idis

ing

Pens

ion

Plan

for S

enio

r Citi

zens

To e

xten

d th

e co

vera

ge,

unde

r N

ew

Pens

ion

Syst

em (N

PS),

to 3

0 la

khsu

bscr

iber

s

The

sche

me

exte

nds

life

and

disa

bilit

y co

ver

tope

rson

s be

low

an

dm

argi

nally

abo

ve p

over

tylin

e.

Out

lay

2013

-14

(` in

Cro

re)

44(

i)4(

ii)4(

iii)

Non

-Pl

anC

EB

RPl

an 134.

23-

-

170.

00-

-

5.01

--

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Und

er th

e Sc

hem

e a

bout

3.5

lakh

pen

sion

ers g

et a

nef

fect

ive

yiel

d of

9%

p.a

.

The

sche

me

is a

imed

at

enco

urag

ing

the

peop

lefr

om u

norg

aniz

ed se

ctor

tovo

lunt

arily

sav

e fo

r th

eir

retir

emen

t by

enr

ollin

gth

emse

lves

und

er th

e NPS

.

The

prem

ium

und

er t

hesc

hem

e is

`20

0/-

per

bene

ficia

ry of

whi

ch 5

0 pe

rce

nt is

cont

ribut

ed fr

om th

eSo

cial

Se

curi

ty

Fund

crea

ted

by t

he C

entr

alG

over

nmen

t an

dm

aint

aine

d by

LIC

.

Proj

ecte

dO

utco

mes

6

App

roxi

mat

ely

3.5

lakh

sen

ior

citiz

ens,

who

had

enr

olle

ddu

ring

the c

urre

ncy o

fth

e sch

eme,

are

bei

ngpr

ovid

ed

bene

fits

unde

r the

sche

me.

To e

nrol

l ad

ditio

nal

10 l

akh

subs

crib

ers

unde

r th

e Sc

hem

eev

ery

year

.

Pers

ons

betw

een

the

age

grou

p 18

to

59ye

ars a

nd w

ho a

re th

em

embe

rs

of

the

iden

tifi

ed

47o

cc

up

ati

on

al/

voca

tion

al g

roup

sal

ong

wit

h

Proc

esse

s/Ti

mel

ines

7

Sche

me w

as in

ope

ratio

nbe

twee

n 14

.7.2

003

and

09.0

7.20

04.

How

ever

,be

nefi

ts

to

the

subs

crib

ers

are

cont

inui

ng.

Mar

ch, 2

014.

Up

to 2

016-

17

Rem

arks

/R

iskFa

ctor

s

8

No

risk

invo

lved

.

The

pr

ojec

ted

outc

omes

ar

esu

bjec

t to

info

rmal

labo

ur

mar

ket

cond

itio

ns,

low

inte

rmit

ten

tin

com

e an

d lo

wf

in

an

ci

al

kn

ow

led

ge

,pe

rfor

man

ce o

fA

ggre

gato

rs a

ndPo

ints

of P

rese

nce

(PoP

s).

-

*CEB

R - C

ompl

emen

tary

ext

ra b

udge

tary

reso

urce

s i.e

., ex

pend

iture

s com

mitt

ed fo

r the

pur

pose

by

entit

ies o

ther

than

the

Cen

tral

Gov

ernm

ent.

31 Department of Financial Services

Stat

emen

t of O

utla

ys a

nd O

utco

mes

201

3 - 1

4

32

12

34

56

78

4(i)

4(ii)

4(iii

)N

on-

Plan

CE

BR

Plan

4. 5. 6. 7.

Maj

or H

ead

2416

-In

tere

st s

ubve

ntio

nfo

r pr

ovid

ing

shor

tte

rm

cred

it

tofa

rmer

s.

Maj

or H

ead

2416

-G

rant

s in

aid

to

NA

BA

RD

fo

rW

omen

's Se

lf H

elp

Gro

ups

(SH

Gs)

Dev

elop

men

t Fun

d

MH

.288

5 - P

aym

ent

of S

ubsi

dy to

Nod

alA

genc

y i.

e.,

Nat

iona

l H

ousi

ngBa

nk

Maj

or H

ead

3465

-T

rans

fer

toS

ec

ur

it

ie

s

Inte

rest

relie

f to

farm

ers o

nsh

ort

term

pro

duct

ion

cred

it.

To e

mpo

wer

wom

en a

ndpr

omot

e the

ir SH

Gs

The

pr

ovis

ion

is

for

prov

idin

g 1%

int

eres

tsu

bven

tion

on

hous

ing

loan

s up

to `

15.0

0 la

khth

roug

h no

dal a

genc

y, i.e

.N

atio

nal H

ousi

ng B

ank.

To co

ntrib

ute

to S

ecur

ities

Red

empt

ion

Fund

for

rede

emin

g M

arke

tabl

e

To p

rovi

de s

hort

ter

mpr

oduc

tion

cred

it at

7%

inte

rest

rate

to th

e fa

rmer

sup

to a

n am

ount

of

` 3.

00la

kh.

It w

ill p

rom

ote

setti

ng u

pan

d fin

anci

ng o

f Wom

en's

SHG

s in

150

Lef

t W

ing

Extre

mism

affe

cted

dist

ricts

of th

e co

untry

. M

ore

than

50,0

00 S

HG

s to

be

set u

pin

the p

roje

ct a

rea.

The i

nter

est s

ubsid

y w

ill b

ero

uted

th

roug

h th

esc

hedu

led

com

mer

cial

bank

s an

d th

e ho

usin

gfi

nanc

e co

mpa

nies

regi

ster

ed w

ith N

atio

nal

Hou

sing

Ban

k.

This

is

for

trans

fer

to t

heSe

curi

ties

Red

empt

ion

Fund

crea

ted

for r

edee

min

g

bene

fici

arie

s of

Ras

htri

ya S

was

thya

Bim

a Yo

jana

(RSB

Y)

are p

rovi

ded

insu

ranc

eco

ver

unde

r th

esc

hem

e.

Farm

ers

will

ben

efit

from

the m

uch

need

edin

tere

st re

lief o

n sh

ort-

term

loan

s.

This

will

enab

le ba

nks

to

enha

nce

thei

rou

trea

ch t

o th

e po

orw

omen

in

th

eba

ckw

ard

regi

ons.

Itw

ould

ena

ble

Wom

enSH

Gs

to

take

up

livel

ihoo

d ac

tiviti

es.

Hou

sing

is

a ba

sic

requ

irem

ent

of t

hepo

pula

tion

. T

heho

usin

g se

ctor

has

ahu

ge p

oten

tial

for

ge

ne

ra

ti

ng

empl

oym

ent

dire

ctly

thro

ugh

labo

urin

tens

ive a

ctiv

ities

and

indi

rect

ly b

y cr

eatin

gad

ditio

nal d

eman

d fo

rin

dust

ries l

ike c

emen

tan

d st

eel.

A s

um o

f ` 6

25 c

rore

is t

o be

tra

nsfe

rred

ever

y ye

ar b

y th

e

Perio

d of

impl

emen

tatio

nis

ext

ende

d on

yea

rly

basi

s.

Upt

o 20

13-1

4.

1 ye

ar

Upt

o 20

24

This

is a

subs

idy t

ofa

rmer

s. N

o ri

skfa

ctor

is in

volv

ed.

Thi

s is

gr

ant

assi

stan

ce a

nd i

sou

tcom

e ba

sed.

So,

no

risk

is

invo

lved

.

No

risk

fa

ctor

invo

lved

.

No

risk

fac

tor

isin

volv

ed a

s it

ison

ly a

tra

nsfe

r to

Outcome Budget 2013-2014

6000

.00

--

-10

0.00

-

200.

00-

-

625.

00-

-

33

12

34

56

78

4(i)

4(ii)

4(iii

)N

on-

Plan

CE

BR

Plan

8. 9. 10.

11.

the G

over

nmen

t Sec

uriti

es-

2024

issu

ed to

SBI

tow

ards

subs

crip

tion

to i

ts R

ight

sIs

sue

2008

, on

due

date

.

Rec

apit

alis

atio

n of

40

RRB

s to

hel

p th

em b

ring

thei

r C

RAR

to 9

%

To s

tren

gthe

n th

e ca

pita

lba

se o

f N

AB

AR

D

and

ther

eby,

en

hanc

e it

sbo

rrow

ing

capa

city

to m

eet

its d

evel

opm

enta

l man

date

IIFC

L w

ill fi

ll th

e ga

p fo

rlo

ng t

erm

inf

rast

ruct

ure

finan

ce w

hich

ban

ks a

ndot

her i

nstit

utio

ns ar

e una

ble

to p

rovi

de.

Gro

w

the

Ban

k's

disb

urse

men

ts un

der E

xpor

tLi

nes

of C

redi

t (L

OC

s)du

ring

201

3-14

to

US$

8506

mill

ion.

the

Secu

riti

esRe

dem

ptio

n Fu

ndal

read

y cre

ated

for

the p

urpo

se.

It is

Gov

ernm

ent

inve

stm

ent.

N

ori

sk

fact

orin

volv

ed.

Thi

s is

Gov

ernm

ent

ofI

nd

ia

's

subs

crip

tion

to

stre

ngth

en

the

capi

tal

base

of

NA

BARD

.

No

risk

fac

tor

isin

volv

ed.

As

a fi

nanc

ial

inte

rmed

iary

,II

FCL

Ltd.

fac

escr

edit

risk,

mar

ket

risk

an

dop

erat

iona

l risk

.

Cre

dit

risk

,li

quid

ity

risk

,in

tere

st r

ate

risk

and

fore

ign

exch

ange

risk

33 Department of Financial Services

Red

empt

ion

Fund

to

wa

rd

ssu

bscr

iptio

n in

the

Rig

hts

issu

e of

equi

ty sh

are o

f Sta

teBa

nk o

f Ind

ia.

Maj

or H

ead

4416

Reca

pita

lisat

ion

ofR

egio

nal

Rur

alBa

nks (

RRBs

).

Maj

or H

ead

4416

-Su

bscr

ipti

on

toSh

are

Cap

ital

of

NA

BARD

.

Maj

or H

ead

4885

-Su

bscr

iptio

n to

the

shar

e ca

pita

l of

Indi

a Inf

rast

ruct

ure

Fina

nce

Com

pany

Ltd.

(IIF

CL)

MH

48

85

-Su

bscr

iptio

n to

the

shar

e ca

pita

l of

EXIM

Ban

k

Secu

ritie

s is

sued

aga

inst

subs

crip

tion

in th

e Ri

ghts

Issu

e of

equ

ity s

hare

s of

Stat

e Ban

k of

Indi

a, 2

008.

To b

ring

Cap

ital

to R

isk

Wei

ghte

d A

sset

s R

atio

(CRA

R) of

RRB

s to a

t lea

st7%

in a

time b

ound

man

ner

and

furth

er to

9%

.

Aug

men

ting

the

capi

tal

base

of t

he N

atio

nal B

ank

for A

gric

ultu

re a

nd R

ural

Dev

elop

men

t (N

ABA

RD).

To s

tren

gthe

n th

e eq

uity

base

of I

IFC

L

Stre

ngth

enin

g th

e eq

uity

base

of E

XIM

Ban

k.

-88

.00

-

-70

0.00

-

-40

0.00

-

-70

0.00

-

Gov

ernm

ent

to t

his

Fund

cr

eate

d fo

rre

deem

ing

thes

eSe

curit

ies.

Impr

ovem

ent

infi

nanc

ial

heal

th o

fRR

Bs s

o as

to r

educ

eth

eir

loss

es

and

incr

ease

thei

r len

ding

capa

city

It

wil

l en

hanc

eN

AB

AR

D'

sbo

rrow

ing

capa

city

and

to

mee

t th

egr

owin

g re

fina

nce

need

s of t

he b

anks

that

are

exte

ndin

gag

ricul

ture

loan

s an

dar

e un

derta

king

oth

erde

velo

pmen

t act

iviti

esin

rura

l are

as.

To in

crea

se th

e pai

d-up

capi

tal o

f the

com

pany

.Th

is w

ill fa

cilit

ate

the

com

pany

to ex

pand

its

loan

por

tfol

io a

ndst

reng

then

it

sfu

ndam

enta

ls.

Wil

l he

lp p

rom

ote

Indi

a's ex

ports

to ot

her

coun

tries

Mar

ch, 2

014.

- One

Yea

r

One

yea

r

34

12

34

56

78

4(i)

4(ii)

4(iii

)N

on-

Plan

CE

BR

Plan

12

Outcome Budget 2013-2014

Maj

or H

ead

5465

-Re

capi

talis

atio

n of

Publ

ic S

ecto

r Ban

ks(P

SBs)

For

reca

pita

liza

tion

of

PSBs

to m

aint

ain

thei

r Tie

r1

CR

AR

at

com

fort

able

leve

l

-14

000.

00-

To

enab

le

the

PSB

sm

aint

ain

a co

mfo

rtab

lele

vel

of T

ier

1 C

RA

R i

nco

mpl

ianc

e w

ith

norm

sun

der B

asel

III

Com

fort

able

lev

el o

fC

RA

R e

nabl

es t

hePS

Bs t

o su

ppor

t th

ecr

edit

requ

irem

ents

ofth

e pro

duct

ive s

ecto

rsof

th

e ec

onom

yle

adin

g to

, am

ongs

tot

hers

, in

crea

sed

em

pl

oy

me

nt

oppo

rtuni

ties

and

the

over

all G

DP

grow

th in

the c

ount

ry.

One

Yea

rIt

is a

n in

vest

men

tby

the G

over

nmen

tin

the

PSB

s to

enab

le t

hem

to

resp

ond

posi

tivel

yan

d ef

fect

ivel

y to

the g

row

ing

cred

itre

quire

men

ts of

the

prod

uctiv

e se

ctor

sof

the

econ

omy.

35

REFORM MEASURES AND POLICY INITIATIVES

1. Legislative InitiativesDepartment has taken following legislative initiatives:-

(i) Banking Laws (Amendment) Act, 2012The above Act was passed by both the houses of the

Parliament during the winter session of December 2012 and hascome into effect from 18 January 2013. It would strengthen theregulatory powers of RBI and also enable the nationalised banksto raise capital through bonus and rights issue and would alsoenable them to increase or decrease the authorised capital withapproval from the Government and RBI, without being limitedby the ceiling of a maximum of ` 3000 crore.

(ii) The Enforcement of Security Interest and Recovery ofDebts Laws (Amendment) Act, 2012The above Act was passed by both the houses of the

Parliament during the winter session of December 2012 and hascome into effect from 15 January 2013. It seeks to address certaindifficulties faced by the banks and Financial Institutions (FIs)in proceedings for recovery of loans under the Securitizationand Reconstruction of Financial Assets and Enforcement ofSecurity Interest (SARFAESI) Act, 2002 and Recovery of Debtsdue to Banks and Financial Institutions (RDDBFI) Act, 1993.

The amendments would strengthen the ability of banks torecover debts due from the borrowers thereby enhancing theability of the banks to extend credit to both corporate and retailborrowers, reduce the cost of funds for the banks and theircustomers and reduce the level of NPAs.

2. “Swabhimaan” – the Financial Inclusion:Under “Swabhimaan” - the Financial Inclusion Campaign

launched in February 2011, banking facilities to over 74,000habitations having a population of 2000 and above have beenprovided by engaging over 62,000 business correspondent agents(BCAs) and opening branches. About 3.16 crore FinancialInclusion accounts have been opened till March, 2012. Further,Public Sector Banks and Regional Rural Banks (RRBs) haveoperationalised over 43,000 Ultra Small Branches so far.

In pursuance to the announcement made by Finance Ministerin budget speech 2012-13, the “Swabhimaan” campaign is beingextended to about 45,000 habitations with population of morethan 1000 in North Eastern and hilly States and with 1600-2000population (as per 2001 census) in other States.

3. Roll out of Direct Benefit Transfer w.e.f. 01.01.2013:The Government of India has introduced Direct Benefit

Transfer in respect of various welfare schemes of Government,directly into the bank accounts of beneficiaries with effect from1st January, 2013. Under the Direct benefit Transfer, the entiregeography of the districts selected for pilot, and the entire Stateand country, in a phased manner, would be covered.

The strategy for financial inclusion has accordingly beenrevised as the banking services would now be extended to the

entire geographical area of the selected districts, as againstcoverage of specific villages earlier. It is the endeavour that onebanking outlet {branch / Business Correspondent Agent (BCA)}is available for, on an average, 1000-1500 households, takingthe geographical and local conditions in consideration.

4. Pension ReformsThe pension sector reforms were initiated in India to

establish a robust and sustainable social security arrangementin the country against the backdrop that only about 12-13 percent of the total workforce was covered by any formal socialsecurity system. The New Pension System (NPS) has beenintroduced by the Government of India with effect from 1stJanuary, 2004 mandatorily for all new recruits to the Government(except Armed forces), replacing the existing system of definedbenefit pension system. Based on individual choice, it isenvisaged as a low-cost and efficient pension system backed bysound regulation. As a pure “Defined Contribution” product withno defined benefit element, returns would be totally market-related. The NPS provides various investment options andchoices to individuals to switch over from one investment optionto another or from one fund manager to another, subject to certainregulatory restrictions.

Scope of the New Pension SystemNPS has also been rolled out to all citizens with effect from

1st May, 2009 on a voluntary basis. The process of makingNPS available to all citizens entailed the appointment of NPSintermediaries, including Fifty five institutional entities as Pointsof Presence (POPs) that will serve as pension account openingand collection centers, a Centralised Record Keeping Agency(CRA) and five Pension Fund Managers to manage the pensionwealth of the investors. PFRDA adopted a transparent, non-discretionary, competitive bidding process for selection of NPSintermediaries, in line with best international practice, whichensured high quality service delivery for NPS subscribers atoptimum cost.

In order to facilitate the organised entities to move theirexisting and the new employees to NPS architecture, acustomised version of the core NPS Model, known as the “NPS-Corporate Sector Model” has been introduced since December2011. As on December 31, 2012, 362 corporates and 1.17 lakhemployees have been enrolled under this model. The AssetsUnder Management (AUM) under NPS-Corporate Sector Modelis ` 857.57 crore.

A number of changes have been introduced to energize NPS,in the current year.

i. Six Annuity Service Providers (ASPs) have been empanelledon May 4, 2012 to offer annuity schemes to subscribers onmaturity of NPS account. These are:-1. Life Insurance Corporation of India2. SBI Life Insurance Co. Ltd.

Department of Financial Services

36

3. ICICI Prudential Life Insurance Co. Ltd.4. Bajaj Allianz Life Insurance Co. Ltd.5. Star Union Dai-ichi Life Insurance Co. Ltd.6. Reliance Life Insurance Co. Ltd.

ii. Revised guidelines for registration of Pension FundManagers (PFMs) in the private sector have been issued onJuly 12, 2012 wherein the restrictions on the number ofPFMs and the earlier bidding process have been done awaywith. These guidelines are in line with the recommendationsof the Bajpai Committee which was set up by PFRDA to go

into the reasons for the slow progress of NPS in the privatesector.

iii. These guidelines are going to have significant impact onthe pension sector. All the interested players desirous ofbeing in the pension sector can register as PFMs subject totheir fulfilling the laid down eligibility criteria.

iv. The PFMs would also be expected to market the NewPension System (NPS) to the potential subscribers, decidingtheir own marketing and distribution channels as per theirbusiness perceptions.

Outcome Budget 2013-2014

37

REVIEW OF PAST PERFORMANCE

Agricultural Debt Waiver and Debt Relief Scheme(ADWDRS), 2008

In 2008-09, Government had announced ADWDRS forfarmers covering all agricultural loans disbursed by ScheduledCommercial Banks (SCBs), Regional Rural Banks (RRBs),Cooperative Banks (including UCBs) and Local Area Banks(LABs) upto 31st March, 2007, overdue as on 31st December,2007 and that remained unpaid until 29th February, 2008. Therewas a complete waiver for small and marginal farmers whilethere was a One Time Settlement scheme for other farmers forthe loans covered during these periods. The OTS offered a rebateof 25% against payment of the balance amount of 75%. TheScheme was implemented by its due date i.e. 30.06.2008 so asto make them eligible for availing fresh credit from the lendinginstitutions. However, the last date for payment of 75% by “OtherFarmers” under OTS Scheme was extended upto 30th June, 2010

Reimbursement of claims to the lending institutions wasmade in instalments on the basis of duly certified and auditedclaims through the respective nodal agencies, i.e. RBI andNABARD. An amount of ` 25,000 crore was reimbursed underthe Scheme to the lending institutions during 2008-09, 15,000crore during 2009-10, ` 11,340.47 crore during 2010-11 and` 1176.39 crore in 2011-12.

In respect of Public Sector Banks, Private Sector Banksand Local Areas Banks, 104 lakh farm loan accounts and inrespect of Regional Rural Banks (RRBs) and Cooperative Banks,186.92 lakh farm loan accounts have been benefited under theScheme. Thus, approximately 3.45 crore farm accounts havebeen benefitted under the scheme to the extent of around 52,000crore.

Interest to lending institutions towards implementation ofAgricultural Debt Waiver and Debt Relief Scheme(ADWDRS)

Due to staggered schedule drawn for reimbursing the claimsof lending institutions, Government of India approved a proposalto pay interest to lending institutions, subsequent toreimbursement of the first instalment of the claims under theScheme. A sum of ` 3,872 crore was approved for this purposeby the Government on 3 October, 2008. An amount of 149.79crore was released as interest payment during 2008-09, 458.85crore during 2009-10 and ` 1434 crore during 2011-12. Abudgetary provision of 287 crore was made for the year 2011-12 out of which ` 178.46 crore was released.

Janshree Bima Yojana (JBY)

The Scheme provides life insurance protection to the ruraland urban persons living below the poverty line and marginallyabove the poverty line. It provides coverage of ` 30,000 onnatural death, ` 75,000 on the death or total permanent disabilitydue to accident and ` 37,500 on partial permanent disabilities.Scholarship as a free add-on benefit is also provided to a

maximum of two children of the beneficiary studying between9th and 12th Standard @ ` 100 per month for each child. Thepremium under the Scheme is ` 200 per annum, 50% of whichis contributed by the beneficiary/State Government/nodal agencyand the balance of 50% is drawn from the Social Security Fundcontributed by the Government of India and maintained by LIC.

Women Self Help Groups (SHGs) have been chosen forspecial attention under this Scheme with a view to rapidly scaleup coverage of all women SHGs credit linked to Banks. LICcoordinates with Banks, NABARD and other State agenciesin order to extend coverage to all credit linked Women SHGs.During 2011-12, a total number of 2,20,56,435 lives werecovered under Janshree Bima Yojana (JBY). As on 31.12.2012,3,92,169 Women SHGs with 41,60,755 lives have beencovered.

A sum of ` 500 crore was placed in 2008-09 by theGovernment of India in the Social Security Fund maintained bythe LIC. As per the requirement put forth by LIC in view ofdepletion of the corpus of the Fund, Government contributed afurther sum of 100 crore to the fund during 2011-12 and a sumof ` 157.50 crore has been released to LIC in 2012-13.

Universal Health Insurance Scheme (UHIS)

UHIS, meant for BPL families, provides for reimbursementof medical expenses up to ` 30,000/- towards hospitalizationexpenses on floater basis amongst the entire family, death coverdue to an accident, of 25,000/- to the earning head of the familyand compensation due to loss of earning of the earning member@ ` 50/- per day up to a maximum of 15 days. The Scheme wasrevised in September, 2008 wherein the premium was reducedand the coverage of benefits was expanded by providingmaternity benefits, coverage upto 70 years of age, inclusion ofpre-existing diseases and extending the benefit of loss of wagesto the spouse of the insured also. ` 22 crore was released forthis scheme in 2010-11 and `13.60 crore in 2011-12. Thisscheme is being phased out as coverage under RashtriyaSwasthya Bima Yojana (RSBY), being implemented by theMinistry of Labour, is increasing.

New Pension System (NPS)

With a view to providing adequate retirement income, NewPension System (NPS) was introduced by the Government ofIndia and made mandatory for all new recruits in the Government(except Armed Forces) with effect from 1st January, 2004. 27States and UT Governments have notified and joined NPS fortheir employees. Of these, 26 states and UTs have already signedagreement with NPS Trust and 27 States and UTs have signedagreements with CRA for carrying forward the implementationof NPS. The other states are at different stages of preparationfor roll out of NPS. In addition, over 26.10 lakh employees ofthe Central and various state governments are already part ofNPS. The corpus being managed under the NPS is ` 24720

Department of Financial Services

38

crore. To extend the benefit of NPS to the people fromunorganized sector, ‘Swavalamban Scheme’ was launched bythe Government in pursuance of the announcement made in theBudget Speech of 2010-11. The scheme operates through 69Aggregators. A total of 3,01,920 subscribers was enrolled during2010-11, 6,43,980 subscribers were in 2011-12 and 2,92,021new subscribers were registered in 2012-13 (as on December31, 2012). For all citizens including workers of unorganizedsector, NPS was available through nearly 26830 service providerbranches of 55 Points of Presence (PoPs).

Debt Recovery Tribunals (DRTs)/Debts Recovery AppellateTribunals (DRATs)

The Central Government established 33 Debts RecoveryTribunals (DRTs) and 5 Debts Recovery Appellate Tribunals

(DRATs) under the provisions of the Recovery of Debts due toBanks and Financial Institutions Act, 1993 for expeditiousadjudication and speedy recovery of debts due to banks andfinancial institutions and matters connected therewith. DRTsare providing valuable services to the banks and FinancialInstitutions for effecting recovery of dues. The role of the DRTshas been further enhanced by enacting the Securitization andReconstruction of Financial Assets and Enforcement of SecurityInterest (SARFAESI) Act, 2002, which provides for aggrievedparties to make appeals before the DRTs.

As per the provisional data, 10,877 cases involving 18,885crores were disposed of by the DRTs during the period from1.01.2011 to 31.12.2011 and 9125 cases involving ` 16078crores during the period of 01.01.2012 to 31.12.2012.

Outcome Budget 2013-2014

Stat

emen

t of O

utco

me

with

ref

eren

ce to

Out

lays

- 20

11 -

12

S. No. 1

1 2

Nam

e of

the

Sche

me/

Prog

ram

e

2

MH

223

5 –

Farm

ers

Deb

t R

elie

f Fu

ndfo

r im

plem

enta

tion

of A

gric

ultu

ral D

ebt

Wai

ver

and

Deb

tR

elie

f

Sche

me

(AD

WD

RS),

200

8fo

r Far

mer

s

MH

22

35

–Pa

ymen

t of i

nter

est

to

lend

ing

insti

tutio

ns to

war

dsA

gric

ultu

re D

ebt

Wai

ver

and

Deb

tR

elie

f

Sche

me

(AD

WD

RS),

2008

for F

arm

ers

Obj

ectiv

e/O

utco

me

3

On

gran

ting

of

debt

wai

ver,

the

farm

er w

ould

be

enti

tled

to

fr

esh

agric

ultu

ral l

oans

from

the

Bank

s in

acco

rdan

ce w

ithth

e nor

mal

rule

s.

Upo

n be

ing

gran

ted,

the

paym

ent o

f int

eres

t on

the

bala

nce

reim

burs

able

clai

ms,

th

e le

ndin

gin

stitu

tions

will

not

hav

eto

m

ake

prov

isio

nsto

war

ds

thei

rre

imbu

rsab

le c

laim

s as

requ

ired

by R

BI.

Out

lay

2011

-12

(` in

Cro

re)

4

4(i)

4(ii)

BER

E

6000

.00

1500

.00

287.

0028

7.00

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts

5

The

Sche

me

cove

red

all

agri

cult

ural

lo

ans

disb

urse

d by

the

len

ding

inst

itut

ions

upt

o 31

stM

arch

, 20

07,

over

due

ason

31s

t D

ecem

ber,

2007

and

that

rem

aine

d un

paid

until

29.

02.2

008.

The

re is

a co

mpl

ete

wai

ver

for

smal

l and

mar

gina

l far

mer

sw

hile

ther

e is

a O

ne T

ime

Settl

emen

t (O

TS) s

chem

efo

r ot

her

farm

ers

for

the

loan

s cov

ered

dur

ing

thes

epe

riod

s. T

he O

TS o

ffers

are

bate

of

25%

aga

inst

paym

ent

of t

he b

alan

ceam

ount

of 7

5%.

Due

to st

agge

red

sche

dule

draw

n fo

r rei

mbu

rsin

g th

ecl

aim

s of

the

len

ding

inst

itut

ions

un

der

AD

WD

RS,

th

eG

over

nmen

t has

dec

ided

topa

y in

tere

st

to

thes

ein

stitu

tions

for t

he 2

nd, 3

rdan

d 4t

h in

stalm

ents

and

has

appr

oved

` 3

872.

00 c

rore

for

this

pur

pose

ove

r a

Proc

esse

s/Ti

mel

ines

6

The

Sc

hem

e w

asim

ple-

men

ted

by i

tsdu

e da

te

i.e.

30.0

6.20

08 f

or t

hede

bt

wai

ver.

A

sre

gard

s th

e D

ebt

Relie

f, an

ext

ensi

onof

tim

e w

as g

iven

upto

30.

6.20

10 t

oot

her f

arm

ers t

o mak

ere

paym

ents

and

avai

la

reba

te o

f 25

% o

nth

e am

ount

due

.

Upt

o M

arch

, 201

2

Risk

Fact

ors

7

Thi

s is

a s

ubsi

dy t

ofa

rmer

s. N

o ris

k fa

ctor

isin

volv

ed.

No

risk

invo

lved

.

Ach

ieve

men

tsas

on

31st

Mar

ch,

2012 8

`117

6.39

cro

rer

el

ea

se

d.

App

roxi

mat

ely

3.45

cror

e far

mer

sha

ve

bene

fite

dun

der t

he sc

hem

e.

` 17

8.46

cro

rere

leas

ed a

s pe

rcl

aim

s re

ceiv

edfr

om

RB

I an

dN

ABA

RD.

39 Department of Financial Services

40

12

34

56

78

4(i)

4(ii)

BER

E

Maj

or H

ead

2416

–In

tere

st s

ubve

ntio

nfo

r pr

ovid

ing

shor

tte

rm

cred

it

tofa

rmer

s.

Maj

or H

ead

2416

–G

rant

s in

aid

for

revi

tali

sati

on

ofSh

ort

Term

Coo

pera

tive

Cre

dit

Stru

ctur

e (ST

CC

S)

Maj

or H

ead

2416

–G

rant

s in

aid

for

revi

tali

sati

on

ofL

ong

Term

Coo

pera

tive

Cre

dit

Stru

ctur

e (LT

CC

S)

Inte

rest

relie

f to

farm

ers o

nsh

ort

term

pro

duct

ion

cred

it.

Rev

italis

atio

n of

Sh

ort

Term

Coo

pera

tive

Cre

dit

Stru

ctur

e in

the c

ount

ry

Rev

italiz

atio

n of

Lon

gTe

rm C

oope

rativ

e C

redi

tSt

ruct

ure i

n th

e cou

ntry

peri

od

of

2009

-10

to20

11-1

2.

To p

rovi

de s

hort

ter

mpr

oduc

tion

cred

it at

7%

inte

rest

rate

to th

e fa

rmer

sup

to a

n am

ount

of

` 3.

00la

kh.

To r

evita

lize

shor

t te

rmC

oope

rati

ve

Cre

dit

Stru

ctur

e in

the

Sta

tes

whi

ch a

gree

to im

plem

ent

the p

acka

ge

To p

rovi

de re

viva

l pac

kage

for

revi

taliz

atio

n of

Lon

gTe

rm C

oope

rativ

e C

redi

tSt

ruct

ure

One

yea

r

The

revi

talis

atio

n of

STC

CS

is

to

beco

mpl

eted

w

ithi

nne

xt

1-2

year

sde

pend

ing

upon

the

wil

ling

ness

an

dsu

ppor

t of t

he S

tate

s.

The p

acka

ge re

quire

dce

rtain

chan

ges w

hich

are y

et to

be a

ppro

ved

by th

e G

over

nmen

t.

Thi

s is

a s

ubsi

dy t

ofa

rmer

s. N

o ri

sk fa

ctor

isin

volv

ed.

This

is a g

rant

to th

e Sho

rtTe

rm C

oope

rativ

e C

redi

tSt

ruct

ure

in th

e co

untr

y.N

o risk

fact

or is

invo

lved

.

The G

over

nmen

t of I

ndia

had

cons

titut

ed a

Tas

kFo

rce t

o ass

ess t

he im

pact

of th

e im

plem

enta

tion

ofth

e A

DW

DRS

, 200

8 an

dST

CC

S pa

ckag

e on

the

fina

ncia

l he

alth

of

the

LTC

CS

befo

re i

mpl

e-m

entin

g the

pac

kage

. Thi

sTa

sk F

orce

has

subm

itted

its re

port

whi

ch h

as b

een

acce

pted

by

the

Gov

t.

` 32

82.7

0 cr

ore

sanc

tione

d.

` 92

45.2

8 cr

ore

rele

ased

up

to20

10-1

1 fo

rim

plem

enta

tion

ofth

e pa

ckag

e.`

9002

.92

cror

ere

leas

ed

byN

AB

AR

D

asG

oI’s

sh

are

for

reca

pita

liza

tions

of 5

3,20

5 el

igib

lePA

CS in

17

Stat

es,

1,51

0 in

elig

ible

PAC

S af

filia

ted

to30

C

CB

s in

3

Stat

es

and

13C

CBs

in O

dish

a.

The

pac

kage

is

unde

r fin

aliz

atio

n.

3 4 5

4868

.00

4000

.00

0.01

0.01

1000

.00

0.01

Outcome Budget 2013-2014

41

12

34

56

78

4(i)

4(ii)

BER

E

Maj

or H

ead

2416

–Fi

nanc

ial I

nclu

sion

Fund

(FIF

)

Maj

or H

ead

2416

–Fi

nanc

ial I

nclu

sion

Tech

nolo

gy F

und

(FIT

F)

Maj

or H

ead

4416

–Re

capi

talis

atio

n of

Reg

iona

l R

ural

Bank

s (RR

Bs)

Maj

or H

ead

3465

–C

ontr

ibut

ion

toS

ec

ur

it

ie

sRe

dem

ptio

n Fu

nd.

To s

uppo

rt p

rom

otio

nal

and

deve

lopm

enta

lac

tiviti

es w

ith a

vie

w t

ose

curi

ng g

reat

er fi

nanc

ial

incl

usio

n, p

arti

cula

rly

amon

g w

eake

r se

ctio

ns,

low

inc

ome

grou

ps a

ndba

ckw

ard

regi

ons/

hith

erto

unba

nked

area

s.

To en

hanc

e inv

estm

ents

ini

nf

or

ma

ti

on

co

mm

un

ica

tio

nte

chno

logy

ai

med

at

prom

otin

g fi

nanc

ial

incl

usio

n, s

tim

ulat

ing

tran

sfer

of

rese

arch

and

tech

nolo

gy i

n fi

nanc

ial

incl

usio

n,

incr

easi

ngte

chno

logi

cal

abso

rptio

nca

paci

ty

of

fina

ncia

lse

rvic

e pro

vide

rs/u

sers

.

To b

ring

Cap

ital

to R

isk

Wei

ghte

d A

sset

s R

atio

(CR

AR

) of

RR

Bs

to a

tle

ast 7

% in

a ti

me

boun

dm

anne

r and

furth

er to

9%

by M

arch

, 201

2.

To co

ntrib

ute

to S

ecur

ities

Red

empt

ion

Fund

for

rede

emin

g M

arke

tabl

eSe

curi

ties

issu

ed a

gain

stsu

bscr

iptio

n in

the

Righ

tsIs

sue

of e

quity

sha

res

ofSt

ate B

ank

of In

dia,

200

8.

To e

nsur

e ac

cess

to ti

mel

yan

d ad

equa

te c

redi

t an

dFi

nanc

ial

Serv

ices

to

wea

ker

sect

ions

and

low

inco

me

grou

ps

at

anaf

ford

able

cos

t w

ith t

heob

ject

ive

of s

uppo

rtin

gpr

ofes

sion

al

and

deve

lopm

enta

l ac

tiviti

esw

ith a

vie

w t

o se

curi

ngfin

anci

al in

clus

ion

To e

xten

d fa

cilit

y un

der

tech

nolo

gica

l dev

elop

men

tto

ens

ure

acce

ss to

tim

ely

and

adeq

uate

cre

dit

and

finan

cial

serv

ices

to w

eake

rse

ctio

ns a

nd l

ow i

ncom

egr

oups

at an

affo

rdab

le co

stw

ith

the

obje

ctiv

e of

stim

ulat

ing

the

trans

fer

ofre

sear

ch an

d te

chno

logy

infin

anci

al in

clus

ion

Rec

apit

alis

atio

n of

40

RRB

s to

hel

p th

em b

ring

thei

r C

RAR

to a

t lea

st 7

%

It is

a c

ontri

butio

n to

the

Secu

riti

es R

edem

ptio

nFu

nd cr

eate

d fo

r red

eem

ing

the G

over

nmen

t Sec

uriti

es-

2024

issu

ed to

SBI

tow

ards

subs

crip

tion

to i

ts R

ight

sIs

sue

2008

, on

due

date

.

Ent

ire

prov

isio

nof

`1

0 cr

ore

sanc

tione

d.

Entir

e pr

ovis

ion

of

`10

cror

esa

nctio

ned.

` 40

2.43

cr

ore

rele

ased

fo

rre

capi

talis

atio

n of

10 R

RBs.

` 62

5.00

cro

rew

as re

leas

ed.

6 7 8 9

The

Fu

nd,

bein

gm

aint

aine

d by

NA

BA

RD

, ha

s be

enco

nstit

uted

with

shar

es in

the

ratio

of

40:4

0:20

by

GO

I, RB

I and

NA

BARD

.`

10.0

0 cr

ore

each

rele

ased

in

2007

-08,

2009

-10

and

2010

-11

asG

OI s

hare

.

The

Fu

nd,

bein

gm

aint

aine

d by

NA

BA

RD

, ha

s be

enco

nstit

uted

with

shar

es in

the

ratio

of

40:4

0:20

by

GO

I, RB

I and

NA

BARD

.`

10.0

0 cr

ore

each

was

rele

ased

in

2007

-08,

2009

-10

and

2010

-11

asG

OI s

hare

.

It

is

Gov

ernm

ent

inve

stmen

t. N

o ris

k fa

ctor

invo

lved

.

No

risk

fact

or is

invo

lved

as it

is o

nly a

cont

ribut

ion

to

the

Secu

riti

esR

edem

ptio

n Fu

ndal

read

y cr

eate

d fo

r th

epu

rpos

e.

41

10.0

010

.00

10.0

010

.00

500.

0020

0.00

625.

0062

5.00

The

Fun

d is

bei

ngop

erat

ed fr

om th

e yea

r20

07-0

8 on

war

d.

The

Fun

d is

bei

ngop

erat

ed fr

om th

e yea

r20

07-0

8 on

war

d.

One

yea

r

Upt

o 20

24

Department of Financial Services

42

12

34

56

78

4(i)

4(ii)

BER

E

10 11 12 13

To

enab

le

the

PSB

sm

aint

ain

a co

mfo

rtab

lele

vel o

f Tie

r 1

CRA

R an

dto

rai

se G

over

nmen

t of

Indi

a’s h

oldi

ng in

all

PSBs

to 5

8%.

This

is a

imed

at e

xten

ding

bank

ing

serv

ices

thr

ough

Bus

ines

s C

orre

spon

dent

(BC

) and

othe

r mod

els w

ithap

prop

riat

e te

chno

logy

back

up as

par

t of F

inan

cial

Incl

usio

n Pl

ans.

IIFC

L w

ill fi

ll th

e ga

p fo

rlo

ng t

erm

inf

rast

ruct

ure

finan

ce w

hich

ban

ks a

ndot

her i

nstit

utio

ns ar

e una

ble

to p

rovi

de

Gro

w

the

Ban

k’s

disb

urse

men

ts

unde

rE

xpor

t Li

nes

of C

redi

t(L

OC

s) d

urin

g FY

201

1-12

to U

S $

600

mill

ion

(Abo

ut20

% g

row

th

over

the

esti

mat

ed

US

$ 50

0m

illio

n of

dis

burs

emen

tsun

der

LOC

s du

ring

FY

2010

-11)

Maj

or H

ead

5465

–Re

capi

talis

atio

n of

Publ

ic S

ecto

r Ban

ks(P

SBs)

Maj

or H

ead

3465

–Fi

nanc

ial S

uppo

rt to

the

Ban

ks

for

open

ing

‘No

Frill

s’ac

coun

ts

unde

r‘S

wa

bh

ima

nSc

hem

e’.

Maj

or H

ead

4885

-Su

bscr

iptio

n to

the

shar

e ca

pita

l of

Indi

a Inf

rast

ruct

ure

Fina

nce

Com

pany

(IIF

CL)

Ltd

MH

48

85

–Su

bscr

ipti

on t

oth

e sh

are

capi

tal

of E

XIM

Ban

k

For

reca

pita

lisa

tion

of

PSB

s th

roug

h eq

uity

supp

ort

to m

aint

ain

thei

rTi

er 1

CRA

R at

8%

as a

lso

to r

aise

Gov

ernm

ent

ofIn

dia’

s hol

ding

in a

ll PS

Bsto

58%

.

This

is to

prov

ide f

inan

cial

supp

ort

to t

he B

anks

@`

140

per

fina

ncia

lin

clus

ion

bene

fici

ary

acco

unt f

or 5

.11

cror

e ‘N

oFr

ills’

acco

unts

in ap

prox

.73

,000

id

enti

fied

habi

tatio

ns

To

supp

lem

ent

the

avai

labl

e lon

g te

rm fi

nanc

efo

r co

mm

erci

ally

via

ble

infr

astru

ctur

e pro

ject

s

Stre

ngth

enin

g th

e eq

uity

base

of E

XIM

Ban

k.

6000

.00

1200

0.00

50.0

00.

00

1000

.00

500.

00

300.

0030

0.00

-

Thre

e Yea

rs. -

One

yea

r

It is

an in

vest

men

t by

the

Gov

ernm

ent i

n th

e PSB

sto

en

able

th

em

tore

spon

d po

sitiv

ely

and

effe

ctiv

ely

to

the

grow

ing

cred

it ne

eds

ofth

e cou

ntry

.

No

risk

fact

or is

invo

lved

as it

is o

nly

to m

eet o

netim

e fix

ed co

st of

open

ing

‘No

frill

s’ A

ccou

nts

As

a fi

nanc

ial

inte

rmed

iary

IIFC

L Lt

d.fa

ces

cred

it ris

k, m

arke

tris

k an

d op

erat

iona

l ris

k.

Cre

dit r

isk,

liqu

idity

risk

,in

tere

st r

ate

risk

and

fore

ign

exch

ange

risk

` 12

000.

00 c

rore

rele

ased

. In

dian

econ

omy

has b

een

able

to

with

stan

dth

e gl

obal

finan

cial

cris

is.

Sche

me

was

disc

onti

nued

in

betw

een

and

nofu

nd w

as re

leas

edun

der t

he S

chem

e.74

,000

ide

ntifi

edha

bita

tions

hav

ebe

en

cove

red

unde

r Fi

nanc

ial

Incl

usio

n.

` 50

0.00

cro

rere

leas

ed to

IIFC

L.IIF

CL cu

mul

ativ

elyis

sued

san

ctio

nsfo

r 26

7 pr

ojec

tsam

ount

ing

to`

61,2

19 c

rore

.

Entir

e pr

ovis

ion

of `

300

cro

rere

leas

ed.

Exi

mB

ank

exte

nded

loan

s of

` 54

,529

.78

cror

e(i

nclu

ding

GO

Isu

ppor

ted

LOC

s).

Outcome Budget 2013-2014

43

12

34

56

78

4(i)

4(ii)

BER

E

14 15 16 17

43

Maj

or H

ead

“223

5”–P

aym

ent

to L

ife

In

su

ra

nc

eC

orpo

rati

on

ofIn

dia

for

Pens

ion

Plan

fo

r Se

nior

Citi

zens

Maj

or H

ead

2235

- -Pa

ymen

t to

Pub

licSe

ctor

G

ener

alI

ns

ur

an

ce

Com

pani

es

for

Com

mun

ity B

ased

Uni

vers

al H

ealt

hIn

sura

nce

Sche

me

UH

IS

Maj

or H

ead

2235

-S

wa

va

lam

ba

nSc

hem

e.

MH

.288

5 –

Paym

ent o

f Sub

sidy

to N

odal

Age

ncy i

.e.

Nat

iona

l H

ousi

ngBa

nk

Subs

idis

ing

Pens

ion

Plan

for S

enio

r Citi

zens

Four

pub

lic se

ctor

Gen

eral

Insu

ranc

e Com

pani

es h

ave

been

impl

emen

ting

UH

ISfo

r im

prov

ing

the a

cces

s of

heal

th ca

re to

BPL

fam

ilies

To e

xten

d th

e co

vera

ge,

unde

r N

ew

Pens

ion

Syst

em (N

PS),

to 2

0 la

khsu

bscr

iber

s

The

pr

ovis

ion

is

for

prov

idin

g 1%

int

eres

tsu

bven

tion o

n ho

usin

g loa

nsup

to `

15.

00 la

kh th

roug

hno

dal a

genc

y i.e

. Nat

iona

lH

ousin

g Ba

nk.

199.

6119

0.38

20.0

020

.00

220.

0011

0.00

500.

0030

0.00

Und

er

the

Sche

me

pens

ione

rs g

et a

n ef

fect

ive

yiel

d of

9%

p.a

.

To co

ver 6

.66

lakh

fam

ilies

The

sche

me

is a

imed

at

enco

urag

ing

the

peop

lefr

om u

norg

aniz

ed se

ctor

tovo

lunt

arily

sav

e fo

r th

eir

reti

rem

ent

by e

nrol

ling

them

selv

es u

nder

the N

PS.

The i

nter

est s

ubsid

y w

ill b

ero

uted

thro

ugh

the s

ched

uled

com

mer

cial

ban

ks a

nd t

heho

usin

g fin

ance

com

pani

esre

gist

ered

with

Nat

iona

lH

ousi

ng B

ank.

Sche

me

has

been

disc

onti

nued

w.e

.f09

.07.

2004 -

The

le

vel

ofen

rolm

ent

wou

ldde

pend

up

on

the

perf

orm

ance

of

Agg

rega

tors

.(T

hree

yea

rs)

One

and

hal

f yea

r

No

risk

invo

lved

.

It is

a w

elfa

re sc

hem

e for

the

poor

. No

risk

fact

orin

volv

ed.

Info

rmal

lab

our

mar

ket

cond

itio

ns,

low

inte

rmitt

ent i

ncom

e an

dlo

w fi

nanc

ial k

now

ledg

e..

No

risk

fact

or in

volv

ed.

`182

.04

cror

ere

leas

ed t

o LI

C.

3.5 l

akh

pens

ione

rsw

ho j

oine

d th

esc

hem

e ar

e be

ing

cove

red.

`13.

60

cror

ere

leas

ed.

4807

7 po

lici

esco

verin

g 2,

93,6

72fa

mil

ies

wer

eiss

ued.

`40.

00

cror

ere

leas

ed u

nder

the

sche

me.

6,4

3,98

0a

dd

itio

na

lsu

bsc

rib

ers

enro

lled

dur

ing

2011

-12.

` 30

0.00

cror

e was

rele

ased

.

Department of Financial Services

Stat

emen

t of O

utco

me

with

ref

eren

ce to

Out

lays

- 20

12 -

13

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

e

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2012

-13

(` in

Cro

re)

4

4(i)

4(ii)

BER

E

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts

5

Proc

esse

s/Ti

mel

ines

s

6

Rem

arks

/R

isk

Fact

ors

7

Ach

ieve

men

tsas

on

31st D

ecem

ber,

2012 8

Maj

or H

ead

2235

-Pa

ymen

t to

Lif

eI

ns

ur

an

ce

Cor

pora

tion

of

Indi

a fo

r Pe

nsio

nPl

an

for

Seni

orC

itize

ns

Maj

or H

ead

2235

–S

wa

va

lam

ba

nSc

hem

e.

Maj

or H

ead

– 22

35G

ov

ern

me

nts

cont

ribu

tion

to

augm

ent t

he S

ocia

lSe

curi

ty

Fund

mai

ntai

ned

by L

ICfo

r Ja

nshr

ee B

ima

Yoja

na.

1 2 3

Subs

idiz

ing

Pens

ion

Plan

for S

enio

r Citi

zens

To e

xten

d th

e co

vera

ge,

unde

r N

ew

Pens

ion

Syst

em (N

PS),

to 3

0 la

khsu

bscr

iber

s

The

sche

me

prov

ides

life

insu

ranc

e pro

tect

ion

to th

eru

ral

and

urba

n pe

rson

sliv

ing

belo

w p

over

ty li

nean

d m

argi

nall

y ab

ove

pove

rty li

ne.

182.

2514

0.00

220.

0012

8.00

175.

0017

5.00

Und

er th

e Sc

hem

e a

bout

3.5

lakh

pen

sion

ers g

et a

nef

fect

ive

yiel

d of

9%

p.a

.

The

sche

me

is a

imed

at

enco

urag

ing

the

peop

lefro

m u

norg

aniz

ed se

ctor

tovo

lunt

arily

sav

e fo

r th

eir

reti

rem

ent

by e

nrol

ling

them

selv

es u

nder

the N

PS.

The

prem

ium

und

er t

heSc

hem

e is

` 2

00/-

per

annu

m, 5

0% o

f w

hich

is

cont

ribu

ted

by

the

be

ne

fic

iary

/Sta

teG

over

nmen

t/nod

al ag

ency

and

the

rem

aini

ng 5

0% is

draw

n fr

om t

he S

ocia

lSe

curit

y Fu

nd co

ntrib

uted

by G

over

nmen

t of

Ind

iaan

d m

aint

aine

d by

LIC

.

App

roxi

mat

ely

3.5

lakh

sen

ior

citiz

ens,

who

had

enr

olle

ddu

ring

the c

urre

ncy o

fth

e sch

eme,

are

bei

ngpr

ovid

ed

bene

fits

unde

r the

sche

me.

To e

nrol

l ad

ditio

nal

10 l

akh

subs

crib

ers

unde

r th

e Sc

hem

eev

ery

year

.

Pers

ons

betw

een

age

grou

p 18

to 5

9 ye

ars

and

who

ar

e th

em

embe

rs

of

the

iden

tifi

ed

45o

cc

up

ati

on

al/

voca

tiona

l gro

ups a

repr

ovid

ed i

nsur

ance

cove

r un

der

the

Sche

me.

No

risk

invo

lved

.

The

pro

ject

ed o

utco

mes

are

subj

ect

to i

nfor

mal

labo

ur

mar

ket

cond

itio

ns,

low

inte

rmitt

ent i

ncom

e and

low

fi

nanc

ial

know

ledg

e, p

erfo

rman

ceof

Agg

rega

tors

an

dPo

ints

of

Pr

esen

ce(P

oPs)

.

Gov

ernm

ent i

s re

quir

edto

rep

leni

sh t

he S

ocia

lSe

curi

ty F

und

for

this

Sche

me

from

tim

e to

time.

-

A to

tal o

f 2,9

2,02

1ne

w s

ubsc

ribe

rsha

ve

been

regi

stere

d.

` 15

7.50

cro

rere

leas

ed.

44Outcome Budget 2013-2014

45

12

34

56

78

4(i)

4(ii)

BER

E

4 5 6 7

Maj

or H

ead

2416

–In

tere

st s

ubve

ntio

nfo

r pr

ovid

ing

shor

tte

rm

cred

it

tofa

rmer

s.

Maj

or H

ead

2416

–G

rant

s in

aid

for

revi

tali

sati

on

ofL

ong

Term

Coo

pera

tive

Cre

dit

Stru

ctur

e (LT

CC

S)

Maj

or H

ead

2416

–Fi

nanc

ial I

nclu

sion

Fund

(FIF

)

Maj

or H

ead

2416

–Fi

nanc

ial I

nclu

sion

Tech

nolo

gy F

und

(FIT

F)

Inte

rest

relie

f to

farm

ers o

nsh

ort

term

pro

duct

ion

cred

it.

Revi

taliz

atio

n of

Lon

g Ter

mC

oope

rati

ve

Cre

dit

Stru

ctur

e in

the c

ount

ry

Supp

ort

prom

otio

nal

and

deve

lopm

enta

l ac

tiviti

esw

ith a

vie

w t

o se

curi

nggr

eate

r fin

anci

al in

clus

ion,

parti

cula

rly am

ong

wea

ker

sect

ions

, lo

w

inco

me

grou

ps a

nd b

ackw

ard

regi

ons/

hith

erto

unb

anke

dar

eas.

To en

hanc

e inv

estm

ents

ini

nf

or

ma

ti

on

co

mm

un

ica

tio

nte

chno

logy

ai

med

at

prom

otin

g fi

nanc

ial

To p

rovi

de s

hort

ter

mpr

oduc

tion

cred

it at

7%

inte

rest

rate

to th

e fa

rmer

sup

to a

n am

ount

of

` 3.

00la

kh.

To p

rovi

de re

viva

l pac

kage

for

revi

taliz

atio

n of

Lon

gTe

rm C

oope

rativ

e C

redi

tSt

ruct

ure

To e

nsur

e ac

cess

to ti

mel

yan

d ad

equa

te c

redi

t an

dfin

anci

al se

rvic

es to

wea

ker

sect

ions

and

low

inc

ome

grou

ps at

an a

fford

able

cost

wit

h th

e ob

ject

ive

ofsu

ppor

ting

prof

essio

nal a

ndde

velo

pmen

tal

activ

ities

with

a v

iew

to

secu

ring

finan

cial

incl

usio

n

To e

xten

d fa

cilit

y un

der

tech

nolo

gica

l dev

elop

men

tto

ens

ure

acce

ss to

tim

ely

and

adeq

uate

cre

dit

and

fina

ncia

l se

rvic

es

to

Farm

ers

will

ben

efit

from

the m

uch

need

edin

tere

st re

lief o

n sh

ort-

term

loan

s.

Lon

g Te

rmC

oope

rati

ve C

redi

tSt

ruct

ure

in

the

coun

try

shal

l be

stren

gthe

ned

The

fi

nanc

iall

yex

clud

ed g

roup

s w

illbe

pr

ovid

ed

wit

hba

nkin

g se

rvic

e.

The

fi

nanc

iall

yex

clud

ed g

roup

s w

illbe

pr

ovid

ed

wit

hba

nkin

g se

rvic

e.

Thi

s is

a s

ubsi

dy t

ofa

rmer

s. N

o ri

sk fa

ctor

isin

volv

ed.

The G

over

nmen

t of I

ndia

had

cons

titut

ed a

Tas

kFo

rce

to

asse

ss

the

impa

ct

of

the

impl

emen

tatio

n of

the

AD

WD

RS,

200

8 an

dST

CC

S pa

ckag

e on

the

finan

cial

hea

lth o

f th

eLT

CC

S be

fore

impl

emen

ting

th

epa

ckag

e. T

his T

ask

Forc

eha

s su

bmitt

ed it

s re

port

whi

ch h

as b

een

acce

pted

by th

e Gov

t. Th

e pac

kage

is u

nder

fina

lizat

ion.

The

Fu

nd,

bein

gm

aint

aine

d by

NA

BA

RD

, ha

s be

enco

nstit

uted

with

shar

e in

the

ratio

of

40:4

0:20

by

GO

I,

RB

I an

dN

ABA

RD

. ` 1

0.00

cror

eea

ch re

leas

ed in

200

7-08

,20

09-1

0, 2

010-

11 a

nd20

11-1

2 as

GO

I sha

re.

The

Fu

nd,

bein

gm

aint

aine

d by

NA

BA

RD

, ha

s be

enco

nstit

uted

with

shar

e in

the

ratio

of

40:4

0:20

by

` 43

77.9

9 cr

ore

rele

ased

. -

NA

BA

RD,

whi

chis

man

agin

g th

isFu

nd,

conv

eyed

that

the

re i

s no

mor

e re

quire

men

tof

con

trib

utio

n by

GoI

, he

nce

prov

isio

n co

uld

not b

e util

ized

.

NA

BA

RD,

whi

chis

man

agin

g th

isFu

nd,

conv

eyed

that

the

re i

s no

mor

e re

quire

men

t

Department of Financial Services

6000

.00

5400

.00

500.

000.

01

20.0

0-

30.0

0-

46

12

34

56

78

4(i)

4(ii)

BER

E

8 9 10

Maj

or H

ead

2416

–G

rant

s in

aid

to

NA

BA

RD

fo

rW

omen

’s S

elf H

elp

Gro

ups

(SH

Gs)

Dev

elop

men

t Fun

d

MH

.288

5-Pa

ymen

tof

sub

sidy

to N

odal

Age

ncy i

.e. N

atio

nal

Hou

sing

Bank

Maj

or H

ead

3465

–T

rans

fer

toS

ec

ur

it

ie

sR

edem

ptio

n Fu

ndt

ow

ar

ds

subs

crip

tion

in t

he

incl

usio

n, s

tim

ulat

ing

tran

sfer

of

rese

arch

and

tech

nolo

gy i

n fi

nanc

ial

incl

usio

n,

incr

easi

ngte

chno

logi

cal

abso

rptio

nca

paci

ty

of

fina

ncia

lse

rvic

e pro

vide

rs/u

sers

.

The

fun

d w

ill

prov

ide

fina

ncia

l as

sist

ance

to

Wom

en S

HG

s in

unse

rved

and

unde

rser

ved

area

s.

The

pr

ovis

ion

is

for

prov

idin

g 1%

int

eres

tsu

bven

tion o

n ho

usin

g loa

nsup

to `

15.

00 la

kh th

roug

hno

dal a

genc

y i.e

. Nat

iona

lH

ousin

g Ba

nk.

To co

ntrib

ute

to S

ecur

ities

Red

empt

ion

Fund

for

rede

emin

g M

arke

tabl

eSe

curi

ties

issu

ed a

gain

stsu

bscr

ipti

on

in

the

Rig

hts

Issu

e of

equ

ity

wea

ker

sect

ions

and

low

inco

me

grou

ps

at

anaf

ford

able

cos

t w

ith t

heob

ject

ive

of s

tim

ulat

ing

the t

rans

fer o

f res

earc

h an

dte

chno

logy

in

fina

ncia

lin

clus

ion.

It w

ill p

rom

ote f

inan

cing

ofW

omen

’s

SHG

s in

back

war

d ar

eas/

distr

icts

ofth

e cou

ntry

.

The i

nter

est s

ubsid

y w

ill b

ero

uted

th

roug

h th

esc

hedu

led

com

mer

cial

bank

s an

d th

e ho

usin

gfi

nanc

e co

mpa

nies

regi

ster

ed w

ith N

atio

nal

Hou

sing

Ban

k.

This

is f

or tr

ansf

er t

o th

eSe

curi

ties

Red

empt

ion

Fund

cr

eate

d fo

rre

deem

ing

the G

over

nmen

tSe

curi

ties-

2024

iss

ued

toSB

I tow

ards

subs

crip

tion

to

GO

I,

RB

I an

dN

AA

BRD

. ` 1

0.00

cror

eea

ch w

as r

elea

sed

in20

07-0

8, 2

009-

10, 2

010-

11 a

nd 2

011-

12 a

s G

OI

shar

e.

This

is

gran

t as

sist

ance

and

is ou

tcom

e bas

ed. S

ono

risk

is in

volv

ed.

No

risk

fact

or in

volv

ed.

No

risk

fact

or is

invo

lved

as it

is o

nly

a tra

nsfe

r to

the

Secu

riti

esR

edem

ptio

n Fu

ndal

read

y cr

eate

d fo

r th

epu

rpos

e.

This

will

enab

le ba

nks

to

enha

nce

its

outr

each

to

the

poor

wom

en

in

the

back

war

d re

gion

s. It

wou

ld e

nabl

e Wom

enSH

Gs

to

take

up

livel

ihoo

d ac

tiviti

es.

Hou

sing

is

a ba

sic

requ

irem

ent

of t

hepo

pula

tion

. T

heho

usin

g se

ctor

has

ahu

ge p

oten

tial

for

ge

ne

ra

ti

ng

empl

oym

ent

dire

ctly

thro

ugh

labo

urin

tens

ive a

ctiv

ities

and

indi

rect

ly b

y cr

eatin

gad

ditio

nal d

eman

d fo

rin

dust

ries l

ike c

emen

tan

d st

eel.

A s

um o

f ` 6

25 c

rore

is t

o be

tra

nsfe

rred

ever

y ye

ar b

y th

eG

over

nmen

t to

thi

sFu

nd

crea

ted

for

rede

emin

g th

ese

46Outcome Budget 2013-2014

of c

ontr

ibut

ion

byG

oI,

henc

epr

ovis

ion

coul

dno

t be u

tiliz

ed.

As o

n 28

/12/

2012

,`

10.6

1 cr

ore g

rant

assi

stan

ce

has

been

rele

ased

from

this

fun

d. 2

3071

SHG

s ha

ve b

een

set

up a

nd 1

4969

SHG

s ha

ve b

een

cred

it lin

ked.

` 20

0.00

cro

resa

nctio

ned. -

200.

00-

400.

0050

0.00

625.

0062

5.00

47

12

34

56

78

4(i)

4(ii)

BER

E

11 12 13 14

Department of Financial Services

Rig

hts

issu

e of

equi

ty sh

are o

f Sta

teBa

nk o

f Ind

ia.

Maj

or H

ead

4416

-Re

capi

talis

atio

n of

Reg

iona

l R

ural

Bank

s (RR

Bs).

Maj

or H

ead

4416

-Su

bscr

ipti

on

toSh

are

Cap

ital

of

NA

BARD

.

Maj

or H

ead

4885

-Su

bscr

iptio

n to

the

shar

e ca

pita

l of

Indi

a Inf

rast

ruct

ure

Fina

nce

Com

pany

(IIF

CL)

Ltd

MH

48

85

–Su

bscr

iptio

n to

the

shar

e ca

pita

l of

EXIM

Ban

k

shar

es o

f St

ate

Ban

k of

Indi

a, 2

008.

To b

ring

Cap

ital

to R

isk

Wei

ghte

d A

sset

s R

atio

(CR

AR

) of

RR

Bs

to a

tle

ast 7

% in

a ti

me

boun

dm

anne

r and

furth

er to

9%

.

Aug

men

ting

of th

e cap

ital

base

of t

he N

atio

nal B

ank

for A

gric

ultu

re a

nd R

ural

Dev

elop

men

t (N

ABA

RD)

by i

nfus

ing

equi

ty o

f`

3000

cro

re.

To

supp

lem

ent

the

avai

labl

e lon

g te

rm fi

nanc

efo

r co

mm

erci

ally

via

ble

infr

astru

ctur

e pro

ject

s.

Stre

ngth

enin

g th

e eq

uity

base

of E

XIM

Ban

k.

200.

0053

5.00

500.

0010

00.0

0

400.

0040

0.00

200.

0020

0.00

its R

ight

s Is

sue

2008

, on

due

date

.

Rec

apit

alis

atio

n of

40

RRB

s to

hel

p th

em b

ring

thei

r C

RAR

to a

t lea

st 7

%

To s

tren

gthe

n th

e ca

pita

lba

se o

f N

AB

AR

D

and

ther

eby,

en

hanc

e it

sbo

rrow

ing

capa

city

to

mee

t it

s de

velo

pmen

tal

man

date

IIFC

L w

ill fi

ll th

e ga

p fo

rlo

ng t

erm

inf

rast

ruct

ure

finan

ce w

hich

ban

ks a

ndot

her i

nstit

utio

ns ar

e una

ble

to p

rovi

de.

Gro

w

the

Ban

k’s

disb

urse

men

ts

unde

rE

xpor

t Li

nes

of C

redi

t(L

OC

s) d

urin

g FY

2012

-13

to

US

$ 90

7 m

illio

n(A

bout

20%

gro

wth

ove

rth

e es

tim

ated

US

$ 75

6m

illio

n of

dis

burs

emen

tsun

der

LOC

s du

ring

FY

2011

-12)

.

Secu

ritie

s.

Impr

ovem

ent

infi

nanc

ial

heal

th o

fRR

Bs

so a

s to

redu

ceth

eir

loss

es

and

incr

ease

thei

r len

ding

capa

city

It

wil

l en

hanc

eN

AB

AR

D’

sbo

rrow

ing

capa

city

tom

eet

its

dev

elo

pm

en

tal

man

date

.

To in

crea

se th

e pa

id-

up

capi

tal

of

the

com

pany

. T

his

wil

lfa

cilit

ate t

he co

mpa

nyto

exp

and

its

loan

port

foli

o an

dst

reng

then

it

sfu

ndam

enta

ls.

Wil

l he

lp p

rom

ote

Indi

a’s

expo

rts

toot

her c

ount

ries

It

is

Gov

ernm

ent

inve

stm

ent.

No

risk

fact

or in

volv

ed.

This

is

Gov

ernm

ent

ofIn

dia’

s su

bscr

iptio

n to

stre

ngth

en t

he c

apita

lba

se o

f N

AB

ARD

. N

oris

k fa

ctor

is in

volv

ed.

As

a fi

nanc

ial

inte

rmed

iary

, IIF

CL

Ltd.

face

s cr

edit

risk,

mar

ket

risk

and

oper

atio

nal r

isk.

Cre

dit r

isk, l

iqui

dity

risk

,in

tere

st r

ate

risk

and

fore

ign

exch

ange

risk

` 20

0.00

cro

rere

leas

ed.

` 50

0.00

cro

rere

leas

ed.

Entir

e pro

visio

n of

` 40

0.00

cro

rere

leas

ed.

IIF

CL

cum

ula

tiv

ely

issu

ed s

anct

ions

for

325

proj

ects

amou

ntin

g to

` 72

,906

cro

re.

` 20

0.00

cro

rere

leas

ed.

EX

IMB

ank

exte

nded

tota

l lo

an

of`

62,9

64.6

1 cr

ore

(inc

ludi

ng G

OI

supp

orte

d LO

Cs)

48

12

34

56

78

4(i)

4(ii)

BER

E

48Outcome Budget 2013-2014

For

reca

pita

liza

tion

of

PSB

s th

roug

h eq

uity

supp

ort

to m

aint

ain

thei

rTi

er 1

CRA

R at

8%

as a

lso

to r

aise

Gov

ernm

ent

ofIn

dia’

s hol

ding

in a

ll PS

Bsto

58%

.

To

enab

le

the

PSB

sm

aint

ain

a co

mfo

rtab

lele

vel o

f Tie

r 1

CRA

R an

dto

rai

se G

over

nmen

t of

Indi

a’s h

oldi

ng in

all

PSBs

to 5

8%.

Com

fort

able

lev

el o

fC

RA

R e

nabl

es t

hePS

Bs t

o su

ppor

t th

ecr

edit

requ

irem

ents

ofth

e pro

duct

ive s

ecto

rsof

th

e ec

onom

yle

adin

g to

, am

ongs

tot

hers

, in

crea

sed

em

pl

oy

me

nt

oppo

rtuni

ties

and

the

over

all G

DP

grow

th in

the c

ount

ry.

It is

an in

vest

men

t by t

heG

over

nmen

t in

the P

SBs

to en

able

them

to re

spon

dpo

sitiv

ely a

nd ef

fect

ivel

yto

the

gro

win

g cr

edit

requ

irem

ents

of

th

epr

oduc

tive

sect

ors o

f the

econ

omy.

Maj

or H

ead

5465

–Re

capi

talis

atio

n of

Publ

ic S

ecto

r Ban

ks(P

SBs)

15-

1458

8.00

1251

7.00

49

Stat

emen

t on

Net

Pro

fits e

arne

d an

d D

ivid

ends

pai

d by

Pub

lic S

ecto

r E

nter

pris

es u

nder

Dep

artm

ent o

f Fin

anci

al S

ervi

ces

(` in

cro

re)

S.N

o.N

ame

of th

e B

ank/

Insu

ranc

eTo

tal p

aid

upG

ovt.

shar

e in

Prof

it A

fter

Div

iden

d pa

idB

E fo

rR

E fo

rB

E fo

rC

ompa

nyca

pita

l as o

npa

id u

p ca

pita

lTa

x 20

11-1

2fo

r 20

11-1

2pa

ymen

t of

paym

ent o

fpa

ymen

t of

31.0

3.20

12as

on

31.0

3.20

12D

ivid

end

Div

iden

dD

ivid

end

2012

-13

2012

-13

2013

-14

1.A

llaha

bad

Bank

500.

0327

6.21

1866

.79

165.

7317

5.00

182.

3020

0.53

2.A

ndhr

a Ban

k55

9.58

324.

5813

44.6

717

8.52

190.

0019

6.37

216.

013.

Bank

of B

arod

a41

1.12

223.

2850

07.0

037

9.58

400.

0041

7.54

459.

294.

Bank

of I

ndia

574.

5235

9.88

2677

.52

251.

9227

0.00

277.

1130

4.82

5.Ba

nk o

f Mah

aras

htra

589.

5946

5.50

430.

8315

8.27

85.0

017

4.10

191.

516.

Can

ara B

ank

443.

0030

0.00

3282

.71

330.

0035

0.00

363.

0039

9.30

7.C

entra

l Ban

k on

Indi

a73

6.11

582.

6353

3.00

245.

1212

0.00

269.

6329

6.60

8.C

orpo

ratio

n Ba

nk14

8.12

86.6

915

06.0

417

7.72

190.

0019

5.49

215.

049.

Den

a Ba

nk35

0.05

193.

3880

3.14

58.0

250

.00

63.8

270

.20

10.

Indi

an B

ank

429.

7734

3.82

1746

.97

297.

8627

5.00

327.

6536

0.41

11.

Indi

an O

vers

eas B

ank

796.

9955

4.86

1050

.13

249.

6922

0.00

274.

6630

2.12

12.

Ori

enta

l Ban

k of

Com

mer

ce29

1.76

169.

2211

41.5

613

3.68

190.

0014

7.05

161.

7513

.Pu

njab

Nat

iona

l Ban

k33

9.17

190.

2748

84.0

041

8.61

440.

0046

0.47

506.

5214

.Pu

njab

& S

ind

Ban

k23

4.20

183.

0545

1.28

36.6

160

.00

40.2

744

.30

15.

Synd

icat

e Ban

k60

1.94

398.

2813

13.3

915

1.35

160.

0016

6.49

183.

1316

.U

CO

Ban

k66

4.71

433.

3411

08.6

727

2.78

140.

0030

0.06

330.

0617

.U

nion

Ban

k of

Indi

a55

0.54

299.

2117

87.0

024

9.92

150.

0027

4.91

302.

4018

.U

nite

d B

ank

of In

dia

360.

9929

4.42

633.

0014

6.66

70.0

016

1.33

177.

4619

.Vi

jaya

Ban

k49

5.53

272.

6658

0.99

182.

1775

.00

200.

3922

0.43

20.

Stat

e Ban

k of

Indi

a67

1.04

413.

2511

707.

2914

46.3

811

50.0

015

91.0

217

50.1

221

.ID

BI B

ank

Ltd.

1278

.38

901.

5320

32.0

026

3.49

250.

0028

9.84

318.

8222

.EX

IM B

ank

2299

.99

2299

.99

675.

1020

5.00

200.

0020

5.00

245.

0023

.Li

fe In

sura

nce C

orpo

ratio

n of

Indi

a10

0.00

100.

0025

624.

5812

81.2

312

73.6

214

17.6

415

64.4

824

.G

ener

al In

sura

nce C

orpo

ratio

n of

Indi

a43

0.00

430.

00-2

468.

750.

0021

0.00

210.

0025

0.00

25.

Nat

iona

l Ins

uran

ce C

o. L

td.

100.

0010

0.00

324.

760.

0020

.00

0.00

0.00

26.

New

Indi

a Ass

uran

ce C

o. L

td.

200.

0020

0.00

179.

3240

.00

90.0

045

.00

60.0

027

.U

nite

d In

dia

Insu

ranc

e C

o. L

td.

150.

0015

0.00

386.

7978

.00

100.

0080

.00

120.

0028

.O

rient

al In

sura

nce C

o. L

td.

100.

0010

0.00

253.

3950

.67

30.0

046

.50

56.8

0To

tal

1440

7.13

1064

6.05

7086

3.17

7448

.98

6933

.62

8377

.64

9307

.10

Department of Financial Services

NO

N-P

LA

N1

Agr

icul

tura

l Deb

t Wai

ver a

nd D

ebt R

elie

f Sch

eme

(AD

WD

RS),

2008

- Tr

ansf

er to

Far

mer

s' D

ebt

Relie

f Fun

d (M

H -

2235

)20

00.0

00.

010.

000.

010.

010.

000.

012

Deb

t Rel

ief/W

aive

r of l

oans

thro

ugh

lend

ing

inst

itutio

nsag

ains

t AD

WD

RS,

200

8 (M

H-2

235)

6000

.00

1500

.00

1176

.39

0.01

0.00

0.00

0.00

3Pa

ymen

t of i

nter

est t

o le

ndin

g in

stitu

tions

tow

ards

AD

WD

RS, 2

008

(MH

- 223

5)28

7.00

287.

0017

8.46

0.01

0.01

0.00

0.00

4Su

bsid

y to

Pub

lic S

ecto

r Gen

eral

Insu

ranc

e Com

pani

esfo

r Com

mun

ity b

ased

Uni

vers

al H

ealth

Insu

ranc

eSc

hem

e (M

H-2

235)

20.0

020

.00

13.6

00.

010.

010.

000.

005

Inte

rest

subs

idy

to L

IC fo

r Pen

sion

Pla

n fo

r sen

ior

citiz

ens (

MH

- 22

35)

199.

6119

0.38

182.

0418

2.25

140.

000.

0013

4.23

6.Sw

aval

amba

n sc

hem

e to

enc

oura

ge p

eopl

e fr

omun

orga

nize

d se

ctor

to jo

in N

ew P

ensi

on S

yste

m (N

PS)

6.1

Gov

ernm

ent's

co-

cont

ribut

ion

to su

bscr

iber

s of t

heN

ew P

ensi

on S

yste

m (N

PS) u

nder

Sw

aval

amba

nSc

hem

e (M

H-2

235)

200.

0010

0.00

30.0

020

0.00

110.

0015

.00

150.

006.

2Fu

ndin

g su

ppor

t for

pro

mot

iona

l and

dev

elop

men

tal

activ

ities

for e

nrol

men

t and

cont

ribut

ion

unde

rSw

aval

amba

n Sc

hem

e (M

H-2

235)

20.0

010

.00

10.0

020

.00

18.0

00.

0020

.00

7G

over

nmen

ts co

ntrib

utio

n to

aug

men

t the

Soc

ial

Secu

rity

Fund

mai

ntai

ned

by L

IC fo

r Jan

shre

eBi

ma Y

ojan

a (M

H- 2

235)

0.00

100.

0010

0.00

175.

0017

5.00

157.

500.

008

Gov

ernm

ent's

cont

ribut

ion

to A

am A

adm

i Bim

aYo

jana

(MH

- 223

5)0.

000.

000.

000.

000.

000.

005.

019

Gra

nts t

hrou

gh N

ABA

RD fo

r stre

ngth

enin

g Sh

ort T

erm

Co-

oper

ativ

e C

redi

t Stru

ctur

e (S

TCC

S) (M

H-2

416)

0.01

0.01

0.00

0.01

0.01

0.00

0.00

10In

tere

st S

ubve

ntio

n fo

r pro

vidi

ng sh

ort t

erm

cred

it to

farm

ers (

MH

-241

6)48

68.0

040

00.0

032

82.7

060

00.0

054

00.0

043

77.9

960

00.0

0

50Outcome Budget 2013-2014

Sum

mar

ised

Pos

ition

of S

chem

es u

nder

Dem

and

No.

34

- Dep

artm

ent o

f Fin

anci

al S

ervi

ces

S.N

o.Sc

hem

es/P

rogr

amm

es20

11-1

220

12-1

320

13-1

4BE

RE

Act

ual

BER

EA

ctua

lsBE

(Upt

o D

ec. 2

012)

51

S.N

o.Sc

hem

es/P

rogr

amm

es20

11-1

220

12-1

320

13-1

4BE

RE

Act

ual

BER

EA

ctua

lsBE

(Upt

o D

ec. 2

012)

11Re

viva

l of L

ong

Term

Coo

pera

tive

Cre

dit

Stru

ctur

e (LT

CC

S) (M

H-2

416)

1000

.00

0.01

0.00

500.

000.

010.

000.

0112

Con

tribu

tion

to F

inan

cial

Incl

usio

n Fu

nd (F

IF)

(MH

-241

6)10

.00

10.0

010

.00

20.0

00.

000.

000.

0013

Con

trib

utio

n to

Fin

anci

al In

clus

ion

Tech

nolo

gyFu

nd (F

ITF)

(M

H-2

416)

10.0

010

.00

10.0

030

.00

0.00

0.00

0.00

14Pa

ymen

t of S

ubsi

dy to

Nod

al A

genc

y i.e

., N

atio

nal

Hou

sing

Ban

k as

1%

subs

idy

for H

ousi

ng L

oan

(MH

-288

5)50

0.00

300.

0030

0.00

400.

0050

0.00

200.

0020

0.00

15G

rant

s to

ICIC

I Ban

k fo

r Ext

erna

l Aid

edC

ompo

nent

(MH

- 28

85)

0.00

0.00

0.00

8.90

8.90

0.00

0.01

16Re

dem

ptio

n of

secu

ritie

s iss

ued

to S

tres

sed

Ass

ets

Stab

iliza

tion

Fund

(SA

SF) (

MH

-288

5)0.

0030

0.00

300.

000.

0030

0.00

0.00

0.00

17In

tere

st S

ubsi

dy to

Goa

n Ba

nks (

MH

-288

5)0.

080.

040.

040.

000.

000.

000.

0018

Tran

sfer

to S

ecur

ities

Red

empt

ion

Fund

tow

ards

subs

crip

tion

in th

e Rig

hts I

ssue

of e

quity

shar

esof

SBI

(MH

- 346

5)62

5.00

625.

0062

5.00

625.

0062

5.00

0.00

625.

0019

Paym

ent t

o IC

ICI B

ank

for E

xcha

nge V

aria

tion

(MH

- 347

5)0.

000.

000.

0069

.09

69.0

90.

000.

0020

Purc

hase

of L

and

for c

onst

ruct

ion

of B

uild

ing

ofD

RT, C

hand

igar

h (M

H- 4

059)

0.00

0.01

0.00

0.01

0.00

0.00

0.00

21W

orld

Ban

k A

ssis

tanc

e to

Smal

l Ind

ustri

es D

evel

opm

ent

Bank

of I

ndia

(SID

BI) t

o im

prov

e ac

ess t

o M

icro

finan

cein

Indi

a un

der W

orld

Ban

k as

sist

ed M

icro

finan

cePr

ojec

t (M

H- 6

885)

14.0

014

.00

14.0

014

.00

1.00

0.52

12.4

0TO

TAL

NO

N-P

LA

N15

753.

7074

66.4

662

32.2

382

44.3

073

47.0

447

51.0

171

46.6

7

PLA

N22

Gra

nts-

in-a

id to

Nat

iona

l Ban

k fo

r Agr

icul

ture

and

Rur

alD

evel

opm

ent (

NA

BARD

) for

cre

atio

n of

Wom

ens S

elf

Hel

p G

roup

s (SH

Gs)

Dev

elop

men

t Fun

d (M

H -

2416

)0.

0010

0.00

100.

0020

0.00

0.00

0.00

100.

0023

Fina

ncia

l Sup

port

to th

e ban

k fo

r ope

ning

'No

Frill

s'ac

coun

ts u

nder

Sw

abhi

man

Sch

eme a

s par

t of

Fina

ncia

l Inc

lusi

on P

lan.

(FIP

) (M

H -

3465

)50

.00

0.00

0.00

0.00

0.00

0.00

0.00

Department of Financial Services

52

S.N

o.Sc

hem

es/P

rogr

amm

es20

11-1

220

12-1

320

13-1

4BE

RE

Act

ual

BER

EA

ctua

lsBE

(Upt

o D

ec. 2

012)

52Outcome Budget 2013-2014

24Fi

nanc

ial s

uppo

rt to

Sm

all I

ndus

tries

Dev

elop

men

t Ban

kof

Indi

a (S

IDBI

) for

crea

ting

an In

dia

Mic

rofin

ance

Equi

ty F

und

(MH

-346

5)0.

0010

0.00

100.

000.

000.

000.

0010

0.00

25Su

bscr

iptio

n to

shar

e cap

ital o

f Exp

ort I

mpo

rtBa

nk o

f Ind

ia (M

H -

4885

)30

0.00

300.

0030

0.00

200.

0020

0.00

200.

0070

0.00

26Eq

uity

supp

ort t

o In

dia

Infr

astru

ctur

e Fin

ance

Co.

Ltd

. (II

FCL)

(MH

-488

5)10

00.0

050

0.00

500.

0040

0.00

400.

0040

0.00

400.

0027

Subs

crip

tion

to sh

are

capi

tal o

f NA

BARD

(MH

- 441

6)0.

0010

00.0

010

00.0

050

0.00

1000

.00

500.

0070

0.00

28C

ontri

butio

n to

war

ds R

ecap

italis

atio

n of

Reg

iona

lRu

ral B

anks

(RRB

s) (M

H-4

416)

500.

0020

0.00

402.

4320

0.00

535.

0020

0.00

88.0

029

Reca

pita

lisat

ion

of P

ublic

Sec

tor B

anks

(MH

- 546

5)60

00.0

012

000.

0012

000.

0014

588.

0012

517.

000.

0014

000.

0030

Equi

ty C

aptia

l of L

IC o

f Ind

ia (M

H- 5

465)

0.00

0.00

95.0

00.

000.

000.

000.

00TO

TAL

PLA

N78

50.0

014

200.

0014

497.

4316

088.

0014

652.

0013

00.0

016

088.

00G

RA

ND

TO

TAL

2360

3.70

2166

6.46

2072

9.66

2433

2.30

2199

9.04

6051

.01

2323

4.67

Part

A- N

on P

lan

Item

s1

Secr

etar

iat -

Gen

eral

Ser

vice

s20

5212

.40

14.1

713

.56

15.0

214

.08

14.0

415

.07

21.6

212

.53

Oth

er F

isca

l Ser

vice

s2

Oth

er E

xpen

ditu

re (S

peci

al C

ourt

&O

ffice

of C

usto

dian

)20

478.

447.

647.

397.

787.

787.

488.

236.

504.

44O

ther

Adm

inis

trat

ive

Serv

ices

3A

ppel

late

Aut

horit

y fo

r Ind

ustri

al an

dFi

nanc

ial R

econ

stru

ctio

n (A

AIF

R)20

702.

202.

452.

272.

572.

382.

232.

532.

321.

714

Boar

d fo

r Ind

ustri

al a

nd F

inan

cial

Reco

nstr

uctio

n (B

IFR)

2070

8.43

13.0

412

.84

12.1

910

.98

9.69

12.3

49.

977.

695

Deb

t Rec

over

y Tr

ibun

als (

DRT

s)20

7038

.78

41.0

538

.43

48.0

643

.67

43.4

444

.25

51.5

037

.71

6Pe

nsio

n Fu

nd R

egul

ator

y and

Dev

elop

men

tA

utho

rity

(PFR

DA

)20

7016

.00

16.0

08.

0016

.00

16.0

016

.00

22.0

020

.95

10.9

3To

tal -

Oth

er A

dmin

istr

ativ

e Se

rvic

es65

.41

72.5

461

.54

78.8

273

.03

71.3

681

.12

84.7

458

.04

Oth

er G

ener

al E

cono

mic

Ser

vice

s7

Oth

er E

xpen

ditu

re (O

ffice

of C

ourt

Liqu

idat

or, K

olka

ta)

3475

0.47

1.54

0.47

0.62

0.62

0.50

0.52

0.52

0.51

8Pa

ymen

t to

ICIC

I Ban

k fo

r Exc

hang

e Var

iatio

n34

75…

……

……

.…

69.0

969

.09

…To

tal

- Oth

er G

ener

al E

cono

mic

Ser

vice

s0.

471.

540.

470.

620.

620.

5069

.61

69.6

10.

51C

apita

l Out

lay

on P

ublic

Wor

ks9

Deb

t Rec

over

y Tr

ibun

al (D

RT)

9.01

Purc

hase

of l

and

for c

onst

ruct

ion

ofBu

ildin

g of

DRT

, Cha

ndig

arh

4059

……

……

0.01

...0.

01...

...To

tal -

Cap

ital O

utla

y on

Pub

lic W

orks

……

……

0.01

...0.

01...

...In

dust

rial

Fin

anci

al In

stitu

tions

10Pa

ymen

t of S

ubsi

dy t

o N

odal

Age

ncy

i.e.

Nat

iona

l Hou

sing

Ban

k28

8570

0.00

100.

0038

.54

500.

0030

0.00

300.

0040

0.00

500.

0020

0.00

11Re

dem

ptio

n of

Sec

uriti

es is

sued

to S

ASF

2885

...30

0.00

300.

00…

300.

0030

0.00

…30

0.00

...12

Gra

nts t

o In

dust

rial

Dev

elop

men

t Ban

k of

Indi

a28

8515

4.33

154.

3315

4.33

……

……

……

13Su

bcrip

tion

to sh

are c

apita

l of E

xpor

t-Im

port

Ban

k of

Indi

a48

8530

0.00

300.

0030

0.00

……

……

……

Stat

emen

t sho

win

g ac

tual

exp

endi

ture

vis

-a-v

is B

E/R

E p

rovi

sion

s for

the

year

s 201

0-11

, 201

1-12

and

201

2-13

(` in

Cro

re)

53

S.N

o.D

escr

iptio

n of

Item

s/Sc

hem

esM

ajor

2010

-11

2011

-12

2012

-13

Hea

dBE

RE

Act

ual

BER

EA

ctua

lsBE

RE

Act

ual a

s on

31 D

ec.2

012)

Department of Financial Services

54

S.N

o.D

escr

iptio

n of

Item

s/Sc

hem

esM

ajor

2010

-11

2011

-12

2012

-13

Hea

dBE

RE

Act

ual

BER

EA

ctua

lsBE

RE

Act

ual a

s on

31 D

ec.2

012)

14Eq

uity

supp

ort t

o II

FCL

4885

500.

0050

0.00

200.

00…

……

……

…15

Gra

nts t

o IC

ICI B

ank

for E

xter

nal

Aid

ed C

ompo

nent

2885

……

82.3

3…

…...

8.90

8.90

...To

tal -

Indu

stri

al F

inan

cial

Inst

itutio

ns16

54.3

313

54.3

310

75.2

050

0.00

600.

0060

0.00

408.

9080

8.90

200.

00A

gric

ultu

ral F

inan

cial

Inst

itutio

ns16

Gra

nts t

hrou

gh N

atio

nal B

ank

for A

gric

ultu

rean

d Ru

ral D

evel

opm

ent (

NA

BA

RD) f

orst

reng

then

ing

the S

hort

Term

Coo

pera

tive

Cre

dit S

truct

ure (

STC

CS)

2416

984.

6510

14.6

510

14.6

50.

010.

01...

0.01

0.01

...17

Inte

rest

Sub

vent

ion

for p

rovi

ding

Sho

rtTe

rm C

redi

t to

Farm

ers

2416

3000

.00

4000

.00

3531

.19

4868

.00

4000

.00

3282

.70

6000

.00

5400

.00

4377

.99

18Re

viva

l of L

ong

Term

Coo

pera

tive

Cre

dit

Stru

ctur

e (LT

CC

S)24

1610

00.0

050

0.00

…10

00.0

00.

01…

500.

000.

01…

19C

ontr

ibut

ion

to F

inan

cial

Incl

usio

n F

und

(FIF

)24

1610

.00

10.0

010

.00

10.0

010

.00

10.0

020

.00

……

20C

ontri

butio

n to

Fin

anci

al In

clus

ion

Tech

nolo

gy F

und

(FIT

F).

2416

10.0

010

.00

10.0

010

.00

10.0

010

.00

30.0

0…

…21

Gov

ernm

ent's

cont

ribut

ion

tow

ards

Reca

pita

lisat

ion

of R

egio

nal

Rura

l Ban

ks (R

RBs

)44

16…

350.

0066

.49

……

……

……

Tota

l - A

gric

ultu

ral F

inan

cial

Inst

itutio

ns50

04.6

558

84.6

546

32.3

358

88.0

140

20.0

233

02.7

065

50.0

154

00.0

243

77.9

9G

ener

al F

inan

cial

and

Tra

ding

Inst

itutio

ns22

Tran

sfer

to S

ecur

ities

Red

empt

ion

Fund

for

rede

emin

g Se

curit

ies i

ssue

d ag

ains

tsu

bscr

iptio

n in

the

Righ

ts is

sues

of

Equi

ty S

hare

s of S

tate

Ban

k of

Indi

a34

6562

5.00

625.

0062

5.00

625.

0062

5.00

625.

0062

5.00

625.

00…

23Re

capi

taliz

atio

n of

Pub

lic S

ecto

r Ban

ks54

6516

500.

0014

157.

0014

117.

23…

……

……

…24

Gov

ernm

ent's

cont

ribut

ion

tow

ards

capi

tal

for s

ettin

g up

of C

entr

al E

lect

roni

c Re

gist

ryun

der S

ARF

AES

I Act

, 200

254

6525

.00

25.0

025

.00

……

……

……

25W

orld

Ban

k A

ssis

tanc

e to

Smal

l Ind

ustr

ies

Dev

elop

men

t Ban

k of

Indi

a (S

IDBI

) to

impr

ove

acce

ss to

Mic

rofin

ance

in In

dia

unde

r Wor

ldBa

nk a

ssis

ted

Mic

rofin

ance

Pro

ject

.54

650.

0042

0.12

411.

9014

.00

……

……

…68

85…

……

…14

.00

14.0

014

.00

1.00

0.52

Outcome Budget 2013-2014

55

S.N

o.D

escr

iptio

n of

Item

s/Sc

hem

esM

ajor

2010

-11

2011

-12

2012

-13

Hea

dBE

RE

Act

ual

BER

EA

ctua

lsBE

RE

Act

ual a

s on

31 D

ec.2

012)

26In

tere

st S

ubsi

dy to

Goa

n Ba

nks

2885

0.08

0.08

0.08

0.08

0.04

0.04

……

…To

tal -

Gen

eral

Fin

anci

al a

nd T

radi

ngIn

stitu

tions

1715

0.08

1522

7.20

1517

9.21

639.

0863

9.04

639.

0463

9.00

626.

000.

52So

cial

Sec

urity

and

Wel

fare

27D

ebt W

aive

r and

Deb

t Rel

ief S

chem

efo

r Far

mer

s27

.01

Tran

sfer

to F

arm

ers D

ebt R

elie

f Fun

d22

3512

000.

0016

000.

0016

000.

0020

00.0

00.

010.

000.

010.

010.

0027

.02

Pay

men

t to

lend

ing

inst

itutio

ns a

gain

st D

ebt

Wai

ver a

nd D

ebt R

elie

f to

Farm

ers

2235

1200

0.00

1200

0.00

1134

0.47

6000

.00

1500

.00

1176

.39

0.01

0.00

0.00

27.0

3 P

aym

ent o

f int

eres

t to

lend

ing

inst

itutio

ns22

3514

34.0

014

34.0

014

34.0

028

7.00

287.

0017

8.46

0.01

0.01

0.00

Tota

l - D

ebt W

aive

r an

d D

ebt R

elie

fSc

hem

e fo

r Fa

rmer

s25

434.

0029

434.

0028

774.

4782

87.0

017

87.0

113

54.8

50.

030.

020.

0028

Subs

idy

to p

ublic

sect

or g

ener

al in

sura

nce

com

pani

es fo

r Com

mun

ity b

ased

Uni

vers

alH

ealth

Insu

ranc

e Sch

eme (

UH

IS)

2235

20.0

025

.00

22.0

020

.00

20.0

013

.60

0.01

0.01

0.00

29In

tere

st S

ubsi

dy to

LIC

for P

ensi

on P

lan

for S

enio

r Citi

zens

2235

209.

3217

5.70

175.

7019

9.61

190.

3818

2.04

182.

2514

0.00

0.00

30Sw

aval

amba

n Sc

hem

e to

enco

urag

e pe

ople

from

uno

rgan

ised

sect

or to

join

New

Pens

ion

Syst

em (N

PS)

30.0

1G

over

nmen

t's co

-con

tribu

tion

to su

bscr

iber

sof

the

New

Pen

sion

Sys

tem

(NPS

) und

erSw

aval

amba

n Sc

hem

e22

35…

100.

0050

.00

200.

0010

0.00

30.0

020

0.00

110.

0015

.00

30.0

2Fu

ndin

g su

ppor

t for

pro

mot

iona

l and

deve

lopm

enta

l act

iviti

es fo

r enr

olm

ent a

ndco

ntrib

utio

n un

der S

wav

alam

ban

Sche

me

2235

…10

.00

3.50

20.0

010

.00

10.0

020

.00

18.0

00.

0031

Gov

ernm

ent's

cont

ribut

ion

to a

ugm

ent t

heSo

cial

Sec

urity

Fun

d m

aint

aine

d by

LIC

for J

ansh

ree

Bim

a Yo

jana

(JBY

)22

35…

……

…10

0.00

100.

0017

5.00

175.

0015

7.50

Tota

l - S

ocia

l Sec

urity

and

Wel

fare

2566

3.32

2974

4.70

2902

5.67

8726

.61

2207

.39

1690

.49

577.

2944

3.03

172.

50TO

TAL

NO

N -

PLA

N49

559.

1052

306.

7749

995.

3715

855.

9475

61.9

763

25.6

183

49.2

474

60.4

248

26.5

3

55 Department of Financial Services

56

S.N

o.D

escr

iptio

n of

Item

s/Sc

hem

esM

ajor

2010

-11

2011

-12

2012

-13

Hea

dBE

RE

Act

ual

BER

EA

ctua

lsBE

RE

Act

ual a

s on

31 D

ec.2

012)

PAR

T B

- P

lan

Item

s1

Subs

crip

tion

to sh

are

capi

tal o

f Exp

ort-

Impo

rt B

ank

of In

dia

4885

……

…30

0.00

300.

0030

0.00

200.

0020

0.00

200.

002

Indi

a Inf

rast

ruct

ure F

inan

ce C

ompa

nyLi

mite

d (I

IFC

L)48

85…

……

1000

.00

500.

0050

0.00

400.

0040

0.00

400.

003

Gra

nts-

in-a

id to

Nat

iona

l Ban

k fo

r Agr

icul

ture

and

Rura

l Dev

elop

men

t (N

AB

ARD

) for

crea

tion

of W

omen

's Se

lf H

elp

Gro

ups

(SH

Gs)

Dev

elop

men

t Fun

d24

16…

……

…10

0.00

100.

0020

0.00

......

4Su

bscr

iptio

n to

shar

e cap

ital o

f Nat

iona

lBa

nk fo

r Agr

icul

ture

and

Rur

alD

evel

opm

ent (

NA

BARD

)44

16…

……

…10

00.0

010

00.0

050

0.00

1000

.00

500.

005

Gov

ernm

ent's

cont

ribut

ion

tow

ards

Reca

pita

lisat

ion

of R

egio

nal R

ural

Ban

ks (R

RBs

)44

16…

……

500.

0020

0.00

402.

4320

0.00

535.

0020

0.00

6A

cqui

sitio

n co

st o

f RBI

's st

ake

in N

AB

ARD

5465

…14

30.0

014

30.0

0…

……

……

…7

Acq

uisi

tion

cost

of R

BI's

stak

e in

NH

B54

65…

450.

00…

……

……

……

8Re

capi

taliz

atio

n of

Pub

lic S

ecto

r Ban

ks54

65…

6000

.00

6000

.00

6000

.00

1200

0.00

1200

0.00

1458

8.00

1251

7.00

…9

Equi

ty C

aptia

l of L

IC o

f Ind

ia54

65…

……

……

95.0

0...

......

10Fi

nanc

ial s

uppo

rt to

the b

anks

for o

peni

ng'N

o Fr

ills'

acco

unts

und

er S

wab

him

an S

chem

eas

par

t of F

inan

cial

Incl

usio

n Pl

an34

65…

……

50.0

0…

……

……

11Fi

nanc

ial S

uppo

rt fo

r ope

ning

ban

k br

anch

esin

unb

anke

d bl

ocks

3465

50.0

050

.00

……

……

……

…12

Fina

ncia

l Sup

port

to S

mal

l Ind

ustri

esD

evel

opm

ent B

ank

of In

dia

(SID

BI) f

orcr

eatin

g an

Indi

a M

icro

finan

ce E

quity

Fun

d34

65…

……

…10

0.00

100.

00…

……

TOTA

L PL

AN

50.0

079

30.0

074

30.0

078

50.0

014

200.

0014

497.

4316

088.

0014

652.

0013

00.0

0G

RA

ND

TO

TAL

4960

9.10

6023

6.77

5742

5.37

2370

5.94

2176

1.97

2082

3.04

2443

7.24

2211

2.42

6126

.53

Perc

enta

ge w

.r.t R

E97

.82%

95.6

9%27

.71%

Outcome Budget 2013-2014

57

S.N

o.D

escr

iptio

n20

10-1

120

11-1

220

12-1

3BE

RE

Act

uals

BER

EA

ctua

lsBE

RE

Act

uals

(as

on 3

1 D

ec. 1

2)

Rev

enue

Sec

tion

1Sa

larie

s43

.12

48.1

447

.08

51.5

146

.06

47.7

849

.75

53.4

144

.80

2W

ages

0.26

0.26

0.18

0.26

0.31

0.24

0.51

0.51

0.31

3O

TA0.

180.

160.

110.

160.

110.

080.

150.

060.

044

Med

ical

Tre

atm

ent

0.84

1.01

0.78

1.00

0.99

0.80

0.99

0.94

0.59

5D

omes

tic T

rave

l Exp

ense

s1.

401.

311.

161.

371.

221.

271.

381.

280.

946

Fore

ign

Trav

el E

xpen

ses

0.40

0.40

0.27

0.45

0.50

0.36

0.50

0.15

0.08

7O

ffice

Exp

ense

s8.

318.

457.

629.

047.

977.

798.

3814

.47

6.55

8Re

nt, R

ates

& T

axes

10.5

914

.44

13.9

817

.45

16.3

514

.99

13.2

914

.03

8.53

9Pu

blic

atio

ns0.

300.

300.

170.

300.

300.

220.

350.

230.

1510

Oth

er A

dmin

istra

tive E

xp.

0.25

0.25

0.19

0.25

0.25

0.24

0.25

0.25

0.16

11A

dvt.

& P

ublic

ity0.

230.

350.

300.

260.

460.

310.

380.

210.

1512

Min

or W

orks

0.27

0.26

0.25

0.26

0.36

0.35

0.31

0.30

0.26

13Pr

ofes

sion

al S

ervi

ces

2.44

1.23

1.07

1.32

1.12

0.83

1.32

1.01

0.68

14G

rant

s-in

-Aid

(Gen

eral

)12

04.9

812

44.9

812

62.8

186

.01

226.

0122

6.00

244.

4140

.86

6.23

15C

ontri

butio

n64

5.00

745.

0069

5.00

845.

0022

0.00

150.

0042

5.00

285.

0017

2.50

16Su

bsid

y49

29.4

048

00.7

837

67.5

165

87.6

945

10.4

337

78.3

870

82.2

660

40.0

245

77.9

917

Gra

nts-

in-A

id (S

alar

ies)

0.00

0.00

0.00

0.00

0.00

0.00

6.50

7.00

4.70

18Lu

mps

um0.

471.

540.

470.

620.

620.

500.

520.

520.

5119

Exch

ange

Var

iatio

n0.

000.

000.

000.

000.

000.

0069

.09

69.0

90.

0020

Inte

rest

1434

.00

1434

.00

1434

.00

287.

0028

7.00

178.

460.

010.

010.

0021

Oth

er ch

arge

s12

001.

6712

301.

8011

641.

8060

01.9

918

02.8

914

78.0

14.

8730

5.06

0.84

22In

ter A

ccou

nt T

rans

fer

1200

0.00

1600

0.00

1600

0.00

2000

.00

625.

0162

5.00

625.

0162

5.01

0.00

Tota

l Rev

enue

Sec

tion

3228

4.10

3660

4.65

3487

4.75

1589

1.94

7747

.96

6511

.61

8535

.23

7459

.42

4826

.01

Cap

ital S

ectio

n23

Inve

stm

ents

1732

5.00

2363

2.12

2255

0.63

7814

.00

1400

0.01

1429

7.43

1588

8.01

1465

2.00

1300

.00

24Lo

ans

0.00

0.00

0.00

0.00

14.0

014

.00

14.0

01.

000.

52To

tal C

apita

l Sec

tion

1732

5.00

2363

2.12

2255

0.63

7814

.00

1401

4.01

1431

1.43

1590

2.01

1465

3.00

1300

.52

Gra

nd T

otal

(Gro

ss)

4960

9.10

6023

6.77

5742

5.38

2370

5.94

2176

1.97

2082

3.04

2443

7.24

2211

2.42

6126

.53

Obj

ect h

ead-

wis

e ac

tual

Exp

endi

ture

vis

-a-v

is B

E/R

E p

rovi

sion

s for

the

year

s 201

0-11

, 201

1-12

and

201

2-13

57

(` in

Cro

re)

Department of Financial Services

58

ANALYSIS OF BUDGET PROVISIONS AND ACTUAL EXPENDITURE DURING 2010-11, 2011-12 AND 2012-13

During 2010-11, the provision was 49,609.10 crore in BE(`32,284.10 crore under Revenue and `17,325.00 crore underCapital Section). This was increased to 60,236.77 crore in RE(Revenue Section was increased to 36,604.65 crore and CapitalSection to `23,632.12 crore). Actual Expenditure was`57,425.38 crore (`34874.75 crore under Revenue and`22,550.63 crore under Capital Section). During 2010-11, about99.80% funds have been spent for different programmes relatingto Industrial Financial Institutions, Agricultural FinancialInstitutions, General Financial & Trading Institutions and SocialSecurity and Welfare. Expenditure towards secretariat and otheradministrative services was less than 0.20% of the totalexpenditure of the Department.

During 2011-12, the provision was 23,705.94 crore in BE(`15,891.94 crore under Revenue Section and `7,814 croreunder Capital Section). This was brought down to `21,761.97crore in RE 2011-12 (Provisions under Revenue Section werereduced to `7747.96 crore whereas the provisions under CapitalSection were increased to `14,014.01 crore). Actual Expenditurewas `20,823.04 crore (`6511.61 crore under Revenue and`14311.43 crore under Capital Section). In 2011-12 also, morethan 99% of the funds were allocated towards different subsidyprogrammes and capitalisation initiatives in respect of Industrial

Financial Institutions, Agricultural Financial Institutions, GeneralFinancial & Trading Institutions and Social Security and Welfaremeasures.

During 2012-13, the provision was 24,437.24 crore in BE(`8535.23 crore under Revenue Section and `15902.01 croreunder Capital Section). This was revised down to `22112.42crore in RE 2012-13 (Revenue Section `7459.42 crore andCapital Section `14,653 crore). Actual Expenditure uptoDecember, 2012 was, however, to the extent of `6126.53 crore(`4826.01 crore under Revenue and `1300.52 crore underCapital Section). As the proposals relating to capitalisation ofPublic Sector Banks are likely to be taken up in the last quarterof 2012-13, expenditure position upto December, 2012 isproportionately on the lower side. In 2012-13 also, more than99% of the funds were allocated towards different subsidyprogrammes and capitalisation initiatives in respect of IndustrialFinancial Institutions, Agricultural Financial Institutions, GeneralFinancial & Trading Institutions and Social Security and Welfaremeasures.

Overall trends of expenditure (` in crore) relating to variousprogrammes during last three years (2010-11 to 2012-13) aredepicted in the following Bar Chart:

Outcome Budget 2013-2014

59

STATEMENT ON SURRENDER AND SAVINGS DURING THE FINANCIAL YEAR 2011-12

During the financial year 2011-12, original provision was`23705.94 crore (`15891.94 crore under Revenue and 7814.00crore under Capital Section). This was augmented to 30703.40crore by obtaining Supplementary Grant of `6997.46 crore(`500.02 crore under Revenue and 6497.44 crore under CapitalSection). Against this, expenditure of `20823.04 crore was

incurred resulting in net savings of 9880.36 crore. The savingsof `9880.36 crore were the net effect of total savings of`11216.92 crore and total excess of `1336.56 crore.Categorisation of major savings (more than one crore) isindicated below:

(` in crore)

S.No.

1.

2.

3.

Sub Head/Scheme/Programme

Board for Industrial and FinancialReconstruction (BIFR)

Debt Recovery Tribunals (DRTs)

Equity support to India InfrastructureFinance Co. Ltd. (IIFCL)

Savings

2.50

4.62

500.00

Remarks/Reasons

Savings were due to less actual requirement of funds whichcould not be anticipated in advance. Savings under‘Salary’ for BIFR and DRTs were due to non filling ofcertain vacant posts which were expected to be filled up.

Keeping in view the financial position of IIFCL, theoriginal provision of 1000 crore was reduced to 500crore in RE, resulting in stated savings.

(ii) Under/Non Utilisation: Savings due to Non-implementation/delay in execution of projects/schemes:(` in crore)

S.No.

1.

2.

3.

4.

5.

6.

7.

Sub Head/Scheme/Programme

Revival of Long Term Cooperative CreditStructure (LTCCS)

Financial support to the Banks for opening‘No Frills’ accounts under SwabhimanScheme

Swavalamban Scheme to encourage peoplefrom unorganized sector to join New PensionSystem (NPS)

Payment to LIC of India for Pension Planfor Senior Citizens

Interest subvention for providing short termcredit to farmers

Payment of subsidy in respect of 1% interestsubvention scheme on Housing Loan

Contribution of Government’s share forrecapitalization of Regional Rural Banks(RRBs)

Savings

1000.00

50.00

180.00

17.57

1585.30

200.00

97.57

Remarks/Reasons

Package on Revival of Long Term Cooperative CreditStructure (LTCCS) was under revision and therefore,the entire provision remained unutilised.

This scheme was subsumed with Financial Inclusion,resulting in savings of the entire provision.

As the enrolment under Swavalamban Scheme was notat the expected level, the entire provision could not beutilised, resulting in savings.

Subsidy to LIC for Pension Plan for Senior Citizens isbased on actual calculation of the amount of subsidy,required for an effective yield of 9% to the investor. Asthe actual requirement was less, there was saving.

Claims under the Scheme were not forthcoming at theexpected level, resulting in savings.

As the claims received from Nodal Agency i.e. NationalHousing Bank (NHB) were not enough to utilise theentire provision, there was saving on this account.

Release of share of the Central Government under theScheme is contingent upon release of proportionate shareby the concerned State Government/ Sponsor Banks.Thus, funds could be utilised only to the extent of theamount released by the concerned State Government/Sponsor Banks resulting in the stated savings.

(i) Normal Savings: Savings resulting from economic use of resources:

Department of Financial Services

60

(i) Surrenders: Savings due to obsolete/defunct project/scheme or due to completion of a project/scheme and the funds areno more required:

(` in crore)S.No.

1.

2.

3.

4.

Sub Head/Scheme/Programme

Relief/Waiver of Loans through lendinginstitutions against Agricultural Debt Waiverand Debt Relief Scheme, 2008

Payment of interest to lending institutionstowards Agricultural Debt Waiver and DebtRelief Scheme, 2008

Farmers’ Debt Relief Fund forimplementation of Debt Waiver and DebtRelief Scheme, 2008

Payment to Public Sector GICs forcommunity based Universal HealthInsurance Scheme (UHIS)

Savings

4823.61

108.54

2000.00

6.40

Remarks/Reasons

As the implementation period of the scheme was over,only left over claims were due from the nodal agencies,i.e., Reserve Bank of India (RBI) and National Bank forAgriculture and Rural Development (NABARD). Theamount of claims was less than what was expected,resulting in savings.

An amount of 4000.00 crore (transferred to the Farmers’Debt Relief Fund during 2010-11) was already availablefor utilisation during the year 2011-12. As the likelyclaims for reimbursement under Agricultural DebtWaiver and Debt Relief Scheme were less than thisamount, there was no requirement of further transfer tothe Fund during the year 2011-12.

As per actual claims of subsidy from the Public SectorGeneral Insurance Companies under UHIS, there wasless requirement of fund.

Note:- This annexure is included in compliance of O.M.No.7(1)-B(AC)/2011 dated 23rd March, 2012 of Budget Division regardingsegregation of savings due to normal savings, under/non-utilization & surrender of funds for the financial year 2011-12 asdesired by the Standing Committee on Finance in its 33rd Report.

Outcome Budget 2013-2014

61

REVIEW OF PERFORMANCE OF STATUTORY AND AUTONOMOUS BODIES

Public Sector Banks (PSBs)

Public Sector Banks (PSBs) play a major role in the financialsector of our country. As part of their mandate, PSBs haveextended credit to diverse sectors and priority areas includingthe Agriculture sector, Medium, Small and Micro Enterprises(MSME) Sector, Weaker Sections, Self- Help Groups andGovernment sponsored programmes etc.

Balance Sheet size of many PSBs grew more robustly during2011-12. Besides meeting the requirement of employmentintensive sectors such as Agriculture and Micro and SmallEnterprises, PSBs have also met the credit requirement ofcorporate sector. Despite good performances on almost all frontsin the previous year, the PSBs face innumerable challenges during2012-13 which include higher provisioning requirements onaccount of NPAs due to stress in major sectors of our economy.

PSBs are required to maintain capital at a certain level asregulated entities and listed entities, and also to maintain publicconfidence in them. The Government is committed to keep allPSBs adequately capitalized towards this and the Governmenthas decided to infuse capital to the tune of 12517 Crore in PSBsduring the year 2012-13 in order to adequately meet the creditrequirements of productive sectors of our economy as well as tomaintain their Tier-I Credit to Risk Weighted Assets Ratio(CRAR) at a comfortable level.

National Bank of Agriculture and Rural Development(NABARD)

NABARD promotes integrated rural development by providingcredit for agriculture, small and cottage and village industries andallied activities in rural areas, refinances loans granted for agriculturaldevelopment by State Cooperative Banks (SCBs), State CooperativeAgriculture and Rural Development Banks (SCARDBs), ScheduledCommercial Banks and Regional Rural Banks (RRBs) and providesdirect financial assistance to certain types of institutions as approvedby the Government of India.

Short term credit is refinanced by NABARD to CooperativeBanks and Regional Rural Banks to finance seasonal agriculturaloperations, marketing of crops, marketing and distribution ofagricultural inputs, production, procurement, marketing activitiesof cottage, village and small scale industrial cooperative societies,individual weavers, master weavers , handloom weavers groups,primary and apex weaver societies and State Handloom andHandicrafts Development Corporations. Short Term refinance isalso extended to Commercial Banks for meeting the working capitalrequirement of State Handloom Development Corporations. Therefinance during the last three years are as under :

(` in Crore)Agency 2009-10 2010-11 2011-12 2012-13

(upto31.12.2012)Sanct. Max. O/S Sanct. Max. O/S Sanct. Max. O/S Sanct. Max. O/S

Coop Banks 18286.59 17617.44 23975.09 23894.86 34410.15 34402.62 44589.69 32215.58RRBs 7374.13 7098.03 10399.69 10301.03 14602.66 14578.66 21573.40 15093.15Total 25660.72 24715.47 34374.78 34195.89 49012.81 48981.28 66163.09 47308.73

Medium Term Conversion loan is also provided toCooperative Banks and Regional Rural Banks to support farmerswho are unable to repay production credit dues to the banks dueto natural calamities. Refinance is provided to all Rural FinancialInstitutions including Commercial Banks for investment purposesin farm and off farm activities leading to increased productionand incremental income to farmers and entrepreneurs. Theinvestments financed included minor irr igation, landdevelopment, farm mechanization, plantation and horticulture,storage and market yards, allied agricultural activities such asdairy, poultry, sheep / goat / piggery, fishery, rural housing, nonfarm sector activities, etc. These investments lead to privatecapital formation in rural areas. The Bank has provided refinancefor such purposes during the last three years [including Self HelpGroups (SHGs) financing] as follows :

(` in Crore)Agency Disbursement Disbursement Disbursement Target for Disbursement

during 2009-10 during 2010-11 during 2011-12 2012-13 during 2012-13(Upto 1.2.13)

SCARDBs 2221.30 2351.85 2444.93 2300.00 822.10SCBs 1251.95 1356.62 1192.29 2378.00 1643.39Commercial Banks 6057.19 7348.49 8433.75 6524.00 1590.06RRBs 2457.46 2287.84 3086.19 5138.00 3336.88PUCBs/ADFCs 21.18 141.07 264.53 650.00 331.20Others 0.00 0.00 0.00 0.00 0.00Total 12009.08 13485.87 15421.70 16990.00 7723.63

During 2009-10, as against farm credit target of `3,25,000crore, Commercial Banks, Cooperative Banks and RegionalRural Banks had financed 482.30 lakh farmers with a credit of`3,84,514 crore. During 2010-11, as against farm credit targetof `3,75,000 crore, they had disbursed credit to the tune of`4,68,291 crore covering 549.60 lakh farmers. During 2011-12,as against farm credit target of 4,75,000 crore, they had disbursedcredit to the tune of 5,11,029 crore covering 646.57 lakhs werebrought into the fold of banking system.

Pension Fund Regulatory and Development Authority(PFRDA)

Pension Fund Regulatory and Development Authority(PFRDA), set up as a regulatory body for the pension sector, isengaged in consolidating the initiatives taken so far regardingthe full NPS architecture and expanding the reach of NPSdistribution network. The process of making NPS available toall citizens entailed the appointment of NPS intermediaries,including twenty eight institutional entities as Points of Presence(POPs) that will serve as pension account opening and collectioncentres, a Centralised Record Keeping Agency (CRA) and sixPension Fund Managers to manage the pension wealth of theinvestors. PFRDA adopted a transparent, non-discretionary,competitive bidding process for selection of NPS intermediaries,in line with best international practice, which ensured high qualityservice delivery for NPS subscribers at optimum cost.

2. The NPS architecture is transparent and web-enabled. It allowsa subscriber to monitor his/her investments and returns. Thesubscriber has the choice of choosing his/her Fund Manager andinvestment options, apart from being able to switch his/herinvestment options/Pension Fund Managers over time. The facility

Department of Financial Services

62

for seamless portability is designed to enable subscribers tomaintain a single pension account throughout the saving period.

3. Under the NPS for all citizens, a subscriber has the facility toopen NPS account at any of the registered branches (26830branches so far) of the fifty five Points of Presence (PoPs) appointedby PFRDA. The offer document containing details of the NPS,application form for opening NPS account is available on thewebsite of PFRDA (www.pfrda.org.in) as well as the website ofother NPS intermediaries.

Insurance Regulatory and Development Authority

The insurance sector was opened up to private participationwith the enactment of the Insurance Regulatory and DevelopmentAuthority Act, 1999. The IRDA at present consists of the Chairman,5 full-time members and 4 part-time members. The Authority isfunctioning from its Head Office at Hyderabad, Andhra Pradesh.The core functions of the Authority include (i) licensing of insurersand insurance intermediaries; (ii) financial and regulatorysupervision; (iii) control and regulate premium rates; and (iv)protection of the interests of the policy- holders. With a view tofacilitating development of the insurance sector, the Authority hasissued regulations on protection of the interests of policy- holders;obligations towards the rural and social sectors; micro insuranceand licensing of agents, corporate agents, brokers and third partyadministrators. This is in addition to the regulatory frameworkprovided for registration of insurance companies, maintenance ofsolvency margin, investments and financial reporting requirements.

India Infrastructure Finance Company Ltd (IIFCL)

IIFCL was incorporated under the Companies Act as a wholly-owned Government of India company in January 2006 andcommenced operations from April 2006 to provide long termfinance to viable infrastructure projects through the Scheme forFinancing Viable Infrastructure Projects through a Special PurposeVehicle called India Infrastructure Finance Company Ltd (IIFCL),broadly referred to as SIFTI. The sectors eligible for financialassistance from IIFCL are roads and highways, power, airport,port, railways, urban infrastructure, Gas pipelines, Infrastructureprojects in Special Economic Zones, International conventioncenters and other tourism infrastructure projects, cold storage chain,warehouses, and fertilizer manufacturing. IIFCL has been allowedto finance projects in the infrastructure sectors as per theHarmonized list of infrastructure sub-sectors as approved by theGovernment. The process for adoption of the same has beeninitiated by IIFCL.

IIFCL accords overriding priority to Public-Private Partnership(PPP) Projects. The authorized & paid up capital of the companyas on 31st December 2012 was ` 5,000 crore and ` 2,900 croresrespectively. The company is operating profitably sincecommencement of operations in April 2006.

Within 7 years of its operations, on a consolidated basis, till31st December 2012, under direct lending IIFCL has madecumulative gross sanctions of `72,906 crore in 325 projects andhas made cumulative disbursement of `28,214 crore (includingrefinance of `4,168 crore and takeout finance of `2,165 crore).Out of the projects sanctioned under Direct Lending, Commercial

Operation Date (CoD) has been achieved in 63 projects (including3 in IIFC(UK).

For the first time IIFCL raised resources through domesticbonds for tenors of 25 years and 30 years, without a GovernmentGuarantee, in July 2012 to enable lending for longer tenure toinfrastructure sector. Since commencement of operations tillDecember 2012, IIFCL has raised 5200 crore by way of domesticbonds, `10,785 crore by way of tax free bonds, ` 2,000 crore aslong term loan from LIC, `1,500 crore from the National SmallSavings Fund and `91 crore through tax-saving infrastructurebonds. IIFCL has further raised `2,883.87 crore from the firsttranche of public issue of Tax Free Bonds, without GovernmentGuarantee. IIFCL has also established strong relationships withbilateral and multilateral institutions like ADB, World Bank andKfW and has committed lines of credit. Till December 2012, thecompany has availed USD 1,041.45 million out of ADB's line ofcredit of USD 1,200 million, USD 22.93 million out of WorldBank line of credit of USD 1,195 million and has availed Euro29.51 million out of KfW line of credit of Euro 50 million.

To facilitate incremental lending to the infrastructure sectorby addressing banks' exposure and asset-liability mismatchconstraints, IIFCL has implemented the Takeout Finance Scheme.IIFCL operationalized its Modified Takeout Finance Scheme inDecember 2011 subsequent to suitable modifications. IIFCL alsohas introduced non-discriminatory and non-discretionary externalrating based pricing mechanism for takeout of infrastructure loans.Till 31st December 2012, IIFCL has sanctioned 7,098 crore andhas disbursed ` 2,165 crore under its takeout finance scheme.

To enable channelization of long term funds from investorslike insurance companies and pension funds, IIFCL is presentlyundertaking pilot transactions under its Credit Enhancementinitiative wherein IIFCL provides partial credit guarantee toenhance the ratings of the project bond issue by infrastructureproject companies. During the pilot phase, Asian DevelopmentBank (ADB) is participating in this endeavor by committing tosupport IIFCL by providing up to 50% backstop guarantee facility.IIFCL Guarantee document in respect of the first pilot transactionto facilitate bond issuance of a maximum amount of ` 320 croreby a PPP NHAI Toll Road Project was signed on 16th January2013.

IIFCL has set up its wholly owned subsidiary, IIFC (UK) Ltdat London with the objective of borrowing up to USD 5 billionfrom the Reserve Bank of India and on-lend to Indian companiesimplementing infrastructure projects in the country for the purposeof meeting the capital expenditure solely outside India. IIFC (UK)began its operations from April 2008 and till end December 2012has made gross sanction of USD 4.17 billion to 40 infrastructureprojects. The company has disbursed USD 930 million includingoutstanding Letter of Comfort of USD 262 million, till endDecember 2012. Recently, IIFC (UK) has reduced its lending rateson foreign currency loans to infrastructure sector to aroundLIBOR+200 bps as compared to earlier rate of around LIBOR+450bps. This would enable lowering of the financial debt service burdenon infrastructure projects thereby increasing viability of manyinfrastructure projects.

Outcome Budget 2013-2014

63

IIFCL is in the process of operationalization of aInfrastructure Debt Fund (IDF) through Mutual Fund route. Inthis regard, SEBI has granted registration to IIFCL Mutual Fundunder SEBI (Mutual Funds) Regulations 1996 as an infrastructuredebt fund on 24th January 2013. SEBI has also granted approvalto IIFCL Asset Management Company (IAMCL) to act as theAsset Management Company for IIFCL Mutual Fund. Currently,IIFCL is in the process of completing the compliances forlaunching infrastructure debt fund scheme.

In February 2012, IIFCL established a wholly ownedsubsidiary, IIFCL Projects Limited to provide varied advisoryservices from the point of identification and conception ofinfrastructure projects, assessing their feasibility, securingregulatory approvals, providing bid evaluation services and themonitoring & supervision services on award of the projects.

EXPORT IMPORT BANK OF INDIA

Export-Import Bank of India (EXIM Bank), set up in 1982,by an Act of Parliament for the purpose of financing, facilitatingand promoting foreign trade of India, is the principal Financialinstitution in the country for coordinating working of institutionsengaged in financing exports and imports. It is wholly owned bythe Government of India. Exim Bank lays special emphasis onextension of Lines of Credit (LOCs) to overseas entities, nationalgovernments, regional financial institutions and commercial banks.

During the year 2011-12, Exim Bank extended 18 LOCsaggregating US$ 1.50 billion, to support export of projects, goodsand services from India. Several of these lines have been extendedat the behest of Government of India. During the financial year2011-12, the Bank approved loans of `44,412 crore as against`47,798 crore during 2010-11. Disbursements during the yearamounted to `37,045 crore as compared to `34,423 crore duringthe previous year. Loan assets increased to `53,890 crore as onMarch 31, 2012 from `45,655 crore as on March 31, 2011.

Exim Bank also actively supports and facilitates outwardinvestments by Indian companies in their quest for enhanced accessto global markets. During the year 2011-12, 53 corporates weresanctioned funded and non-funded assistance aggregating 41.78billion for part financing their overseas investments in 24 countries.Exim Bank has provided finance to 387 ventures set up by 313companies in 69 countries so far, including Austria, Bangladesh,Brazil, Canada, China, Croatia, Egypt, Indonesia, Ireland, Israel,Italy, Malaysia, Malta, Mauritius, Morocco, Nepal, Netherlands,Oman, Romania, Singapore, South Africa, Spain, Sri Lanka, Sudan,UAE, UK, the US and Vietnam.

National Housing Bank

National Housing Bank (NHB) was set up by the NationalHousing Bank Act, 1987 as a principal agency to promote housingfinance institutions (HFCs) and to provide financial and othersupport to such institutions. The main activities of NHB includeRegulation and Supervision of HFCs and re-finance to PrimaryLending Institutions (PLIs). At present, there are 54 HFCs thatare regulated by NHB. NHB provides refinance to Banks andHFCs and project finance to Government agencies and Self Help

Groups (SHGs) besides initiatives for development andpromotion of the housing finance system in India. The presentpaid-up capital of NHB is 450.00 crore, owned by the ReserveBank of India.

Performance parameters( ` in crore)

Year ended 30th June 2006 2007 2008 2009 2010 2011 2012

Capital 450 450 450 450 450 450 450

Reserves 1,288 1,389 1,558 1,792 2,072 2,352 2739

Net Owned Fund 1,730 1,831 1,999 2,230 2,485 2,770 3154

Sanctions 9,076 9,101 13,362 15,729 12,715 14,293 23460

Disbursements 5,998 5,672 9,036 10,889 8,160 12,035 14454

Loans & Advances 16,241 19,572 17,671 16,851 19,837 22,581 28490

Total Assets 19,589 21,501 19,898 19,927 22,753 25,781 31332

Gross NPAs 27 27 Nil Nil Nil Nil 3.56

Net NPAs Nil Nil Nil Nil Nil Nil 3.03

Profit After Tax (PAT) 86 101 170 236 280 279 387

PAT per Employee 1.05 1.59 2.12 2.62 3.15 3.21 4.07

CRAR (%) 22.3 22.6 24.5 18.2 19.6 20.6 19.80

Activities of NHB

Regulation & Supervision Role

Banks and Housing Finance Companies (HFCs) are themajor players in the housing finance market in India. WhileBanks are subject to regulation and supervision by the ReserveBank of India, HFCs are regulated and supervised by NationalHousing Bank under the provisions of the National HousingBank Act, 1987 and the directions and guidelines issued there-under from time to time. The regulatory measures includeprudential norms, transparent and standardized accounting anddisclosure policies, fair practice code, asset liabilitymanagement and other risk management practices etc. Thesemeasures have helped to ensure the development of the sectoron healthy and sustainable lines.

During the year, Certificate of Registration (CoR) wasgranted to 6 new HFCs viz. Shriram Housing Finance Limited,A U Housing Finance Private Limited, Milestone Home FinanceCompany Private Limited, New Habitat Housing Finance andDevelopment Limited, Habitat Micro Build India HousingFinance Company Private Limited and USB Housing FinanceCorporation Limited. As on June 30, 2012 the total number ofHFCs registered with NHB stood at 56 of which 37 companieshave been granted Certificate of Registration without permissionto accept public deposits.

Further during the year, the Bank has cancelled the Certificateof Registration of 2 companies namely Haware's HousingDevelopment Finance Corporation Limited and Inara HousingFinance Limited due to their non compliance with the Directions/Guidelines issued by the Bank.

NHB supervises the working of HFCs through a system ofon-site inspections, market intelligence and off-site surveillancefor which periodic returns have been prescribed. During the yearthe bank inspected 48 companies, out of which 44 were regulatoryinspections to ensure compliance of the provisions of the Actand the Directions/Guidelines thereunder and 4 were in

Department of Financial Services

64

connection with the grant of Certificate of Registration to newcompanies. Close monitoring of the submission of quarterly, half-yearly and annual returns by HFCs were undertaken.

Refinance and Project Finance by NHB

NHB extends financial assistance through refinance and alsothe project finance window. The refinance assistance providedto various Primary Lending Institutions viz. Banks, HousingFinance Companies, Co-operative sector institutions is towardstheir individual housing loans. The project finance interventionof the Bank is through the direct finance window to Public andDevelopment agencies/Municipal Corporations/WelfareAssociation/Micro Finance Institutions etc for the housingprojects.

During the year 2011-12, refinance disbursements touchedthe highest ever figure of 14389.91 crore, registering an increaseof more than 22% over the disbursements of `11722.79 croremade in 2010-11. Out of the total refinance disbursements of`14389.91 crore, 38.97% ( 5607.54 crore) were made for ruralhousing loans, under the Rural Housing Fund (RHF) and theGolden Jubilee Rural Housing Refinance Scheme (GJRHRS).

During the year 2011-12, the Bank has sanctioned ProjectFinance assistance for 6 projects amounting to `314.30 croreand disbursed `63.72 crore. The disbursements were made toHousing Micro Finance Institutions, Public Agencies, WelfareHousing Organizations and Public Private Partnerships.

The Bank's Housing Micro Finance (HMF) programme wasstarted in 2004-2005. Till date, the Bank has sanctioned loanamount of `97.42 crore to 31 microfinance institutions in 11States for financing 30210 housing units. The beneficiariesinclude farmers, petty traders, artisans, dairy workers and otherlow income households.

Cumulatively, till June 30,2012, NHB has sanctioned 440projects with project cost of 6682.17 crore and loan componentof `4,842.66 crore to provide low income housing for the poorand has financed various agencies including Public HousingAgencies, MFIs, NGOs, and Public Private Partnership projects.Till 30.06.2012, NHB has disbursed 2106.39 crore as projectfinance.

Refinance Operations

During the year 2011-12 (July - June), refinance aggregating`14389.91 crore was disbursed, out of which `5607.54 crorewas disbursed for rural housing under the Golden Jubilee RuralHousing Refinance Scheme and the Rural Housing Fund.

For the year 2012-13 (July to December, 2012) refinanceaggregating `9453.23 crore was disbursed, out of which`3747.22 crore was disbursed for rural housing under the GoldenJubilee Rural Housing Refinance Scheme and the Rural HousingFund. The breakup of the releases made during 2011-12 (July -June) is as under:

(` in Crore)Institution REGULAR RHF GJRHRS Total Category Scheme

I II III IV VHFCs 2772.37 2125.25 404.51 5302.13Banks (SBs) 6010.00 877.78 2200.00 9087.78Total 8782.37 3003.03 2604.51 14389.91

The breakup of the releases made during 2012-13 (July toDecember, 2012) is as under:

(` in Crore)Institution REGULAR RHF GJRHRS Total Category Scheme

I II III IV VHFCs 1769.23 831.87 1836.72 4437.82Banks (SBs) 3936.78 728.63 350.00 5015.41Total 5706.01 1560.50 2186.72 9453.23

Performance under Rural Housing

Out of the total refinance releases of 14389.91 crore madeduring the year 2011-12, 38.97% aggregating `5607.54 crorehave been made under the Rural Housing Fund (RHF) and theGolden Jubilee Rural Housing Refinance Scheme (GJRHRS) inrespect of loans given by Primary Lending Institutions (PLIs) inrural areas.

During the year 2012-13 (July to December, 2012), 39.64%of total disbursements of `9453.23 crore i.e. `3747.22 crorehave been made under the Rural Housing Fund (RHF) and theGolden Jubilee Rural Housing Refinance Scheme (GJRHRS) inrespect of loans given by Primary Lending Institutions (PLIs) inrural areas.

The breakup of the disbursements made for rural housing(RHF and GJRHRS) is as under:

(` in Crore)Institution Category 2011-12 2011-12

(Jul-Dec,2011)

Housing Finance Companies 2529.76 2668.59Scheduled Banks 3077.78 1078.63Total 5607.54 3747.22

Rural Housing Fund

The Hon'ble Finance Minister, in his Union Budget speechfor 2008-09, announced the setting up of the Rural Housing Fundto enable primary lending institutions to access funds forextending housing finance to targeted groups in rural areas atcompetitive rates. The corpus of the fund for 2008-09 was`1778.18 crore, which was enhanced by 2000 crore during 2009-10, another `2000 crore for 2010-11, another `3000 crore for2011-12 and further by ` 4000 crore by 2012-13. A total amountof `8778.18 crore has been received by the Bank under the Fundtill June, 2012 and the Bank has been able to deploy the fullamount towards refinance for rural housing for the target groups.For the year 2012-13 (July-December, 2012), the Bank hasdisbursed `1560.50 crore under this scheme.

The breakup of the disbursements made under RHF is asunder:

(` in Crore)Institution Category 2011-12 2012-13

(Jul-Dec,2012)

Housing Finance Companies 2125.25 831.87Scheduled Banks 877.78 728.63Total 3003.03 1560.50

Outcome Budget 2013-2014

65

1% Interest Subvention Scheme:-

In order to stimulate demand for credit for housing in thelower & middle income segment of population in the countryGovernment of India introduced interest subvention of 1% forone year on all individual housing loans upto 10 lakh, providedthe cost of the unit does not exceed `20 lakh from 1st October,2009 to 30th September, 2010.In the budget for FY 2010-11 theScheme was extended up to March 31st, 2011. The Scheme wasfurther extended for FY 2011-12 with increase in limit of housingloans upto `15 lakh and cost of house upto `25 lakh from `10lakh & 20 lakh respectively in earlier years. For the FY 2012-13,it has been further extended with the revised eligibility criteriaof loan upto `15.00 lakhs and cost of house upto `25.00 lakhs.

All regions of the States & Union Territories in the country,including rural & urban areas will be covered under the Scheme.The Scheme at present is being implemented by ScheduledCommercial Banks, Housing Finance Companies and ScheduledRegional Rural Banks.

During the initial period of the scheme, RBI and NHB weredesignated as Nodal agencies for SCBs and HFCs respectively.Later, NHB has been designated as the sole nodal agency forSCBs and HFCs from FY 2011-12.

Disbursements details under the scheme upto 31.03.2012:

(` in Crore)Implementing Agencies(IA) Amount Disbursed to IAs

SCBs 170.00HFCs 130.00Total 300.00

Reverse Mortgage Loan

NHB has conceptualized the Reverse Mortgage Loan (RML)product, exclusively for covering house owning Senior Citizens.Pursuant to the announcement made in the Union Budget speechof the Hon'ble Finance Minister on February 28, 2007, NHBnotified Operational Guidelines for Reverse Mortgage Loan(RML) in May 2007, after extensive consultation with theHousing Finance companies (HFCs) and Banks. Further, NHBin consultation with reputed legal firms prepared and circulatedmodel formats of the loan documents for adoption suitably bythe HFCs and Banks in connection with their lending under RML.

The Hon'ble Finance Minister in the Union Budget Speechfor the year 2008-09 made two major announcements relating tothe proposed amendments to the Income Tax Act. These are (i) anew sub-section (xvi) to Section 47 of the Income Tax Actproviding that reverse mortgage would not amount to "transfer"and (ii) insertion of a new sub-section (43) under Section 10 ofthe Income Tax Act to the effect that the stream of paymentsreceived by the senior citizen under RML under a Scheme notifiedby the Central Government would not be "income", as they arein the nature of capital receipts.

Reverse Mortgage Scheme has since been notified by aGazette notification by Government of India on 30-09-2008.Necessary amendment has also been made by the Income TaxDepartment that the stream of income received by the senior

citizens under RML would not be income as they are in the natureof capital receipt.

As per information available with NHB, 24 ScheduledCommercial Banks and 2 Housing Finance Companies havelaunched the Scheme. A total of 7354 accounts amounting to`1695 crore have been sanctioned under the RML Scheme (uptoSeptember 30, 2012).

Reverse Mortgage Loan enabled Annuity (RMLeA)

With a view to extend the payments received under RML toresidual lifetime of the borrower, a new product variant viz.Reverse Mortgage Loan enabled Annuity (RMLeA) wasconceptualized by NHB and launched in December 2009.

RMLeA is the result of direct product integration betweenthe housing finance market and the insurance sector for the firsttime in India. The Scheme envisages the Banks/HFCs to sourceassured lifetime payments to the senior citizen borrower throughthe Insurance Company. NHB has formulated RMLeA'sOperational Guidelines for implementation by Primary LendingInstitution. The RMLeA Scheme has been implemented, so far,by Central Bank of India and Union Bank of India in associationwith Star Union Dai-ichi Life Insurance Co. Ltd (SUD Life).

The Life Insurance Corporation of India has evinced interestin the product and will be soon launching the product inassociation with few Public Sector Banks.

NHB RESIDEX

NHB RESIDEX is an initiative of the National Housing Bankto provide an Index of residential prices in India across citiesand over time. National Housing Bank, at the behest of theMinistry of Finance, Government of India, began this initiativein the year 2005-06 and undertook a pilot study to examine thefeasibility of preparing such an index at the national level. NHBlaunched RESIDEX for tracking prices of residential propertiesin India, in July 2007, covering data up to 2005 with 2001 as thebase year. The pilot study covered 5 cities viz. Bengaluru, Bhopal,Delhi, Kolkata and Mumbai. Thereafter, NHB RESIDEX wasexpanded to ten more cities namely, Ahmedabad, Faridabad,Chennai, Kochi, Hyderabad, Jaipur, Patna, Lucknow, Pune andSurat.

From the quarter January-March, 2012, NHB RESIDEX hasbeen further expanded to cover 5 more cities viz. Bhubaneshwar,Guwahati, Ludhiana, Vijayawada & Indore. With this inclusion,NHB RESIDEX now covers 20 cities. The Index for Delhi hasbeen expanded to cover Gurgaon, Noida, Greater Noida andGhaziabad thereby expanding its coverage to National CapitalRegion (NCR). From April-June, 2012 onwards the Index ofDelhi covers National Capital Region (NCR).It is proposed thatfrom the quarter January-March, 2013 onwards NHB RESIDEXwill be expanded to cover six (6) more cities namely Chandigarh,Coimbatore, Dehradun, Meerut, Nagpur and Raipur thus takingthe total of cities covered under NHB RESIDEX to 26.

NHB RESIDEX as of now is covering 20 cities and isupdated and released on a quarterly basis with 2007 as the baseyear. NHB RESIDEX has been updated and released for thequarter ended September, 2012 (July - September, 2012). NHB

Department of Financial Services

66

RESIDEX, property price tracking Index, has replaced Cost ofConstruction Index in determination of the income ceiling forEWS/LIG households by MoHUPA.

Analysis of Price Movements

The analysis of the movement of residential prices in 20cities based on the transaction data, on quarterly & annual basisand from 2007 to September, 2012, is furnished below:

Movement of residential prices during the quarter July -September, 2012

Residential housing prices in 9 cities have shown marginalincrease in prices in this quarter ended September, 2012 (July-September, 2012) over the previous quarter ended June, 2012(April-June, 2012). Maximum increase was observed in Kochi(10.1%) followed by Jaipur (9.0%), Delhi (3.8%), Ahmedabad(3.0%), Bhubaneshwar (2.3%), Lucknow (2.2%), Chennai(0.8%), Pune (0.7%) and Mumbai (0.5%).

Whereas, 11 cities have shown marginal decline in pricesover the previous quarter with maximum decline observed inSurat (-4.8%) followed by Indore (-3.54%), Kolkata (-2.4%),Vijayawada (-2.4%), Patna (-1.8%), Ludhiana (-1.7%), Bengaluru(-1.7%), Hyderabad (-1.3%), Guwahati (-0.7%), Bhopal (-0.5%)and Faridabad (-0.4%).

Overall impression about the Trend: Prices starting todecline in some smaller towns and the increase in other cities is

mostly marginal, barring Kochi and Jaipur. There are some signsof convergence of prices around this level across the 20 cities.

On year-on-year basis (July-September, 2012 over July-September, 2011), price movements in 10 cities have witnessedrise in prices whereas 5 cities have witnessed decline in prices.

Residential Mortgage Backed Securitization

NHB has so far completed 14 Residential Mortgage BackedSecuritization transactions involving 38,809 individual housingloans of six Housing Finance Companies (HFCs) and oneScheduled Commercial Bank, housing loans amounting to`862.20 crore. The success of the issues of RMBS hassignificantly provided means to better understand and addressthe legal, regulatory, fiscal, accounting and other capital marketrelated issues relating to such transactions as also various policyissues for a conducive environment for such issuances.

The structure of NHB's RMBS issues has been designedunder the provisions of the National Housing Bank AmendmentAct, 2000 (Sections 14 (ea), 14 (eb) and 14 (ec) , which authorizethe Bank to carry out securitization transactions and issuemortgage backed securities as trust certificates of beneficialinterest and act as Trustee for the holders of such securities.

So far, 8 RMBS transactions and their respective SpecialPurpose Vehicle trust have been closed, including 1 RMBStransaction during the period April 2011 to March 2012.

Outcome Budget 2013-2014

DEPARTMENT OF EXPENDITUREINTRODUCTION

Organisation and Functions The Department of Expenditure is the nodal Departmentfor overseeing the public financial management system in theCentral Government and matters connected with State finances.The Principal activities of the Department include pre-sanctionappraisal of all major schemes/projects (both Plan and non-Planexpenditure), handling the bulk of the Central budgetaryresources transferred to States, implementation of therecommendations of the Finance and Central Pay Commissions,overseeing the expenditure management in the CentralMinistries/Departments through the interface with the FinancialAdvisors and the administration of the Financial Rules,Regulations/Orders and through monitoring of Audit comments/observations, preparation of Central Government Accounts,managing the financial aspects of personnel management in theCentral Government, assisting Central Ministries/Departmentsin controlling the costs and prices of public services, assistingorganizational re-engineering through review of staffing patternsand O&M studies and reviewing systems and procedures tooptimize outputs and outcomes of public expenditure. TheDepartment is also managing coordination of matters concerningthe Ministry of Finance including Parliament-related work ofthe Ministry. The Department has under its administrative controlthe National Institute of Financial Management (NIFM),Faridabad.

The business allocated to the Department of Expenditureis carried out through its Establishment Division, ProcurementPolicy Division (PPD), Plan Finance-I and II Divisions, FinanceCommission Division, Staff Inspection Unit, Cost AccountBranch, Controller General of Accounts and the Central PensionAccounting Office.

Administration DivisionÄ Looks after the secretariat work of the Department and

comprises of Finance Minister ’s Office, CadreAdministration Section, Accounts and Budget, Generaland Personnel Administration and the OfficialLanguage Section.

Establishment DivisionÄ The Establishment Division works under the Joint

Secretary (Personnel) and deals with matters related todetermination of salary structure and service conditionsof all Central Government employees, wage policydetermination, revision of pay scales, creation of posts,basic principals of fixation of pay, house rent allowance,travelling/daily allowance, dearness allowance &various other compensatory allowances in respect ofCentral Govt. employees, General Financial Rules,Delegation of Financial Power Rules, economyinstructions etc. It is also responsible for administrativematters concerning the Department of Expenditure.

Central Public Procurement Portal & e-ProcurementÄ Pursuant to the recommendations of the Committee on

Public Procurement (CoPP) a Central PublicProcurement Portal (CPP Portal) has been set up for

67

providing comprehensive information and data relatingto public procurement and is accessible atwww.eprocure.gov.in. It is being used at present byvarious Ministries/Departments, CPSEs andautonomous/statutory bodies. e-Publishing of tenderenquiries, corrigenda thereto and details of contractsawarded thereon, on the Portal, has been mademandatory in a phased manner w.e.f. 1st January, 2012.

2. Further, it has also been decided to implement e-Procurementin Ministries/Departments of the Central Government andinstructions have also been issued to all Ministries/Departments to commence e-Procurement in respectof all procurements with estimated value of Rs.10 lakhor more in a phased manner. Use of e-Procurementwould enhance transparency and accountability andmake procurement more efficient. This would also helpin monitoring delays and reducing the procurementcycle.

State Finances Division(Plan Finance -I and Finance Commission Division)Ä The State Finances (Plan Finance-I) Division of

Department of Expenditure looks after all mattersrelating to finances of the State Governments, includingPlan releases in the State Sector and Non-Plan releaseson the recommendations of Finance Commissions.Assessment of borrowing requirements of StateGovernments are also made by this Division whichinvolves fixing of borrowing ceiling, issue ofpermission for borrowings under Article 293(3) of theConstitution of India, monitoring of ways and meansposition of States in close co-ordination with the RBI,debt write-offs (as recommended by the 12th and 13th

Finance Commissions) etc. This Division operatesDemand No.36 of the Ministry of Finance from whichfunds are released for both Plan and Non-Plan purposes.

Ä Plan Finance-I and Finance Commission Division dealwith matters relating to finances and plan outlays ofthe States in close co-ordination with the PlanningCommission, releases funds to State Governments forimplementing developmental work in the States,calculates and monitors annual borrowings of States.It implements the awards of Finance commission asapplicable to States and also handles issues relating tocalamity relief to States, Centre–State and Inter-Statefinancial relations.

Plan Finance – II DivisionÄ Primarily concerned with matters relating to the Central

Plan and serves as a window within the FinanceMinistry, which has an overview of the entire canvasof development activity of the Central Government,both at the project level and sectoral policy level. Thefocus has been on improving the quality of developmentexpenditure through better project formulation,emphasis on outputs, deliverables, impact assessment,

Department of Expenditure

68Outcome Budget 2013-2014

projectisation (Mission approach) and convergence.The Division also deals with financial restructuring ofCentral PSUs on the recommendations of Bureau forRestructuring of Public Sector Enterprises (BRPSE).It is also actively involved in working out modalitiesfor financial assistance to CPSEs, quantification ofI&EBR generation for preparation of budget, finalizingmodernization of plants and equipment to ensure greaterefficiency in production. At micro level, Plan Finance-II Division deals with issues relating to Food, Fertilizersand Petroleum subsidies, including their quantificationand extension of assistance to the Stake holders. Atmicro level, the division is actively involved, along withthe concerned Department/Ministry, in shaping upfuture subsidy policy of the Government so as to ensureeffective targeting.

Integrated Finance UnitÄ Deals with the expenditure and Budget related

proposals under Demand No.39 – Department ofExpenditure which includes Secretariat GeneralServices and Other Administrative Services andDemand No.40 - Pensions which includes provisionfor various retirement benefits. In respect of two otherDemands, namely, Demand No.36 - Transfer to Stateand Union Territory Governments and Demand No. 41- Indian Audit and Accounts Department, the budgetaryestimates are directly dealt with by the respectivedivisions. However, the overall monitoring is done bythe Integrated Finance Unit. This unit is also responsiblefor monitoring and control over expenditure of theDepartment and implementing the economyinstructions for compliance by various organizationsof the Department.

Miscellaneous Departments DivisionÄ Functions under Financial Adviser (Finance) as

associate finance to President’s Secretariat, Vice-President’s Secretariat, Supreme Court of India, LokSabha Secretariat, Rajya Sabha Secretariat and Ministryof Parliamentary Affairs.

Pay Research UnitÄ Mainly responsible for collection, compilation and

analysis of data on actual expenditure incurred on payand various types of allowances as well as datapertaining to the strength of the Central GovernmentCivilian employees and employees of Union TerritoryAdministrations.

Staff Inspection UnitÄ The Staff Inspection Unit (SIU) was set up in 1964

with the objective of securing economy in the staffingof Government organizations consistent withadministrative efficiency and evolving performancestandards and work norms. The Scientific andTechnical Organizations are not within the purview ofthe SIU but a Committee constituted by the Head ofDepartment, with representative from SIU as a CoreMember, conducts staffing studies of suchorganizations.

Ä In the changed scenario and keeping in view theGovernment emphasis on better governance andimproved delivery of services, the role of SIU has beenredefined. The SIU has been positioned to act ascatalyst in assisting the line Ministries and AutonomousOrganizations in improving their organizational

effectiveness and to suggest ideal organizationalstructure, re-engineering of processes, optimumutilization of resources and overcome the delays besidesexploring the possibilities of outsourcing some of theactivities in order to achieve enhanced output with theminimum expenditure. As per the new mandate, SIUwould now also conduct the studies of organizationalanalysis in five distinct fields viz. OrganizationalSystem, Financial Management System, DeliverySystem, Client-Customer satisfaction and Employeesconcerns etc.

Cost Accounts BranchÄ An independent agency set up to verify the cost of

production and to determine the fair selling price forall Government purchases including Defence purchasesand to fix prices for a number of products covered underthe Essential Commodities Act, such as, Petroleum,Steel, Coal, Cement, etc. under the Administered PriceMechanism (APM). It renders professional assistanceto different Ministries and Government agencies in cost,management and financial accounting in theGovernment.

Controller General of AccountsÄ Apex accounting authority of the Central Government

exercising the powers of the President under Article150 of the Constitution for prescribing the form ofaccounts of the Union and State Governments on theadvice of Comptroller and Auditor General of India.

Monitoring CellÄ Works under the Office of Controller General of

Accounts. It is responsible for co-ordination, collectionand monitoring the submission of corrective/remedialAction Taken Notes(ATNs) on various paras containedin Comptroller &Auditor General (C&AG)’s Reports.It also monitors the settlement of paras/recommendations included in their reports of the PublicAccounts Committee(PAC).

Central Pension Accounting OfficeÄ Administers the “Scheme for payment of Pensions to

Central Government Civil Pensioners by AuthorizedBanks”. It is primarily responsible for preparation ofbudget for the Pension Grant and accounting thereof;issue of Special Seal Authorities (SSAs); and audit ofpension payment made by Banks.

Chief Controller of AccountsÄ Responsible for payment of salary bills and all other

personal payments, pensionary payments, payment ofloans and grants sanctioned by the Department to theState Governments and watching the receipts ofprincipal and interest of the loans. It works as theinternal audit of the Department and also renderstechnical advice relating to accounting matters. It alsocompiles the monthly accounts and AppropriationAccounts.

Institute of Government Accounts and FinanceÄ Headquarters at New Delhi and four Regional Training

Centres located at Calcutta, Chennai, Navi Mumbai andAizawl impart in-service training to the AccountsPersonnel and Civil Ministries/Departments in variousdisciplines of Financial Management and Govt.Accounts and Finance. Since 1995 it has started PublicFinancial Management programmes for officials fromother countries.

6969 Department of Expenditure

STAT

EM

EN

T O

F O

UT

LAY

S A

ND

OU

TC

OM

ES

2013

-14

S. No. 1

1.

Nam

e of

the

Sche

me/

Prog

ram

me

2

MH

207

0 -O

ther

Adm

inis

trat

ive

Serv

ices

.

Cen

tral P

lan

Sche

me

for

enha

ncin

g tra

inin

gca

paci

ty o

fN

atio

nal I

nstit

ute

of F

inan

cial

Man

agem

ent

Obj

ectiv

e/O

utco

me

3

(i)

Hig

h L

evel

Prof

essi

onal

C

ours

eco

verin

g ba

sic el

emen

ts of

Post

Gra

duat

e Dip

lom

a in

Bus

ines

s M

anag

emen

t(F

inan

ce) f

or th

e of

ficer

sde

alin

g w

ith A

ccou

nts

&Fi

nanc

e m

atte

rs b

eing

offe

red

by t

he N

atio

nal

Inst

itut

e of

Fin

anci

alM

anag

emen

t Soc

iety

.

(ii)

Po

st

Gra

duat

ePr

ogra

mm

e in

Fin

anci

alM

arke

ts f

or o

ffic

ers

ofC

en

tra

l/S

tate

/UT

Gov

ernm

ents

.

Out

lay

2013

-14

(` In

Cro

re)

44(

i)4(

ii)4(

iii)

Non

-Pl

anC

EB

R*

Plan -

3.00

-

-1.

00-

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Trai

ning

will

be

impa

rted

to 6

0 O

ffice

rs o

f C

entr

al/

Stat

e/

UTs

. T

hepr

ogra

mm

e con

sist

s of s

ixtr

imes

ters

hav

ing

12-1

4w

eeks

dur

atio

n ea

ch. T

his

is a

com

bina

tion

of c

lass

room

tea

chin

g &

pro

ject

wor

k.

In c

olla

bora

tion

with

the

Nat

iona

l Sto

ck E

xcha

nge,

train

ing

will

be im

parte

d to

20 o

ffic

ers

of C

entr

al/

Stat

e/

UTs

.

T

hepr

ogra

mm

e is

of o

ne y

ear

dura

tion

.

Thi

s is

a

com

bina

tion

of c

lass

room

teac

hing

& p

roje

ct w

ork.

Proj

ecte

dO

utco

mes

6

Cap

acity

bui

ldin

g in

finan

cial

man

ager

ial

skill

and

in ar

eas s

uch

as C

omm

erci

al a

ndG

ovt.

Acc

ount

ing,

Publ

ic

Fina

nce,

Budg

etin

g, F

inan

cial

Polic

y Fo

rmul

atio

n/D

ecisi

on M

akin

g an

dPr

ojec

t Man

agem

ent.

In 2

013,

60

offic

ers

are

targ

eted

fo

rtr

aini

ng u

nder

thi

ssc

hem

e.W

ill g

ive e

xpos

ure i

nth

e ar

ea o

f fin

anci

alM

arke

ts a

nd P

ublic

Priv

ate

Part

ners

hip.

In 2

013,

20

offic

ers

are

targ

eted

fo

rtra

inin

g.

Proc

esse

s/Ti

mel

ines

7

Two

year

s

One

Yea

r

Rem

arks

/R

iskFa

ctor

s

8

` 3.

00 cr

ore u

nder

Rev

enue

Sec

tion

whi

ch w

ill c

over

the

prog

ram

me

fee

com

pone

nt.

`1.0

0 cr

ore u

nder

Reve

nue

Sect

ion

tow

ards

fe

eco

mpo

nent

.

* C

EBR

- Com

plem

enta

ry E

xtra

Bud

geta

ry R

esou

rces

i.e.

exp

endi

ture

s com

mitt

ed fo

r the

pur

pose

by

entit

ies o

ther

than

the

Cen

tral

Gov

ernm

ent.

70Outcome Budget 2013-2014

REFORM MEASURES AND POLICY INITIATIVES

The Department of Expenditure has taken a number ofmeasures to improve the systems and procedures of publicfinancial management, thereby promoting the cause of goodgovernance. The Prime Minister’s Thrust Areas included fiveplanks of Institutional reforms, viz., Decentralization,Simplification, Transparency, Accountability and e-Governance.These were echoed in the Initiatives on Expenditure Managementannounced by the Finance Minister’s Fiscal Policy StrategyStatement (FPSS) prepared under the Fiscal Responsibility andBudget Management Act in Budget 2005-06 and became theguiding principles of setting the work plan.

Guidelines for Outcome Budget/Performance BudgetThe Department of Expenditure and the Planning

Commission had jointly prepared the first ever Outcome Budgetfor the year 2005-06, which was presented to the Parliament onAugust 25, 2005. Thereafter, fresh guidelines were issued (videOM. No.2(1)Pers/E-Coord/OB/2005 dated 12th December,2006) for integration of OUTCOME BUDGET andPERFORMANCE BUDGET documents into a single document.Outcome Budget have become an integral part of the budgetingprocess since 2005-06. Latest guidelines in this respect wereissued on 1st January, 2013.

Rationalization of ExpenditureMinistry of Finance from time to time issues guidelines on

Expenditure Management ‘Economy Measures andRationalization of Expenditure’ with a view to promote fiscaldiscipline, without restricting operational efficiency of theGovernment. The last set of instructions were issued vide OMNo.7(1)/E.Coord/2012 dated 31st May, 2012. These measuresinclude, inter alia, a 10% cut in Non Plan expenditure (excludinginterest payment, repayment of debt, Defence capital, salaries,pension and the Finance Commission grants to the States),restrictions on holding of seminars and conferences, foreigntravel, ban on creation of posts and observance of discipline infiscal transfer to states etc. and instructions on balance pace ofexpenditure. Financial Advisers are expected to exercise dueeconomy while conveying their concurrence to variousexpenditure proposals.

Public Procurement Bill, 2012The Public Procurement Bill, 2012 was introduced in the

Lok Sabha on 14th May, 2012.The Bill seeks to regulate public procurement by all

Ministries/Departments of the Central Government, CentralPublic Sector Enterprises (CPSEs) autonomous and statutorybodies controlled by the Central Government and other procuringentities with the objectives of ensuring transparency,accountability and probity in the procurement process, fair andequitable treatment of bidders, promoting competition,enhancing efficiency and economy, maintaining integrity andpublic confidence in the public procurement process and formatters connected therewith or incidental thereto. The Bill wouldcreate a statutory framework for public procurement which willprovide greater accountability, transparency and enforceabilityof the regulatory framework.

The Bill was drafted after wide consultation, pursuant tothe decision taken by the Group of Ministers on measures totackle corruption and improve transparency on the

recommendations made by the committee on Public Procurementand the announcement made by the Prime Minister in hisIndependence Day Address on 15th August, 2011 regardingintroduction of a Public Procurement Bill.

The Public Procurement Bill, 2012 was referred to theParliamentary Standing Committee on Finance by the Hon’bleSpeaker. The Bill at present, is under examination by theCommittee.

Central Public Procurement Portal & e-ProcurementPursuant to the recommendations of the Committee on

Public Procurement (CoPP) a Central Public Procurement Portal(CPP Portal) has been set up for providing comprehensiveinformation and data relating to public procurement and is usedby various Ministries/Departments, CPSEs and autonomous/statutory bodies. e-Publishing of tender enquiries, corrigendathereto and details of contracts awarded thereon, on the Portal,has been made mandatory in a phased manner w.e.f. 1st January,2012. The implementation of e-Procurement in respect of allprocurements with an estimated value of Rs.10 lakh or morewould enhance transparency and accountability and makeprocurement more efficient. This would also help in monitoringdelays and reducing the procurement cycle.

Grants under State Plan SchemesReleases for schemes on the Plan side are made on the

recommendation of the Planning Commission/nodal Ministryconcerned. The important flagship schemes for which funds arebeing provided under the Plan head in 2012-13 includeAccelerated Irrigation Benefits Programme (AIBP), JawaharlalNehru National Urban Renewal Mission (JNNURM), NationalSocial Assistance Programme (NSAP), Border AreaDevelopment Programme, Hill Area/Western GhatsDevelopment Programme, National e-Governance Programme,Backward Regions Grant Fund Scheme etc. Against an outlayof Rs. 99543.00 crore in BE 2012-13 for Central Assistance toState Plans in Demand 35 of Department of Expenditure, Rs.53099.335 crore has been released as on 31.12.2012.

Non-Plan grantsThe year 2012-13 is the 3rd year of the award period of the

13th Finance Commission (FC- XIII), 2010-15. The budgetprovision for 2012-13 was Rs.58357.46 crore (18.37% higherthan BE 2011-12) for various grants including Non-Plan RevenueDeficit Grant and grants for local bodies, elementary education,calamity relief (including capacity building), forest, justicedelivery, UID, improvement of statistical system, employee &pension data base, water sector management, maintenance ofroads & bridges and state specific needs etc. as perrecommendations of FC- XIII. As on 31.12.2012, Rs. 28772.67crore has been released for these purposes. In addition, there isa provision of Rs.4620.00 crore under National DisasterResponse Fund (NDRF), against which Rs. 1002.50 crore hasbeen released upto 31.12.2012.

BorrowingsThe methodology for determining annual borrowing ceilings

of States during the 2010-15 period has been devised in linewith the FC- XIII report. The borrowing limits of States arebeing worked out and enforced by Ministry of Finance (MoF)in accordance with the prescribed fiscal reform path for each

71 Department of Expenditure

State. Compliance with the prescribed fiscal parameters isexpected to bring down overall debt of States to 24.3% of GDPin the end of year 2014-15.

States’ Fiscal Consolidation (2010-15)FC-XIII has worked out a fiscal consolidation roadmap for

each state, requiring States to eliminate Revenue Deficit (RD)and achieve Fiscal Deficit (FD) of 3% of their respective GrossState Domestic Product (GSDP) by 2014-15. FC-XIII has alsorecommended a combined debt target of 24.3% of GDP to bereached by States by 2014-15 from a level of 27% in 2008-09.This combined debt reduction target is also expressed in termsof outstanding debt to GSDP ratios for each State for each year.

27 States have enacted/amended their Fiscal Responsibilityand Budget Management Acts (FRBMAs) as prescribed by FC-XIII. In respect of one remaining State, its FRBMA enacted in2006 already contains the fiscal consolidation roadmap whichis in line with the recommendations of FC-XIII for the first threeyears of the award period (i.e. 2010-11 to 2012-13). The StateGovernment has been advised to amend its FRBM Act toincorporate the targets for the last two years of the award periodof FC-XIII.

As recommended by the Twelfth and Thirteenth FinanceCommission, central loans to states, amounting to Rs.1,22,348crore has consolidated and further benefit in terms of debt reliefamounting to Rs.19725.72 crore and interest relief amountingto Rs.18,688.52 has been extended to States during 2005-06 to2009-10. The Thirteenth Finance Commission (FC-XIII) inter-alia has recommended that States’ enactment/amendment of theirFRBM Acts, incorporating the fiscal targets specified for themwill be a pre condition for debt relief measures (reset of interestrates on NSSF loans and write off of central loans from ministry(other than MoF) and release of all State specific grants.

Debt relief on NSSF loansAs recommended by FC XIII and subsequent decisions

taken thereon are following:A State will be considered as eligible for interest relief of

NSSF loans from the date the Fiscal Responsibility and BudgetManagement Acts (FRBMA) is amended/enacted in accordancewith the recommendations of FC-XIII.

From the financial year 2012-13, compliance with FRBMtargets will be a condition for availing interest relief in respectof NSSF loans.

After necessary amendments to FRBMA were made (bymost of the States in 2011-12) incorporating targets specifiedby FC-XIII, the States became eligible for interest relief on NSSFloans. For 2012-13, the fiscal position of all the 28 States as pertheir Budget Estimates for 2012-13 has been assessed with therespective States’ FRBMA targets. Budget estimates of the Statesindicate that the fiscal parameters of Revenue Deficit (RD) andFiscal Deficit (FD) and Debt measured as ratio to Gross StateDomestic Product (GSDP) in respect of 20 States are inconformity with prescribed targets. It has been decided that 20States that comply with FRBM targets, as reflected in their 2012-13 (BE), may be extended that benefit of reduced interest ratefor 2012-13 (from 1.4.2012) on a provisional basis. RBI hasbeen requested to extend the interest relief of NSSF loans for2012-13. Write off of central loans (CSS/CPS)

The outstanding Central loans as on March 31, 2010 against28 States in respect of Central Plan Schemes was Rs.488.85

crore and in respect of Centrally Sponsored Scheme, Rs.1792.61crore, aggregating to Rs.2281.46 crore.

As all the 28 States were found eligible for write off, Centralloans for CSS/CPS to the extent of Rs.2050.10 crore outstandingagainst the States in the ledger of the line Ministries have beenwritten off during 2011-12. A provision of Rs.100 crore isavailable in 2012-13 (BE) in Major Head 2075 ‘MiscellaneousGeneral Services’ in Demand No.35 for writing-off the balanceCSS/CPS loans left to be written off.Plan Finance-II DivisionProjects clearance by EFC & PIB

Between 1st January and 31st December, 2012, 42 meetingsof the Expenditure Finance Committee (EFC) chaired bySecretary (Expenditure) considered Plan Investment Proposals/Schemes of various Ministries/Departments costing Rs.458,050crore. During this period 07 Meetings of Public InvestmentBoard (PIB) were held and sanctioned seven projects involvingan amount of Rs.19,314.55 crore :

Sl.No. Ministry/Deptt. No. of AmountProjects (Rs. in Crore)

1 Ministry of Health &Family Welfare 1 594.00

2. Ministry of Power 1 2,656.953 Ministry of Civil Aviation 1 2,325.004. Ministry of Urban

Development 1 4,944.005. Ministry of Road Transport

& Highways 2 8,115.606. Deptt. of Heavy Industry 1 679.00

TOTAL 7 19,314.55Staff Inspection UnitAnnual programme of studiesAn annual programme of studies to be undertaken in a

financial year is drawn in consultation with all Financial Advisorsof the Ministries/Departments concerned. This programmeremains in force w.e.f. 1st April of each year to 31st March of thenext year.

Performance during the year 2012Ä During the year 2012 (upto December, 2012), SIU has

issued 04 final reports covering the sanctioned strengthof 11116 posts. As against the sanctioned strength of11116 posts in different organizations covered by thesestudies, SIU has declared 4162 posts as surplus.

Ä SIU has also completed the studies of Store Cadre,Finance Division and Administration Wing of All IndiaInstitute of Medical Sciences (AIIMS), New Delhi andNational Human Rights Commission (NHRC) of theMinistry of Home Affairs covering around 1300 postsduring the period and reports are likely to be issuedshortly.

Ä The study of Central Council for Research inHomeopathy, Ministry of Health & Family Welfare hasalso been finalized by the Core Member of SIU duringthe period.

72Outcome Budget 2013-2014ST

ATU

S O

F O

UT

CO

ME

WIT

H R

EFE

RE

NC

E T

O O

UT

LAY

S 20

11-1

2

S. No. 1

1.

Nam

e of

the

Sche

me

2

Maj

or H

ead

2070

- Oth

erA

dmin

istr

ativ

eSe

rvic

es.

Cen

tral P

lan

Sche

me

for

enha

ncin

g tra

inin

gca

paci

ty o

fN

atio

nal I

nstit

ute

of F

inan

cial

Man

agem

ent a

ndin

fras

truct

ural

deve

lopm

ent o

f the

Insti

tute

.

Obj

ectiv

e/O

utco

me

3

Hig

h le

vel

prof

essi

onal

cour

se c

over

ing

basi

cel

emen

ts

of

MB

A(F

inan

ce)

for

offi

cers

deal

ing

with

Acc

ount

s and

Fina

nce

mat

ters

to

beof

fere

d by

N

atio

nal

Inst

itut

e of

Fin

anci

alM

anag

emen

t Soc

iety

.

Out

lay

2011

-12

(` In

Cro

re)

44(

i)4(

ii)BE

RE

5.00

3.48

(Pla

n)(P

lan)

(Rev

.3.0

0)(R

ev.2

.45)

(Cap

.2.0

0)(C

ap.1

.03)

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Trai

ning

to 5

0 of

ficer

s of C

entr

al/

Stat

e/U

T G

over

nmen

ts.

The

prog

ram

me

cons

ists

of

trim

este

rsha

ving

12-

14 w

eeks

dur

atio

n ea

ch.

This

is a

com

bina

tion

of cl

ass r

oom

teac

hing

and

pro

ject

wor

k.

Proc

esse

s/Ti

mel

ines

6

Two

year

s

Stat

us a

s on

31st M

arch

, 201

2

7

(i) U

nder

Rev

enue

Sec

tion,

39

cand

idat

es j

oine

d th

e co

urse

at

NIF

M,

Fari

daba

d.

Act

ual

expe

nditu

re is

` 2

.45

cror

e.

(ii) U

nder

Cap

ital S

ectio

n, `

. 1.0

3cr

ore

rele

ased

for s

treng

then

ing t

hein

fras

truc

ture

in th

e in

stitu

te w

asut

ilize

d fu

lly.

73 Department of Expenditure

Nam

e of

the

Sche

me/

Prog

ram

e

2

Maj

or H

ead

2070

- Oth

erA

dmin

istr

ativ

eSe

rvic

es.

Cen

tral P

lan

Sche

me

for

enha

ncin

g tra

inin

gca

paci

ty o

fN

atio

nal I

nstit

ute

of F

inan

cial

Man

agem

ent a

ndin

fras

truct

ural

deve

lopm

ent o

f the

Insti

tute

.

Obj

ectiv

e/O

utco

me

3

Hig

h le

vel

prof

essi

onal

cour

se c

over

ing

basi

cel

emen

ts

of

MB

A(F

inan

ce)

for

offi

cers

deal

ing

with

Acc

ount

s and

Fina

nce

mat

ters

to

beof

fere

d by

N

atio

nal

Inst

itut

e of

Fin

anci

alM

anag

emen

t Soc

iety

and

incr

easi

ng

the

infr

astr

uctu

re

of

the

Insti

tute

.

Out

lay

2012

-13

(` In

Cro

re)

44(

i)4(

ii)BE

RE

4.00

2.88

(Pla

n)(P

lan)

(Rev

. 4.0

0)(R

ev.2

.88)

(Cap

.NIL

)(C

ap.N

IL)

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Trai

ning

to 5

0 of

ficer

s of C

entr

al/

Stat

e/U

T G

over

nmen

ts.

The

prog

ram

me

cons

ists

of

trim

este

rsha

ving

12-

14 w

eeks

dur

atio

n ea

ch.

This

is a

com

bina

tion

of cl

ass r

oom

teac

hing

and

pro

ject

wor

k.

Proc

esse

s/Ti

mel

ines

6

Two

year

s

Stat

us a

s on

31st D

ecem

ber,

2012

7

(i)

Und

er

Rev

enue

Se

ctio

n,

47ca

ndid

ates

join

ed th

e co

urse

at N

IFM

,Fa

rida

bad.

Act

ual e

xpen

ditu

re ti

ll 31

st

Dec

embe

r, 20

12 is

` 2

.25

cror

e.

(ii)

Und

er C

apit

al S

ecti

on,

the

expe

nditu

re is

Nil.

STAT

US

OF

OU

TC

OM

E W

ITH

RE

FER

EN

CE

TO

OU

TL

AYS

2012

-13

S. No.

1 1.

74Outcome Budget 2013-2014FI

NA

NC

IAL

RE

VIE

W

STAT

EM

EN

T SH

OW

ING

AC

TU

AL

EX

PEN

DIT

UR

E V

IS-A

-VIS

BE

/RE

PR

OV

ISIO

NS

FOR

TH

E Y

EA

RS

2010

-11,

201

1-12

AN

D 2

012-

13

2010

-11

2011

-12

2012

-13

Sl N

oD

escr

iptio

nM

ajor

BER

EA

ctua

lsBE

RE

Act

uals

BER

EA

ctua

lsH

ead

(upt

o31

.12.

2012

)

1.Se

cret

aria

t –

Gen

eral

Ser

vice

s20

5255

.45

52.2

850

.87

55.9

174

.67

67.4

089

.45

84.3

956

.92

2.O

ther

Adm

n. S

ervi

ces

2070

31.8

552

.99

35.0

944

.06

52.7

950

.30

45.8

040

.46

20.7

4

i)Tr

aini

ng C

entre

for C

ivil

Acc

ount

s Org

aniz

atio

n (I

NG

AF)

3.14

3.27

3.21

3.65

3.93

3.61

4.39

4.17

3.17

ii)Sc

hem

e for

enha

ncin

g tra

inin

g

capa

city

of N

IFM

Soc

iety

4.

703.

713.

714.

403.

853.

855.

404.

283.

30

iii)

Con

tribu

tion

0.01

0.01

0.01

0.01

0.01

0.01

0.01

0.01

0.00

iv)

Serv

ice C

harg

es to

Nat

iona

l Sec

uriti

es

Dep

osito

ry L

imite

d un

der N

ew P

ensi

on

Sche

me

24.0

046

.00

28.1

636

.00

45.0

042

.83

36.0

032

.00

14.2

7

3.O

ther

Gen

eral

Eco

nom

ic S

ervi

ces

i)D

evel

opm

ent o

f Nat

iona

l Ins

titut

e

of F

inan

cial

Man

agem

ent

4070

7.20

7.20

7.20

2.00

1.03

1.03

0.00

0.00

0.00

(ii)

New

acc

omm

odat

ion

for

Offi

ce

of C

ontro

ller G

ener

al o

f Acc

ount

s40

5926

.35

——

--—

——

——

TOTA

L12

0.85

112.

4793

.16

101.

9712

8.49

118.

7313

5.25

124.

8576

.66

(` In

Cro

re)

75 Department of Expenditure

OB

JEC

T H

EA

D-W

ISE

EX

PEN

DIT

UR

E V

IS-A

-VIS

BE

/RE

FO

R T

HE

YE

AR

S 20

10-1

1, 2

011-

12 A

ND

201

2-13

2010

-11

2011

-12

2012

-13

Sl N

oD

escr

iptio

nBE

RE

Act

uals

BER

EA

ctua

lsBE

RE

Act

uals

Upt

oD

ec.1

2

(` In

Cro

re)

Rev

enue

Sec

tion

1Sa

larie

s36

.45

37.5

136

.76

40.1

445

.37

41.7

955

.15

54.9

742

.15

2W

ages

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3O

vert

ime A

llow

ance

0.18

0.17

0.16

0.17

0.17

0.10

0.17

0.10

0.06

4M

edic

al T

reat

men

t0.

540.

650.

460.

670.

730.

550.

840.

820.

495

Dom

estic

Tra

vel E

xpen

ses

0.78

0.81

0.68

0.92

1.06

0.96

1.60

1.49

0.99

6Fo

reig

n Tr

avel

Exp

ense

s0.

600.

580.

360.

950.

940.

731.

080.

970.

707

Offi

ce E

xpen

ses

15.9

49.

459.

4410

.19

12.4

112

.13

12.9

312

.44

8.55

8Re

nt, R

ates

& T

axes

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

9Pu

blic

atio

n0.

230.

440.

420.

250.

380.

300.

330.

300.

2710

Oth

er A

dmn.

Exp

ense

s24

.38

46.3

228

.50

36.3

945

.87

43.6

037

.20

33.1

014

.96

11A

dver

tisin

g an

d Pu

blic

ity0.

050.

010.

010.

013.

733.

482.

250.

550.

3312

Min

or W

orks

0.65

0.65

0.74

0.82

1.42

1.12

2.32

2.07

1.10

13Pr

ofes

sion

al S

ervi

ces

0.84

1.57

1.57

1.65

2.58

1.93

3.25

2.30

1.00

14G

rant

s-in

-aid

4.70

3.71

3.71

4.40

3.85

3.85

5.40

4.28

3.30

15C

ontri

butio

n0.

010.

010.

010.

010.

010.

010.

010.

010.

0016

Info

rmat

ion

Tech

nolo

gy1.

953.

393.

143.

408.

947.

1512

.72

11.4

53.

76To

tal

87.3

010

5.27

85.9

699

.97

127.

4611

7.70

135.

2512

4.85

77.6

6C

apita

l Sec

tion

17M

ajor

Wor

ks33

.55

7.20

7.20

2.00

1.03

1.03

0.00

0.00

0.00

Gra

nd T

otal

120.

8511

2.47

93.1

610

1.97

128.

4911

8.73

135.

2512

4.85

77.6

6

76Outcome Budget 2013-2014

Grant No.39 (earlier Grant No. 38)Statement on Surrender and Savings during the FinancialYear 2011-12

During the Financial Year 2011-12, against a budgetaryprovision of Rs.129.46 crore including the Supplementary Grants,an expenditure of Rs.118.73 was incurred, resulting in savingsand surrender of Rs.10.73 crore i.e. under Revenue SectionRs.9.76 crore and Capital Section Rs.0.97 crore of the Grants.

These savings have been segregated into the followingcategories:i) Normal Savings : Savings resulting from economic use

of Resources(` in crore)

Sl. Sub head/Scheme Savings Remarks/No. Programme (Net) Reasons

1. Department of Less requirementExpenditure 4.52 for administrative

expenses2. Training Centre in the Less requirement

Civil Accounting for IT hardwareof Department consultants &(Institute of Govt. economy measuresAccounts & Finance) 0.37

ANNEXURE

(ii) Under/Non utilization : Saving due to non-implementation/delay in execution of projects/schemes.

Sl. Sub head/Scheme Savings Remarks/No. Programme (Net) Reasons

1. Department of Non filling up ofExpenditure 3.31 vacant posts

2. Service charges to Less receipt ofNSDL for New Pension claimsScheme 1.56

(iii) Surrenders : saving due to obsolete/defunct project/scheme or due to completion of a project/scheme and thefunds are no more required.

Sl. Sub head/Scheme Savings Remarks/No. Programme (Net) Reasons

1. Infrastructure Less requirementDevelopment of of funds due toNational Institute of completion ofFinancial Management project.Society 0.97

Note:- This annexure is included in compliance of O.M.No.7(1)-B(AC)/2011 dated 23rd March, 2012 of Budget Division regardingsegregation of savings due to normal savings, under/non-utilization & surrender of funds for the financial year 2011-12 asdesired by the Standing Committee on Finance in its 33rd Report.

77 Department of Expenditure

NATIONAL INSTITUTE OF FINANCIAL MANAGEMENT: REVIEW OF PERFORMANCE

OBJECTIVES

The National Institute of Financial Management is anautonomous body (Society) registered under the SocietiesRegistration Act, 1860 headed by Finance Minister, Governmentof India. This institute has been set up with a view to establishitself as a premier knowledge partner in the country for training,research and consultancy in Financial, Accounts & Audit, PublicEconomics, Human Resource Management and InformationTechnology. It is also mandated to organize training & continuingprofessional education to Group ‘A’ officers of participatingServices.

PERFORMANCE

The Institute is functional since January, 1994 and has beenconducting the following programmes:

Professional Training Course:So far nineteen batches of probationers of various Accounts,

Audit and Finance Services have been successfully trained for44 weeks training course. The 20th batch of probationers hascommenced from 7th January, 2013 in which 53 probationers(approx.) have joined.

Management Development Programmes:The NIFM conducts Management Development

Programmes of varying duration every year. Some of theseprogrammes are sponsored by different GovernmentDepartments, foreign Governments, World Bank etc. In addition,various Govt. Departments, PSUs etc. sponsor candidates forthe specialized courses conducted by the Institute. During theyear 2012-13, the focus of Management DevelopmentProgrammes (MDPs) is in the following areas:

a) Budgeting & Public Expenditure Management

b) Accounting System & Financial Management inGovernment

c) Procurement of Goods & Services

d) Tendering & Contracting

e) Public Financial Management

f) Standard Rules & Procedures of the World Bank forProcurement of Goods, Works & Services

g) Cyber Crime & Forensics

Post Graduate Diploma in Management (FinancialManagement):

The NIFM has been conducting Post Graduate Diploma inManagement (Financial Management) since year 2002. Thepresent batch of PGDM (FM) commenced in May, 2012 in which47 candidates joined from various Central/State/UT Govts.. Thenew batch of PGDM (FM) shall be starting in May, 2013 whereinthe target is of 60 candidates.

Diploma in Govt. Accounting & Internal Audit:The Diploma in Accounting & Internal Audit Program for

one year is to upgrade the technical skills of officers of theorganized Accounts services of the Union Government. TheCourse is designed to equip the newly recruited officers for takingup higher responsibilities in the field of Public FinancialAdministration. The present batch of DGA&IA commenced fromMay, 2012 in which 39 candidates participated. The new batchof DGA&IA shall be starting from May/June, 2013 with a targetof 35 participants.

Fellow Programme in Management Programme:This is an open programme to pursue research work to

produce competent researchers, teachers and consultants. Theprogramme is duly approved by AICTE. The third batch of theprogramme commenced in May, 2012 with 2 participants.

Executive Programme in Financial Market with NSEThe NIFM in collaboration with NSE has launched one year

Weekend Executive Programme (with 35 participants) and oneyear Regular Programme (with 33 participants), which focusesin developing trained professionals capable of occupyingpositions of responsibility in stock exchanges, commodityexchanges, regulatory bodies, market intermediaries, banks,mutual funds and asset management companies and other similarentities covering all financial markets like cash equity, equityderivatives, currency derivatives, commodities and foreignexchanges. The first batch of the programme commenced in May-July, 2012. The next batch of the programme will commence inMay-June, 2013.

Consultancy Projects:During the year 2012-13, one consultancy project has been

awarded to NIFM. The consultancy projects awarded/ in progressduring the year were as under:-

(i). Study of unaccounted income/ wealth inside and outsideIndia.

(ii). A study on Central Autonomous Bodies.

(iii).A Study on Water and Sanitation of Govt. of Jharkhand.

78Outcome Budget 2013-2014

Financial StatementThe Income & Expenditure Accounts as on 31st March, 2012 are as under:

(Amount in ` )

Income 31.03.2012 31.03.2011

Income from Services 10,45,61,363 9,28,16,567Grant 1,40,00,000 1,40,00,000Interest Earned 1,21,25,324 61,62,604Other Income 19,24,108 14,89,501

Total (A) 13,26,10,795 11,44,68,672

ExpenditureEstablishment Expenses 3,87,74,807 3,46,17,311Other Administrative Expenses 6,06,58,933 5,99,08,731Depreciation 93,92,050 94,37,855

Total (B) 10,85,25,790 10,39,63,897

Balance being Surplus / Deficit of 2,40,85,005 1,05,04,775Income over Expenditure (A-B)Less: Prior Period adjustments (Net) (13,11,995) (2,10,412)Add: Amount transferred from Capital 28,82,513 31,41,177

asset Fund Representing depreciation(for the year) on Assets acquired outof Govt. Grant

Balance being Surplus / Deficit carriedover to Balance-Sheet 2,56,55,523 1,34,35,540

79 Department of Revenue

DEPARTMENT OF REVENUEINTRODUCTION

1. The Department of Revenue exercises controls in respect ofmatters relating to all the Direct and Indirect Taxes through twostatutory Boards, namely, the Central Board of Direct Taxes(CBDT) and the Central Board of Excise and Customs (CBEC).A Chairman who is also ex-officio Special Secretary to theGovernment of India heads each Board. Matters relating to thelevy and collection of all the Direct Taxes are looked after byCBDT, whereas those relating to levy and collection of customsand central excise duties and service tax fall within the purviewof CBEC. The two Boards were constituted under the CentralBoard of Revenue Act, 1963. Both CBDT and CBEC have sixMembers each. The Members are also ex-officio SpecialSecretaries to the Government of India.

2. The Department of Revenue is mainly responsible for thefollowing functions:-

• All matters relating to levy and collection of DirectTaxes.

• All matters relating to levy and collection of IndirectTaxes.

• Investigation into economic offences and enforcementof economic laws.

• Framing of policy for cultivation, processing, exportand fixation of price of Opium etc.

• Prevention and combating abuse of Narcotic drugsand psychotropic substances and illicit traffic therein.

• Enforcement of FEMA and recommendations ofdetention under COFEPOSA.

• Work relating to forfeiture of property underSmugglers and Foreign Exchange Manipulators(Forfeiture of Property) Act, 1976 and Narcotics Drugsand Psychotropic Substances Act, 1985.

• Levy of Taxes on sales in the course of inter-state tradeor commerce.

• Matters relating to consolidation/reduction/exemptionfrom payment of Stamp duty under Indian Stamp Act,1899.

• Residual work of Gold Control Act.

3. The Department of Revenue administers the following Acts: -

- Income Tax Act, 1961;

- Wealth Tax Act, 1958;

- Expenditure Tax Act, 1987; *

- Benami Transactions (Prohibition) Act, 1988;

- Super Profits Act, 1963;*

- Companies (Profits) Sur-tax Act, 1964;*

- Compulsory Deposit (Income Tax Payers) SchemeAct, 1974;*

- Chapter VII of Finance (No.2) Act, 2004 (Relating toLevy of Securities Transactions Tax);

- Chapter VII of Finance Act 2005 (Relating to BankingCash Transaction Tax);

- Chapter V of Finance Act, 1994 (Relating to ServiceTax);

- Central Excise Act, 1944 and related matters;

- Customs Act, 1962 and related matters;

- Medicinal and Toilet Preparations (Excise Duties) Act,1955;

- Central Sales Tax Act, 1956;

- Narcotic Drugs and Psychotropic Substances Act,1985;

- Prevention of Illicit Traffic in Narcotic Drugs andPsychotropic Substances Act, 1988;

- Smugglers and Foreign Exchange Manipulators(SAFEM) (Forfeiture of Property) Act, 1976;

- Indian Stamp Act, 1899 (to the extent falling withinjurisdiction of the Union);

- Conservation of Foreign Exchange and Prevention ofSmuggling Activities Act, 1974;

- Foreign Exchange Management Act, 1999; and

- Prevention of Money Laundering Act, 2002.

* The administration of these Acts are limited to thecases pertaining to the period when these laws werein force.

4. The department looks after the matters relating to abovementioned Acts through divisions and attached/subordinateoffices whose functions are as follows :-

n Central Board of Direct Taxes:

All matters relating to levy and collection of directtaxes.

n Central Board of Excise and Customs:

All matters relating to levy and collection of indirecttaxes.

Department of Revenue

80Outcome Budget 2013-2014

n States Taxes Wing:

Administration of sales tax laws (Validation) Act,1956, Central Sales Tax, State-level Value Added Tax(VAT), Indian Stamp Act, 1989 etc.

n Narcotics Control Division:

Framing of licensing policy for cultivation of Opiumpoppy, production of opium and export and pricingof opium & alkaloids. Coordination of the working ofCommittee of Management and issues relating to UNand International Organizations.

n Committee of Management:

Administering the departmental undertakings viz.Govt. Opium and Alkaloid work Neemuch (M.P.) andGhazipur (U.P.) which are engaged in processing ofraw opium for export purposes and also for extractionof alkaloids from opium, which are used by thePharmaceutical industry.

n Administration Division :

All administrative matters of Department of Revenue.Maintenance of CR Dossiers of the staff and officersof the Secretariat proper of the Department IRS(Group-A), IRS (Customs & Central Excise) (Group-A). Coordination work and work relating to translationof languages and implementation of Hindi.

n Revision Application Unit:

Work relating to revision applications filed againstthe orders of Commissioners of Customs (Appeals)and Commissioners of Central Excise (Appeals) andthe cases filed before 11.10.1982 against CBEC.

n Integrated Finance Unit:

Tendering advice in all financial matters pertaining toDepartment of Revenue and its constituent units & fieldformations under CBDT & CBEC. Deals withexpenditure and financial proposals. Prepares &examines expenditure budget for grants relating toDepartment of Revenue, Direct Taxes & Indirect Taxes.

n Competent Authorities:

Work relating to forfeiture of property underSmugglers and Foreign Exchange Manipulators(Forfeiture of property) Act, 1976 and Chapter V-Aof Narcotics Drugs and Psychotropic Substances Act,1985.

n Appellate Tribunal for Forfeited Property:

Adjudication of appeals filed by persons against ordersof forfeiture of properties passed by CompetentAuthorities under the SAFEM (FOP) Act, 1976 andChapter V A of NDPS Act, 1985.

n Customs, Excise, Service Tax Appellate Tribunal:

Hearing appeals against the orders of ExecutiveCommissioners and Commissioners (Appeals).

n National Committee for Promotion of Social andEconomic Welfare:

Recommending projects of social and economicwelfare to the Central Government for issuance ofnotification under section 35 AC of the Income TaxAct, 1961.

n Authority for Advance Rulings:

Giving advance rulings on a question of law or factspecified in an application filed by Non-Residents inrelation to transaction, which has been undertaken orproposed to be undertaken by the applicant.

n Customs and Central Excise SettlementCommission:

Settlement of applications filed by the assessees underthe Customs Act and Central Excise Act.

n Settlement Commission (IT/WT):

Settlement of applications filed by the assessees underthe Income Tax Act, 1961 and the Wealth Tax Act,1957.

n Central Economic Intelligence Bureau:

Coordinating and strengthening of the intelligencegathering activities, the investigative efforts andenforcement action by various agencies concernedwith investigation into economic offences andenforcement of economic laws.

n Enforcement Directorate:

Responsible for enforcement of the provisions ofForeign Exchange Regulation Act. Recommendingcases for detention under the Conservation of ForeignExchange and Prevention of Smuggling ActivitiesAct, 1974. Under Foreign Exchange ManagementAct, 1999, the Enforcement Directorate is mandatedprimarily as the investigation and adjudicatingagency. Powers have also been conferred on theDirector of Enforcement under the relevantprovisions of the Prevention of Money LaunderingAct, 2002.

n Financial Intelligence Unit:

To coordinate and strengthen collection and sharingof financial intelligence through an effective national,regional and global network to combat moneylaundering and related crimes. Powers have beenconferred on the Director, Financial Intelligence Unit-India under the relevant provision of Prevention ofMoney Laundering Act, 2002

81 Department of Revenue

* Adjudicating Authority under PMLA:

To exercise jurisdiction, powers and authorityconferred by or under the Prevention of MoneyLaundering Act, 2002. The Authority is empoweredto confirm the provisional attachment after hearingthe aggrieved parties to ensure that property is notdisposed-off during the pendency of trial for scheduledoffence or offence of money laundering.

n Income Tax Ombudsman:

Income Tax Ombudsmen have been posted in sevencities to look into taxpayers’ grievances.

n Indirect Tax Ombudsman:

The Indirect Tax Ombudsman in four cities to resolvethe complaints relating to public grievances againstthe Customs, Central Excise and Service TaxDepartment have been appointed.

5. DIRECT TAXES

The Central Board of Direct Taxes (CBDT) is the apex bodyentrusted with the responsibility of administering direct tax lawsin India, viz. income tax, wealth tax, banking cash transactiontax, securities transaction tax etc. The CBDT consists of aChairman and six Members and is the cadre controlling authorityfor the Income Tax Department. In its functioning, the CBDT isalso assisted by the following attached offices in Delhi:

(i) Directorate General of Income Tax (Administration)

(a) Directorate of Income Tax (Public Relations,Printing, Publication and Official Languages)

(b) Directorate of Income Tax (Recovery)

(c) Directorate of Income Tax (Income Tax & Audit)

(ii) Directorate General of Income Tax (Systems)

(iii) Directorate General of Income Tax (Legal &Research)

(iv) Directorate of Income Tax (Organization &Management Services)

(v) Directorate of Income Tax (Infrastructure)

(vi) Directorate of Income Tax (Business ProcessRe-engineering)

(vii) Directorate of Income Tax (Human ResourceDevelopment)

(viii) Directorate General of Income Tax (Exemption)

(ix) Directorate General of Income Tax (InternationalTaxation & Transfer Pricing)

Various Chief Commissioners of Income Tax, stationedall over the country, supervise collection of direct taxes andprovide taxpayer services. Directors General of Income Tax(Investigation) supervises the investigation machinery, withthe aim to curb tax evasion and unearth unaccounted money.Chief Commissioners of Income Tax / Directors General ofIncome Tax are assisted by Commissioners of Income Tax /Directors of Income Tax within their jurisdictions. There isalso first appellate machinery comprising Commissioners ofIncome Tax (Appeals), who perform the task of disposal ofappeals against the orders of assessing officers. The PrincipalChief Controller of Accounts, CBDT with the assistance ofthe local Pay & Accounts Officers is responsible for accountingthe revenue collections as well as expenditure incurred by theDepartment.

6. INDIRECT TAXES

The Central Board of Excise and Customs is the apex bodyin the Indirect Taxes set up. The Board discharge its variousfunctions through its field organizations which includes 23 ChiefCommissioners’ Zones for Central Excise and Service Tax, 11Chief Commissioners’ Zones for Customs, 12 DirectoratesGeneral, 6 Directorates, & a Chief Departmen talRepresentative’s setup for Customs, Excise and Service TaxAppellate Tribunal. In its functioning, CBEC is assisted by thefollowing offices:-

(i) Directorate of Revenue Intelligence

(ii) Directorate General of Safeguards

(iii) Directorate General of Central Excise Intelligence

(iv) Directorate General of Inspection

(v) Directorate General of Vigilance

(vi) Directorate General of Service Tax

(vii) Directorate General of Audit

(viii) Directorate General of Export Promotion

(ix) Directorate General of Valuation

(x) Directorate General of Systems & Data Management

(xi) Directorate General of Human Resource Development

(xii) Directorate of Logistics

The Principal Chief Controller of Accounts, CBEC withthe assistance of the local Pay and Accounts Offices is responsiblefor accounting the revenue collections as well as expenditureincurred by the Department.

7. Department of Revenue has three Demands for Grants:

Demand No. 42 –Department of Revenue

Demand No. 43 —Direct Taxes and

Demand No. 44 –Indirect Taxes.

82Outcome Budget 2013-2014

STA

TE

ME

NT

OF

OU

TL

AYS

AN

D O

UT

CO

ME

S 20

13-1

4

1.M

ajor

Hea

d -2

052

Set

ting

upof

Tax

Inf

orm

atio

n E

xcha

nge

Syst

em et

c.(T

he B

udge

t pr

ovis

ion

is f

orgr

ant-

in-a

id t

o E

mpo

wer

edC

omm

itte

e (E

C)

for

impl

emen

ting

T

INX

SYS

Proj

ect,

VAT

Com

pute

rizat

ion

ofJ&

K &

HP

and

for

EC

’sad

min

istra

tive e

xpen

ditu

re)

2.M

ajor

Hea

d 20

47 –

Spe

cial

Purp

ose

Veh

icle

(SP

V)

for

Goo

ds &

Ser

vice

Tax

Net

wor

k(G

STN

)(T

he b

udge

t pr

ovis

ion

is f

orpr

ovid

ing

gran

ts-in

-aid

to

the

SPV

for G

STN

)

3.M

ajor

H

ead

-360

1/36

02C

ompe

nsat

ion

to S

tate

s/U

Ts f

or r

even

ue lo

sses

due

to

impl

emen

tati

on o

f VA

T a

ndot

her V

AT re

late

d ex

pend

iture

(The

Bud

get

Prov

isio

n is

for

prov

idin

g gr

ant-i

n-ai

d to

Sta

tes/

UTs

for

(i) V

AT c

ompe

nsat

ion,

and

(ii)

oth

er V

AT

rel

ated

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

me

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2013

-14

(` In

Cro

re)

Non

-Pla

nPl

an4

4(i)

4(ii)

Phys

ical

Out

puts

/Q

uant

ifiab

leD

eliv

erab

les

5

Proj

ecte

dO

utco

mes

6

Proc

esse

s/Ti

mel

ines

7

Rem

arks

/R

iskFa

ctor

s

8

Effe

ctiv

e tra

ckin

g of

in

te

r-

St

at

etra

nsac

tions

thro

ugh

TIN

XSY

S an

dsm

ooth

fun

ctio

ning

of

the

EC

an

dco

mpu

teri-

zatio

n of

VAT

adm

n. o

f H

Pan

d J&

K.

Spec

ial

Purp

ose

Vehi

cle f

or G

oods

&Se

rvic

e Tax

Net

wor

k

Smoo

th an

d ef

fect

ive

impl

emen

tatio

n of

Stat

e VAT

.

15.6

1 ..

.

100.

00...

51.0

0...

Impl

emen

tati

on

ofTI

NX

SYS

Proj

ect.

Smoo

th fu

nctio

ning

of E

C.

VAT

Com

pute

riza

tion

inJ&

K a

nd H

P.

To

crea

te

enab

ling

envi

ronm

ent

for

smoo

thin

trod

ucti

on

of

GST

.G

STN

:SPV

will

pro

vide

ITin

fras

truct

ure a

nd se

rvic

esto

var

ious

sta

keho

lder

s,in

clud

ing

the

Cen

tre a

ndth

e Sta

tes.

VAT

Impl

emen

tatio

n by

all

Stat

es/ U

Ts.

Effe

ctiv

e tra

ckin

gof

in

ter-

Stat

etr

ansa

ctio

ns,

whi

ch w

ill e

nabl

ech

ecki

ng

ofre

venu

e lea

kage

.

Mod

ern

VA

TA

dmin

istra

tion

inJ&

K a

nd H

P

Cab

inet

ha

sap

prov

ed

the

proj

ect f

or sm

ooth

and

effe

ctiv

eim

plem

enta

tion

ofG

ST.

Smoo

th

and

ef

fe

ct

iv

eim

plem

enta

tion

ofSt

ate V

AT

The T

INX

SYS

Proj

ect i

s bei

ngim

plem

ente

d by

EC

on

BOO

Tm

odel

thr

ough

a S

ervi

cePr

ovid

er. T

he p

roje

ct h

as b

een

exte

nded

up

to M

arch

, 20

13an

d is

al

so l

ikel

y to

be

cont

inue

d in

201

3-14

.

J&K

an

d H

P V

AT

Com

pute

rizat

ion

Proj

ects

hav

ebe

en ap

prov

ed an

d th

e pro

gres

sof

th

e pr

ojec

t is

be

ing

mon

itore

d by

the E

C.

Act

ion

is b

eing

tak

en i

nac

cord

ance

with

the

Cab

inet

appr

oval

and

the S

PV is

like

lyto

be

regi

ster

ed s

hort

ly a

s a

Non

-Gov

ernm

ent

Sect

ion

25C

ompa

ny.

As

per

agre

ed f

orm

ula,

VAT

Com

pens

atio

n w

as t

o be

prov

ided

for 2

005-

06 (1

00%

ofre

venu

e los

s), 2

006-

07 (7

5% of

reve

nue

loss

) an

d 20

07-0

8(5

0% o

f rev

enue

loss

). C

laim

sof

all

the

Stat

es h

ave

alre

ady

been

settl

ed.

83 Department of Revenue

expe

ndit

ure

and

sett

ing

up/

upgr

adat

ion

of tw

o In

stitu

tes f

orta

xatio

n st

udie

s in

Stat

es/U

Ts)

4.M

ajor

H

ead

-360

1/36

02C

ompe

nsat

ion

to S

tate

s/U

Ts f

or r

even

ue lo

sses

due

to

phas

ing

out

of C

entr

al S

ales

Tax

(The

Bud

get

Prov

isio

n is

for

prov

idin

g gr

ant-i

n-ai

d to

Sta

tes/

UTs

for C

ST c

ompe

nsat

ion.

)

Gra

nts-

in-a

id

toSt

ates

/UTs

for

CST

com

pens

atio

n to

faci

litat

e int

rodu

ctio

nof

Goo

ds &

Ser

vice

sTa

x (G

ST).

Proj

ects

of

33 S

tate

s/U

Tsun

der

Mis

sion

Mod

e Pr

ojec

tfo

r co

mpu

teri

zati

on

ofC

omm

erci

al

Taxe

sad

min

istr

atio

n ha

ve a

lrea

dybe

en s

anct

ione

d to

fac

ilita

teim

prov

emen

t of

se

rvic

ede

liver

s and

effic

ienc

y of S

tate

VAT

adm

inis

tratio

ns. F

urth

erba

lanc

e gra

nts w

ill b

e rel

ease

dto

th

e St

ates

fo

rim

plem

enta

tion

of

th

ese

proj

ects

.

The

prop

osal

for u

pgra

datio

nof

Cen

tre fo

r Tax

atio

n St

udie

sin

to a

Nat

iona

l In

stitu

te o

fPu

blic

Fin

ance

has

bee

nap

prov

ed a

nd fu

nds

rele

ased

to t

he S

tate

Gov

t.

The

prop

osal

for

set

ting

up o

f a

Nat

iona

l End

owm

ent C

entr

efo

r tr

aini

ng a

nd r

esea

rch

inPu

blic

Fin

ance

in th

e C

entr

efo

r Stu

dies

in S

ocia

l Sci

ence

s,K

olka

ta

has

also

be

enap

prov

ed a

nd fu

nds

rele

ased

to th

is C

entr

e.

CST

was

pla

nned

to be

pha

sed

out

in t

hree

yea

rs t

ime

with

effe

ct fr

om 1

.4.2

007.

Rat

e of

CST

was

redu

ced

from

4%

to3%

in 2

007-

08 a

nd to

2%

in20

08-0

9.

As

per

agre

edfo

rmul

a, C

ST c

ompe

nsat

ion

was

pro

vide

d to

the

Stat

es ti

ll20

10-1

1.

12

34

4(i)

4(ii)

56

78

80.0

0

9300

.00

...

Mod

erni

zatio

n of

Sta

te T

axA

dmin

istr

atio

n In

clud

ing

setti

ng u

p/ u

pgra

datio

n of

two

Inst

itute

s fo

r Tax

atio

nSt

udie

s in

Stat

es/U

Ts.

Impl

emen

tati

on b

y al

lSt

ates

/ UTs

.

Pha

sing

out

of C

ST

Smoo

th

and

ef

fe

ct

iv

eim

plem

enta

tion

ofph

asin

g ou

t of

CST

.

84Outcome Budget 2013-2014

12

34

4(i)

4(ii)

56

78

The

rev

enue

real

izat

ion

and

expe

ndit

ure

inc

ur

re

dde

pend

s up

ona

num

ber

offa

ctor

s li

kede

man

d of

Indi

an o

pium

in

the

inte

rnat

iona

lm

ar

ke

t,

fluct

uatio

n in

rate

of f

orei

gnex

ch

an

ge,

prod

uctio

n of

alk

alo

ids,

quan

tity

of

opiu

m

for

proc

urem

ent,

impo

rt

ofc

od

ei

ne

phos

phat

e etc

.

The

Gov

t. O

pium

&A

lkal

oid

Fact

orie

s in

Gha

zipu

r an

dN

eem

uch

are

two

de

pa

rtm

en

tal

un

de

rta

kin

gs

func

tion

ing

unde

rth

e D

epar

tmen

t of

Rev

enue

. E

ach

ofth

ese

unde

rtak

ings

has

two

sepa

rate

unit

s vi

z. O

pium

Fact

ory a

nd A

lkal

oid

Plan

t. T

he O

pium

Fact

orie

s ar

een

gage

d in

cat

erin

gto

the

dem

and

ofop

ium

and

the m

ajor

porti

on of

raw

opiu

mre

ceiv

ed f

rom

the

field

is e

xpor

ted.

Re

ve

nu

eR

eali

zati

on

ofRs

.347

.73

cror

e

The

pro

gres

s of

rev

enue

real

izat

ion

vis-

à-vi

sex

pend

iture

will

be

revi

ewed

mon

thly

/ qua

rterly

.

5.M

ajor

H

ead

2875

G

ovt.

Opi

um &

Alk

aloi

d W

orks

260.

14...

Proc

urem

ent

of 2

99.4

1M

Ts o

f raw

opi

um

Impo

rt o

f 20

MTs

of

Cod

eine

Pho

spha

te

Expo

rt of

Opi

um(3

78 M

T)an

d Sa

le o

f A

lkal

oids

(67.

05 M

T).

85 Department of Revenue

Reform Measures and Policy initiatives

Implementation of Value Added Tax (VAT) Scheme1. Introduction of State VAT is the most significant tax

reform measure taken at State level in recent times. The decisionto implement State VAT was taken in the meeting of theEmpowered Committee of State Finance Ministers (EC) held on18.06.2004, where a broad consensus was arrived at amongstthe States to introduce VAT w.e.f. 01.04.2005. Accordingly, VAThas been introduced by all States/UTs, except the UnionTerritories of Andaman & Nicobar Islands and Lakshadweepwhich do not have Sales Tax/ VAT, and an amount of Rs.19002.82crore has been paid as compensation related to loss due tointroduction of VAT to the States/UTs up to 31st December 2012.

The Budget provision for 2013-14 for various VAT relatedschemes has been proposed in the context of the role of the CentralGovernment as facilitator in implementation of State level VAT.

Phasing Out of Central Sales TaxThis is a logical corollary of State VAT implementation. The

Central Sales Tax, being a non-rebatable origin-based tax, isinconsistent with VAT and needs to be phased out. The phasingout of CST is also extremely important in the context of the planto introduce a unified national level Goods and Service Tax (GST)w.e.f. 1.4.2010. At the stage of discussions regarding phasingout of the CST, the States had insisted that they should becompensated for revenue loss on this account. A broad consensushad eventually been arrived at with the States for phasing out theCST over 3 years i.e. reducing it by 1% every year so as to abolishit by 31.3.2010. As part of this, the CST rate was reduced from4% to 3% w.e.f 01.04.2007 and further from 3% to 2% w.e.f.1.6.2008.

A package of compensation to the States for revenue loss onaccount of phasing out of the CST has also been mutually agreedupon. Under this package, the States are being compensatedthrough a combination of non-monetary and monetary measures.An amount of Rs.30860.42 crore has been released to the States/UTs up to 31st December 2012 as CST compensation. For thefinancial year 2013-14, a provision of Rs.9300 crore has beenproposed.

Mission Mode Project on Commercial TaxesUnder the National e-Governance Plan (NeGP) launched

by the Department of Information Technology, the Departmentof Revenue is coordinating a Mission Mode Project (MMP) on‘Commercial Taxes’, which is an important e-Governanceinitiative in the field of State taxes. In pursuance to this, theGovernment approved a Mission Mode Project forcomputerization of Commercial Taxes Administrations of StateGovernments under NeGP, with an overall cost of Rs.1133 crore,to help States to develop and upgrade the IT systems in theircommercial taxes administrations. The focus of the project, onthe one hand, is to provide improved set of services to the dealersand on the other, to improve the efficiency of the CommercialTaxes administrations of the State Governments. Under thisproject, Central Government and State Governments are required

to share fund roughly in the ratio of 70:30. However, keepingthe Special Category Status of North Eastern States, this ratiohas been fixed at 90:10 (Central share: State Governments’ share)whereas UTs without Legislature are being funded 100% byCentral Government.

A Project Empowered Committee (PEC) under chairmanshipof Revenue Secretary was constituted for sanctioning of States’proposals of computerization of Commercial Taxes Departments.The PEC has approved the project proposals of all 33 States/UTs, having overall cost of Rs.1030 crore. An amount ofRs.501.94 crore has been released to these States as part of Centralshare till 31st December, 2012.

In order to facilitate inter-state transactions, a TaxInformation Exchange System (TINXSYS) has been put in placeso that States can access information relating to issuance of Form-C and other inter-State sale related information. In this project,Central Government is funding 50% of the project cost whileStates collectively share the rest.

Goods & Service Tax (GST)The proposal to introduce a national level Goods and Service

Tax (GST) by April 1, 2010 was first mooted by then FinanceMinister in his Budget Speech for the financial year 2006-07.Since the proposal involved reform/restructuring of not onlyindirect taxes levied by the Centre but also the States, theresponsibility of preparing a Design and Road Map forimplementation of GST was assigned to the EmpoweredCommittee of State Finance Ministers (EC) chaired by Dr. AsimK. Dasgupta, Finance Minister of West Bengal.

In April 2008, the Empowered Committee submitted a reportto the Central Government titled “A Model and Roadmap forGoods & Service Tax (GST) in India” containing broadrecommendations about the structure and design of GST. A dualGST model with one component being Central GST and anotherState GST has been proposed in this paper. In response to thereport, the Department of Revenue made some suggestions to beincorporated in the design and structure of the proposed GST.

Based on inputs from Department of Revenue, Governmentof India and States, the EC released its ‘First Discussion Paperon Goods & Service Tax in India’ on 10th November, 2009 atNew Delhi. This Discussion Paper was released with the objectiveof generating a debate and obtaining inputs from all stakeholders– taxpayers, including industry, trade and agriculture as alsoconsumers. Department of Revenue has also sent its responseon the said paper to EC.

A Bill to further amend the Constitution to enableintroduction of Goods and Services Tax (GST) has beenintroduced in the Lok Sabha on 22.3.2011. The Bill has nowbeen referred to the Standing Committee on Finance by Lok SabhaSecretariat for examination and report thereon.

The Bill envisages setting up of the GST Council headed bythe Union Finance Minister having one Minister from each of

86Outcome Budget 2013-2014

the States. This Council is supposed to discuss and recommendkey GST parameters like threshold, exemptions, rates of tax etc.to Central and State Governments. Centre and States are expectedto follow the recommendations made. The Bill also envisagescreation of a GST Dispute Settlement Authority, which may beapproached by any State or Centre, if such State or Centre isaffected adversely by any action of a State or Centre, as the casemay be, arising because of deviation from the recommendationsmade by the GST Council. Efforts are being made to developconsensus so that the Constitutional Amendment Bill could befinalized and could be introduced in the Parliament at the earliest.After such a Bill is passed by the Parliament, it will requireratification by at least 50% of the States before it becomes lawof the land.

Three Sub-Working Groups of Officers have beenconstituted by the Department to work on various importantelements of GST. One Sub-working group is working onfinalization of the process regarding registration, return,payment etc., to be followed in GST regime. The second Sub-working group is working on drafting Central GST and ModelState GST Legislation. Third Sub-working group is trying tofinalize IT infrastructure related issues concerning GST. AnEmpowered Group for development of required IT systems forGST regime has been set up under the chairmanship of Dr.Nandan Nilekani. A Strategy Paper has been brought out bythis Empowered Group, which has also been approved by theEmpowered Committee of State Finance Ministers.

Setting up of Special Purpose Vehicle for Goods & ServiceTax NetworkGST is recognized internationally as a destination based

consumption tax which is least distortionary. The broadobjectives of introducing the Goods & Service Tax (GST) inIndia are to expand the tax base through wider coverage ofeconomic activities and reduction in exemptions; mitigatecascading and double taxation and enable better compliancethrough lowering of overall tax burden on goods and services.By removing hidden or embedded taxes, it would improve thecompetitiveness of domestic industry vis-a-vis imports and ininternational markets. This reform would also lead to thedevelopment of a common national market for goods and services.

Success of GST will also rest upon the robust ITinfrastructure. The Government has approved setting up of aSpecial Purpose Vehicle (SPV) for Goods & Service Tax Network(GSTN:SPV) to create enabling environment for smoothintroduction of GST. GSTN:SPV will provide IT infrastructureand services to various stakeholders, including the Centre andthe States.

The GSTN:SPV would be incorporated as Section 25 (not-for-profit) non-Government private limited company, in whichthe Government will retain strategic control. It would have anequity capital of Rs.10 crore, with the Centre and States havingequal stakes of 24.5% each. Non-governmental institutions wouldhold 51% equity . No single institution would hold more than10% equity, with the possibility of one private institution holdinga maximum of 21% equity.

GSTN SPV would have a self-sustaining revenue model,based on levy of user charges on tax payers and tax authorities

availing its services. While the SPV’s services would be criticalto actual rollout of GST at a future date, it is also expected torender valuable services to the Centre/State tax administrationsprior to the implementation of GST.

Support for upgradation to National level Institute ofPublic Finance & PolicyGovt. had decided to provide financial assistance for

upgradation of Centre for Taxation Studies, Thiruvananthapuramas the Centre of Excellence and setting up a new similar RegionalCentre in Eastern India.

The proposal for upgradation of Centre for Taxation Studiesinto Gulati Institute of Finance & Taxation (GIFT) at a total costof Rs.33.13 crore has already been approved by the Government.Department of Revenue agreed to provide grant-in-aid to theextent of Rs.23.63 crore out of this. A Tripartite Memorandumof Understanding has also been signed between Centre and StateGovernment and the Institute and an amount of Rs.14 crore, asCentral share of assistance, has been released to the Institute till30th December, 2012.

A proposal for providing funds to the Centre for SocialScience and Studies (CSSS), Kolkata for creating a corpus andrunning identified set of activities has been approved by theGovernment. A Memorandum of Understanding has been signedbetween the Central Government and Director, CSSSC, Kolkataand Rs.14 crore have been released to the Government of WestBengal for this purpose till December 2012.

Government Opium & Alkaloid WorksThe Government Opium & Alkaloid Works (GOAWs) at

Ghazipur (U.P.) and Neemuch (M.P.) are responsible forprocessing of raw opium for exports, manufacturing of opiatealkaloids and other related functions through its two factories atGhazipur (U.P.) and Neemuch (M.P.) Some of the major reformsand initiatives undertaken by GOAWs are as follows –

a) A Project at National Botanical Research Institute,Lucknow is being undertaken for development of highyielding varieties of opium poppy and installation ofclimate control chamber. The objective of this projectis to commercially develop and cultivate those varietiesof opium poppy which would have a higher alkaloidcontent to facilitate production of higher quantities ofalkaloids. This may lead to increase in revenue receiptsand lesser dependence on imports. This may also leadto increased compensation/income for opiumcultivators.

Monitoring Mechanism for Outcome BudgetA system of monthly report by Administrative and

Coordinating Units of respective items under Outcome Budgethas been introduced. Monthly and Quarterly review of trends ofexpenditure and progress under Outcome Budget is done at theDepartment/Ministry level. Project Monitoring/ImplementationCommittee have been established to review the implementationof major project items. For coordinated efforts and faster decisionmaking in massive computerization endeavors of CBDT &CBEC, an Empowered Committee is also functional whereeminent experts from Private Sector are also members.

87 Department of Revenue

STA

TU

S O

F O

UT

CO

ME

WIT

H R

EFE

RE

NC

E T

O O

UT

LAY

S - 2

011-

12

1M

ajor

Hea

d 20

52Im

plem

enta

tion

of

V

AT

Sche

me

2M

ajor

Hea

d 20

52Se

ttin

g up

of T

ax In

form

atio

nE

xcha

nge S

yste

m (T

INX

SYS)

Setti

ng u

p of

Mod

ern

VAT

Adm

inis

tratio

nSy

stem

in N

E St

ates

and

Sikk

im a

s al

sofa

cilit

atin

g si

mila

rac

tion

in o

ther

Sta

tes.

Effe

ctiv

e tra

ckin

g of

in

te

r-

St

at

etra

nsac

tions

thro

ugh

TIN

XSY

S an

dsm

ooth

fun

ctio

ning

of t

he E

mpo

wer

edC

omm

ittee

(EC

) an

dVA

T co

mpu

teriz

atio

nof

HP

and

J&K

1.79

1.60

11.0

810

.87

Com

pute

riza

tion

of V

ATad

min

istra

tion

in N

E St

ates

of A

runa

chal

Pra

desh

,M

anip

ur,

Miz

oram

,N

agal

and,

Trip

ura,

Sik

kim

and

Meg

hala

ya.

Impl

emen

tati

on

ofT

INX

SYS

Proj

ect

for

effe

ctiv

e tra

ckin

g of

inte

r-St

ate t

rans

actio

ns.

The

in

itia

l ph

ase

ofim

plem

enta

tion

of

the

Proj

ect

on T

urnk

ey b

asis

has b

een

com

plet

ed.

The

TIN

XSY

S Pr

ojec

t is

bein

g im

plem

ente

d by

EC

on B

OO

T m

odel

thro

ugh

aSe

rvic

e Pr

ovid

er.

The

initi

al im

plem

enta

tion

to be

com

plet

ed d

urin

g 20

09-1

0.Th

erea

fter,

it is

to b

e run

by

the

Serv

ice

Prov

ider

for

anot

her

abou

t 2

year

s,be

fore

tran

sfer

to E

C.

Und

er th

is sc

hem

e, pr

ovisi

on h

as b

een

mad

e fo

r ta

king

ahe

ad t

he V

ATCo

mpu

teriz

atio

n in

Nor

th-E

aste

rn S

tate

sof

Aru

nach

al Pr

ades

h, M

anip

ur, M

izor

am,

Nag

alan

d, T

ripur

a an

d Si

kkim

and

for

othe

r VAT

rela

ted

expe

nditu

re. T

he V

ATco

mpu

teri

zatio

n in

Sik

kim

has

bee

nun

derta

ken

by N

IC an

d in o

ther

NE

state

sby

TCS

(on

turn

key

basis

). T

he in

itial

phas

e of i

mpl

emen

tatio

n of

thes

e Pro

jects

has

been

com

plet

ed.

Exp

endi

ture

of

Rs.6

.21

cror

e w

as in

curr

ed in

the

year

2009

-10,

Rs.5

.56

cror

e in

201

0-11

and

Rs.

1.57

cro

re i

n 20

11-1

2. T

he t

otal

expe

nditu

re s

tart

ing

from

200

4-05

incl

udin

g op

erat

ions

and

mai

nten

ance

expe

nditu

re is

Rs.3

8.09

cror

e.

The

TIN

XSY

S Pr

ojec

t is

bei

ngim

plem

ente

d w

ith co

st sh

arin

g be

twee

nth

e C

entre

and

the

Stat

e G

over

nmen

tson

50:

50 b

asis

with

tota

l out

lay o

f Rs.3

0cr

ores

ove

r 5

year

per

iod.

T

heim

plem

enta

tion

of

TIN

XSY

S is

prog

ress

ing

fairl

y w

ell.

The

Pro

ject

has

been

rev

iew

ed a

nd m

onito

red

by t

heEm

pow

ered

Com

mitt

ee (

EC).

At t

here

ques

t of

the

EC

, pr

ojec

t sp

ecif

icre

view

/ mon

itorin

g m

eetin

gs a

re n

owbe

ing

held

und

er th

e joi

nt ch

airm

ansh

ipof

Add

ition

al S

ecre

tary

(Rev

enue

) and

Mem

ber-

Secr

etar

y, EC

. Ex

tens

ion

ofth

is p

roje

ct h

as b

een

acco

rded

up

to31

.3.2

013.

An

amou

nt o

f Rs.2

.31

cror

ew

as r

elea

sed

to E

C i

n 20

10-1

1 an

dRs

.2.0

4 cr

ore

in 2

011-

12.

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

me

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2011

-12

(` In

Cro

re)

B.E

.R

.E.

4

Qua

ntifi

able

Del

iver

able

s

56

Proc

esse

s/Ti

mel

ines

Stat

us a

s on

31 st

Mar

ch, 2

012

7

88Outcome Budget 2013-2014

An

amou

nt o

f Rs.7

cro

re w

as re

leas

edas

Cen

tral s

hare

in 2

009-

2010

. EC

has

sign

ed t

he a

gree

men

t w

ith v

endo

rsse

lect

ed.

The

wor

k ha

s bee

n st

arte

d in

thes

e tw

o St

ates

. Th

e web

site

has

bee

nla

unch

ed fo

r bo

th th

e St

ates

. Re

view

mee

tings

hav

e be

en h

eld

at r

egul

arin

terv

als.

An

amou

nt o

f Rs.2

.99

cror

ew

as re

leas

ed in

201

0-11

. H

owev

er, n

oam

ount

was

rele

ased

in 2

011-

12.

Und

er t

his

Sche

me,

gra

nt-i

n-ai

d is

rele

ased

to S

tate

s/ U

Ts fo

r com

pens

atin

gth

em fo

r rev

enue

loss

due t

o int

rodu

ctio

nof

VAT

. Th

e to

tal a

mou

nt r

elea

sed

sofa

r is

Rs.1

9002

.82

cror

e, o

ut o

f whi

chRs

.247

1.27

cro

re w

as r

elea

sed

durin

g20

05-0

6, R

s.409

2.13

cror

e dur

ing

2006

-07

, Rs.3

880.

48 c

rore

dur

ing

2007

-08,

Rs.

4361

.95

cror

e du

ring

200

8-09

,R

s.30

02

cror

e du

ring

20

09-1

0,Rs

.879

.17

cror

e du

ring

201

0-11

and

Rs.3

15.8

2 cr

ore i

n 20

11-1

2.

The

M

issi

on

Mod

e Pr

ojec

t fo

rC

omm

erci

al T

axat

ion

(MM

P-C

T) f

orm

oder

niza

tion

of

St

ate

VA

TA

dmin

istra

tions

was

app

rove

d by

the

Cab

inet

. Pro

ject

pro

posa

ls o

f 33

Stat

es/

UTs

hav

e al

read

y be

en a

ppro

ved

with

over

all c

ost o

f Rs.1

133

cror

e, o

f whi

chC

entra

l sha

re is

abou

t Rs.8

00 cr

ore.

An

amou

nt o

f R

s.45

4.15

cro

re (

Rs.

145

cror

e in

200

9-10

, Rs

.206

.32

cror

e in

2010

-11

and

Rs.1

02.8

3 cr

ore

in 2

011-

12) h

as b

een

rele

ased

as C

entra

l sha

re.

The

pro

ject

pro

posa

l fo

r fi

nanc

ial

assi

stanc

e for

upg

rada

tion

of th

e Cen

trefo

r Tax

atio

n St

udie

s int

o Gul

ati I

nstit

ute

for F

inan

ce &

Tax

atio

n (G

IFT)

at a

tota

lco

st o

f Rs

.23.

63 c

rore

has

sin

ce b

een

HP

and

J&K

V

AT

com

pute

riza

tion

Proj

ect:

Sanc

tion

fo

rim

plem

enta

tion

of

the

proj

ect h

as b

een

issu

ed o

n3.

7.20

09.

E

C

is

toim

plem

ent t

he p

roje

ct.

As p

er ag

reed

form

ula,

VAT

Com

pens

atio

n is

to

bepr

ovid

ed f

or 2

005-

06,

2006

-07

and

2007

-08.

Pend

ing

Cla

ims o

f the

last

part

of 2

007-

08 w

ould

nee

dto

be

settl

ed.

Supp

ort f

or m

oder

niza

tion

of S

tate

VAT

adm

inist

ratio

n

Setti

ng u

p/ u

pgra

datio

n of

two

Inst

itute

s fo

r Tax

atio

nSt

udie

s in

Stat

es/U

Ts

12

34

56

7

3M

ajor

Hea

d 36

01/3

602

Com

pens

atio

n to

Sta

tes/

UTs

for

reve

nue

loss

du

e to

impl

emen

ta-t

ion

of V

AT a

ndot

her V

AT re

late

d ex

pend

iture

Gra

nt-in

-aid

to S

tate

sfo

r (i

) V

AT

com

pens

atio

n an

d (ii

)ot

her

VAT

rel

ated

expe

nditu

re

734.

0050

0.00

To c

ompe

nsat

e St

ates

/UTs

for

reve

nue

loss

due

to

intro

duct

ion

of V

AT w

ith a

view

to

en

sure

V

AT

impl

emen

tati

on

of

all

Stat

es/U

Ts a

s w

ell

as f

orm

eetin

g ot

her V

AT re

late

dex

pend

iture

of S

tate

s/U

Ts

89 Department of Revenue

4M

ajor

Hea

d 36

01/3

602

Com

pens

atio

n to

Sta

tes/

UTs

for r

even

ue lo

ss d

ue to

pha

sing

out o

f CST

5M

ajor

Hea

d 28

75G

over

nmen

tO

pium

& A

lkal

oid

Wor

ks

12

34

56

7

Gra

nt-i

n-ai

d to

Stat

es/U

Ts f

or C

STco

mpe

nsat

ion

To ca

ter t

he d

eman

dof

op

ium

an

dal

kalo

ids

for

do

me

st

ic

cons

umpt

ion

as w

ell

as

inte

rnat

iona

lm

arke

t.

1200

0.00

4172

.58

364.

0844

9.62

To c

ompe

nsat

e St

ates

/UTs

for

reve

nue

loss

due

to

phas

ing

out o

f CST

Proc

urem

ent

of O

pium

(796

MTs

)

Proc

urem

ent o

f 66

MTs

of

Cod

eine

Pho

spha

te

Expo

rt o

f O

pium

(

498

MTs

) an

dSal

e of

alka

loid

s(97

MTs

)

This

will

resu

lt in

to re

venu

ere

ceip

t of R

s.432

.47

cror

e.

CST

is b

eing

pha

sed

out i

n3

year

s tim

e. A

s per

agr

eed

form

ula,

CST

com

pens

atio

nw

ill n

eed

to b

e pr

ovid

ed to

the S

tate

s till

200

9-10

. It h

asno

w b

een

agre

ed th

at C

STC

ompe

nsat

ion

to th

e St

ates

be

give

n fo

r th

e ye

ar20

10-1

1 al

so.

The

pro

gres

s of

rev

enue

real

izat

ion

vis-

à-vi

sex

pend

itur

e w

as t

o be

revi

ewed

mon

thly

/ qua

rterly

.

appr

oved

and

two

inst

alm

ent o

f gra

ntof

Rs.4

cror

e and

Rs.1

0 cr

ore

rele

ased

to th

e In

stitu

te.

MoU

for u

pgra

datio

nof

CTS

, Ker

ala

has b

een

sign

ed.

Ano

ther

pro

posa

l to

pro

vide

cor

pus

fund

to th

e Cen

tre fo

r Stu

dies

in S

ocia

lSc

ienc

es,

(CSS

S) K

olka

ta h

as b

een

appr

oved

. M

OU

has

als

o be

en si

gned

betw

een

the

Cen

tral

Gov

t an

d th

eC

entre

. An

amou

nt o

f Rs.1

4 cr

ore h

asbe

en r

elea

sed

to t

he G

ovt.

of W

est

Beng

al fo

r tra

nsfe

rrin

g it

to th

e CSS

S.

Und

er t

his

Sche

me,

gra

nt-i

n-ai

d is

rele

ased

to

St

ates

/ U

Ts

for

com

pens

atin

g the

m fo

r rev

enue

loss

due

to p

hasi

ng o

ut o

f CST

. A

n am

ount

of

Rs.3

0860

.42

cror

e has

bee

n re

leas

ed to

the

Stat

e G

ovts

till

Dec

embe

r 20

11,

whi

ch in

clud

e an

amou

nt of

Rs.2

168.

88cr

ore

rele

ased

in

2007

-08,

Rs.

1950

cror

e in

200

8-09

, Rs.8

735.

18 c

rore

in20

09-1

0; R

s.138

33.7

8 cr

ore

in 2

010-

11 a

nd R

s.417

2.58

cro

re in

201

1-12

.Th

e fo

rmul

a on

the

bas

is o

f w

hich

clai

ms

for

2010

-11

are

to b

e fin

ally

settl

ed is

yet

to b

e w

orke

d ou

t.

Aga

inst

the p

rojec

ted

quan

tity,

811 M

Tsof

opi

um a

nd 5

3.4

MTs

of

Cod

eine

Phos

phat

e w

as p

rocu

red

in 2

011-

12.

The

opiu

m e

xpor

t was

455

.59

MTs

in20

11-1

2 ag

ains

t the

targ

eted

exp

ort o

f49

8 MTs

. The

sale

of A

lkal

oids

has

been

84.1

3 M

Ts ag

ains

t the

targ

et of

97

MTs

.R

even

ue R

ecei

pts

in 2

011-

12 w

ere

Rs.

383.

54 c

rore

aga

inst

pro

ject

edre

venu

e re

ceip

t of R

s.432

.47

cror

e at

RE st

age.

The

expe

nditu

re in

201

1-12

on G

ovt.

Opi

um &

Alk

aloi

d W

orks

was

Rs.4

22.2

9 cr

ore.

90Outcome Budget 2013-2014

STA

TU

S O

F O

UT

CO

ME

WIT

H R

EFE

RE

NC

E T

O O

UT

LAY

S - 2

012-

13

1M

ajor

Hea

d 20

52Im

plem

enta

tion

of

V

AT

Sche

me

2M

ajor

Hea

d 20

52Se

ttin

g up

of T

ax In

form

atio

nE

xcha

nge S

yste

m (T

INX

SYS)

3M

ajor

Hea

d 36

01/3

602

Com

pens

atio

n to

Sta

tes/

UTs

for

reve

nue

loss

du

e to

impl

emen

ta-t

ion

of V

AT a

ndot

her V

AT re

late

d ex

pend

iture

Setti

ng u

p of

Mod

ern

VAT

Adm

inis

tratio

nSy

stem

in N

E St

ates

and

Sikk

im a

s al

sofa

cilit

atin

g si

mila

rac

tion

in o

ther

Sta

tes.

Effe

ctiv

e tra

ckin

g of

in

te

r-

St

at

etra

nsac

tions

thro

ugh

TIN

XSY

S an

dsm

ooth

fun

ctio

ning

of t

he E

mpo

wer

edC

omm

ittee

(EC

) an

dVA

T co

mpu

teriz

atio

nof

HP

and

J&K

Gra

nt-in

-aid

to S

tate

sfo

r (i

) V

AT

com

pens

atio

n an

d(ii

) oth

er V

AT re

late

dex

pend

iture

0.19

0.14

10.5

16.

38

200.

0010

9.71

Com

pute

riza

tion

of V

ATad

min

istra

tion

in N

E St

ates

of A

runa

chal

Pra

desh

,M

anip

ur,

Miz

oram

,N

agal

and,

Trip

ura,

Sik

kim

and

Meg

hala

ya.

Impl

emen

tati

on

ofT

INX

SYS

Proj

ect

for

effe

ctiv

e tra

ckin

g of

inte

r-St

ate t

rans

actio

ns.

To

com

pens

ate S

tate

s/UTs

for

reve

nue

loss

due

to

intro

duct

ion

of V

AT w

ith a

view

to

en

sure

V

AT

impl

emen

tati

on o

f al

l

The

in

itia

l ph

ase

ofim

plem

enta

tion

of

the

Proj

ect

on T

urnk

ey b

asis

has b

een

com

plet

ed.

The

TIN

XSY

S Pr

ojec

t is

bein

g im

plem

ente

d by

EC

on B

OO

T m

odel

thro

ugh

aSe

rvic

e Pr

ovid

er.

HP

and

J&K

V

AT

com

pute

riza

tion

Proj

ect:

The p

roje

ct w

ith to

tal o

utla

yof

Rs.

40.4

9 cr

ore,

wit

hC

entra

l sh

are

of R

s.25

.33

cror

e, h

as b

een

appr

oved

.EC

is

impl

emen

ting

the

proj

ect.

As p

er ag

reed

form

ula,

VAT

Com

pens

atio

n is

to

bepr

ovid

ed f

or 2

005-

06,

2006

-07

and

2007

-08.

Und

er th

is sc

hem

e, p

rovi

sion

was

mad

efo

r ta

king

ah

ead

the

VAT

Com

pute

rizat

ion

in N

orth

-Eas

tern

Sta

tes

and

for o

ther

VAT

rela

ted

expe

nditu

re.

The p

roje

ct h

as en

ded

on 3

1.3.

2011

and

now

the S

tate

s are

bein

g pr

ovid

ed fu

nds

thro

ugh

MM

P-C

T Sc

hem

e.

The

TIN

XSY

S Pr

ojec

t is

bei

ngim

plem

ente

d w

ith co

st sh

arin

g be

twee

nth

e C

entre

and

the

Stat

e G

over

nmen

tson

50:

50 b

asis

. Pro

ject

spec

ific r

evie

w/

mon

itorin

g m

eetin

gs ar

e now

bein

g he

ldun

der

the

join

t ch

airm

ansh

ip o

fA

dditi

onal

Sec

reta

ry (

Reve

nue)

and

Mem

ber-

Secr

etar

y, EC

. Ex

tens

ion

ofth

is p

roje

ct h

as b

een

acco

rded

up

to31

.3.2

013.

The p

roje

ct a

ctiv

ities

hav

e bee

n st

arte

din

bot

h th

e St

ates

. T

he S

tate

s ha

veal

read

y lau

nche

d/sta

rted

e-re

gistr

atio

n,e-

retu

rn, e

-pay

men

t, e-

way

bill

faci

litie

sfo

r the

ir de

aler

s. T

he p

roje

ct a

ctiv

ities

are b

eing

revi

ewed

at re

gula

r int

erva

ls.

An

amou

nt o

f Rs.9

.99

cror

e ha

d be

enre

leas

ed u

p to

31.

3.20

11 an

d no

amou

ntha

s bee

n re

leas

ed in

this

fina

ncia

l yea

rso

far.

Unde

r thi

s Sch

eme,

gran

t-in-

aid i

s rele

ased

to S

tate

s/ U

Ts fo

r com

pens

atin

g th

em fo

rre

venu

e los

s due

to in

trodu

ctio

n of

VAT

.Th

e to

tal

amou

nt r

elea

sed

so f

ar i

sR

s.19

002.

82 c

rore

, ou

t of

whi

ch

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

me

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2012

-13

(` In

Cro

re)

B.E

.R

.E.

4

Qua

ntifi

able

Del

iver

able

s

56

Proc

esse

s/Ti

mel

ines

Stat

us a

s on

31 st

Dec

embe

r, 20

12

7

91 Department of Revenue

Rs.2

471.

27 c

rore

was

rel

ease

d du

ring

2005

-06,

Rs.4

092.

13 cr

ore d

urin

g 200

6-07

, Rs.3

880.

48 c

rore

dur

ing

2007

-08,

Rs.

4361

.95

cror

e du

ring

200

8-09

,Rs

.300

2 cro

re du

ring 2

009-

10, R

s.879

.17

cror

e dur

ing 2

010-

11 an

d Rs.3

15.8

2 cro

rein

2011

-12.

Cla

ims o

f all S

tates

hav

e bee

nse

ttled

. Det

ails

of S

tate

-wise

and

yea

r-w

ise re

leas

es ar

e giv

en in

Cha

pter

-V.

The

M

issi

on

Mod

e Pr

ojec

t fo

rC

omm

erci

al T

axat

ion

(MM

P-C

T) f

orm

oder

niza

tion

of

St

ate

VAT

Adm

inist

ratio

ns w

as a

ppro

ved

by t

heC

abin

et. P

roje

ct p

ropo

sals

of 3

3 St

ates

/U

Ts h

ave

alre

ady

been

app

rove

d w

ithov

eral

l co

st o

f Rs

.102

9.70

cro

re,

ofw

hich

Cen

tral

shar

e is

abo

ut R

s.725

cror

e. A

n am

ount

of R

s.501

.94

cror

e(R

s.145

cror

e in

2009

-10 a

nd R

s.206

.32

cror

e in

201

0-11

, Rs

.102

.83

cror

e in

2011

-12

and

Rs.4

7.79

cror

e in

2012

-13

has b

een

rele

ased

as C

entra

l sha

re.

The

proj

ect

prop

osal

for

fin

anci

alas

sista

nce f

or u

pgra

datio

n of

the C

entre

for T

axat

ion

Stud

ies i

nto G

ulat

i Ins

titut

efo

r Fin

ance

& T

axat

ion

(GIF

T) at

a to

tal

cost

of

Rs.

23.6

3 cr

ore

has

bee

nap

prov

ed a

nd tw

o in

stal

men

t of g

rant

of R

s.4 c

rore

and

Rs.1

0 cr

ore

rele

ased

to th

e In

stitu

te.

MoU

for u

pgra

datio

nof

CTS

, Ker

ala

has b

een

sign

ed.

Ano

ther

pro

posa

l to

pro

vide

cor

pus

fund

to th

e Cen

tre fo

r Stu

dies

in S

ocia

lSc

ienc

es,

(CSS

S) K

olka

ta h

as b

een

appr

oved

. M

OU

has

als

o be

en si

gned

betw

een

the

Cen

tral

Gov

t an

d th

eC

entre

. An

amou

nt o

f Rs.1

4 cr

ore h

asbe

en r

elea

sed

to t

he G

ovt.

of W

est

Beng

al fo

r tra

nsfe

rrin

g it

to th

e CSS

S.

12

34

56

7St

ates

/UTs

as

wel

l as

for

mee

ting

othe

r VAT

rela

ted

expe

nditu

re o

f Sta

tes/

UTs

Supp

ort

for

mod

erni

zatio

nof

Sta

te V

AT ad

min

istra

tion

Setti

ng u

p/ u

pgra

datio

n of

two

Inst

itute

s fo

r Ta

xatio

nSt

udie

s in

Stat

es/U

Ts

92Outcome Budget 2013-2014

12

34

56

730

0.00

10.0

0

380.

1946

0.35

Und

er t

his

Sche

me,

gra

nt-i

n-ai

d is

rele

ased

to

St

ates

/ U

Ts

for

com

pens

atin

g th

em fo

r rev

enue

loss

due

to p

hasi

ng o

ut o

f CST

. A

n am

ount

of

Rs.3

0860

.42

cror

e has

bee

n re

leas

ed to

the

Stat

e G

ovts

till

Dec

embe

r 20

11,

whi

ch in

clud

e an

amou

nt of

Rs.2

168.

88cr

ore

rele

ased

in

2007

-08,

Rs.

1950

cror

e in

200

8-09

, Rs.8

735.

18 c

rore

in20

09-1

0; R

s.138

33.7

8 cr

ore i

n 20

10-1

1an

d Rs

.417

2.58

cro

re in

201

1-12

. N

oam

ount

has

bee

n re

leas

ed to

the

Stat

esin

the c

urre

nt fi

nanc

ial y

ear.

Det

ails

of

Stat

e-w

ise

and

year

-wis

e re

leas

es a

regi

ven

in C

hapt

er-V

. Fo

rmul

a on

the

basi

s of

whi

ch c

laim

s fo

r FY

201

0-11

are

to b

e fin

ally

set

tled

is y

et t

o be

wor

ked

out.

Aga

inst

the p

roje

cted

qua

ntity

, 602

MTs

of o

pium

and

43

MTs

of

Cod

eine

Phos

phat

e ha

ve b

een

proc

ured

till

Dec

embe

r 201

2. T

he o

pium

expo

rt ha

sbe

en 2

81 M

Ts u

p to

Dec

embe

r, 20

12ag

ains

t the

targ

eted

expo

rt of

438

MTs

.Th

e sal

e of A

lkal

oids

has

bee

n 44

MTs

agai

nst t

he ta

rget

of 8

6.6

MTs

.

Reve

nue

Rece

ipts

in

2012

-13

(up

toD

ecem

ber 2

012)

hav

e be

en R

s.265

.79

cror

e aga

inst

pro

ject

ed re

venu

e rec

eipt

of R

s.440

.03

cror

e at

RE

stag

e.

The

expe

nditu

re u

p to

Dec

embe

r, 20

12 o

nG

ovt.

Opi

um &

Alk

aloi

d W

orks

is

Rs.2

87.5

7 cr

ore.

The

prog

ress

of

reve

nue

real

izat

ion

vis-

à-vi

sex

pend

itur

e w

as t

o be

revi

ewed

m

onth

ly/

quar

terly

.

To c

ompe

nsat

e St

ates

/UTs

for

reve

nue

loss

due

to

phas

ing

out o

f CST

Proc

urem

ent

of O

pium

(114

3 M

Ts)

Proc

urem

ent o

f 50

MTs

of

Cod

eine

Pho

spha

te

Expo

rt o

f O

pium

(

438

MTs

) an

dSal

e of

alka

loid

s(86

.6 M

Ts)

This

will

resu

lt in

to re

venu

ere

ceip

t of R

s.440

.03

cror

e.

4M

ajor

H

ead

3601

/36

02C

ompe

nsat

ion

to S

tate

s/U

Ts f

or r

even

ue l

oss

due

toph

asin

g ou

t of C

ST

5M

ajor

Hea

d 28

75G

over

nmen

t O

pium

&

Alk

aloi

d W

orks

Gra

nt-in

-aid

to S

tate

s/U

Ts

for

CST

com

pens

atio

n

To c

ater

the

dem

and

of

opiu

m

and

alka

loid

s for

dom

estic

cons

umpt

ion

as w

ell

as

inte

rnat

iona

lm

arke

t.

93 Department of Revenue

FIN

AN

CIA

L R

EV

IEW

AN

ALY

SIS

OF

OV

ER

AL

L T

RE

ND

S IN

EX

PEN

DIT

UR

E V

IS-À

-VIS

BU

DG

ET

EST

IMAT

ES/

RE

VIS

ED

EST

IMA

TE

S(`

in c

rore

)

Maj

or20

10-1

120

11-1

220

12-1

3H

ead

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

Exp

end.

Exp

end.

Exp

.(ti

ll31

.12.

12)

Secr

etar

iat-G

ener

al S

ervi

ces

2052

144.

5013

2.03

119.

9612

8.05

140.

5512

0.62

161.

7614

5.05

92.9

6To

tal

2052

144.

5013

2.03

119.

9612

8.05

140.

5512

0.62

161.

7614

5.05

92.9

6

Oth

er F

isca

l Ser

vice

sEn

forc

emen

t Dire

ctor

ate

2047

34.5

138

.40

38.1

439

.41

41.4

341

.49

53.8

049

.50

32.9

2N

atio

nal I

nstit

ute o

f Pub

lic20

476.

947.

307.

087.

847.

667.

668.

5018

.65

8.30

Fina

nce

& P

olic

yIn

tern

atio

nal C

oope

ratio

n20

470.

720.

760.

700.

721.

051.

010.

781.

000.

89O

ther

Exp

dtr.(

ATFP

/CES

TAT)

2047

18.5

519

.91

17.2

119

.00

19.6

718

.30

19.1

618

.85

13.6

1G

STN

:SPV

2047

0.00

0.00

0.00

0.00

0.00

0.00

0.00

1.00

0.00

Tota

l20

4760

.72

66.3

763

.13

66.9

769

.81

68.4

682

.24

89.0

055

.72

Oth

er A

dmin

istr

ativ

e Se

rvic

esN

arco

tics C

ontr

ol20

7034

.18

41.9

735

.45

39.6

140

.63

33.1

437

.92

36.6

224

.84

Inte

rnat

iona

l Coo

pera

tion

etc.

2070

1.46

3.55

2.40

3.55

3.49

3.38

3.54

2.94

0.47

Tran

sfer

to N

atio

nal F

und

for

2070

2.00

2.00

0.00

2.00

0.00

0.00

1.00

1.00

0.00

Con

trol o

f Dru

g A

buse

Tota

l20

7037

.64

47.5

237

.85

45.1

644

.12

36.5

242

.46

40.5

625

.31

Opi

um &

Alk

aloi

dsFa

ctor

ies

Reve

nue E

xpen

ditu

re28

7547

6.87

349.

6030

1.08

363.

5044

9.06

421.

7837

9.63

460.

0128

7.21

Chi

ef C

ontro

ller,

Gov

t. O

pium

2875

0.57

0.72

0.74

0.58

0.56

0.51

0.56

0.55

0.39

& A

lkal

oid

Fact

orie

sTo

tal

2875

477.

4435

0.32

301.

8236

4.08

449.

6242

2.29

380.

1946

0.56

287.

60

Oth

er T

axes

& D

utie

s on

Com

mod

ities

& S

ervi

ces

Col

lect

ion

of In

land

Air

Tra

vel

2045

0.01

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Tax

Col

lect

ion

of F

orei

gn T

rave

l Tax

2045

0.01

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Tota

l20

450.

020.

000.

000.

000.

000.

000.

000.

000.

00

94Outcome Budget 2013-2014

(` in

cro

re)

Maj

or20

10-1

120

11-1

220

12-1

3H

ead

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

Exp

end.

Exp

end.

Exp

.(ti

ll31

.12.

12)

Col

lect

ion

of T

axes

on

Inco

me

& E

xpen

ditu

reO

ther

Cha

rges

2020

0.45

0.40

0.29

0.40

0.40

0.30

0.40

0.36

0.11

Tota

l20

200.

450.

400.

290.

400.

400.

300.

400.

360.

11

Gra

nt in

Aid

to S

tate

s (VA

T)36

0137

6.00

874.

9510

83.1

672

4.00

495.

0043

6.18

195.

0010

6.71

47.0

4G

rant

in A

id to

UTs

(VAT

)36

0225

.00

10.0

08.

8010

.00

5.00

0.00

5.00

3.00

0.74

Gra

nt-in

-Aid

to S

tate

s (C

ST)

3601

1000

0.00

1400

0.00

1383

3.78

1200

0.00

4172

.58

4172

.58

300.

0010

.00

0.00

Gra

nt-in

-Aid

to U

Ts (C

ST)

3602

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Tota

l10

401.

0014

884.

9514

925.

712

734.

0046

72.5

846

08.7

650

0.00

119.

7147

.78

Aid

Mat

eria

ls &

Equ

ipm

ent

3606

0.35

0.35

0.00

0.35

0.00

0.00

0.00

0.00

0.00

Tota

l (R

even

ue S

ectio

n)11

122.

1215

481.

9415

448.

7913

339.

0153

77.0

852

56.9

511

67.0

585

5.24

509.

48

Cap

ital S

ectio

nC

apita

l out

lay

for G

STN

:SPV

4047

0.00

0.00

0.00

0.00

0.00

0.00

0.00

2.45

0.00

Cap

ital E

xpen

ditu

re o

n G

OAW

s48

750.

771.

770.

170.

840.

700.

501.

530.

300.

02Pu

rcha

se o

f Rea

dy-b

uilt

Acc

omm

odat

ion

Resi

dent

ial B

uild

ing

4216

0.00

0.10

0.10

7.05

0.01

0.01

0.01

0.00

0.00

Cap

ital O

utla

y on

Pub

lic W

orks

4059

0.00

26.0

024

.84

10.0

05.

003.

0610

.00

6.16

2.03

Tota

l (C

apita

l Sec

tion)

0.77

27.8

725

.11

17.8

95.

713.

5711

.54

8.91

2.05

Gra

nd T

otal

1112

2.89

1550

9.81

1547

3.90

1335

6.90

5382

.79

5260

.52

1178

.59

864.

1551

1.53

Less

(I) R

even

ue R

ecei

pts

308.

0028

5.60

237.

2131

2.00

432.

4738

3.54

366.

7344

0.03

265.

79(ii

) Rec

over

ies

54.8

958

.82

46.2

753

.97

42.6

034

.18

42.2

252

.34

0.00

Net

1076

0.00

1516

5.39

1519

0.42

1299

0.93

4907

.72

4842

.80

769.

6437

1.78

245.

74

95 Department of Revenue

STA

TE

ME

NT

SHO

WIN

G A

CT

UA

L E

XPE

ND

ITU

RE

VIS

-À-V

IS B

E/R

E F

OR

TH

E Y

EA

RS

2010

-11,

201

1-12

AN

D 2

012-

13 -

OB

JEC

T H

EA

D-W

ISE (`

in c

rore

)

2010

-11

2011

-12

2012

-13

Hea

dB

.E.

R.E

.A

ctua

lB

.E.

R.E

.A

ctua

lB

.E.

R.E

.A

ctua

lE

xpen

d.E

xpen

d. E

xp.

(till

31.1

2.12

)

Rev

enue

Sec

tion

Sala

ry14

3.45

143.

4615

0.22

152.

4415

8.87

153.

1618

7.58

177.

2913

7.10

Wag

es0.

500.

490.

400.

510.

500.

351.

120.

480.

25

Ove

rtim

e Allo

wan

ce1.

891.

581.

230.

691.

771.

321.

751.

570.

84

Pens

iona

ry C

harg

es1.

251.

231.

111.

291.

030.

920.

990.

960.

00

Rew

ards

0.32

0.32

0.13

0.32

0.30

0.28

0.32

0.07

0.00

Med

ical

Tre

atm

ent

2.61

3.03

2.61

2.98

3.29

2.52

3.42

3.09

1.61

Dom

estic

Tra

vel E

xpen

ses

5.46

6.77

6.41

6.52

7.13

7.79

6.81

6.81

4.74

Fore

ign

Trav

el E

xpen

ses

3.46

4.59

4.36

4.79

4.96

5.01

7.27

5.06

2.49

Offi

ce E

xpen

ses

23.8

730

.38

28.2

726

.527

.54

26.1

528

.85

25.9

126

.28

Rent

, Rat

es &

Tax

es7.

198.

916.

008.

7113

.41

12.5

216

.78

16.9

57.

14

Publ

icat

ions

0.39

0.50

0.53

0.51

0.64

0.59

0.60

0.60

0.12

Bank

ing

Tran

sact

ion

Tax

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Oth

er A

dmin

istra

tive S

ervi

ces

1.89

2.43

2.34

4.41

4.28

4.38

2.62

3.16

1.96

Supp

lies &

Mat

eria

l(Vot

ed)

371.

6425

2.59

205.

6726

5.58

353.

5733

5.11

285.

3935

5.68

255.

32

Supp

lies &

Mat

eria

l(Cha

rged

)0.

000.

000.

000.

000.

000.

000.

000.

000.

00

Adv

ertis

ing

& P

ublic

ity0.

240.

570.

400.

490.

480.

220.

380.

290.

06

Min

or W

orks

1.20

1.75

1.48

1.21

1.45

1.30

1.24

1.45

0.41

Prof

essi

onal

Ser

vice

s11

.58

12.3

813

.08

12.4

121

.57

18.3

816

.55

18.7

011

.27

Oth

er C

ontra

ctua

l Ser

vice

s0.

350.

350.

000.

350.

000.

000.

000.

000.

00

Gra

nt-in

-Aid

Gen

eral

1042

6.07

1491

2.44

1494

1.45

1275

8.31

4687

.13

4618

.95

514.

714

0.63

56.7

4

Gra

nt fo

r cre

atio

n of

Cap

ital a

sset

s0.

010.

010.

000.

010.

000.

000.

000.

500.

00

Gra

nt-in

-Aid

Sal

arie

s0.

000.

000.

000.

006.

380.

006.

927.

210.

00

96Outcome Budget 2013-2014

(` in

cro

re)

2010

-11

2011

-12

2012

-13

Hea

dB

.E.

R.E

.A

ctua

lB

.E.

R.E

.A

ctua

lB

.E.

R.E

.A

ctua

lE

xpen

d.E

xpen

d. E

xp.

(till

31.1

2.12

)

Inte

rnat

iona

l Con

tribu

tion

2.18

4.31

3.10

4.27

4.54

4.39

4.32

3.95

1.34

Secr

et S

ervi

ce E

xpen

ditu

re1.

921.

901.

682.

182.

251.

924.

012.

161.

43

Inte

rest

on

Cap

ital

12.4

111

.21

8.41

11.2

11.3

611

.36

12.7

510

.20

0.00

Oth

er C

harg

es

Cha

rged

0.02

0.02

0.00

0.02

0.02

0.00

0.02

0.02

0.00

Vote

d21

.76

7.42

7.02

3.25

2.69

2.17

1.22

0.88

0.39

Mch

iner

y & E

quip

men

t0.

040.

040.

040.

040.

040.

040.

040.

040.

00

Inte

r Acc

ount

Tra

nsfe

r56

.355

.15

46.2

948

.69

42.4

135

.86

43.0

453

.13

0.00

Info

rmat

ion

Tech

nolo

gy24

.12

18.1

116

.55

21.3

319

.47

12.2

618

.36

18.4

5

Tota

l - R

even

ue S

ectio

n11

122.

1215

481.

9415

448.

7813

339.

0153

77.0

852

56.9

511

67.0

585

5.24

509.

49

Cha

rged

0.02

0.02

0.00

0.02

0.02

0.00

0.02

0.02

0.00

Vote

d11

122.

1015

481.

9215

448.

7813

338.

9953

77.0

652

56.9

511

67.0

385

5.22

509.

49

Cap

ital S

ectio

n

Mac

hine

ry &

Equ

ipm

ent

0.37

1.37

0.05

0.69

0.65

0.48

1.12

0.00

0.00

Maj

or W

orks

0.40

26.4

024

.97

10.1

55.

053.

0810

.41

6.46

2.04

Inve

stm

ent

0.00

0.10

0.10

7.05

0.01

0.01

0.01

2.45

0.00

Tota

l - C

apita

l Sec

tion

0.77

27.8

725

.12

17.8

95.

713.

5711

.54

8.91

2.04

Gra

nd T

otal

1112

2.89

1550

9.81

1547

3.90

1335

6.90

5382

.79

5260

.52

1178

.59

864.

1551

1.53

Cha

rged

0.02

0.00

0.00

0.02

0.02

0.00

0.02

0.02

0.00

Vote

d11

122.

8715

509.

8115

473.

9013

356.

8853

82.7

752

60.5

211

78.5

786

4.13

511.

53

97 Department of Revenue

FIN

AN

CIA

L R

EV

IEW

- A

NA

LYSI

S O

F O

VE

RA

LL

TR

EN

DS

IN E

XPE

ND

ITU

RE

VIS

-À-V

IS B

UD

GE

T E

STIM

ATE

S/R

EV

ISE

D E

STIM

AT

ES

The

posi

tion

of e

xpen

ditu

re in

thre

e ye

ars i

n re

spec

t of D

eman

d N

o.41

– D

epar

tmen

t of R

even

ue h

as b

een,

in n

ut-s

hell,

as u

nder

:-(`

in c

rore

)

2010

-11

2011

-12

2012

-13

B.E

.R

.E.

Act

uals

B.E

.R

.E.

Act

uals

B.E

.R

.E.

Act

uals

(till

(31.

12.1

2)

VAT*

- M

H20

5235

.84

18.7

711

.71

12.8

712

.47

3.61

10.7

06.

520.

11

VAT/

CST

** -

3601

/360

210

401.

0014

884.

9514

925.

7412

734.

0046

72.5

846

08.7

650

0.00

119.

7147

.78

Non

-VAT

/CST

686.

0560

6.09

536.

4561

0.03

697.

7464

8.15

667.

8973

7.92

463.

64

Tota

l11

122.

8915

509.

8115

473.

9013

356.

9053

82.7

952

60.5

211

78.5

986

4.15

511.

53

Non

-VAT

/CST

686.

0560

6.09

536.

4561

0.03

697.

7464

8.15

667.

8973

7.92

463.

64

CC

F(G

OAW

s)28

7548

7547

7.44

350.

3230

1.82

364.

0844

9.62

422.

2938

0.19

460.

5628

7.60

0.77

1.77

0.17

0.84

0.70

0.50

1.53

0.30

0.02

Oth

ers *

** –

Non

-VAT

/CST

and

Non

–G

OAW

s20

7.84

254.

0023

4.46

245.

1124

7.42

225.

3628

6.17

277.

0617

6.02

Tota

l –Sa

lary

143.

4515

0.46

150.

2215

2.44

158.

8715

3.16

187.

5817

7.29

137.

10N

on-S

alar

y10

979.

4415

359.

3515

323.

6813

204.

4652

23.9

251

07.3

699

1.01

686.

8637

4.43

*Th

e bu

dget

pro

visi

on is

for

Impl

emen

tatio

n of

VAT

Sch

eme

and

TIN

SXY

S Pr

ojec

t and

gra

nts

to E

mpo

wer

ed C

omm

ittee

of S

tate

Fin

ance

Min

iste

rs fo

r its

est

ablis

hmen

tex

pend

iture

.**

The

budg

et p

rovi

sion

is fo

r Com

pens

atio

n to

Sta

tes/

UTs

for r

even

ue lo

ss d

ue to

Intr

oduc

tion

of V

AT a

nd p

hasi

ng o

ut o

f CST

& V

AT re

late

d ex

pend

iture

.**

*Th

e bu

dget

pro

visi

on is

for e

stab

lishm

ent r

elat

ed e

xpen

ditu

re o

n va

riou

s con

stitu

ents

of t

he D

epar

tmen

t of R

even

ue in

clud

ing

Cen

tral B

urea

u of

Nar

cotic

s.

Tren

ds in

Exp

endi

ture

Sala

ry e

xpen

ditu

re in

crea

sed

in 2

011-

12 b

y 1.

96%

ove

r 201

0-11

due

to p

aym

ent o

f add

ition

al D

A, i

ncre

men

ts, e

tc.

whe

reas

non

-sal

ary

expe

nditu

re d

ecre

ased

by

66.6

7%du

ring

the s

ame p

erio

d m

ainl

y on

acco

unt o

f les

s VAT

/CST

Com

pens

atio

n pa

id to

the S

tate

Gov

ernm

ents

/UTs

. Dur

ing

2011

-12,

the V

AT/C

ST re

late

d ex

pend

iture

& g

rant

s to

Stat

es to

war

ds V

AT/C

ST co

mpe

nsat

ion

cons

titut

ed th

e m

ajor

por

tion

of e

xpen

ditu

re i.

e. 8

7.61

% o

f tot

al ex

pend

iture

und

er G

rant

No.

41 –

Dep

artm

ent o

f Rev

enue

.

It m

ay b

e se

en th

at th

ere

was

sub

stan

tial r

educ

tion

in th

e ac

tual

exp

endi

ture

incu

rred

dur

ing

2011

-12

as c

ompa

red

to th

e Sa

nctio

ned

Gra

nt.

As

agai

nst t

he a

lloca

tion

ofRs

.133

56.9

0 cr

ore,

the a

ctua

l exp

endi

ture

was

onl

y Rs.

5260

.52

cror

es.

This

was

due

to su

rren

der o

f a la

rge p

ortio

n of

pro

visi

on k

ept f

or p

rovi

ding

com

pens

atio

n to

the S

tate

sfo

r pha

sing

out

of C

ST.

For t

he p

urpo

se, a

bud

get p

rovi

sion

of R

s.12

000

cror

e was

mad

e for

201

1-12

, aga

inst

whi

ch o

nly

an a

mou

nt o

f Rs.4

172.

58 cr

ore c

ould

be r

elea

sed

toth

e Sta

tes a

nd th

e rem

aini

ng p

rovi

sion

was

surr

ende

red

as n

o de

cisi

on co

uld

be ta

ken

by th

e Gov

ernm

ent t

o pr

ovid

e com

pens

atio

n to

the S

tate

s for

subs

eque

nt ye

ars.

Sim

ilarly

,fo

r VAT

& V

AT re

late

d ex

pend

iture

, a p

rovi

sion

of R

s.234

cror

e was

mad

e, ag

ains

t whi

ch an

amou

nt o

f Rs.1

20.3

6 cr

ore o

nly

coul

d be

rele

ased

to th

e Sta

tes d

ue to

slow

pro

gres

sof

impl

emen

tatio

n of

the p

roje

cts.

98Outcome Budget 2013-2014

Ther

e is a

lso

subs

tant

ial d

ecre

ase i

n th

e bud

get f

or 2

012-

13 a

s no

furt

her V

AT C

ompe

nsat

ion

is to

be p

rovi

ded

to th

e St

ates

. Th

e pro

visi

on fo

r CST

Com

pens

atio

n, w

hich

was

initi

ally

kep

t at R

s.300

cro

re, h

as a

lso

been

red

uced

to R

s.10

cror

e as

the

form

ula

for

paym

ent o

f co

mpe

nsat

ion

for

2010

-11

has

not y

et b

een

final

ized

. W

hile

Sal

ary

expe

nditu

re in

201

2-13

has

incr

ease

d by

15.

75%

, the

non

-sal

ary

expe

nditu

re h

as b

een

redu

ced

by 8

6.55

%, a

s com

pare

d to

201

1-12

.

So fa

r, to

tal V

AT C

ompe

nsat

ion

of R

s.19

002.

82 c

rore

has

bee

n pr

ovid

ed to

Sta

te G

over

nmen

ts an

d C

ST C

ompe

nsat

ion

amou

ntin

g to

Rs.

30,8

60.4

2 cr

ore h

as b

een

prov

ided

, as

deta

iled

belo

w:

VAT

Com

pens

atio

n(`

in c

rore

)Sr

. No.

Nam

e of

Sta

te20

05-0

620

06-0

720

07-0

820

08-0

920

09-1

020

10-1

120

11-1

2To

tal

Gov

ernm

ent

1.A

ndhr

a Pra

desh

404.

060.

001.

880.

000.

000.

000.

0040

5.94

2.A

ssam

0.00

0.00

30.0

638

.73

150.

1078

.12

0.00

297.

01

3.Bi

har

165.

8778

.23

0.00

0.00

0.00

0.00

0.00

244.

10

4.Ch

hatti

sgar

h0.

000.

0075

.00

281.

5931

.91

0.00

0.00

388.

50

5.D

elhi

0.00

0.00

0.00

362.

8185

5.07

37.7

00.

0012

55.5

8

6.H

arya

na0.

000.

000.

0027

.84

59.8

50.

000.

0087

.69

7.Jh

arkh

and

0.00

0.00

0.00

104.

7386

.45

0.00

0.00

191.

18

8.K

arna

taka

1038

.92

625.

3635

4.71

369.

0518

0.30

0.00

0.00

2568

.34

9.K

eral

a45

6.47

426.

2312

3.19

243.

460.

000.

000.

0012

49.3

5

10.

Mad

hya P

rade

sh0.

000.

0046

.24

0.00

0.00

40.7

40.

0086

.98

11.

Mah

aras

htra

259.

8928

14.7

212

03.8

318

95.0

014

75.0

027

7.40

261.

3381

87.1

7

12.

Meg

hala

ya0.

000.

000.

000.

000.

0016

7.42

0.00

167.

42

13.

Oris

sa0.

000.

000.

0018

.93

163.

320.

000.

0018

2.25

14.

Sikk

im1.

844.

030.

000.

000.

0010

.92

0.00

16.7

9

15.

Trip

ura

5.12

3.81

5.57

19.8

10.

000.

000.

0034

.31

16.

Tam

il N

adu

0.00

0.00

2040

.00

1000

.00

0.00

266.

8754

.49

3362

.36

17.

Wes

t Ben

gal

139.

1013

9.75

0.00

0.00

0.00

0.00

0.00

278.

85

Tota

l24

71.2

740

92.1

338

80.4

843

61.9

530

02.0

087

9.17

315.

8219

002.

82

99 Department of Revenue

CST

Com

pens

atio

n(`

in c

rore

)Sr

. No.

Nam

e of

Sta

te20

07-0

820

08-0

920

09-1

020

10-1

120

11-1

2To

tal

Gov

ernm

ent

1.A

ndhr

a Pra

desh

090

5.24

1095

.50

2221

.86

986.

0952

08.6

9

2.A

ssam

70.8

90

228.

7915

0.90

34.9

948

5.57

3.Ch

hatti

sgar

h10

1.37

48.6

479

4.95

682.

9741

5.02

2042

.95

4.D

elhi

183.

7015

4.76

1052

.00

1622

.80

653.

8536

67.3

1

5.G

ujar

at33

8.14

156.

5779

6.04

1787

.84

0.00

3078

.59

6.H

arya

na15

0.00

400.

0011

77.1

215

97.9

078

0.16

4105

.18

7.Jh

arkh

and

69.4

735

.55

394.

5851

1.76

242.

8812

54.2

4

8.K

arna

taka

350.

0015

5.00

710.

3013

33.8

737

4.36

2923

.53

9.O

rissa

131.

535.

4948

3.90

543.

9913

8.17

1303

.08

10.

Punj

ab0

24.3

29.

9532

4.55

0.00

358.

82

11.

Raja

sthan

126.

2418

.56

311.

7842

1.39

34.4

791

2.44

12.

Tam

il N

adu

647.

540

759.

0011

71.0

458

.92

2636

.50

13.

Utta

rakh

and

00

131.

0023

5.10

141.

5550

7.65

14.

Wes

t Ben

gal

045

.87

464.

7749

6.11

190.

1411

96.8

9

15.

Mah

aras

htra

00

123.

0030

6.49

29.8

645

9.35

16.

Mad

hya P

rade

sh0

011

0.96

106.

560.

0021

7.02

17.

Nag

alan

d0

04.

430

1.63

6.06

18.

Pudu

cher

ry0

086

.91

199.

7890

.19

376.

88

19.

Utta

r Pra

desh

00

011

8.87

0.00

118.

87

Tota

l21

68.8

819

50.0

087

35.1

813

833.

7841

72.5

830

860.

42

100Outcome Budget 2013-2014

The

over

all f

inan

cial

per

form

ance

dur

ing

2010

-11,

201

1-12

and

201

2-13

has

bee

n as

und

er:-

(` in

cro

re)

2010

-11

2011

-12

2012

-13

Sch

eme

B.E

.R

.E.

Act

uals

B.E

.R

.E.

Act

uals

B.E

.R

.E.

Act

uals

(till

(31.

12.1

2)

Impl

emen

tatio

n of

VAT

Sch

eme

20.0

05.

975.

911.

791.

601.

570.

190.

140.

11

Setti

ng u

p of

Tax

Info

rmat

ion

Exch

ange

Sys

tem

etc

.15

.84

12.8

05.

8011

.08

10.8

72.

0410

.51

6.38

0

Com

pens

atio

n to

Sta

tes/

UTs

for r

even

ue lo

sses

due

to in

trodu

ctio

n of

VAT

and

oth

er V

AT re

late

dex

pend

iture

401.

0088

4.95

1091

.96

734.

0050

0.00

436.

1820

0.00

109.

7147

.78

Com

pens

atio

n to

Sta

te/U

Ts fo

r rev

enue

loss

es d

ueto

pha

sing

out

of C

ST10

000.

0014

000.

0013

833.

7812

000.

0041

72.5

841

72.5

830

0.00

10.0

00

Tota

l10

436.

8414

903.

7214

937.

4512

746.

8746

85.0

546

12.3

751

0.70

126.

2347

.89

Gov

ernm

ent O

pium

and

Alk

aloi

d W

orks

:

The

posi

tion

of a

ctua

l exp

endi

ture

in 2

010-

11, 2

011-

12 a

nd 2

012-

13 o

n gr

oss e

xpen

ditu

re a

nd re

venu

e re

ceip

ts h

as b

een

as u

nder

:(`

in c

rore

)

Exp

endi

ture

Rec

eipt

sB

.E.

R.E

.A

ctua

lsB

.E.

R.E

.A

ctua

ls

2010

-11

477.

4435

0.32

301.

8230

8.00

285.

6023

7.54

2011

-12

364.

0844

9.62

422.

2931

2.00

432.

4738

3.54

2012

-13

380.

1946

0.56

287.

5736

6.73

440.

0326

5.79

(till

31.1

2.12

)(ti

ll 31

.12.

12)

Afte

r VAT

, the

seco

nd m

ajor

cons

titue

nt o

f exp

endi

ture

is o

n G

ovt.

Opi

um &

Alk

aloi

d W

orks

whi

ch co

nstit

uted

8.0

3% o

f tot

al ex

pend

iture

in 2

011-

12.

Incr

ease

at R

.E. s

tage

in 2

011-

12 w

as d

ue to

add

ition

al im

port

of co

dein

e ph

osph

ate.

Aga

inst

the e

stim

ated

reve

nue r

ecei

pt o

f Rs.3

12 cr

ore f

or 2

011-

12, t

he re

venu

e am

ount

ing

to R

s.38

3.54

cror

ew

as c

olle

cted

. Th

e rev

enue

rece

ipts

are

exp

ecte

d to

be

arou

nd R

s.44

0.03

cro

re in

the

curr

ent f

inan

cial

yea

r 201

2-13

.

101 Department of Revenue

DET

AILS

OF

ALL

OC

ATIO

N M

ADE

AN

D A

CTU

AL

EXP

END

ITUR

E IN

CU

RR

ED D

UR

ING

2010

-11,

201

1-12

&

201

2-13

1112

2.89

1550

9.81

1547

3.9

1335

6.9

5382

.79

5260

.52

1178

.59

864.

1551

1.53

0

2000

4000

6000

8000

1000

0

1200

0

1400

0

1600

0

1800

0

BER

EAc

tual

BE

RE

Actu

alBE

REAc

tual

(till

31.1

2.20

12)

2010

-11

2011

-12

2012

-13

RS IN CRORES

102 Department of Revenue

The actual expenditure under the grant in 2011-12 amountedto Rs.5260.52 crore. The Compensation to State Governmentson account of Revenue loss due to introduction of VAT, phasingout of CST and VAT related expenditure amounted to Rs.4608.76crore constituting 87.61% of the expenditure. On Supplies andMaterials, an expenditure of Rs.335.11 crore was incurredconstituting 6.38% of the total expenditure. This expenditure ismainly on account of procurement of opium and import ofCodeine Phosphate. The expenditure on salaries was 2.91% ofthe total expenditure whereas other items constituted 3.11% ofthe total expenditure.

In RE 2012-13, the CST/VAT Compensation and VAT relatedexpenditure has been kept at Rs.119.71 crore constituting 13.85%of the total expenditure. The next major component is Supplies& Materials amounting to Rs.355.67 crore which constitutes41.16% of the total expenditure. Expenditure on salariesamounting to Rs.177.29 crore also constitutes 20.52% and otheritems constitute 24.47% of the total expenditure.

Revised Estimates 2012-13 (Rs. in crore)

Others, 211.48, 24%

VAT/CST Component, 119.71, 14%

Supplies & Materials, 355.67, 41%

Salaries, 177.29, 21%

VAT/CST ComponentSupplies & Materials

SalariesOthers

ACTUALS 2011-12 (Rs. in crore)

VAT/CST Components 4608.76 (88%)

Supplies & Materials 335.11 (6%)

Salaries 153.16 (3%) Others 163.49 (3%)

VAT/CST Components

Supplies & Mater ialsSalaries

Others

ACTUALS 2011-12 (Rs. in crore) REVISED ESTIMATES (Rs. in crore)

103 Department of Revenue

During the Financial Year 2011-12, against a budgetaryprovision of Rs 13356.90 crore including the SupplementaryGrants, an expenditure of Rs.5260.52 crore was incurred,resulting into savings and surrender of Rs.8096.39 crore. Thesesavings are the net effect of the total savings of Rs.8211.90 croreand total excess of Rs 115.51 crore under various sub heads ofthe Revenue and Capital Section of the Grant.

These savings have been segregated into the followingcategories:

i) Normal Savings due to economical usage of the resourcesDuring the year, an overall savings to the tune of Rs.11.66

crore was achieved due to better and efficient use of resourcesand less requirement for administrative expenses. Some of theschemes/programmes in this category are as follows:

(Rs in Crore)

Sl Sub-Head/Scheme/ Savings Remarks/ReasonsNo Programme (Net)

1 Ghazipur Alkaloid 9.08 Less Opium wasWorks-Other charged at Ghazipur forExpenditure production of Alkaloids

2 Adjudicating Authority 0.50 Less expenditureunder PMLA for administrative

expenses.

3 UN Fund for Control 0.96 Reduction in theof Drug Abuse contribution to the Fund.

4 Neemuch OpiumFactory - Management 1.12 Less demand of funds by

CBN towardsadministrative expenses

(ii) Savings due to non-implementation/delay in executionof projects/schemes

During the FY 2011-12, there were delays in execution/implementation of few schemes/projects which led to a savingsof Rs.161.04 crore. Some of the schemes where these savingswere observed are as follows:

(Rs in Crore)

Sl Sub-Head/Scheme/ Savings Remarks/ReasonsNo Programme (Net)1 Enforcement Directorate 1.13 Due to non-filling up of

some posts, non-receiptof medical claims andnon-finalisation ofhiring of officeaccommodation forzonal offices.

Annexure

Statement on Surrender and Savings during the Financial Year 2011-122 Department of Revenue 5.64 Requirement of less

-Secretariat (FIU-IND) funds towardsimplementation ofFINNET project ofFIU-IND, procurementof computers and fees ofstanding counsels

3 Income Tax Overseas 1.78 Non-filling of vacantUnits posts and delay in

setting up of ITOUs

4 Construction of 6.94 Requirement of fundsRajaswa Bhawan was less owing to slow

progress of work.

5 Central Bureau of 1.47 Less requirement forNarcotics administrative expenses

6 Acquisition of ready 7.04 Non-materialization ofbuilt flats (Enforcement the proposal forDirectorate) acquisition of zonal

offices of theEnforcementDirectorate

7 Ghazipur Alkaloid 1.07 There was a delay in theWorks-Management supply of Codeine

Phosphate by theexporter

8 Ghazipur Alkaloid 9.08 Less production ofWorks – Other Alkaloids.Expenditure

9 Neemuch Alkaloid 12.69 There was a delay in theWorks-Management supply of Codeine

Phosphate by theexporter

10 Neemuch Alkaloid 0.56 Less production ofWorks- Other Alkaloids.Expenditure

11 Grants to States for 103.64 There was slow progressVAT related expenditure of MMP-CT project by

the State Governments

12 Grants to UTs for VAT 10.00 Non-receipt of proposalrelated expenditure from the UT

Administrations andalso availability ofunspent balance ofprevious years with theUTs

104 Department of Revenue

(iii) Surrenders/Savings due to obsolete/defunct project/scheme or due to completion of project/scheme

Funds were needed to be surrendered in some cases wherethere was a delay on part of the suppliers or the scheme was onthe verge of completion leading to lesser requirements of fundsby the States/UTs. In case of CST compensation, the formula forthe same could not be finalised during the Financial Year leadingto a surrender of balance funds. Overall an amount of Rs 8019.46crore was surrendered. These schemes are summarized below:

(Rs in Crore)

Sl Sub-Head/Scheme/ Savings Remarks/ReasonsNo Programme (Net)1 Grants to States for 7827.42 The formula for CST

revenue loss due to compensation could notphasing out of CST be finalised during the

Financial Year

2 Compensation to States 184.18 Funds were surrenderedfor Revenue loss due as claims of most of theto Introduction of VAT State Governments have

been settled

3 Neemuch Opium 0.86 Owing to lessFactory-Purchase of procurement of OpiumOpium

4 Expenditure on control 5.00 No proposals forof drug abuse funding received from

the NGOs/otherdepartments

5 Transfer to National 2.00 As no expenditure fromFund for Control the Fund was incurred,of drug abuse further augmentation

was not required

Note:- This annexure is included in compliance of O.M.No.7(1)-B(AC)/2011 dated 23rd March, 2012 of Budget Division regardingsegregation of savings due to normal savings, under/non-utilization & surrender of funds for the financial year 2011-12 asdesired by the Standing Committee on Finance in its 33rd Report.

105 Department of Revenue

OUTCOME BUDGET

The National Institute of Public Finance and Policy, New Delhiwas established in 1976 as a joint initiative of Ministry of Finance,Planning Commission, several major State Governments,distinguished academicians and eminent persons as anindependent, non-profit organization and was registered as aSociety under the Societies Registration Act, 1860. It is anindependent Research and Training organization.

The details of the Grant/Income of National Institute ofPublic Finance & Policy from various sources and expenditureincurred during the year 2011-12 are as under:-

Sl.No. Source of Grant/Income ExpenditureFunding (` in Crore) (` in Crore)

1 Ministry of Finance 7.66 7.66

2 Other Sources 11.38 7.95

3 Total 19.04 15.61

Details of the Grants provided by the Ministry of Financesince 2007-08

(` in Crore)

2007-08 5.58

2008-09 8.67

2009-10 10.17

2010-11 7.10

2011-12 7.66

Budget Estimates 2012-13 8.50

Revised Estimates 2012-13 18.85*

Actual 2012-13 (till 31.10.2012) 8.30

*Including Corpus Grant of Rs.10 crore.

The constituents of grants and objectives thereof are asfollows:-

a) The Institute has entered into a new Memorandum ofUnderstanding (MOU) with the Ministry of Finance,Government of India on May 2, 2012 based on the PeerReview conducted by the Ministry. As per the newMoU, NIPFP will get additional faculty members andmore time to pursue independent research to enable them

REVIEW OF PERFORMANCE OF STATUTORY ANDAUTONOMOUS BODIES UNDER MINISTRY OF FINANCE

NATIONAL INSTIUTTE OF PUBLIC FINANCE AND POLICY

to publish articles in referred international journals. Thisis the opportunity to strive to join the league ofinstitutions of excellence in global arena.

b) As per MOU, salary grant to meet 90% of theexpenditure on salary, allowances like D.A., H.R.A. andtransport allowance or any other allowances or payrevision of the core staff of the Institute following releaseof D.A. Installments/or pay revision of CentralGovernment employees or/and UGC as per therecommendations of the Pay Commission, is provided.Computation of 90% of the salary to be covered by thisrecurring-grant is based on the total expenditure onsalary and allowances, calculated on the mid point ofthe Pay Scale attached to the Core Staff as indicated inAnnexure 1 to IV without reference to the salary andallowances of core staff charged to various sponsoredprojects of the Institute.

c) At the end of the Financial Year, any surplus/deficit ofsalary grant over 90% of the actual salary expendituremay be adjusted in the grant of succeeding financialyears.

d) A core grant equivalent to 20% of the salary grant ascalculated to cover the non-salary expenditure of theInstitute is also given.

e) A Tax Research Cell (TRC) has been set up in theInstitute with effect from June 9, 2005 with financialassistance of Rs.20.00 lakh per annum from Ministryof Finance.

The following are some of the completed/on-going studies/Working Papers of the Institute:

STUDIES / RESEARCH PROGRAMMESCOMPLETED (2011-12)

1. Ways of Increasing the effectiveness and Utilization ofFunds by States/Agencies through Suitable Changes inTiming and Pattern of Release under Selected Programs.

2. Incidence of Taxes sand Levies on Telecom Sector inIndia

3. Goods and Services Tax in the Context of Petroleumand Natural Gas

106 Department of Revenue

4. Medium Term Fiscal Policy for Goa

5. NIPFP- Department of Economic Affairs ResearchProgramme

6. Macro Economic Policy Modelling Phase-III

7. Oil Price Shock and its impact on India

8. Preparation of the 12th Five Year Plan for Sikkim

9. Sustainable Development of Meghalaya vision 2030

10. Appraisal of Monitoring and implementation ofUIDSSMT Reforms in Maharashtra

11. Health Expenditure by the Central Government in India:Stage Level Distribution

12. Distribution of Public Spending Across HealthFacilities: A Study of Karnataka, Rajasthan, MadhyaPradesh and Assam.

13. Pharma Venture Capital Fund

ON GOING STUDIES/RESEARCH PROGRAMMES(status up to December 2012)

1. Study on Unaccounted Income/Wealth both inside andoutside the Country

2. Revenue Potential for Himachal Pradesh: AnAssessment and Suggestions for Reform

3. Estimation of Revenue Neutral Rate at the State Level

4. Macro-Economic Policy Modelling Phase-III

5. A Leading-Indicators Based Forecasting Model forIndia

6. NIPFP-DEA Research Programme Affairs, Ministry ofFinance, GOI

7. Research on Business Cycles

8. NIPFP UIDAI Programme on Financial inclusion

9. Financial Sector Legislative ReformCommission(FSLRC)

10. Policy Analysis in the Process of Deepening CapitalAccount Openness

11. Growth Poverty and Human Development in States:Selected Issues

12. Preparation of 12th Five Year Plan for Meghalaya

13. Performance Evaluation of Urban Local Governments:A case for Indian Cities

14. Criminals in Elections: Evidence from India

15. Determinants of Services Exports

16. Export of Services: The Indian Experience

17. An estimate of Public Expenditure on Health in India

18. NRHM Expenditure at the State level: A study ofKarnataka and Rajasthan

19. Public Finance Information System

20. Award of the Assignment pertaining to Assessment ofthe Riskiness of the Airport Sector and Estimating FairRate of Return on Equity

21. MEWAT: The Dynamics of Development underBackwardness

22. Reforms for Pricing Diesel in India

23. Competitiveness of Zinc-Lead Mining in India: Role ofRoyalty Regime

24. Study on Fiscal and Monetary Policy aspects underFramework for Energy Efficient EconomicDevelopment Mechanism of National Mission forEnhanced Energy Efficiency.

TRAINING PROGRAMMES/WORKSHOPS (statusupto December 2012)

1. Conference on Tobacco Economics organized inpartnership with the Ministry of Health and FamilyWelfare and the Centre for Global Health Research,University of Toronto, at IIC, New Delhi onJanuary 3, 2012

2. One Week training programme on Revenue Reporting,Forecasting and Targeting for the officials ofAfghanistan Tax Administration during January 12-17,2012

3. Third Dr. Raja J. Chelliah Memorial Lecture wasdelivered by Dr. Machael Keen, Senior Advisor, FiscalAffairs Department, International Monetary Fund on“Current VAT issues, with Lessons for the GST in India”at IIC, New Delhi on February 9, 2012

4. Annual Conference on Papers in Public Economics,NIPFP during February 8-9, 2012

5. Two – Week Training Programme on Public Financefor India Audit and Accounts Service (IASAS)Probationers at NIPFP, New Delhi, duringFebruary 6-17

107 Department of Revenue

6. One-day workshop on Fossil Fuel Subsidy Reforms:Status and Opportunities at NIPFP on March 25, 2012

7. One-Week training programme on Public Finance forOfficer Trainees of the Indian Economic Service atNIPFP, New Delhi during May 14-18 June, 2012

8. One-Week training programme on Fiscal and MonetaryPolicy for Indian Statistical Service Probationers atNIPFP, New Delhi during May 7-11, 2012

9. Four-Week Refresher Training Programme forUniversity/College Teachers on Public Finance inTheory and Practice at NIPFP, during May 14-18, 2012

10. One-Week training programme for senior officials ofthe Controller General of Accounts (CGA) NIPFP, NewDelhi during May 21-25, 2012

11. Workshop on Integrating UID into Social Programs andimproving Service Delivery at NIPFP on May 4, 2012

12. One-Week IAS Officers training programme “FiscalPolicy and Macro Economic Management” at NIPFPduring September10-14, 2012

13. Conference on Indian Economic Policies: Free trade,Democracy and Entrepreneurial Development at IICduring August 7-8, 2012

14. One-Week Refresher Training Programme for IndiaForest Service Officers at NIPFP on the title “Role andScope of Environmental Economics in SustainableDevelopment” during September 10-14, 2012.

15. One-Week IAS Officers training programme on the title“Fiscal Decentralization and Federalism” duringOctober 8-12, 2012

16. Fourth Dr. Raja J. Chelliah Memorial Lecture wasdelivered by Dr, Jorge Martinez Vazques RegentsProfessor of Economics and Director of InternationalStudies Program, Andrew Young School of PolicyStudies, Georgia State University, Georgia (USA) on“The Growth-Equity Tradeoff in Tax Policy Design:Evidence from a Large Panel of Countries” at IIC, NewDelhi on November 8, 2012

17. Annual Conference on Papers in Public Economics,NIPFP during November 7-8, 2012

18. Visit of Kenyan Commission of Revenue Allocation onDecember 3-8, 2012

19. Delhi Economics Conclave 2012 during December14-15, 2012

20. One-Week Training Programme on Public Finance forIES Probationers during December 17-21, 2012.

109

DIRECT TAXESINTRODUCTION

1.1 The Central Board of Direct Taxes (CBDT), created by theCentral Boards of Revenue Act 1963, is the apex body engagedin the administration of Direct Taxes in India viz. income tax,corporation tax, wealth tax, etc. It consists of a Chairman andsix members. It is the cadre controlling authority for the IncomeTax Department. It employs a workforce of 41684 officers andstaff, of which approximately 27.35% are Gazetted officers inGroups ‘A’ and ‘B’ categories and the remaining are non-Gazetted employees in Groups ‘C’ and ‘D’ categories.

1.2.1 : In its functioning, the CBDT is assisted by the followingDirectorates:

(i) Directorate of Income Tax (Public Relations, Printing,Publication and Official Languages)

(ii) Directorate of Income Tax (Recovery)(iii) Directorate of Income Tax (Audit)(iv) Directorate of Income Tax (Income Tax)(v) Directorate of Income Tax (Organization and

Management Services)(vi) Directorate of Income Tax (Systems)

(vii) Directorate of Income Tax (Investigations)(viii) Directorate of Income Tax (Vigilance)

(ix) Directorate of Income Tax (Exemption)(x) Directorate of Income Tax (Legal & Research)

(xi) Directorate of Income Tax (International Taxation)(xii) Directorate of Income Tax (Infrastructure)

(xiii) Directorate of Income Tax (Tax Deduction at Source)(xiv) Directorate of Income Tax (Human Resources

Development)

(xv) Directorate of Income Tax (Business Process Re-engineering)

(xvi) Directorate of Income Tax (Intelligence & CriminalInvestigation)

(xvii) Directorate of Income Tax (Expenditure Budget)

1.3 There are 18 Cadre Controlling Chief Commissioner ofIncome Tax, stationed all over the country, who are overall in-charge of assessment and collection of direct taxes at regionallevels and tax administration within their region. DirectorsGeneral of Income Tax (Investigation) are overall in-charge ofthe investigation machinery at regional level, with the aim tocurb tax-evasion and unearth unaccounted money. ChiefCommissioners of Income Tax/Directors General of Income Taxare assisted by Commissioners of Income Tax/Directors ofIncome Tax within their jurisdictions. The first appellatemachinery comprises of Commissioners of Income Tax(Appeals) who perform the quasi-judicial task of decidingappeals against orders of assessing officers.

1.4 The National Academy of Direct Taxes (NADT) stationedat Nagpur along with Regional Training Institutes function underoverall supervision of a Director General of Income Tax to caterto the training needs of officers and officials.

1.5 The Principle Chief Controller of Accounts, CBDT withthe assistance of Pay and Accounts Offices is responsible foraccounting the revenue collections as well as expenditureincurred by the Department.

Direct Taxes

1. I.

Maj

or H

ead

2020

-C

olle

ctio

n of

Inco

me

Tax;

Info

rm

ati

on

Tech

nolo

gy

Pers

pect

ive P

lan

for

Phas

e-II

I of

Com

-pr

ehen

sive

Com

-pu

teris

atio

n

A)

Syst

ems

Inte

grat

ion

alon

g w

ith

soft

war

epr

ocur

emen

tTh

e co

ntra

ct o

f the

vend

or is

goi

ng to

exp

irein

June

, 201

4.

B)

Est

ablis

hmen

t, M

o-ni

tori

ng

and

Im-

plem

enta

tion

of A

ll In

dia

Tax

Net

wor

k

C) H

iring

of D

ata C

ente

rsfo

r pr

imar

y, B

CP

& D

Rsi

tes

•C

ompu

ting

capa

city

to h

andl

eth

e pr

ojec

ted

wor

kloa

d up

to

2014

-15

•Si

ngle

Nat

iona

l D

atab

ase

toha

ndle

all

Dir

ect T

axes

rela

ted

trans

actio

ns•

Faci

litie

s m

anag

emen

t in

the

offi

ces

of

Inco

me

Tax

Dep

artm

ent

Net

wor

k of

Inco

me

Tax

offic

esac

ross

the

coun

try

•C

o-lo

cati

on

of

hard

war

eeq

uipm

ents

in

Dat

a C

ente

rsm

eetin

g in

dust

ry st

anda

rds

Setti

ng u

p an

d m

ain-

tena

nce

of N

atio

nal

Dat

a Cen

ter,

Con

soli-

dati

on o

f re

gion

alda

ta b

ases

into

sing

lena

tiona

l dat

abas

e.

Offi

cers

and

sta

ff in

515

citie

s are

abl

e to

acce

ss t

he C

entr

alD

ata

Cen

ter o

ver t

he“T

axne

t” to

per

form

thei

r fu

ncti

ons.

Fast

er a

nd r

elia

ble

trans

fer o

f dat

a wou

lden

sure

tim

ely

deliv

-er

y of

ser

vice

s to

the

taxp

ayer

s.

Secu

red

data

will

be

avai

labl

e at

nat

iona

lle

vel

for

vari

ous

man

agem

ent c

ontro

ls.

Ong

oing

No

tran

sact

ion

targ

ets

can

befi

xed.

O

ffic

espr

oces

s in

com

eta

x ret

urns

as p

erth

eir p

ende

ncy.

Ong

oing

Act

ivity

No

targ

ets

Ong

oing

Act

ivity

No

targ

ets

Con

soli

dati

on o

f th

eD

atab

ase c

ompl

eted

.T

he

esti

mat

ed

ex-

pend

itur

e du

ring

FY

2013

-14

wou

ld b

e 4

5.00

cror

e.

Con

trac

t ha

s be

enex

tend

ed

upto

31.1

2.20

13.

The

proc

ess

for s

elec

tion

for n

ew M

SPth

roug

h op

en t

ende

ring

proc

ess i

s und

er p

rogr

ess.

The

E

stim

ated

expe

ndit

ure

on

this

proj

ect

for

FY 2

013-

14w

ould

be R

s. 31

.80

cror

e.

All

the t

hree

dat

a cen

ters

,PD

C,

BC

P an

d D

R a

reop

erat

iona

l.

421.

00-

STAT

EM

EN

T O

F O

UT

LAY

S A

ND

O

UT

CO

ME

S 2

013

- 14

111 Direct Taxes

Nam

e of

the

Sche

me/

Prog

ram

e

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2012

-13

(` I

n C

rore

)

44(

i)4(

ii)N

on-P

lan

Plan

Bud

get

Bud

get

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Proj

ecte

dO

utco

mes

6

Proc

esse

s/Ti

mel

ines

7

Rem

arks

/R

iskFa

ctor

s

8

Sl.

No.

112

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

tTh

ere a

re tw

o ve

ndor

s, on

efo

r BC

P &

PD

C a

nd t

heot

her o

ne fo

r DR-

Site

.

Thei

r ex

tend

ed t

erm

s of

cont

ract

is g

oing

to e

xpire

in

July

, 20

14

and

Sept

embe

r,

2014

resp

ectiv

ely.

The

estim

ated

exp

endi

ture

on th

is p

roje

ct w

ould

be R

s.7.

00 c

rore

fo

r F.

Y. 2

013-

14.

The

likel

y ex

pend

iture

on

this

acc

ount

wou

ld b

e Rs

.12

.79

cror

e for

FY

201

3-14

The

likel

y ex

pend

iture

on

this

acc

ount

wou

ld b

e Rs

.17

.64

cror

e for

FY

201

3-14

Proc

ess o

f ide

ntifi

catio

n &

sele

ctio

n of

a n

ew S

ervi

cePr

ovid

er is

ong

oing

.

The

estim

ated

exp

endi

ture

is R

s.10.

37 c

rore

.

D)

Phys

ical

Sto

rage

of

arre

ar P

AN

for

ms

ofpe

riod

200

3-09

E)

Scan

ning

of

arre

arPA

N f

orm

s of

per

iod

2003

-09

alon

gwit

h e-

stor

age

Bein

g ho

sted

by N

atio

nal

Secu

rity

D

epos

itor

yLi

mit

ed (

NSD

L) a

s a

depo

sito

ry of

info

rmat

ion

rela

ting

to :

•O

nlin

e Ta

x A

ccou

ntSy

stem

(OLT

AS)

,

•G

ovt.

OLT

AS

rela

ting

to B

ook

Adj

ustm

ent.

·T

he

proj

ect

wil

l be

com

plet

ed b

y 20

14.

Til

l da

te

5.53

C

rore

phys

ical

sto

rage

of

arre

arPA

N F

orm

s of

per

iod

of20

03/0

9 is

do

ne

wit

hap

prov

al o

f co

mpe

tent

auth

ority

.

Til

l da

te

5.53

C

rore

Scan

ning

of

arre

ar P

AN

form

s of

per

iod

2003

-09

alon

gwith

e-sto

rage

is d

one

with

appr

oval

of c

ompe

tent

auth

ority

.

•Fa

cilit

atin

g Acc

urat

e and

quic

k cr

edit

of

TD

Sde

duct

ions

, ide

ntifi

catio

nof

non

-file

rs/s

top-

filer

san

d ca

ses

of

shor

tde

duct

ions

•Fa

cili

ties

to

view

tax

paym

ents

mad

e by t

he ta

xpa

yers

or

by

ta

xde

duct

ors o

n th

eir b

ehal

f

Bus

ines

s in

tell

igen

ceda

taba

se f

rom

AIR

to

faci

litat

e co

mpu

ter

base

dse

lect

ion

case

s fo

r scr

utin

y(C

ASS

)

II.Ta

x In

form

atio

nN

etw

ork

(TIN

)

Outcome Budget 2013-2014

No

spec

ific

mile

ston

es se

t

113

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

t

•Ta

x de

duct

ions

com

ing

from

TD

Sre

turn

s

•H

igh

valu

e fin

anci

altr

ansa

ctio

ns c

omin

gth

roug

h A

nnua

lIn

form

atio

n Re

turn

s.

-To

have

si

mpl

e,tra

nspa

rent

, dire

ct &

use

rfr

iend

ly in

tera

ctio

n w

ithta

xpay

ers

for

dis-

sem

inat

ion

of i

nfor

ma-

tion

by m

eans

of

Hel

plin

e (A

ayak

ar S

ampa

rkK

endr

a).

-To

assi

st th

e ta

x pa

yers

in o

nlin

e fa

cilit

ies f

or e

-fi

ling

of

inco

me

tax

retu

rn.

-e-p

aym

ent o

f tax

es

-onl

ine

trac

king

of

Refu

nd st

atus

.

•D

ashb

oard

fac

ilitie

s to

the s

enio

r man

agem

ent o

fth

e D

epar

tmen

t fo

ref

fect

ive m

onito

ring

and

colle

ctio

n of

taxe

s.

·D

eliv

erab

le

from

Aay

akar

Sa

mpa

rkK

endr

a (A

SK) a

re :

-C

ount

ry w

ide

faci

litie

sfo

r as

sist

ance

in e

-filin

gof

inc

ome

tax

retu

rns

with

or

with

out

digi

tal

sign

atur

es

and

in-

form

atio

n re

late

dC

hall

an

and

retu

rnpr

epar

atio

n so

ftwar

e

-A

ssis

tanc

e in

dow

nloa

ding

var

ious

form

s:-

Inco

me

Tax

Ret

urn

Form

s, W

ealth

Tax

Retu

rn F

orm

s

-Fa

cilit

y to

send

form

s by

e-m

ail

- Pro

cedu

re o

f mak

ing

tax

paym

ent,

incl

udin

g e-

paym

ent

and

paym

ent

thro

ugh

ATM

.

-A

nsw

erin

g qu

erie

sre

late

d to

the

sta

tus

ofPA

N

and

TAN

appl

icat

ions

& r

elat

edpr

oced

ures

.

•E

asy

and

conv

enie

ntdi

ssem

inat

ion

ofin

form

atio

n

•En

hanc

ed c

onve

nien

cere

duci

ng

man

ual

inte

rfac

e an

d in

crea

sed

tax-

paye

rs‘ s

atis

fact

ion

The D

epar

tmen

t has

set u

pa

Rob

ust

Nat

iona

l C

all

Cen

tre at

Gur

gaon

and

four

Reg

iona

l C

all

Cen

tres

at

Jam

mu,

Shi

llong

, Jan

gipu

ran

d K

ochi

.

The

estim

ated

exp

endi

ture

on

Aay

akar

Sa

mpa

rkK

endr

a pr

ojec

t w

ould

be

Rs.

5.5

0 cr

ore

for

the

F.Y.

2012

-13

in a

dditi

on to

reim

burs

emen

t of

Tele

phon

e E

xpen

ses

onac

tual

s.

Tax

paye

rs‘ s

ervi

ces

III.

- Ong

oing

Act

iviti

es

Direct Taxes

114

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

t

(A) D

eter

min

e, g

ener

ate,

issu

e, d

ispa

tch,

cre

dit

and

safe

del

iver

y of

Inco

me T

ax re

fund

s.

(B)

Mak

e th

e re

fund

proc

ess

com

plet

ely

auto

mat

ed,

spee

dy a

ndtr

ansp

aren

t an

d to

achi

eve

a fa

ster

Tur

nA

roun

d Ti

me.

-St

atus

of R

efun

ds.

-A

nsw

erin

g Q

ueri

esre

late

d as

sess

men

tju

risdi

ctio

n.

- Pr

oced

ure o

f vie

win

g Ta

xC

redi

t St

atem

ent

and

regi

stra

tion

fo

r Ta

xC

redi

t Sta

tem

ents

.

- L

ist o

f Tax

Inf

orm

atio

nN

etw

ork

Faci

lita

tion

Cen

ters

and

the

PA

NSe

rvic

e Cen

ters

.

-ha

ndlin

g m

isc.

que

ries

A sy

stem

driv

en p

roce

ss fo

rde

term

inat

ion,

gen

erat

ion,

issu

e, d

ispa

tch

and

cred

it of

refu

nds

and

enab

les

effic

ient

and

saf

e de

liver

yof

Inc

ome

Tax

refu

nds.

It

intro

duce

s a th

ird p

arty

into

the

phys

ical

issu

e or

cre

dit

of re

fund

s so

as to

mak

e the

proc

ess

com

plet

ely

auto

-m

ated

, sp

eedy

an

dtra

nspa

rent

, and

to ac

hiev

ea f

aste

r Tur

n A

roun

d Ti

me.

A w

eb ba

sed

statu

s tra

ckin

gfa

cili

ty f

or d

eliv

ery

ofre

fund

.

Und

er R

efun

d B

anke

rSc

hem

e, re

fund

s to

the

tax

paye

rs a

re d

irec

tly s

ent

thro

ugh

Ele

ctro

nic

Cle

arin

g Sc

hem

e (EC

S) b

yth

e St

ate

Ban

k of

Ind

ia(S

BI)

, w

hich

has

bee

nde

sign

ated

as

agen

t of t

heD

epar

tmen

t.In

thes

e mod

els r

efun

ds ar

ecr

edite

d to

the

tax

paye

rsac

coun

t with

in 1

to 3

day

sof

dat

a be

ing

deliv

ered

toSB

I.T

he A

sses

sing

Off

icer

’sro

le i

n is

suin

g re

fund

s is

limite

d to

pro

cess

ing

the

retu

rn

of

inco

me

onco

mpu

ter.

i) Si

nce A

ugus

t Sep

tem

ber

2010

, the

Sch

eme h

as b

een

exte

nded

to

al

l no

n-co

rpor

ate

char

ges

acro

ssth

e co

untr

y in

pha

sed

man

ner.

ii)

Fr

om

19.1

2.20

11Re

fund

Ban

ker

Sche

me

isex

tend

ed t

o C

orpo

rate

,E

xem

ptio

n, C

entr

al a

ndIn

tern

atio

nal

Taxa

tion

char

ges a

ll ov

er In

dia.

iii) T

he n

umbe

r of r

efun

dsse

nt

thro

ugh

Ref

und

Ban

ker

Sche

me

in F

.Y.

2012

-13

(till

30/1

1/20

12) i

sRs

.2.5

7 cr

ore.

(app

rox)

inF.

Y. 2

012-

13 a

sum

of R

s.38

.20

cror

e ha

s be

en

Refu

nd B

anke

rIV

.

- O

ngoi

ng

Outcome Budget 2013-2014

115

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

t

Cen

tral

ized

Pro

cess

ing

Cel

l (C

PC)

for

Tax

Ded

ucte

d at

So

urce

(TD

S)

is

a tr

ans-

form

atio

nal

init

iati

veun

dert

aken

by

th

eIn

com

e Tax

Dep

artm

ent

(IT

D)

to e

nabl

e ea

syfi

ling

of

T

DS/

TC

Sco

rrec

tion

stat

emen

ts b

yde

duct

ors/

col

lect

ors.

The

CPC

end

eavo

rs t

oim

prov

e th

e ov

eral

lse

rvic

e le

vels

for t

he ta

xpa

yer.

D

educ

tors

/co

llect

ors c

an fi

le o

nlin

eco

rrec

tion

sta

tem

ents

afte

r re

gist

erin

g on

TRA

CES

. Tax

Pay

ers

/co

llec

tees

ca

n al

sore

gist

er t

o vi

ew a

nddo

wnl

oad

thei

r Fo

rm26

AS

and

repo

rtgr

ieva

nces

rel

ated

to

TDS/

TCS

for r

esol

utio

n.Th

e C

PC w

ill f

acili

tate

tim

ely

fili

ng

and

proc

essi

ng o

f sta

tem

ents

and

foll

ow-u

p w

ith

dedu

ctor

s / co

llect

ors f

or

In th

e Fi

rst P

hase

, fol

low

-in

g fu

nctio

nalit

ies

prev

i-ou

sly

hand

led

by N

SDL

have

bee

n op

erat

iona

lized

at C

PC T

DS:

a) In

cas

e of

Ded

ucto

r-•

Dow

nloa

d Fo

rm 1

6/16

A•

Dow

nloa

d of

Con

soli-

date

d F

ile•

Dow

nloa

d of

Just

ifica

-tio

n R

epor

t up

to

FY20

11-1

2.b)

In c

ase

of D

educ

tee

–•

Vie

w a

nd D

ownl

oad

Form

26A

S

sanc

tione

d. T

he a

mou

nt fo

rF.

Y. 2

013-

14 d

epen

ds o

nth

e nu

mbe

r of

ref

unds

whi

ch w

ill b

e de

fini

tely

high

er th

an th

e las

t F.Y

.The

estim

ated

exp

endi

ture

is

Rs.4

0.00

cror

e.

The

estim

ated

exp

endi

ture

is R

s.40.

00 c

rore

.C

entra

lized

Proc

essi

ngC

ell (

CPC

) TD

S

Seco

nd P

hase

is ex

pect

ed to

Go-

Liv

e sh

ortl

y.

Key

feat

ures

of

Seco

nd P

hase

are:

•PA

N co

rrec

tion

•Sh

ow C

ause

Not

ice

Gen

erat

ion

•St

atem

ent P

roce

ssin

g &

issu

ance

of i

ntim

atio

ns

V.Fi

rst

Phas

e of

the

Proj

ect w

ent

live

on 1

9 N

ov20

12.

Seco

nd P

hase

of

the

proj

ect

will

be c

ompl

eted

inFY

201

2-13

.

Direct Taxes

116

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

tre

ctifi

catio

n of

def

aults

to

enab

le

corr

ect

repo

rtin

g of

TD

S / T

CS.

The

sys

tem

has

bee

nde

sign

ed t

o br

ing

intr

ansp

aren

cy

and

effic

ienc

y to

the t

axat

ion

proc

ess.

(A)

Cen

tral

ized

proc

essi

ng o

f bot

h pa

per

base

d an

d e-

file

dIn

com

e Ta

x R

etur

ns(I

TRs)

.

(B)

The

CPC

wou

lden

able

the

Dep

artm

ent

to

cope

w

ith

rapi

dgr

owth

in th

e num

ber o

fta

xpay

ers

and

cons

eque

ntly

the v

olum

eof

wor

k fo

r em

ploy

ees.

(C)

It w

ould

allo

w th

eD

epar

tmen

t to

brin

g in

mor

e effi

cien

t pro

cess

esan

d m

oder

n ci

tize

nse

rvic

es o

ffere

d by

the

best

Tax A

dmin

istra

tions

acro

ss th

e gl

obe.

CPC

bec

ame

live

in

inSe

ptem

ber 2

009

CPC

has

proc

esse

d ov

er 3

.2 c

rore

e-

filed

retu

rns t

ill d

ate.

The

proj

ecte

d vo

lum

e of

proc

essin

g of

retu

tns f

or 1

3-14

is a

roun

d 2

cror

es T

hees

timat

ed e

xpen

ditu

re i

sRs

.161

.00

Cro

re.

Cen

traliz

ed P

roce

ss-

ing

Cen

tre

(CPC

)Ba

ngal

ore

VI

Outcome Budget 2013-2014

(i) W

ith th

e st

abili

satio

n of

CPC

s, t

he p

hysi

cal

ITR

sfr

om K

arna

taka

and

Goa

and

an a

djoi

ning

sta

tes

wou

ld a

lso

be g

iven

to th

eC

PC d

urin

g th

is f

inan

cial

year

.

(ii) T

he C

PC a

t Ban

galo

reha

s sca

labi

lity t

o pr

oces

s 20

lakh

pap

er r

etur

ns a

nd 6

0la

kh e-

filed

retu

rns f

rom

the

Zone

.

•Be

tter T

axpa

yer S

ervi

ces

and

redu

ced

grie

vanc

es.

•Lo

wer

Com

plia

nce

cost

for t

axpa

yers

.

•R

educ

ed a

dmin

istr

ativ

eco

st fo

r Dep

artm

ent.

•Fa

ster

pro

cess

ing

lead

ing

to s

peed

y de

live

ry o

fre

fund

s an

d he

nce

low

erin

tere

st o

utgo

.Eff

icie

ntus

e of

man

pow

er a

ndof

fice

spac

e.

•C

PC

star

ted

the

proc

essi

ng o

f e-

file

dre

turn

s of

A.Y

. 201

2-13

from

A

ugus

t 20

12on

war

ds th

e pa

ce p

icke

dup

dur

ing

the q

uarte

r

•Br

ough

t fo

rwar

d e-

filed

retu

rns

of A

Y 2

011-

12w

ere

to b

e liq

uida

ted

in

•Pa

per

Ret

urns

of

Kar

nata

ka

and

Goa

proc

essi

ng w

ere

to b

eco

mpl

eted

117

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

tU

se

of

info

rmat

ion

avai

labl

e w

ith I

ncom

eTa

x D

epar

tmen

t to:

A)

Wid

en a

nd d

eepe

nta

x ba

se

B)

Incr

ease

com

plia

nce

with

tax

law

s

C)

Mon

itor

Dep

artm

enta

lPe

rfor

man

ce

D)

Prov

ide

inpu

ts fo

rpo

licy

mak

ing

Re-

wri

ting

of n

ew I

TDap

plic

atio

n w

ith l

ates

tte

chno

logy

wit

h ne

wH

ardw

are

& A

lso

tom

aint

ain

old

appl

icat

ion

Dat

a W

areh

ouse

and

Busi

ness

Int

ellig

ence

(DW

&BI

) Sol

utio

n

New

ITD

App

licat

ion

Sp

ec

if

ic

mile

ston

es w

illbe

fi

nali

zed

afte

r pr

ojec

tpl

an

isap

prov

ed.

Proc

ess

for

sele

ctio

n of

vend

or is

on.

VII.

VIII.

Direct Taxes

The

scop

e of

the

pro

ject

and

role

of th

e con

sulta

nt is

bein

g re

view

ed.

The

tota

l out

lay

for

FY is

Rs.

10.

51 c

rore

Del

iver

able

s w

ill

bequ

antif

ied

afte

r sc

ope

ofpr

ojec

t is

ap

prov

ed.

Del

iver

able

s wou

ld b

road

lyin

clud

e:

i)Sc

ope

of

wor

kdo

cum

ent

for

the

Con

sulta

ntii)

Des

ign

of th

e pro

pose

dso

lutio

niii

)R

FP f

or s

elec

tion

ofso

lutio

n pr

ovid

eriv

)Pr

epar

atio

n of

Dat

aW

areh

ouse

v)In

tegr

atio

n of

Bus

ines

sIn

telli

genc

e too

lsvi

)Im

plem

enta

tion

and

roll

out

1.Re

-wri

ting

of N

ew I

TDap

plic

atio

ns.

2.D

evel

opm

ent

of D

ata

Cen

tre f

or th

e app

licat

ion.

3.D

evel

opm

ent

ofTe

chno

logy

trai

ning

Cen

tre.

4.D

evel

opm

ent

of t

est

envi

ronm

ent a

t Vai

shal

i.5.

Tra

inin

g of

20,

000

empl

oyee

s.6.

Dev

elop

men

t of

HRM

Sm

odul

e.7.

Mai

nten

ance

of

ol

dap

plic

atio

n.8.

Softw

are f

or a

ll pr

oces

ses

(oth

er th

an c

ore

func

tions

)of

dep

t.9.

Inte

rfac

e w

ith

UT

I/N

SDL

/CPC

Ben

galu

ru/

CPC

TD

S/ R

efun

d Ba

nker

.

Proj

ecte

d ou

tcom

e w

ill b

efi

nali

zed

afte

r sc

ope

ofpr

ojec

t is a

ppro

ved.

New

ITD

appl

icat

ion

for a

llty

pes o

f use

rs a

nd c

over

ing

all

func

tion

alit

ies

ofde

partm

ent.

118

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

t

Outcome Budget 2013-2014

Impl

emen

tati

on o

f B

.I.

appl

icat

ion

wou

ld re

sult

inge

nera

tion

of

va

riou

sre

port

s of

R

even

ueC

olle

ctio

n an

d va

riou

sot

her c

usto

miz

ed re

port

s.

The

estim

ated

exp

endi

ture

wou

ld b

e Rs

.0.7

0 cr

ore

Ena

blin

g el

ectr

onic

paym

ent

to v

endo

rs &

bene

ficia

ries

dir

ectly

int

oth

eir

a/c

thro

ugh

govt

.E

lect

roni

c Pa

ymen

tG

atew

ay.

The

est

imat

edex

pend

itur

e w

ould

be

Rs.0

.70

cror

e.

Con

stru

ctio

n w

ork

unde

rpr

ogre

ss.

Like

ly t

o be

com

plet

ed b

y M

arch

201

3.O

utla

y for

the p

roje

ct in

FY

2013

-14

is R

s.1.

00 c

rore

.

Fund

requ

ired

in F

Y 2

013-

14 is

Rs.

26.

40 c

rore

. The

proj

ect

is e

xpec

ted

to b

eco

mpl

eted

in ti

me.

One

yea

r

One

ye

ar(P

hase

wis

e in

vario

us Z

AO

’s)

31.0

3.20

13

10.6

.201

3

Gen

erat

ion

of v

ario

us M

ISre

ports

on

Reve

nue

A/c

of

Dir

ect T

axes

& a

utom

atin

gth

e w

hole

pro

cess

.

Ena

blin

g el

ectr

onic

paym

ent

to v

endo

rs &

bene

ficia

ries

dir

ectly

int

oth

eir

a/c

thro

ugh

Gov

t.E

lect

roni

c Pa

ymen

tG

atew

ay.

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es.

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

Com

pila

tion

of R

even

ueA

ccou

nts,

Dat

a tra

nsfe

r to

cent

rali

zed

Dat

abas

eSe

rver

at N

IC H

yder

abad

& o

pera

tiona

lisin

g t

heB

.I.

App

lica

tion

to

gene

rate

var

ious

MIS

in28

new

ly c

reat

ed Z

AO

s.

Impl

emen

ting

elec

troni

cPa

ymen

t in

all 2

8 ne

wly

crea

ted

ZAO

’s

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To f

ulfi

ll t

he n

eed

ofha

ving

a t

rain

ing

for

adva

nce c

ours

e inc

ludi

ngtr

aini

ng

of

fore

ign

offic

ials

and

inc

reas

ing

need

s of a

ccom

mod

atio

nar

ising

at N

AD

T, N

agpu

r

Reve

nue

Acc

ount

ing

Man

gem

ent S

oftw

are

Impl

emen

tatio

n of

e-

paym

ent a

s man

date

dby

M/o

Fin

ance

in a

ll28

new

ly

crea

ted

ZAO

’s

MH

405

9 –

Cap

ital

out

lay

onpu

blic

wor

ks–

Off

ice

Bui

ldin

gC

onst

ruct

ion

ofO

ffic

e bu

ildi

ng a

tN

oida

Con

stru

ctio

n of

Adv

ance

d Tr

aini

ngC

entr

e, h

oste

l &

Mes

s NA

DT,

Nag

pur

IX.

X.

1 2

Proc

urin

g a

B.I

.A

ppli

cati

on,

its

cust

omiz

atio

n an

d tra

inin

gof

staf

f on

this

app

licat

ion.

To e

nabl

e e-

paym

ent t

o al

lve

ndor

s &

ben

efic

iari

esun

der p

aym

ent j

uris

dict

ion

of 2

8 ne

wly

cre

ated

ZA

O’s

Con

stru

ctio

n of

of

fice

build

ing

havi

ng ca

rpet

area

of 1

935

sq.m

t. at

Noi

da

Con

stru

ctio

n of

A

TC

,H

oste

l-II

wit

h m

ess

atN

AD

T, N

agpu

r

546.

98

119

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

t

Tota

l ou

tlay

prop

osed

is

Rs.8

.19

cror

e and

out

lay i

nF.

Y. 2

013-

14 fo

r thi

s wor

kis

Rs.2

.19

cror

e. P

roje

ct is

expe

cted

to be

com

plet

ed in

F.Y.

201

3-14

Prop

osal

is

un

der

exam

inat

ion.

Out

lay f

or th

epr

ojec

t in

FY

201

3-14

is

Rs.1

5.00

cror

e.

Prop

osal

is

un

der

exam

inat

ion.

Out

lay f

or th

epr

ojec

t in

FY

201

3-14

is

Rs.8

.69

cror

e.

Prop

osal

is u

nder

pro

cess

.O

utla

y for

the p

roje

ct in

FY

2013

-14

is R

s.1.

00 c

rore

.

Tota

l ou

tlay

prop

osed

is

Rs.8

8.02

cro

re a

nd o

utla

yin

F.Y

. 20

13-1

4 fo

r th

isw

ork

is

Rs.

20

cror

e.Pr

opos

al u

nder

pro

cess

.

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

of in

crea

sed

parti

cipa

nts

and

cour

ses.

To m

itiga

te th

e sh

orta

geof

offi

ce sp

ace

and

gues

tho

use

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

Gue

st H

ouse

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

of

fice

sp

ace

and

resi

denc

es.

Con

stru

ctio

n of

offi

cebu

ildi

ng a

nd g

uest

hous

e cu

m t

rans

itac

com

mod

atio

n fo

rth

e I.T

. Dep

artm

ent a

tFi

roza

bad

Con

stru

ctio

n of

RTI

Build

ing

Moh

ali

Con

struc

tion

of G

uest

Hou

se a

t G

olf

links

,N

ew D

elhi

Con

stru

ctio

n of

offi

cebu

ildi

ng

at

4-5,

Infa

ntar

y R

oad,

Bang

alor

e

Con

stru

ctio

n of

offi

cecu

m

resi

dent

ial

build

ing

at L

uckn

ow

3 4 5 6 7

18 m

onth

s fro

mth

e da

te

ofsa

nctio

n or

der

is re

ceiv

ed.

15 m

onth

s fro

mth

e da

te

ofsa

nctio

n or

der

is re

ceiv

ed.

24 m

onth

s fro

mth

e da

te

ofsa

nctio

n or

der

is re

ceiv

ed.

Direct Taxes

The

offic

e sp

ace

of 4

342

sq.m

ts.

prop

osed

to

beco

nstr

ucte

d w

ithi

n 18

mon

ths,

afte

r gra

ntin

g A

/A&

F/S

.

Con

stru

ctio

n of

RT

Ibu

ildin

g at

Moh

ali

Con

stru

ctio

n of

G

uest

Hou

se a

t Gol

f Lin

ks, N

ewD

elhi

Con

stru

ctio

n of

of

fice

build

ing

at B

anga

lore

The

offic

e sp

ace

of 1

6138

sq.m

ts.

prop

osed

to

beco

nstr

ucte

d w

ithi

n 24

mon

ths,

afte

r gra

ntin

g A

/A&

F/S

.

120

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

t

8 9 10 11 12 13 14

Con

stru

ctio

n of

offi

cecu

m

resi

dent

ial

build

ing

at S

rinag

ar

Con

stru

ctio

n of

offi

cebu

ildin

g at

Nar

iman

Poin

t, M

umba

i

Purc

hase

of

read

ybu

ilt

offi

ce s

pace

from

M.P

. H

ousi

ngBo

ard,

Bho

pal

Land

pur

chas

e an

dco

nstru

ctio

n of

offi

cebu

ildin

g at

Bel

gaun

Con

stru

ctio

n of

offi

cecu

m

resi

dent

ial

build

ing

at B

arei

lly,

Shah

jaha

npur

Purc

hase

of

land

for

RTI

buil

ding

at

Ahe

mad

abad

Purc

hase

of

land

for

cons

truct

ion

of o

ffice

at E

rode

To m

itiga

te th

e sh

orta

geof

of

fice

sp

ace

and

resi

denc

es.

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

of

fice

sp

ace

and

resi

denc

ces

To m

itiga

te th

e sh

orta

geof

offi

ce &

trai

ning

spac

e

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

The

offic

e sp

ace

of 1

1031

sq.m

ts.

prop

osed

to

beco

nstr

ucte

d w

ithi

n 46

mon

ths,

afte

r gra

ntin

g A

/A&

F/S

.

Con

stru

ctio

n of

of

fice

build

ing

at N

arim

an P

oint

,M

umba

i

Acq

uisi

tion

of o

ffice

spac

e

Con

stru

ctio

n of

of

fice

build

ing

at B

elga

un

The o

ffice

spac

e of 1

080.

71sq

.mts

. pr

opos

ed t

o be

cons

truct

ed.

Purc

hase

of

la

nd

for

cons

truct

ion

of R

TI bu

ildin

gat

Ahm

edab

ad

Purc

hase

of

la

nd

for

cons

truc

tion

of

of

fice

build

ing

at E

rode

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

artm

ent

resu

lting

in

bette

r tax

pay

er se

rvic

es

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

Tota

l ou

tlay

prop

osed

is

Rs.4

2.09

cro

re a

nd o

utla

yin

F.Y

. 20

13-1

4 fo

r th

isw

ork

is

Rs.

10

cror

e.Pr

opos

al u

nder

pro

cess

.

The

pro

posa

l is

und

erex

amin

atio

n. O

utla

y for

the

proj

ect

in F

Y 2

013-

14 i

sRs

.10.

00 cr

ore.

App

rova

l rec

eive

d. L

ikel

yex

pend

iture

in F

Y 2

013-

14is

Rs.3

.00

cror

e.

Prop

osal

und

er p

roce

ss.

Like

ly to

be

appr

oved

and

outla

y for

the p

roje

ct in

FY

2013

-14

is R

s7.5

0 cr

ore.

Tota

l ou

tlay

prop

osed

is

Rs.3

.87

cror

e and

out

lay i

nF.

Y. 2

013-

14 fo

r thi

s wor

kis

Rs.1

.00

cror

e.

Prop

osal

und

er p

roce

ss.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

60.0

0 cr

ore.

Prop

osal

und

er p

roce

ss.

Like

ly t

o be

com

plet

eddu

ring

F.

Y.

2013

-14.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

12.0

0 cr

ore.

46 m

onth

s fro

mth

e da

te

ofsa

nctio

n or

der

is re

ceiv

ed.

Outcome Budget 2013-2014

121

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

tC

onst

ruct

ion

of o

ffice

build

ing

at P

une

Con

stru

ctio

n of

Ann

exe

to

offi

cebu

ildin

g at

Sur

at

Con

stru

ctio

n of

offi

cebu

ildin

g (B

asem

ent +

5 flo

or) a

t Nav

sari

Con

stru

ctio

n of

offi

cebu

ildin

g at

Dam

an

Purc

hase

of

read

ybu

ilt

offi

ceac

com

mod

atio

n at

Etah

Purc

hase

of

read

ybu

ilt bu

ildin

g/la

nd fo

rof

fice

bui

ldin

g at

Koc

hi.

Purc

hase

of N

BCC

Plaz

a, S

aket

, Del

hi.

Purc

hase

of

Off

ice

acco

mm

odat

ion

atC

ivic

Cen

tre,

Min

toRo

ad, N

ew D

elhi

.

15 16 17 18 19 20 21 22

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

To m

itiga

te th

e sh

orta

geof

offi

ce s

pace

Off

ice

acco

mm

odti

on a

tK

arve

Roa

d, P

une.

Offi

ce a

ccom

mod

atio

n at

Sura

t

Off

ice

and

resi

dent

ial

acco

mm

odat

ion

at N

avsa

ri

Con

stru

ctio

n of

of

fice

build

ing

at D

aman

Purc

hase

of

read

y bu

ilt

offi

ce a

ccom

mod

atio

n at

Etah

Purc

hase

of

read

y bu

ilt

buil

ding

/lan

d fo

r of

fice

build

ing

at K

ochi

.

Purc

hase

of

NBC

C P

laza

Sake

t, N

ew D

elhi

for L

TU

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

Acq

uisi

tion

of o

ffice

spa

cem

easu

ring

abou

t 51,

768

sq.

met

res o

f sup

er b

uilt

up ar

eaw

ill be

avai

labl

e to

miti

gate

the

shor

tage

of

offi

ceac

com

mod

atio

n at

Del

hi .

36 m

onth

s fro

mth

e da

te

ofex

ecut

ion

ofth

e agr

eem

ent.

3

1.9.

2013

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

10.0

0 cr

ore.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

1.00

cro

re.

Prop

osal

un

der

exam

inat

ion.

Out

lay f

or th

epr

ojec

t in

FY

201

3-14

is

Rs.1

.00

cror

e.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

1.00

cro

re.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

1.00

cro

re.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

1.00

cro

re.

Thi

s pe

rtai

ns

to

bill

rece

ived

fro

m N

BC

C f

orin

tere

st c

harg

es f

or l

ate

paym

ent o

f the

prin

cipa

l.O

utla

y fo

r th

e lia

bilit

y in

FY 2

013-

14 i

s R

s.43

.20

cror

e.

Out

lay

for

the

liabi

lity

inFY

201

3-14

is

Rs.3

00.0

0cr

ore.

Direct Taxes

122

12

34

56

78

4(i)

4(ii)

Non

-Pla

nPl

anB

udge

tB

udge

tM

ajor

Hea

d 42

16 -

Cap

ital

out

lay

onpu

blic

w

orks

-

Hou

sing

.

Con

stru

ctio

n of

resid

entia

l com

plex

atH

adap

sar,

Pune

.

Con

stru

ctio

n of

resi

dent

ial q

uarte

rs at

Jam

mu

Con

stru

ctio

n of

Typ

e- I

V &

III q

uarte

rs a

tC

R

Col

ony,

Ann

anag

ar.

Con

stru

ctio

n of

Typ

e- V

& V

I qu

arte

rs a

tM

G R

oad,

Che

nnai

.

Con

stru

ctio

n of

Typ

eIII

& T

ype I

V q

uarte

rsat

Sur

at

Upg

rada

tion/

reno

vatio

n of

resi

dent

ial q

uarte

rsat

Bho

pal

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

25.0

0 cr

ore.

Tota

l ou

tlay

prop

osed

is

Rs.1

1.37

cro

re a

nd o

utla

yin

F.Y

. 20

13-1

4 fo

r th

isw

ork

is

Rs.

3 cr

ore.

Con

stru

ctio

n w

ork

unde

rpr

ogre

ss.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

4.00

cro

re.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

1.00

cro

re.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

1.00

cro

re.

Out

lay f

or th

e pro

ject

in F

Y20

13-1

4 is

Rs.

5.00

cro

re.

4

1.00

1 2 3 4 5 6

To m

itiga

te th

e sh

orta

geof

re

side

ntia

lac

com

mod

atio

n.

To m

itiga

te th

e sh

orta

geof

resi

dent

ial q

uart

ers.

To m

itiga

te th

e sh

orta

geof

resi

dent

ial q

uart

ers.

To m

itiga

te th

e sh

orta

geof

resi

dent

ial q

uart

ers.

To m

itiga

te th

e sh

orta

geof

resi

dent

ial s

pace

.

To p

rovi

de a

dequ

ate

resi

dent

ial

faci

litie

s in

Bhop

al

Res

iden

tial

co

mpl

exal

ongw

ith g

uest

hou

se a

tH

adap

sar,

Pune

The

offic

e sp

ace

prop

osed

to b

e co

nstru

cted

with

in 2

6m

onth

s, af

ter g

rant

ing

A/A

& F

/S.

Con

stru

ctio

n of

qua

rters

at

Ann

anag

ar.

Con

stru

ctio

n of

qua

rters

at

MG

Roa

d, C

henn

ai.

Con

stru

ctio

n of

resi

dent

ial

quar

ters

at S

urat

Upg

rada

tion/

Ren

ovat

ion

ofth

e qua

rter

s at B

hopa

l

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3.

This

wou

ld ea

se sh

orta

ge o

fof

fice

spa

ce a

nd w

ould

prov

ide

bett

er w

orki

ngen

viro

nmen

t fo

r th

eof

fice

rs,

offi

cial

s of

the

Dep

rtm

ent

resu

ltin

g in

bette

r tax

pay

er se

rvic

es

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3.

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3.

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3.

To m

eet

the

obje

ctiv

esde

fined

in co

lum

n-3.

26 m

onth

s fro

mth

e da

te

ofsa

nctio

n or

der

is re

ceiv

ed.

Outcome Budget 2013-2014

123

REFORM MEASURES AND POLICY INITIATIVES

REFORM INITIATIVES IN INCOME TAX DEPARTMENTIn the last few years a number of initiatives have been

undertaken by harnessing latest technology to enable a Systemdriven business environment in the Department. These measureshave ensured qualitative improvement in Tax Payers servicesand also introduced objectivity leading to reduction in interfacebetween the Taxpayer and the Department, to minimizegrievance(s).

i. E-FILING OF RETURNS The project was initiated in July 2006 under the guidance

of the present Hon’ble Finance Minister. In financial year 2006-07, 3.72 Lakh returns were received electronically, of whichonly 5,000 were filed voluntarily by tax payers other thancorporates.

Growth in e-returns signifying the success of the scheme isevident from the tabulation below:-

F.Y. No. of e-Returns filed in lacs2009-10 50.752010-11 93.012011-12 164.332012-13 (upto Dec-2012) 147.51

The Road AheadE-filing phase-II is already underway. This will facilitate

electronic filing of 60 forms including non-income tax formsused by Chartered Accountants as a part of their tax audit process,transfer pricing forms etc. This would usher in a phase ofpaperless filing of all forms enabling faster processing of allforms and comprehensive utilization of information in such formsfor enhanced scrutiny selection.

ii. CENTRALISED PROCESSING CENTRE (CPC),BANGALORE

The Project was approved by Hon’ble Finance Minister inSeptember 2008. This project is a comprehensive GovernmentProcess Reengineering exercise initiative enabled by innovativeand widespread use of technology for Bulk Processing of Incometax returns.

The CPC, in a short span of 2-3 years, has already assumeda primary role in processing of income tax returns as can beseen from the table below:

FY FY FY FY2009-10 2010-11 2011-12 2012-13

(Apr-Dec.)

Total ReturnsProcessed 403,141 8,820,652 13,285,521 1,12,87,911

• CPC has achieved a peak processing capacity of 1.79 Lacreturns per day.• Average processing time reduced to 47 days, less than theperiod specified in citizens’ charter (Six Months).

• Over 497 lakh digitally signed PDF based intimations sentby email; over 29.37 lakh SMS alerts sent; over 111 lakhIntimations sent by Speed post for preceding years, all over thecountry.• 60 call center agents attend to over 4000 calls daily in 3languages now, with over 9.36 lakh calls attended till date.• Rectification requests received from taxpayers processedwithin statutory time limits, over 8.52 Lakh requests processedout of 9.25 Lakh requests filed (92% completion).• Online tracking of the status of refunds’ processing fromthe Department website.• Launch of Digitization friendly forms with features suchas anchor points, color drop out, bar codes on each page etc –ITR 1-SAHAJ and ITR 4S- SUGAM for AY 2011-12 and AY2012-13 designed by officers at CPC for CBDT based onlearning from digitization of paper returns at CPC.

iii. THE REFUND BANKER SCHEME• The Refund Banker scheme, was initially implemented asa pilot project at Delhi and Patna on. 24.1.2007. It was extendedin phases and today maps the entire country except LargeTaxpayers Unit (LTU) and Exemption Charges. The refundsissued through refund banker count-wise accounts for 98.93%of total refunds issued. Refunds issued till 31st Dec, 2012 underRefund Banker Scheme are as follows:

Paper ECS

No. 1,78,99,564 No. 88,09,670Rs. 62,221.30 Cr. Rs. 33,113.20 Cr.

• A web based status tracking facility in collaboration withIndia Post and National Securities Depository Ltd. (NSDL) hasalso been launched. Refund Status is also available on Internetthrough ITD website. The information on paid refunds is alsoavailable in the ‘Tax Credit Statements’ (Form No. 26AS) beinggiven to taxpayers.

iv. NATIONAL CALL CENTRE AND REGIONAL CALLCENTRES• Another citizen centric initiative undertaken by theDepartment is the setting up of a Robust National Call Centreat Gurgaon and four Regional Call Centres at Jammu, Shillong,Jangipur and Kochi.• The call centres have an All India toll free number (1800-180-1961/1961) with callers being guided through an InteractiveVoice Response System (IVRS) for various information/ servicesincluding returns forms, tax payment procedure, PAN, TINapplication, status of tax payment, refunds, e-returnintermediaries’ role responsibilities jurisdictions etc.

v. PAYMENT OF DIRECT TAXES THROUGH ATMS.• The facility has been introduced by 13 selected banks bothPublic and Private Sector. This facility is being expanded.

Direct Taxes

124

vi. FORM 26AS• This facility of viewing 26AS statements is available onlineon internet to the taxpayers. The 26AS Scheme has a potentialto reduce the mis-match as the taxpayer is now aware of thegaps in the tax credit and, therefore, he facilitates the departmentby chasing the deductor to comply.

• In order to eliminate TDS mismatch, CBDT has issued acircular through which all Deductors have to mandatorilydownload Form 16A from the TIN portal.

• This also gives information about Refunds Paid, AIRInformation like investment in shares, mutual funds etc. anddetails of TDS deducted as well as deposited. In this way theassesse can verify his details.

vii. SEVOTTAM• Aayakar Seva Kendras (ASK) under Sevottam is a singlewindow computerized service mechanism for centralized receipt,registration and distribution of dak.• The department has opened Aayakar Seva Kendras (ASK)at 112 stations till date with a modified Central SoftwareApplication.

viii. TDS-CPC.A Centralised Processing Center at Vaishali, Ghaziabad is beingset up for processing of TDS returns. The CPC-TDS shall inter-alia provide following services:• Web Services for filing of eTDS/TCS correction statementsfor authorized Intermediaries and Deductors• Rectification of PAN Errors in TDS Statements• Handling of Defaults in TDS/TCS/24G Statements• Communication with Deductor/PAO/Intermediaries viaPortal• Intimating Deductors via Help Desk/Call Center• Resolving Grievances reported by Deductors/PAOs• Business Analytics for TDS

ix. NEW APPLICATION FOR BUSINESS PROCESS OFITD• In order to make better use of the existing information andimprove both the Taxpayer Services & Tax Administration, theDepartment has initiated the Project to re-write the existingIncome Tax Department (ITD) Applications with the latesttechnology and new tools.

x. TAX RETURN PREPARERs (TRPs)• With a view to facilitate Return Filing by Medium and SmallTaxpayers, Tax Return Preparers Scheme (TRPS) was notifiedin 2007.• TRPs are now also helping in promoting e-filing.

xi. E- RETURN INTERMEDIARIES (ERIs)• The Scheme for e-Return Intermediaries was notified in2006.• ERIs help the Assessees in e-filing of their Returns onpayment basis.• Various categories of persons viz Tax Practitioners,Chartered Accountants (CAs), Financial Companies, TRPs etc.can become ERIs.INFORMATION TECHNOLOGY INITIATIVES IN THEOFFICE OF PRINCIPAL CHIEF CONTROLLER OFACCOUNTS (PCCA), CBDT:

1. RAMS Project:- O/o Pr.CCA has conceptualized a processwhereby all the challan information could be made available tothe ZAOs in digitized form from the nodal branches. Acomputerized Revenue Accounts system, called RAMS(Revenue Accounting Management Software), has beendeveloped with the help of NIC. Banks upload challans on aportal of this office which is called Challan File ManagementSystem (CFMS) from where it is downloaded by ZAOs and heincorporates these files in to RAMS on daily basis and uploadthe detailed revenue account for direct taxes on e-lekha portalof Controller General of Accounts. Further, the put through fromReserve Bank of India (RBI) is also automated. The ReceiptAccounting Management Software was implemented in 24 ZonalAccounts Offices of this office. Now in the second phase, it isplanned to implement it in the 28 newly created Zonal AccountsOffices.

2. E-Payment project: Implementation of e-payment systemwas implemented in O/o the Pr.CCA, CBDT and its 24 ZonalAccounts Offices as mandated by Finance Minister. Now in thesecond phase, it is planned to enhance its implementation to the28 newly created Zonal Accounts Offices. E-payment systemresults in implementation of electronic payment thus resultingin generation of electronic advices directly to banks anddiscontinuation of present cheque issuing system to a greatextent.

Outcome Budget 2013-2014

1.

Maj

or H

ead

2020

-C

olle

ctio

n of

Inc

ome

Tax;

In

form

atio

nTe

chno

logy

I.Pe

rspe

ctiv

e Pla

n fo

rPh

ase-

III o

fC

ompr

ehen

sive

Com

pute

risat

ion

II.

Tax

Info

rmat

ion

Net

wor

k (T

IN)

A)

Syst

ems

Inte

grat

ion

alon

g w

ith

soft

war

epr

ocur

emen

t

B) M

odifi

catio

n of

Aay

akar

Bha

wan

, Va

isha

li in

to a

secu

re

Info

rmat

ion

Tech

nolo

gy H

ub a

nd i

tsm

aint

enan

ce.

C)

Est

abli

shm

ent,

Mon

itor

ing

and

Impl

emen

tatio

n of

All

Indi

aTa

x N

etw

ork

D) H

iring

of D

ata

Cen

ters

for

Prim

ary,

B

usin

ess

Con

tinui

ty P

lann

ing

(BC

P)&

Dis

aste

r R

ecov

ery

(DR)

site

s.

Bein

g ho

sted

by

Nat

iona

lSe

curi

ty

Dep

osit

ory

•C

ompu

ting

capa

city

to

hand

le t

hepr

ojec

ted

wor

kloa

d up

to 2

014-

15

•Si

ngle

Nat

iona

l Dat

abas

e to

han

dle

all D

irect

Tax

es re

late

d tr

ansa

ctio

ns

•Fa

cilit

ies m

anag

emen

t in

the o

ffice

sof

Inco

me T

ax D

epar

tmen

t

Aft

er m

odif

icat

ion

of t

he V

aish

ali

Build

ing,

Nat

iona

l Com

pute

r Cen

ter w

illbe

est

ablis

hed.

Net

wor

k of

Inc

ome

Tax

offic

es a

cros

sth

e cou

ntry

•C

o-lo

catio

n of

har

dwar

e equ

ipm

ents

in D

ata

Cen

ters

mee

ting

indu

stry

stand

ards

• S

ecur

ity ce

rtific

atio

n of

BS

7799

for

ensu

ring

secu

rity

of th

e eq

uipm

ent

and

data

.

•Id

entif

icat

ion

of p

oten

tial h

igh

risk

tax

evas

ion

case

s

Ong

oing

Proj

ect i

s com

-pl

eted

.

Ong

oing

Act

ivity

. N

ota

rget

s

Ong

oing

Act

ivity

. N

ota

rget

s

Ong

oing

Act

iviti

es

Act

ual e

xpen

ditu

re a

s on

31.

3.20

12–

` 3

07.1

4 cr

ore

Con

soli

dati

on

of

the

Dat

abas

eco

mpl

eted

.

Exp

endi

ture

inc

urre

d up

to 3

1-03

-20

12 is

` 7

0.39

cro

re.

Expe

nditu

re o

n ac

coun

t of

Fac

ility

man

agem

ent

Serv

ices

(FM

S) i

.e.,

Hou

se K

eepi

ng,

Secu

rity

and

alli

edse

rvic

es is

expe

cted

to b

e 2

0.00

cror

e.

The

wor

k of

LA

N/W

AN

con

nect

ivity

in a

ll bu

ildin

gs h

as b

een

com

plet

ed.

Exp

endi

ture

inc

urre

d up

to 3

1-03

-20

12 is

` 4

2.10

cro

re-.

All

the

thre

e da

ta c

ente

rs, P

DC

, BC

Pan

d D

R ar

e ope

ratio

nal.

Exp

endi

ture

inc

urre

d up

to 3

1-03

-20

12 is

` 8

.04

cror

e.

Dur

ing

FY 2

011-

12 u

pto

31.1

2.20

11,

2,29

,84,

327

num

ber

of c

halla

ns a

re

225.

0027

0.00

STAT

US

OF

OU

TC

OM

E W

ITH

RE

FER

EN

CE

TO

OU

TL

AYS

2011

-12

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

e

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2011

-12

(` I

n cr

ore)

44(

i)4(

ii)BE

RE

Qua

ntifi

able

Del

iver

able

s/Phy

sical

Out

puts

5

Proc

esse

s/Ti

mel

ines

6

Stat

us a

s on

31st

Mar

ch, 2

012

7

125 Direct Taxes

126

12

34

56

74(

i)4(

ii)BE

RE

III.

Bus

ines

s Pro

cess

Re-

e

ngin

eeri

ng (B

PR)

IV T

ax p

ayer

s’ se

rvic

es

Lim

ited

(N

SDL

) as

a

depo

sito

ry o

f in

form

atio

nre

latin

g to

:•

Onl

ine

Tax

Acc

ount

Syst

em (O

LTA

S),

•Ta

x de

duct

ions

com

ing

from

TD

S re

turn

s•

Faci

lity

for g

ener

atio

n of

elec

troni

c TD

S ac

coun

ts.

•H

igh

valu

e fi

nanc

ial

tran

sact

ions

co

min

gth

roug

h an

nual

Info

rmat

ion

Retu

rns.

Com

plet

e re

vam

ping

of

exis

ting

busi

ness

pro

cess

esto

mee

t th

e ne

eds

of s

take

hold

ers

To h

ave s

impl

e, tr

ansp

aren

t,di

rect

& u

ser

frie

ndly

inte

ract

ion

with

tax

paye

rsfo

r di

ssem

inat

ion

ofin

form

atio

n by

mea

ns o

fH

elp

line (

Aay

akar

Sam

park

Ken

dra)

, W

eb-s

ite

ofIn

com

e-Ta

x D

epar

tmen

tan

d e-

frie

ndly

serv

ices

-To

prov

ide

the

taxp

ayer

son

line

faci

litie

s fo

r e-fi

ling

of In

com

e tax

retu

rns,

-e –

pay

men

t of t

axes

,

-onl

ine

track

ing

of R

efun

dst

atus

.

•A

ccur

ate a

nd q

uick

cred

it of

TD

Sde

duct

ions

, ide

ntifi

catio

n of

non

-fil

ers/s

top-

filer

s and

case

s of s

hort

dedu

ctio

ns•

Proc

essi

ng o

f TD

S re

turn

s•

Faci

litie

s to

vie

w t

ax p

aym

ents

mad

e by

the

tax

paye

rs o

r by

tax

dedu

ctor

s on

thei

r beh

alf

•D

ashb

oard

faci

litie

s to

the s

enio

rm

anag

emen

t of

the

Dep

artm

ent

for e

ffect

ive

mon

itori

ng a

nd c

ol-

lect

ion

of ta

xes.

•Su

bmis

sion

of

the

repo

rt o

f th

eco

nsul

tant

and

BPR

Rol

lout

Pla

n•

Impl

emen

tatio

n of

the

fea

sibl

ere

com

men

datio

ns as

cont

aine

d in

4th

Rep

ort

of A

dmin

istr

ativ

eRe

form

s Com

mis

sion

on

“Eth

ics

in G

over

nanc

e”.

•D

eliv

erab

les

from

Aay

akar

Sam

park

Ken

dra

(ASK

) are

ØPr

ovis

ion

of P

AN

, C

hall

an,

Ret

urn

Form

s an

d re

late

din

form

atio

nØ

Faci

lity

to se

nd fo

rms b

y e-

mai

lØ

Han

dlin

g of

PA

N g

riev

ance

s•

Prov

isio

n of

ta

x re

late

din

form

atio

n fa

cili

ty

for

dow

nloa

ding

of

vari

ous

form

s/ch

alla

ns a

nd r

etur

n pr

epar

atio

nso

ftwar

e•

Cou

ntry

wid

e fac

ilitie

s for

e-fil

ing

of in

com

e tax

retu

rns

•C

entr

aliz

ed i

ssue

of

refu

nds

thro

ugh

desig

nate

d re

fund

bank

er•

Faci

litie

s for

e-pa

ymen

t of d

irec

tta

xes

rece

ived

in

OLT

AS

for R

s 3,9

4,20

7.78

cror

es o

f th

e ta

x co

llect

ion.

Exp

endi

ture

inc

urre

d up

to 3

1-03

-20

12 is

` 4

5.30

Cro

re.

The

Repo

rt on

BPR

was

sub

mitt

ed to

the

CBD

T in

the

mon

th o

f Ja

nuar

y20

08, p

rese

nted

to fu

ll Bo

ard

on 1

8th /

19th a

nd 2

4th M

arch

200

8.

Form

alM

inut

es w

ere i

ssue

d by

ITC

C S

ectio

nof

Boa

rd in

Apr

il 20

08.

Out

of

64

r

ecom

men

datio

nsm

ade,

13

wer

e mod

ified

and

acce

pted

,47

acce

pted

in to

to a

nd 4

not

acce

pted

.

The

depa

rtmen

t has

s

etup

Aay

akar

Sam

park

Ken

dra,

Nat

iona

l Com

pute

rC

entr

e( N

CC

) at

Gur

gaon

and

fou

rRe

gion

al C

ompu

ter C

entre

s (RC

Cs)

atJa

mm

u,Ja

ngip

ur,S

hillo

ng &

Koc

hi.

Exp

endi

ture

incu

rred

upt

o 31

-03-

2012

is `

1.4

5 cr

ore

No

spec

ific

mile

ston

es se

t

· O

ngoi

ng

Act

iviti

es

No

targ

ets.

Volu

me

oftra

nsac

tion

base

don

the e

nd u

sers

and

taxp

ayer

s

Outcome Budget 2013-2014

127

12

34

56

74(

i)4(

ii)BE

RE

V

Refu

nd B

anke

r

VI

Cen

tral

ized

Pro

-ce

ssin

g C

entr

e (C

PC)

Proj

ect

VII

B

iom

etric

PA

N

Proj

ect

(A)

Det

erm

ine,

gen

erat

e,is

sue,

dis

patc

h, c

redi

t an

dsa

fe d

eliv

ery

of In

com

e Tax

refu

nds.

(B) M

ake t

he re

fund

pro

cess

com

plet

ely

auto

mat

edsp

eedy

and

tran

spar

ent a

ndto

ach

ieve

a f

aste

r Tu

rnA

roun

d Ti

me

(A)

Cen

tral

ised

pro

cess

ing

of b

oth

pape

r ba

sed

and

e-fil

ed I

ncom

e Ta

x R

etur

ns(I

TRs)

.

(B)

The

CPC

wou

ld en

able

the D

epar

tmen

t to

cope

with

rapi

d gr

owth

in th

e num

ber

of

taxp

ayer

s an

dco

nseq

uent

ly th

e vol

ume

ofw

ork

for e

mpl

oyee

s.

(C)

It

wou

ld a

llow

the

Dep

artm

ent t

o brin

g in

mor

eef

fici

ent

proc

esse

s an

dm

oder

n ci

tize

n se

rvic

esof

fere

d by

the

bes

t Ta

xA

dmin

istr

atio

ns a

cros

s th

egl

obe.

(A)

To p

ut i

n pl

ace

abi

omet

ric so

lutio

n to

ensu

reth

at n

o du

plic

ate

PAN

is

issu

ed i.

e. sa

me p

erso

n do

es

A

syst

em

driv

en

proc

ess

for

dete

rmin

atio

n, g

ener

atio

n, i

ssue

,di

spat

ch a

nd c

redi

t of

ref

unds

and

enab

les e

ffici

ent a

nd sa

fe d

eliv

ery

ofIn

com

e Tax

refu

nds.

It i

ntro

duce

s ath

ird

party

into

the

phys

ical

issu

e or

cred

it of

ref

unds

so

as to

mak

e th

epr

oces

s co

mpl

etel

y au

tom

ated

,sp

eedy

and

tra

nspa

rent

, a

nd t

oac

hiev

e a fa

ster

Tur

n A

roun

d Ti

me.

A w

eb b

ased

sta

tus

track

ing

faci

lity

for d

eliv

ery

of re

fund

.

(i) T

he C

PC w

ould

initi

ally

pro

cess

trans

actio

ns fo

r all

e-fil

ed In

com

e Tax

Ret

urns

(IT

Rs)

cou

ntry

wid

e an

dph

ysic

al IT

Rs f

or B

anga

lore

.

(ii) A

s the

CPC

stab

ilize

s, th

e phy

sical

ITRs

from

Kar

nata

ka an

d G

oa an

d an

adjo

inin

g st

ate

wou

ld a

lso

be g

iven

to th

e C

PC to

scal

e up

the o

pera

tion.

(iii)

The C

PC at

Ban

galo

re w

ill h

ave

scal

abili

ty to

pro

cess

20

lakh

pap

erre

turn

s an

d 60

lak

h e-

filed

ret

urns

from

the Z

one.

(iv)

Even

tual

ly, i

t is

envi

sage

d th

atth

e C

PC m

odel

wou

ld b

e re

plic

ated

acro

ss t

he c

ount

ry,

havi

ng g

aine

dex

peri

ence

and

lea

rnin

g fr

om t

heC

PC in

Ban

galo

re.

• Cap

ture

bio

met

ric fe

atur

es (f

ace +

4fin

gers

) of P

AN

app

lican

ts to

pre

vent

allo

tmen

t of d

uplic

ate P

AN

s.

The

num

ber

of r

efun

ds s

ent t

hrou

ghRe

fund

Ban

ker S

chem

e in

F.Y

. 201

1-12

(ti

ll 3

1.12

.201

1) i

s 81

lak

hs(a

ppro

x.) a

nd co

nstit

utes

96%

of t

otal

refu

nds

issu

ed a

ll ov

er I

ndia

, dur

ing

this

per

iod.

Exp

endi

ture

inc

urre

d up

to 3

1-03

-20

12 is

` 3

1.93

Cro

re.

Exp

endi

ture

inc

urre

d up

to 3

1-03

-20

12 is

` 8

9.64

Cro

re.

Proj

ect w

as k

ept i

n ab

eyan

ce p

endi

ngcl

arifi

catio

n fr

om th

e UID

AI.

Ong

oing

.

Ong

oing

atBa

ngal

ore

Direct Taxes

128

12

34

56

74(

i)4(

ii)BE

RE

Maj

or H

ead

4059

–C

apita

l out

lay

on p

ublic

wor

ks –

off

ice b

uild

ings

Purc

hase

of

O

ffic

eac

com

mod

atio

n at

Civ

icC

entre

, Min

to R

oad,

New

Del

hi.

Con

stru

ctio

n an

dfu

rnis

hing

of

Off

ice

Build

ing

at S

aket

, N

ewD

elhi

.

Con

stru

ctio

n of

Adv

ance

Trai

ning

Cen

tre,

Mes

s/H

oste

l at

N

atio

nal

Aca

dem

y of D

irect

Tax

es(N

AD

T), N

agpu

r.

Con

stru

ctio

n of

new

host

el at

NA

DT,

Nag

pur.

Con

stru

ctio

n of

gue

stho

use a

t Gol

f Lin

ks, N

ewD

elhi

.

not g

et m

ore

than

one

PA

Nnu

mbe

r.

(B)B

iom

etri

c in

form

atio

n,be

ing

mor

e sta

ble w

ith ti

me

and

diff

icul

t to

cha

nge,

wou

ld b

e ab

le t

o de

tect

dupl

icat

e PA

N a

pplic

atio

nw

ith g

reat

er a

ccur

acy.

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e.

To

cond

uct

adva

nced

cour

ses i

nclu

ding

trai

ning

offo

reig

n of

ficia

ls an

d to

mee

tth

e in

crea

sing

nee

d fo

rac

com

mod

atio

n fa

cilit

ies a

tN

AD

T.

To ex

pand

infra

stru

ctur

e for

train

ing

at N

AD

T.

To m

itiga

te th

e sh

orta

ge o

fgu

est

hous

e fa

cili

ty f

orvi

sitin

g of

ficia

ls.

• V

erif

y bi

omet

ric

feat

ures

of

appl

ican

ts w

ho a

pply

for

rep

rint o

fca

rds o

r cha

nge i

n PA

N d

ata.

• C

ompo

site

and

sca

labl

e so

lutio

nw

itho

ut v

endo

r lo

ck-i

n to

be

proc

ured

.

• Sol

utio

n to

be

inte

grat

ed w

ith n

ewPA

N ap

plic

atio

n an

d al

so p

rosp

ectiv

eus

e fo

r the

exi

stin

g PA

N h

olde

rs.

Offi

ce sp

ace m

easu

ring

abou

t 51,

768

sq. m

etre

s of s

uper

bui

lt up

are

a w

illbe

ava

ilabl

e to

miti

gate

the s

hort

age

of o

ffice

acc

omm

odat

ion

at D

elhi

.

Con

stru

ctio

n of

offi

ce b

uild

ing

Con

stru

ctio

n of

ATC

, Hos

tel-I

I with

mes

sd a

t NA

DT,

Nag

pur

To m

eet

the

obje

ctiv

es d

efin

ed i

nco

lum

n-3

Gue

st H

ouse

at

Gol

f Li

nks,

New

Del

hi.

Act

ual e

xpen

ditu

re a

s on

31.

3.12

–`

256.

53 c

rore

` 60

0.00

cro

re p

rovi

ded

in B

E fo

rm

akin

g pa

ymen

t of F

inal

tran

che t

o the

MC

D h

ad t

o be

sur

rend

ered

in

RE

cons

ider

ing

the s

tage

of c

ompl

etio

n of

the

proj

ect.

The

proj

ect h

as b

een

shel

ved.

App

roxi

mat

ely

30%

wor

k ha

s be

enco

mpl

eted

.

The

proj

ect h

as b

een

com

plet

ed

Wor

k ye

t to

be

star

ted

as a

gree

men

tw

ith N

BC

C is

not

yet

sign

ed.

2 I II III

IV V

31.3

.201

2

31.3

.201

2

31.3

.201

3

30.0

6.20

11

30.0

9.20

12

877.

7031

7.51

Outcome Budget 2013-2014

Rs. 1

0.00

cro

res w

ere

prov

ided

in B

Ew

hich

wer

e inc

reas

ed to

Rs.1

6.20

cror

ein

the

RE.

Con

stru

ctio

n w

ork

is i

npr

ogre

ss.

Rs. 5

.00

cror

es w

as p

rovi

ded

duri

ngth

e F.

Y.

Con

stru

ctio

n w

ork

is i

npr

ogre

ss.

Sanc

tion

of p

roje

ct (

proj

ect

valu

eRs

.49.

53 cr

ore)

gra

nted

on

24.5

.201

1.Th

e ex

pend

iture

has

bee

n in

curr

eddu

ring

the F

.Y. 2

011-

12.

Act

ual e

xpen

ditu

re a

s on

31.3

.201

2-

` 3.

18 c

rore

Rs. 1

5.00

cro

re w

ere

prov

ided

und

erBE

whi

ch w

ere

redu

ced

to N

IL in

RE

as th

e ap

prov

als f

or p

ropo

sal i

s yet

tobe

rec

eive

d.

The

pro

posa

l is u

nder

exam

inat

ion.

Con

stru

ctio

n w

ork

is in

pro

gres

s.

VI

VII

VII

I

IX 3 I II III

31.3

.201

3

31.3

.201

3

30.9

.201

1

-

STAT

US

OF

OU

TC

OM

E W

ITH

RE

FER

EN

CE

TO

OU

TL

AYS

2011

-12

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

e

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2011

-12

(` I

n cr

ore)

44(

i)4(

ii)BE

RE

Qua

ntifi

able

Del

iver

able

s/Phy

sical

Out

puts

5

Proc

esse

s/Ti

mel

ines

6

Stat

us a

s on

31st

Mar

ch, 2

012

7

129

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e.

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e.

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e.

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e.

To m

itiga

te th

e sh

orta

ge o

fre

side

ntia

l an

d of

fice

acco

mm

odat

ion

at M

umba

i.

To m

itiga

te th

e sh

orta

ge o

fre

side

ntia

l acc

omm

odat

ion.

To m

itiga

te th

e sh

orta

ge o

fre

side

ntia

l acc

omm

odat

ion.

Con

stru

ctio

n of

offi

ce b

uild

ing

atN

oida

.

The

offi

ce s

pace

of

4342

sq.

mts

.pr

opos

ed to

be c

onst

ruct

ed w

ithin

10

mon

ths a

fter g

rant

ing

A/A

& F

/S

Con

stru

ctio

n of

offi

ce b

uild

ing

Con

stru

ctio

n of

DT

RTI B

uild

ing

Res

iden

tial

qua

rter

s an

d of

fice

acco

mm

odat

ion

at N

arim

an-P

oint

Mum

bai

Con

stru

ctio

n of

resi

dent

ial c

ompl

ex

Con

stru

ctio

n of

resi

dent

ial Q

uarte

rs

Con

stru

ctio

n of

Offi

cebu

ildin

g at

Noi

da.

Con

stru

ctio

n of

Offi

cebu

ildin

g at

Fir

ozab

ad,

U.P

.

Purc

hase

of r

eady

bui

ltof

fice

pr

emis

es

atTh

ane,

Mah

aras

htra

.

Cons

truct

ion

of bu

ildin

gfo

r D

irec

t Ta

xes

Reg

iona

l T

rain

ing

Inst

itute

(D

TRT

I),

atM

ohal

i, C

hand

igar

h

MH

421

6 –

Cap

ital

Out

lay

on

publ

icw

orks

- H

ousi

ngC

onst

ruct

ion

ofre

side

ntia

l cu

m o

ffice

buil

ding

at

Nar

iman

Poin

t, M

umba

i.

Con

stru

ctio

n of

resi

dent

ial

com

plex

incl

udin

g a

com

mun

ityha

ll at

Had

apsa

r, Pu

ne

Con

stru

ctio

n of

Typ

e Van

d Ty

pe V

I qua

rter

atJa

mm

u.

27.0

05.

00

Direct Taxes

1.

Maj

or H

ead

2020

-C

olle

ctio

n of

Inc

ome

Tax;

In

form

atio

nTe

chno

logy

I.Pe

rspe

ctiv

e Pla

n fo

rPh

ase-

III o

fC

ompr

ehen

sive

Com

pute

risat

ion

A)

Syst

ems

Inte

grat

ion

alon

g w

ith

soft

war

epr

ocur

emen

t

B)

Est

abli

shm

ent,

Mon

itor

ing

and

Impl

emen

tatio

n of

All

Indi

aTa

x N

etw

ork

C)

Hiri

ng o

f Dat

a C

ente

rsfo

r Pr

imar

y,

Bus

ines

sC

ontin

uity

Pla

nnin

g (B

CP)

& D

isas

ter

Rec

over

y (D

R)si

tes.

•C

ompu

ting

capa

city

to

hand

le t

hepr

ojec

ted

wor

kloa

d up

to 2

014-

15

•Si

ngle

Nat

iona

l Dat

abas

e to

han

dle

all D

irect

Tax

es re

late

d tr

ansa

ctio

ns

•Fa

cilit

ies m

anag

emen

t in

the o

ffice

sof

Inco

me T

ax D

epar

tmen

t

Net

wor

k of

Inc

ome

Tax

offic

es a

cros

sth

e cou

ntry

•C

o-lo

catio

n of

har

dwar

e equ

ipm

ents

in D

ata

Cen

ters

mee

ting

indu

stry

stand

ards

• S

ecur

ity ce

rtific

atio

n of

BS

7799

for

ensu

ring

secu

rity

of t

he eq

uipm

ent

Ong

oing

.

Proj

ect

has

been

co

m-

plet

ed.

Ong

oing

Act

ivity

No

targ

ets

Act

ual e

xpen

ditu

re a

s on

31.1

2.20

12–

` 2

03.3

7 cr

ore

Con

soli

dati

on

of

the

Dat

abas

eco

mpl

eted

.

Con

soli

dati

on

of

the

Dat

abas

eco

mpl

eted

.Acc

epta

nce

of P

roje

ct h

asbe

en c

ompl

eted

in

May

200

9 af

ter

eval

uatio

n of

im

plem

enta

tion

of t

hete

rms o

f con

tract

by

the

vend

or.

Afte

r –S

I co

mpl

eted

in F

Y 2

009-

10,

mor

e th

an 2

.54

cror

e of

ret

urns

wer

epr

oces

sed.

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

`49

.62

cror

e.

The

wor

k of

LA

N/W

AN

con

nect

ivity

in a

ll bu

ildin

gs h

as b

een

com

plet

ed.

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

` 3

2.93

cro

re

All

the

thre

e da

ta c

ente

rs, P

DC

, BC

Pan

d D

R ar

e ope

ratio

nal.

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

` 4

.67

cror

e.

225.

0040

0.00

STAT

US

OF

OU

TC

OM

E W

ITH

RE

FER

EN

CE

TO

OU

TL

AYS

2012

-13

S. No. 1

Nam

e of

the

Sche

me/

Prog

ram

e

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2012

-13

(` I

n cr

ore)

44(

i)4(

ii)BE

RE

Qua

ntifi

able

Del

iver

able

s/Phy

sical

Out

puts

5

Proc

esse

s/Ti

mel

ines

6

Stat

us a

s on

31st

Dec

embe

r, 20

12

7

130Outcome Budget 2013-2014

131

12

34

56

74(

i)4(

ii)BE

RE

II.

Tax

Info

rmat

ion

N

etw

ork

(TIN

)

III.

Bus

ines

s Pro

cess

Re-

e

ngin

eeri

ng (B

PR)

IV

Tax

paye

rs’ s

ervi

ces

Bei

ng h

oste

d by

Nat

iona

lSe

curit

y Dep

osito

ry L

imite

d(N

SDL)

as

a de

posi

tory

of

info

rmat

ion

rela

ting

to :

•O

nlin

e Ta

x A

ccou

ntSy

stem

(OLT

AS)

,•

Tax

dedu

ctio

ns c

omin

gfr

om T

DS

retu

rns

•Fa

cilit

y fo

r gen

erat

ion

ofel

ectro

nic T

DS

acco

unts

.•

Hig

h va

lue

fina

ncia

ltr

ansa

ctio

ns

com

ing

thro

ugh

annu

alIn

form

atio

n Re

turn

s.

Com

plet

e re

vam

ping

of

exis

ting

busi

ness

pro

cess

esto

mee

t th

e ne

eds

of s

take

hold

ers

To h

ave s

impl

e, tr

ansp

aren

t,di

rect

& u

ser

frie

ndly

inte

ract

ion

with

tax

paye

rsfo

r di

ssem

inat

ion

ofin

form

atio

n by

mea

ns o

fH

elp

line (

Aay

akar

Sam

park

Ken

dra)

, W

eb-s

ite

ofIn

com

e-Ta

x D

epar

tmen

tan

d e-

frie

ndly

serv

ices

-To

prov

ide

the

taxp

ayer

son

line

faci

litie

s fo

r e-fi

ling

of In

com

e tax

retu

rns,

•Id

entif

icat

ion

of p

oten

tial

high

risk

tax

evas

ion

case

s•

Acc

urat

e and

qui

ck cr

edit

of T

DS

dedu

ctio

ns, i

dent

ifica

tion

of n

on-

filer

s/sto

p-fil

ers a

nd ca

ses o

f sho

rtde

duct

ions

•Pr

oces

sing

of T

DS

retu

rns

•Fa

cilit

ies

to v

iew

tax

pay

men

tsm

ade

by th

e ta

x pa

yers

or b

y ta

xde

duct

ors o

n th

eir b

ehal

f

•D

ashb

oard

faci

litie

s to

the s

enio

rm

anag

emen

t of

the

Dep

artm

ent

for e

ffect

ive

mon

itori

ng a

nd c

ol-

lect

ion

of ta

xes.

•Su

bmis

sion

of

the

repo

rt o

f th

eco

nsul

tant

and

BPR

Rol

lout

Pla

n

•Im

plem

enta

tion

of t

he f

easi

ble

reco

mm

enda

tions

as co

ntai

ned

in4t

h R

epor

t of

Adm

inis

trat

ive

Refo

rms C

omm

issi

on o

n “E

thic

sin

Gov

erna

nce”

.

•D

eliv

erab

les

from

Aay

akar

Sam

park

Ken

dra

(ASK

) are

:-Ø

Prov

isio

n of

PA

N,

Cha

llan

,R

etur

n Fo

rms

and

rela

ted

info

rmat

ion

ØFa

cilit

y to

send

form

s by

e-m

ail

ØH

andl

ing

of P

AN

gri

evan

ces

•Pr

ovis

ion

of

tax

rela

ted

info

rmat

ion

faci

lity

fo

rdo

wnl

oadi

ng o

f va

riou

s fo

rms/

chal

lans

and

ret

urn

prep

arat

ion

softw

are

Dur

ing

FY 2

011-

12 u

pto

31.1

2.20

11,

2,29

,84,

327

num

ber

of c

halla

ns a

rere

ceiv

ed i

n O

LTA

S fo

r Rs 3

,94,

207.

78cr

ores

of

the

tax

colle

ctio

n.

Dur

ing

FY 2

010-

11 u

pto

31.1

2.20

10,

2,02

,16,

560

num

ber o

f cha

llans

wer

ere

ceiv

ed i

n O

LTA

S fo

r Rs 3

,44,

834.

00cr

ore

of t

he ta

x co

llect

ion.

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

` 3

3.27

cro

re.

The

Repo

rt on

BPR

was

sub

mitt

ed to

the

CBD

T in

the

mon

th o

f Ja

nuar

y20

08, p

rese

nted

to fu

ll Bo

ard

on 1

8th /

19th a

nd 2

4th M

arch

200

8.Fo

rmal

Min

utes

wer

e is

sued

by

ITC

CSe

ctio

n of

Boa

rd in

Apr

il 20

08.

Out

of

64

reco

mm

enda

tions

m

ade,

13 w

ere

mod

ified

and

acc

epte

d, 4

7ac

cept

ed in

toto

and

4 n

ot a

ccep

ted.

The

depa

rtmen

t has

s

etup

Aay

akar

Sam

park

Ken

dra

at G

urga

on an

d fo

urRe

gion

al K

endr

as at

Jam

mu,

Jang

ipur

,Sh

illon

g &

Koc

hi.

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

` 5

.80

cror

e.

Ong

oing

Act

ivity

No

targ

ets

31

.10.

2007

Direct Taxes

132

12

34

56

74(

i)4(

ii)BE

RE

V.

Ref

und

Bank

er

VI.

Cen

traliz

ed P

ro-

cess

ing

Cen

tre

(C

PC) P

roje

ct

-e –

pay

men

t of t

axes

,

-onl

ine

track

ing

of R

efun

dst

aurs

(A)

Det

erm

ine,

gen

erat

e,is

sue,

dis

patc

h, c

redi

t an

dsa

fe d

eliv

ery

of In

com

e Tax

refu

nds.

(B) M

ake t

he re

fund

pro

cess

com

plet

ely

auto

mat

edsp

eedy

and

tran

spar

ent a

ndto

ach

ieve

a f

aste

r Tu

rnA

roun

d Ti

me

(A)

Cen

tral

ised

pro

cess

ing

of b

oth

pape

r ba

sed

and

e-fil

ed I

ncom

e Ta

x R

etur

ns(I

TRs)

.

(B)

The

CPC

wou

ld en

able

the D

epar

tmen

t to

cope

with

rapi

d gr

owth

in th

e num

ber

of

taxp

ayer

s an

dco

nseq

uent

ly th

e vol

ume

ofw

ork

for e

mpl

oyee

s.

(C)

It w

ould

allo

w th

e D

e-pa

rtm

ent

to b

ring

in m

ore

effic

ient

pro

cess

es a

nd m

od-

ern

citiz

en s

ervi

ces

offe

red

by th

e bes

t Tax

Adm

inis

tra-

tions

acr

oss t

he g

lobe

.

•C

ount

ryw

ide f

acili

ties f

or e-

filin

gof

inco

me t

ax re

turn

s•

Cen

tral

ized

iss

ue o

f re

fund

sth

roug

h de

signa

ted

refu

nd ba

nker

•Fa

cilit

ies f

or e-

paym

ent o

f dir

ect

taxe

s

A

syst

em

driv

en

proc

ess

for

dete

rmin

atio

n, g

ener

atio

n, i

ssue

,di

spat

ch a

nd c

redi

t of

ref

unds

and

enab

les e

ffici

ent a

nd sa

fe d

eliv

ery

ofIn

com

e Tax

refu

nds.

It i

ntro

duce

s ath

ird

party

into

the

phys

ical

issu

e or

cred

it of

ref

unds

so

as to

mak

e th

epr

oces

s com

plet

ely

auto

mat

e, sp

eedy

and

trans

pare

nt,

and

to

achi

eve

afa

ster

Tur

n A

roun

d Ti

me.

A w

eb b

ased

sta

tus

track

ing

faci

lity

for d

eliv

ery

of re

fund

.

•B

ette

r ta

xpay

er s

ervi

ces

and

redu

ced

grie

vanc

es.

•L

ower

com

plia

nce

cost

for

taxp

ayer

s.

•Re

duce

d ad

min

istra

tive

cost

for

Dep

artm

ent.

•Fa

ster

pro

cess

ing

lead

ing

tosp

eedy

del

iver

y of

ref

unds

and

henc

e low

er in

tere

st o

utgo

.

•Ef

ficie

nt u

se o

f m

anpo

wer

and

offic

e sp

ace.

The

num

ber

of r

efun

ds s

ent t

hrou

ghRe

fund

Ban

ker S

chem

e in

F.Y

. 201

1-12

(ti

ll 3

1.12

.201

1) i

s 81

lak

hs(a

ppro

x.) a

nd co

nstit

utes

96%

of t

otal

refu

nds

issu

ed a

ll ov

er I

ndia

, dur

ing

this

per

iod.

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

` 1

7.45

cro

re.

(i) T

he p

roce

ssin

g of

e-f

iled

Retu

rns

for A

Y 2

011-

12 st

arte

d an

d 57

.79.

lakh

retu

rns h

ave

been

pro

cess

ed.

(ii) 7

7.37

lakh

retu

rns o

f AY

201

0-11

have

bee

n pr

oces

sed

so fa

r. O

nly

1.02

lakh

ret

urns

whe

re e

ither

ITR

V n

otre

ceiv

ed or

whe

re ce

rtain

clar

ifica

tions

are s

ough

t are

pen

ding

(iii)

Arr

ange

men

ts f

or p

roce

ssin

gpa

per

retu

rns

of K

arna

taka

Goa

in

plac

e.

(i)

All

rect

ific

atio

n re

ceiv

ed u

pto

Nov

embe

r 20

11 d

ispo

sed

Exp

endi

ture

inc

urre

d up

to 3

1-12

-20

12 is

` 4

6.66

cro

re

Ong

oing

.

Outcome Budget 2013-2014

133

12

34

56

74(

i)4(

ii)BE

RE

Cen

traliz

ed P

roce

ssin

gC

entre

(CPC

) to p

roce

ssTD

S St

atem

ents

New

ITD

App

licat

ion

i. To

dev

elop

and

impl

emen

ta

com

preh

ensi

ve s

yste

m to

incr

ease

eff

icie

ncy,

and

effe

ctiv

enes

s of

IT

D i

npr

oces

sing

, acc

ount

ing

and

reco

ncili

atio

n of

the

TD

SSt

atem

ents

file

d.

ii. T

o se

t up

a C

entra

lized

Proc

essi

ng C

ente

r an

dac

hiev

e ba

ck

offi

ceau

tom

atio

n on

an

outs

ourc

ed

mod

el

for

perf

orm

ing

non-

core

activ

ities

of I

TD.

iii. T

o en

able

and

leve

rage

tech

nolo

gy t

o au

tom

ate

back

-end

pro

cess

es i

n lin

ew

ith b

estp

ract

ices

in

the

indu

stry

iv.

Man

age

tax

adm

inis

trat

ion

func

tions

such

as

rece

ipt

of d

ata

rela

ting

to T

DS

Stat

emen

ts,

mat

chin

g w

ith in

form

atio

nfro

m O

LTA

S, v

erifi

catio

n of

PAN

and

ide

ntify

ing

case

sin

volv

ing

inva

lid/ n

o PA

N,

late

file

rs, n

on-fi

lers

, def

ault

case

s et

c, p

roce

ssin

g, is

sue

of d

eman

d no

tices

and

/or

refu

nds a

nd st

orag

e of

TD

SSt

atem

ents

in a

cen

traliz

edm

anne

r.

Re-

wri

ting

of

new

IT

Dap

plic

atio

n w

ith

late

stte

chno

logy

w

ith

new

land

scap

e an

d ne

wH

ardw

are

&

Als

o to

mai

ntai

n ol

d ap

plic

atio

n

The

proj

ect (

CPC

TD

S) is

exp

ecte

dto

han

dle

appr

oxim

atel

y 3

3 cr

ore

trans

actio

ns d

urin

g FY

201

2-13

• R

e-w

ritin

g of

all I

TD ap

plic

atio

ns.

• C

o-lo

catio

n of

har

dwar

e equ

ipm

ent

in D

ata

Cen

tre

(Prim

ary,

BCP

and

DR)

mee

ting

indu

stry

stan

dard

s

No

expe

nditu

re in

curr

ed in

FY

201

2-13

upt

o 31

-12-

2012

.

Exp

endi

ture

in

curr

ed

as

on31

.12.

2012

is `

0. 6

8 cr

ore

VII

VIII

Direct Taxes

134

12

34

56

74(

i)4(

ii)BE

RE

IX X 2 I. II. III.

Proc

urin

g a

B.I

. App

licat

ion,

its

cust

omiz

atio

n an

d tra

inin

g of

staf

f on

this

appl

icat

ion.

To e

nabl

e e-

paym

ent t

o al

l ven

dors

& b

enef

icia

ries

und

er p

aym

ent

juri

sdic

tion

of 2

4 ZA

Os.

Acq

uisit

ion

of of

fice s

pace

mea

surin

gab

out 5

1,76

8 sq

. met

res o

f sup

er b

uilt

up a

rea

will

be

avai

labl

e to

miti

gate

the s

horta

ge of

offi

ce ac

com

mod

atio

nat

Del

hi .

Con

stru

ctio

n of

ATC

, Hos

tel-I

I with

mes

s at N

AD

T, N

agpu

r

Con

stru

ctio

n of

offi

ce b

uild

ing

Rev

enue

A

ccou

ntin

gM

ange

men

t Sof

twar

e

Impl

emen

tatio

n of

e-

paym

ent a

s man

date

d by

Fina

nce M

inist

er in

all 2

4ZA

Os

Maj

or H

ead

4059

–C

apita

l out

lay

on p

ublic

wor

ks –

off

ice b

uild

ings

Purc

hase

of

O

ffic

eac

com

mod

atio

n at

Civ

icC

entre

, Min

to R

oad,

New

Del

hi.

Con

stru

ctio

n of

Adv

ance

d T

rain

ing

Cen

tre,

hos

tel

& M

ess

NA

DT,

Nag

pur

Purc

hase

of N

BCC

Plaz

a,Sa

ket,

Del

hi

Serv

ers,

Com

pute

rs a

nd P

rinte

rs f

orim

plem

enta

tion

of R

AM

S in

ZA

Os

have

bee

n pu

rcha

sed

and

inst

alle

d in

24 Z

AO

s . M

odifi

catio

n/ U

p gr

adat

ion/

Cus

tom

izat

ion

of R

AM

S so

ftw

are

succ

essf

ully

impl

emen

ted

in 2

4 ZA

Os.

Fund

s hav

e bee

n ut

ilize

d fo

r pur

chas

eof

Ser

vers

, Com

pute

rs a

nd P

rinte

rs fo

rim

plem

enta

tion

of e

-Pay

men

t an

din

stal

led

in 2

4 ZA

Os

. Mod

ifica

tion/

Up

grad

atio

n/ C

usto

miz

atio

n of

RA

MS

soft

war

e su

cces

sful

lyim

plem

ente

d in

24

ZAO

s.

Act

ual e

xpen

ditu

re a

s on

31.1

2.20

11–

` 41

.66

cror

e

Rs.

600

cror

e w

ere

prov

ided

in

BE.

The b

udge

t pro

visio

n ha

s bee

n re

duce

dto

Rs.3

39 c

rore

in R

E 20

12-1

3.

App

rox.

61%

wor

k ha

s bee

n co

mpl

eted

till 3

1.12

.201

2. T

he am

ount

pro

vide

dha

s bee

n ut

ilize

d.

Fina

l pa

ymen

t of

Rs.

5.00

cro

rere

leas

ed o

n 12

.6.2

012.

Com

pila

tion

of

Rev

enue

Acc

ount

s, D

ata

trans

fer

toce

ntra

lized

Dat

abas

e Ser

ver

at

NIC

H

yder

abad

&

oper

atio

nalis

ing

the

B.I.

App

lica

tion

to

gene

rate

vari

ous M

IS

Impl

emen

ting

ele

ctro

nic

paym

ent i

n al

l 24

ZAO

s.

To fu

lfill

the

need

of h

avin

ga t

rain

ing

for a

dvan

ce co

urse

incl

udin

g tra

inin

g of

fore

ign

offi

cial

s an

d in

crea

sing

need

s of

acc

omm

odat

ion

aris

ing

at N

AD

T, N

agpu

r of

incr

ease

d pa

rtic

ipan

ts a

ndco

urse

s.

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e

777.

4842

6.20

31

.9.2

013

10.

6.20

13

Outcome Budget 2013-2014

135

12

34

56

74(

i)4(

ii)BE

RE

Con

stru

ctio

n of

offi

cebu

ildin

g fo

r I.T

. Dep

tt at

Noi

da.

Con

stru

ctio

n of

gue

stho

use

at G

olf

Link

s,N

ew D

elhi

.

Con

stru

ctio

n of

RT

IBu

ildin

g M

ohal

i

Con

stru

ctio

n of

offi

cebu

ildin

g at

Fer

ozab

ad

Con

stru

ctio

n of

offi

cebu

ildin

g at

Ban

galo

re

Con

stru

ctio

n of

offi

cecu

m re

siden

tial b

uild

ing

at L

uckn

ow

Con

stru

ctio

n of

offi

cecu

m re

siden

tial b

uild

ing

at S

rinag

ar

Con

stru

ctio

n of

offi

cean

d res

iden

tial q

uarte

rsat

Sha

hjah

anpu

r

Con

stru

ctio

n of

offi

cecu

m re

siden

tial b

uild

ing

at

Nar

iman

Poi

nt,

Mum

bai.

IV V VI

VII

VIII

IX X XI

XII

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e

To m

itiga

te th

e sh

orta

ge o

fG

uest

Hou

se.

To en

hanc

e tra

inin

g ca

paci

ty

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e

To m

itiga

te th

e sh

orta

ge o

fof

fice

spac

e

To m

itiga

te th

e sh

orta

ge o

fof

fice/

resi

dent

ial s

pace

To m

itiga

te th

e sh

orta

ge o

fof

fice

and

resi

dent

ial s

pace

To m

itiga

te th

e sh

orta

ge o

fof

fice

and

resi

dent

ial s

pace

To m

itiga

te th

e sh

orta

ge o

fre

side

ntia

l cu

m

offi

ceac

com

mod

atio

n.

Con

stru

ctio

n of

offi

ce b

uild

ing

atN

oida

.

Con

stru

ctio

n of

Gue

st H

ouse

at G

olf

Link

s, N

ew D

elhi

.

Con

stru

ctio

n of

reg

iona

l tr

aini

ngce

ntre

Con

stru

ctio

n of

offi

ce

Con

stru

ctio

n of

offi

ce

Con

stru

ctio

n of

the

off

ice

cum

resi

dent

ial b

uild

ing

Con

stru

ctio

n of

the

off

ice

cum

resi

dent

ial b

uild

ing

Con

stru

ctio

n of

the

off

ice

cum

resi

dent

ial b

uild

ing

Res

iden

tial

qua

rter

s an

d of

fice

acco

mm

odat

ion

at N

arim

an-P

oint

Mum

bai

Con

stru

ctio

n w

ork

unde

r pr

ogre

sslik

ely

expe

nditu

re i

n FY

201

2-13

Rs.7

.70

cror

e.

Prop

osal

has

not

tak

en o

ff d

ue t

odi

ffere

nces

with

exe

cutin

g ag

ency

.

Prop

osal

und

er p

roce

ss.

Con

stru

ctio

n w

ork

is u

nder

pro

gres

s.

In v

iew

of th

e titl

e sui

t in

Hon

’ble

Hig

hC

ourt

of K

arna

taka

, the

pro

posa

l cou

ldno

t be

put u

p fo

r app

rova

l. H

owev

er,

now

the

stay

has

bee

n va

cate

d an

d th

epr

opos

al is

now

und

er p

roce

ss.

Rs.4

4.00

cro

re w

ere

appr

oved

in B

Ew

hich

wer

e red

uced

to N

IL in

vie

w o

fth

e pr

ogre

ss o

f th

e pr

opos

al a

t R

Est

age.

Rs.1

0.00

cro

re w

ere

appr

oved

in B

Ew

hich

was

redu

ced

to N

IL in

vie

w o

fth

e pr

ogre

ss o

f th

e pr

opos

al a

t R

Est

age.

Pro

posa

l und

er p

roce

ss.

Proj

ect i

s und

er ex

amin

atio

n .

Prop

osal

is u

nder

exam

inat

ion

31

.3.2

012

31

.3.2

013

31

.3.2

013

18 m

onth

s fr

omth

e da

y of

sanc

tion

orde

r is

rece

ived

.

24 m

onth

s fr

omth

e da

y of

sanc

tion

orde

r is

rece

ived

.

24 m

onth

s fr

omth

e da

y of

sanc

tion

orde

r is

rece

ived

.

46 m

onth

s fr

omth

e da

y of

sanc

tion

orde

r is

rece

ived

.

Direct Taxes

136

12

34

56

74(

i)4(

ii)BE

RE

MH

421

6 –

Cap

ital

Out

lay

on

publ

icw

orks

- H

ousi

ng

Prop

osal

fo

rco

nstr

ucti

on

ofre

side

ntia

l co

mpl

ex a

tPu

ne.

Con

stru

ctio

n of

resi

dent

ial

quar

ters

at

Jam

mu

3 I II

To m

itiga

te th

e sh

orta

ge o

fre

side

ntia

l acc

omm

odat

ion.

To m

itiga

te th

e sh

orta

ge o

fre

side

ntia

l acc

omm

odat

ion

and

prov

ide

bette

r wor

king

envi

ronm

ent f

or th

e offi

cers

(offi

cial

s of t

he D

epar

tmen

tre

sulti

ng in

bet

ter t

ax p

ayer

serv

ices

)

Con

stru

ctio

n of

resi

dent

ial c

ompl

ex

Com

men

cem

ent

of c

onst

ruct

ion

ofth

e offi

ce cu

m re

side

ntia

l bui

ldin

g

Act

ual e

xpen

ditu

re a

s on

31.1

2.20

12is

` 0

.46

cror

e

Rs.2

5.00

cro

re w

ere

appr

oved

in B

Ew

hich

was

red

uced

to

Rs.1

cro

re i

nvi

ew o

f the

pro

gres

s of t

he p

ropo

sal a

tR

E st

age.

T

he p

ropo

sal

is b

eing

exam

ined

.

Con

stru

ctio

n w

ork

is in

pro

gres

s.

30.0

06.

00

26 m

onth

s fr

omth

e da

y of

sanc

tion

orde

r is

rece

ived

.

Outcome Budget 2013-2014

137

Review of Past performance- Scheme-wise Physical Performance

CBDT is engaged in overall administration and collectionof direct taxes. The physical performance of the Income TaxDepartment as a whole in various key areas has been presentedas under:-

i. The collection of direct taxes has more than doubledfrom Rs. 2,30,181 crore in FY 2006-07 to Rs 4,94,799crore (provisional) in FY 2011-12 at an average annualgrowth of 19.16%. In FY 2007-08 the share of directtaxes exceeded the share of indirect taxes for the firsttime contributing around 52.6% of the Central Taxes.This trend has continued since then. During FY 2011-12 the share of Direct Taxes to the Total Central taxesCollection (excluding Taxes on Union Territories) was55.78%.

ii. The Direct Tax-GDP ratio has increased from 5.36%in FY 2006-07 to 5.59% in FY 2011-12. However, thecost of collection measured in terms of totaladministrative cost as compared to the revenuegenerated marginally increased from 0.59% to 0.64%in the period 2006-07 to 2010-11. However, it hasdecreased to 0.60% for FY 2011-12. It is amongst thelowest in the World.

iii. During the FY 2011-12, the department collected Rs.21,882 crore from arrear demand which is 82.8% higherthan the collection of the previous Financial Year. Withrespect to current demand, collection for FY 2011-12dropped from Rs.41,704 crores in FY 2010-11 toRs.33,138 in FY 2011-12.

iv. The TDS administration by the department has beenshowing an impressive performance over the past few

years. For FY 2011-12 total collection from TDS wasRs. 193887 crore (provisional) which is 39.19% of thetotal Direct Taxes Collections. Total collection fromTDS during FY 2010-11 was Rs 168669.69 crore. Thus,the growth in TDS Collection has gone up substantially.

v. E-governance initiatives by the Income Tax Departmenthave resulted in providing some of the best e-deliveryof services by a Government Department to citizen.Facilitating e-filing of returns, e-filing of TDS/TCSreturns, e-payment of taxes, and electronic credit ofrefunds directly to the taxpayer’s bank account are someof the illustrative initiatives that have drawn praise fromall quarters. The Centralized Processing Center (CPC)at Bengaluru has been able to reduce the time taken toprocess Income Tax Returns that were e-filed.Introduction of Refund Banker Scheme has resulted inhuge drop in refund related grievances as refund isissued immediately after being raised. PAN relatedservices have also been outsourced for better taxpayerservices. Stabilization of Form 26AS, that includes thedetail of tax paid by taxpayers, has resulted in fasterprocessing of returns of income. Form 16A is now tobe compulsorily generated online on the basis of theTDS return filed by the deductor. Similarly, from FY2013-14, Form 16 shall also be required to becompulsorily generated online. This will ensure stabilityof data and reduce TDS mismatching. CPC-TDS atGhaziabad is expected to be operational this FinancialYear and will be a major step in boosting the efficiencyof the Income tax Department.

Direct Taxes

138

FIN

AN

CIA

L R

EVIE

WST

ATE

ME

NT

SHO

WIN

G A

CT

UA

L E

XPE

ND

ITU

RE

VIS

-A-V

IS B

E/R

E P

RO

VIS

ION

S FO

R T

HE

YE

AR

S 20

10-1

1, 2

011-

12 A

ND

201

2-13

(` in

cro

re)

Des

crip

tion

2010

-11

2011

-12

2012

-13

Maj

or H

ead

B.E

R.E

.A

ctua

lB

.ER

.E.

Act

ual

B.E

R.E

Act

ual

Up

to31

.12.

12

RE

VE

NU

E S

EC

TIO

NC

olle

ctio

n of

taxe

s on

inco

me

and

expe

nditu

re20

2027

73.8

826

66.9

326

30.5

029

01.4

529

16.7

829

04.4

529

94.4

032

18.9

724

44.3

2C

olle

ctio

n of

Est

ate

Dut

y, Ta

xes o

nW

elat

h an

d G

ift T

ax *

2031

71.1

268

.38

67.4

574

.40

74.7

974

.40

0.00

Col

lect

ion

of T

axes

on

Wea

lth,

Secu

rity T

rans

actio

n Ta

x an

d O

ther

Taxe

s76

.78

82.5

40.

00

TOTA

L R

EV

EN

UE

SE

CT

ION

2845

.00

2735

.31

2697

.95

2975

.85

2991

.57

2978

.85

3071

.18

3301

.51

2444

.32

CA

PITA

L SE

CT

ION

Purc

hase

of r

eady

bui

lt of

fice

buid

ling

4059

1663

.00

1561

.59

1527

.23

877.

7031

7.51

256.

5377

7.48

426.

2041

.65

Purc

hase

of r

eady

bui

ltre

side

ntia

l bu

idlin

g42

1615

.00

47.4

143

.41

27.0

05.

003.

1830

.00

6.00

0.46

Acq

uisi

tion

of im

mov

able

pro

perty

unde

r Inc

ome T

ax A

ct40

751.

001.

001.

651.

001.

701.

291.

801.

800.

65

TOTA

L C

API

TAL

SEC

TIO

N16

79.0

016

10.0

015

72.2

990

5.70

324.

2126

1.00

809.

2843

4.00

42.7

6

GR

AN

D T

OTA

L45

24.0

043

45.3

142

70.2

438

81.5

533

15.7

832

39.8

538

80.4

637

35.5

124

87.0

8

* Es

tate

Dut

y Tax

( Gift

Tax

-abo

lishe

d) m

erge

d w

ith O

ther

Tax

es a

nd is

not

in o

pera

tion

w.e.

f. 1-

4-20

12.

138Outcome Budget 2013-2014

Rev

enue

Sec

tion

Sala

ries

1700

.00

1710

.25

1689

.62

1831

.55

1781

.17

1779

.98

1923

.67

2002

.09

1652

.60

Wag

es18

.00

17.0

016

.72

17.0

017

.00

17.1

718

.36

18.1

513

.38

Ove

rtim

e Allo

wan

ce1.

000.

800.

650.

800.

800.

560.

800.

500.

30

Med

ical

Tre

atm

ent

21.0

021

.00

20.3

522

.00

25.0

023

.36

22.0

021

.00

13.5

8

Dom

estic

Tra

vel E

xpen

ses

35.0

035

.00

35.9

135

.00

45.0

043

.77

40.0

044

.00

30.6

8

Fore

ign

Trav

el E

xpen

ses

1.10

1.10

0.66

1.10

2.10

1.17

2.10

1.80

0.70

Offi

ce E

xpen

ses (

Cha

rged

)0.

020.

000.

000.

000.

000.

000.

000.

000.

00

Offi

ce E

xpen

ses

(Vot

ed)

499.

9845

0.94

464.

4951

3.90

522.

8053

4.83

514.

0051

6.30

354.

95

Rent

Rat

es&

Taxe

s20

0.00

160.

0014

2.77

180.

0014

7.00

116.

6216

0.00

130.

0085

.99

Publ

icat

ions

2.80

2.50

2.38

2.80

2.80

2.74

2.80

2.52

1.62

BCTT

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Oth

er A

dmin

istr

ativ

e Exp

ense

s10

.30

17.4

217

.62

23.3

029

.40

26.2

234

.15

34.3

725

.25

Adv

. & P

ublic

ity40

.00

80.0

078

.36

80.0

010

0.00

78.3

580

.00

79.0

038

.33

Min

or W

orks

9.00

7.50

6.14

8.00

8.00

6.61

8.00

8.00

1.85

Prof

essi

onal

Ser

vice

s23

.00

23.0

021

.98

26.0

030

.00

31.3

26.0

030

.96

16.3

9

Gra

nts-

in-a

id0.

000.

000.

040.

000.

000.

000.

000.

000.

00

Con

tribu

tions

0.30

0.30

0.19

0.40

0.40

0.37

0.40

0.40

0.24

Secr

et S

ervi

ce E

xpen

ses

4.00

4.25

4.54

4.50

5.60

5.55

9.40

8.46

4.03

Oth

er C

harg

es4.

504.

253.

344.

504.

503.

114.

503.

961.

06

Info

rmat

ion

Tech

nolo

gy27

5.00

200.

0019

2.21

225.

0027

0.00

307.

1422

5.00

400.

0020

3.37

TOTA

L R

EV

EN

UE

SE

CT

ION

2845

.00

2735

.31

2697

.97

2975

.85

2991

.57

2978

.85

3071

.18

3301

.51

2444

.32

OB

JEC

T H

EA

D-W

ISE

EX

PEN

DIT

UR

E V

IS-A

-VIS

BE

/RE

FO

R T

HE

YE

AR

S 20

10-1

1, 2

011-

12 A

ND

201

2-13

(` in

cro

re)

Des

crip

tion

2010

-11

2011

-12

2012

-13

B.E

R.E

.A

ctua

lB

.ER

.E.

Act

ual

B.E

R.E

Act

ual

Up

to31

.12.

12

139 Direct Taxes

(` in

cro

re)

Des

crip

tion

2010

-11

2011

-12

2012

-13

B.E

R.E

.A

ctua

lB

.ER

.E.

Act

ual

B.E

R.E

Act

ual

Up

to31

.12.

12

Cap

ital s

ectio

nM

H-4

059

Purc

hase

of r

eady

bui

lt of

fice

buid

ling

1663

.00

1561

.59

1527

.23

877.

7031

7.51

256.

5377

7.48

426.

2041

.65

MH

-421

6 Pu

rcha

se o

f rea

dy b

uilt

resi

dent

ial

buid

ling

15.0

047

.41

43.4

127

.00

5.00

3.18

30.0

06.

000.

46

MH

-407

5 Acq

uisi

tion

of im

mov

able

pro

perty

unde

r Inc

ome T

ax A

ct1.

001.

001.

651.

001.

701.

291.

801.

800.

65

TOTA

L C

API

TAL

SEC

TIO

N16

79.0

016

10.0

015

72.2

990

5.70

324.

2126

1.00

809.

2843

4.00

42.7

6

GR

AN

D T

OTA

L45

24.0

043

45.3

142

70.2

438

81.5

533

15.7

832

39.8

538

80.4

637

35.5

124

87.0

8

140Outcome Budget 2013-2014

Sum

mer

ized

pos

ition

of S

chem

es u

nder

Out

com

e B

udge

t 201

3-14

(` in

cro

re)

Sl.

No.

Sche

me

2010

-11

2011

-12

2012

-13

B.E

R.E

.A

ctua

lB

.ER

.E.

Act

ual

B.E

R.E

Act

ual

Up

to31

.12.

12

141

1Sc

hem

e und

er ‘I

nfor

mat

ion

Tech

nolo

gy’

in re

spec

t of M

ajor

Hea

d 20

20 -

Col

lect

ion

of In

com

e Tax

- N

on-P

lan

275.

0020

0.00

192.

2122

5.00

270.

0030

7.14

225.

0040

0.00

203.

37

2Pu

rcha

se o

f Offi

ce A

ccom

mod

atio

n16

63.0

015

61.5

915

27.2

387

7.70

317.

5125

6.53

777.

4842

6.20

41.6

5

3Pu

rcha

se o

f Rea

dy B

uilt

Flat

s15

.00

47.4

143

.41

27.0

05.

003.

1830

.00

6.00

0.46

TOTA

L19

53.0

018

09.0

017

62.8

511

29.7

059

2.51

566.

8510

32.4

883

2.20

245.

48

Perc

enta

ge w

ith re

fere

nce t

o RE

97.4

595

.67

29.5

0

Direct Taxes

142

Analysis of Expenditure Trends in Grant No. 42 – Direct Taxes

During 2012-13, total expenditure incurred upto 31December 2012 is ` 2487.08 Crore which works out to be64.09% of total BE Provision 2012-13. Out of this, theexpenditure under Revenue Section is` 2444.32 Crore which is 79.59% of BE Provision 2012-13under this section. Provision for ‘Salaries’ is ` 1923.67 croreagainst which the expenditure upto 31 December 2012 is`1652.60 crore. Another major constituent of expenditure underRevenue Section is ‘Office Expenses’ with a BE Provision of` 514.00 Crore against which expenditure incurred upto 31December 2012 is ` 354.95 Crore. Information Technology

(O.E.) is other important constituent for which provision of` 225 crore has been made in B.E. against which the expenditureupto 31 December 2012 is ` 203.37 Crore. Under ‘CapitalSection’, the expenditure upto 31 December 2012 is ` 42.76Crore which works out to be 5.28% of BE Provision under thissection. The Expenditure under ‘Capital Section’ will lookhealthier once a major chunk of ` 300.00 crore provided underthis segment is paid to MCD, Delhi for Civic Center project.The payment will mature in last quarter of the year. Majorconstituents of B.E. 2012-13 are depicted below-

Outcome Budget 2013-2014

: In the view of the current trend of expenditure and also the physical progress of work, the provisions in R.E. 2012-13 has beenkept at ` 3735.51 crore(gross).

The percentage allocation of sanctioned grant under variousobject head is as under

(`in Crores)

PARTICULARS B.E.2012-13 PERCENTAGE

CAPITAL 809.28 20.86

SALARY & WAGES 1942.03 50.05

OFFICE EXPENSES 516.30 13.26

RENT, RATES &

TAXES 160.00 4.12

INFORMATION

TECHNOLOGY 225.00 5.79

OTHERS 227.85 5.92

TOTAL 3880.46 100

143 Direct Taxes

ANNEXUREGrant No.43 – Direct Taxes (Earlier 42)

Statement on Surrender and Savings during the Financial Year 2011-12

During the Financial Year 2011-12 against a budgetary provision of Rs.3897.27 crore including the Supplementary Grantsan expenditure of Rs.3239.85 crore was incurred during the year resulting in a savings of Rs.657.42 crore. These saving are the neteffect of the total savings of Rs.900.62 crore and total excess for Rs.243.20 crore under various sub heads of the Revenue andCapital Section of the Grant.

Major savings have been segregated into the following categories:

i) Normal Savings : Savings resulting from economic use of Resources

(`in Crores)

Sl. No. Sub Head/Scheme/Programme Savings Remarks /Reasons

1 Research,Statistics and Publication 7.06 Less requirement of administrative expenses. Out ofthis Rs.6.24 crore re-appropriated to other heads.

2. Organisation and Management Service 2.26 Less requirement of administrative expenses.3 Intelligence 5.53 Less requirement of administrative expenses . This

amount was re-appropriated to other heads.4. Commissioner and their Offices 238.32 Less requirement of administrative expenses . Out of

this Rs.237.08 crore re-appropriated to other heads.5. Zonal Accounts Offices of PC CA 3.12 Less requirement of administrative expenses.

(ii) Under/Non utilization : Saving due to non-implementation/delay in execution of projects/schemes; and

Sl. No. Sub Head/Scheme/Programme Savings Remarks /Reasons

1 Capital Outlay on Public Works (Office Building) 604.00 Rs 600.00 crore provided in BE for Purchase of Officeaccommodation at Civic Centre, Minto Road, New Delhifor making payment of Final tranche to MCD had to besurrendered in RE considering the stage of completionof the project. Rs.4.00 crore was provided for guesthouse at Golf Links, New Delhi. The project could notbe started as agreement with NBCC could not befinalized.

Capital Outlay on Housing 23.82 Rs.15.00 crore was provided for Construction ofresidential cum office building at Nariman Point ,Mumbai. Rs.8.00 crore was provided for Constructionof residential complex including a community hall atHadapsar, Pune. Both the projects could not be finalized.

(iii) Surrenders : savings due to obsolete/defunct project/scheme or due to completion of a project/scheme and the funds are nomore required.

Sl. No. Sub Head/Scheme/Programme Savings Remarks /Reasons

1 Capital Outlay on Public Works (Office Building) 17.17 Construction and furnishing of Office Building at Saket,New Delhi. The project has been shelved.

Note : This annexure is included in compliance of O.M. No.7(1)-B(AC)/2011 dated 23.03.2012 of Budget Division regarding segregation ofsavings, due to normal Savings, under /non-utilisation & surrender of funds for the financial year 2011-12 as desired by the StandingCommittee on Finance in its 33rd Report.

145 Indirect Taxes

INDIRECT TAXESINTRODUCTION

This Demand deals with the establishments of field

formations under Central Board of Excise & Customs which is

responsible for formulation of policy concerning levy and

collection of Customs and Central Excise duties, Service Tax,

prevention of smuggling and evasion of duties. The assigned

task is done with the help of 94 Commissionerates of Central

Excise, 35 Commissionerates of Customs and 6

Commissionerates of Service Tax. There is Appellate and Tax

Recovery Machinery for performing quasi-judicial task of

deciding appeals against orders passed by the officers lower in

rank than the Commissioner. In its functioning, the Board is

assisted by the following attached/subordinate offices:-

i. Directorate of Central Excise Intelligence

ii. Directorate of Revenue Intelligence

iii. Directorate of Inspection

iv. Directorate of Human Resource Development

v. National Academy of Customs,

Excise and Narcotics

vi. Directorate of Vigilance

vii. Directorate of Systems

viii. Directorate of Data Management

ix. Directorate of Audit

x. Directorate of Safeguards

xi. Directorate of Export Promotion

xii. Directorate of Service Tax

xiii. Directorate of Valuation

xiv. Directorate of Publicity and Public Relations

xv. Directorate of Logistics

xvi. Directorate of Legal Affairs

xvii. Office of Chief Departmental Representative

xviii. Central Revenues Control Laboratory

The Principal Chief Controller of Accounts for CBEC is

responsible for accounting the revenue collections as well as

expenditure incurred by the Department.

The Demand covers provision for a work force of 53,458

officers and staff, of which 30.97% are gazetted officers and

the remaining are non-gazetted employees.

The activities indicating 'outlays' and 'outcomes' for the

financial year 2013-14 are given in the subsequent statement.

147 Indirect Taxes

S. No. 1

1.M

ajor

Hea

d 20

37an

d 20

38 -

Info

rmat

ion

Tech

nolo

gy

Stre

ngth

enin

g of

IT

capa

bilit

y fo

re-

gove

rnan

ce

152.

00N

IL- S

ettin

g up

of a

n A

ll-In

dia

Wid

e Are

a N

etw

ork.

Co

un

try

-wid

eco

nnec

tivi

ty o

f al

lof

fices

und

er C

BEC

to th

e N

atio

nal D

ata

Cen

tre,

B

usin

ess

Con

tinu

ity

and

Dis

aste

r R

ecov

ery

Site

s.

The W

ide A

rea

Net

wor

k(W

AN

) ha

s be

enim

plem

ente

d by

BSN

L at

528

CB

EC

sit

es.

The

impl

emen

tatio

n of

the

WA

N p

roje

ct h

as b

een

com

plet

ed e

xcep

t fo

rsi

tes

faci

ng s

hifti

ng o

rot

her

forc

e m

ajeu

reis

sues

. H

elpd

esks

hav

ebe

en p

rovi

sion

ed f

orad

dres

sing

WA

N is

sues

.A

dditi

onal

loca

tions

are

bein

g br

ough

t und

er th

eW

AN

pro

ject

.

The W

AN

is u

nder

op

era

tio

na

lsu

ppor

t an

dm

ain

ten

ance

.I

nt

er

ne

tba

ndw

idth

at

DC

and

DR

has

been

incr

ease

d to

enab

le f

ilin

g of

Cent

ral E

xcise

and

Serv

ice

Tax

retu

rns w

hich

has

been

m

ade

ma

nd

ato

ry

.D

ed

ic

at

ed

Con

nec

tiv

ity

betw

een

data

Cen

tre

and

Dis

aste

r Rec

over

ySi

te

has

been

prov

isio

ned

toen

sure

fa

ster

repl

icat

ion

of d

ata

to D

R In

crea

se in

band

wid

th

atm

ajor

loca

tions

isbe

ing

prov

isio

ned

to

cate

r to

incr

ease

d dem

and.

STAT

EM

EN

T O

F O

UT

LAY

S A

ND

OU

TC

OM

ES

2013

-14

Nam

e of

the

Sche

me/

Prog

ram

me

2

Obj

ectiv

e/O

utco

me

3

Out

lay

2013

-14

(` In

Cro

re)

44(

i)4(

ii)N

on-

Plan

Plan

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Proj

ecte

dO

utco

mes

6

Proc

esse

s/Ti

mel

ines

7

Rem

arks

/R

iskFa

ctor

s

8

148Outcome Budget 2013-2014

- In

stal

latio

n of

Cen

tral

serv

ers (

hard

war

e, st

orag

ean

d se

curit

y inf

rast

ruct

ure)

i.e. S

yste

ms I

nteg

ratio

n

- Pr

ovis

ion

of l

ocal

are

ane

twor

k to

all d

epar

tmen

tal

user

s

- E

stab

lishm

ent

of D

ata

War

ehou

se

Acq

uiri

ng o

f ne

wge

nera

tion

ser

vers

and

stor

age

equi

pmen

t to

prov

ide

ce

nt

ra

li

ze

dco

mpu

ting

, da

tast

orag

e,

secu

rity

infr

astr

uct

ure

,fa

cilit

ies m

anag

emen

tan

d re

late

dfu

nctio

nalit

ies

to a

llD

epar

tmen

tal

and

exte

rnal

us

ers

acce

ssin

g th

e C

BEC

syst

em. A

ll re

leva

ntap

plic

atio

ns w

ould

be

host

ed

on

the

ce

nt

ra

li

ze

din

frastr

uctu

re.

Prov

ision

of lo

cal a

rea

netw

ork

to

all

Dep

artm

enta

l use

rs.

CBE

C w

ould

bec

ome

a ce

ntra

lize

dre

posi

tory

of

al

lC

usto

ms,

C

entr

alE

xcis

e an

d Se

rvic

e

The

pro

ject

has

bee

nim

plem

ente

d.E

quip

men

t ha

s be

enin

stal

led

and

com

mis

sion

ed

and

Syst

em

Acc

epta

nce

mile

ston

e re

ache

d, i

.e.

appl

icat

ions

for c

usto

ms

and

cent

ral

exci

se a

ndse

rvic

e ta

x ha

ve b

een

porte

d an

d ar

e ru

nnin

gfr

om th

e th

ree

natio

nal

data

cen

tres.

Pers

onne

lha

ve b

een

depl

oyed

for

exte

ndin

g Fa

cili

tyM

anag

emen

t sup

port

for

five

year

s.

Loc

al A

rea

Net

wor

kCo

nnec

tivity

has

alre

ady

been

pro

vide

d to

CBE

Cus

ers

in 1

166

build

ings

wit

h re

quis

ite

ITha

rdw

are

such

as

Thin

Cli

ents

, N

etw

ork

Prin

ters

, Pri

nt S

erve

rs,

and

Scan

ners

etc.

The

pro

ject

has

bee

nim

plem

ente

d an

d is

now

unde

r m

aint

enan

ce.

Var

ious

A

naly

tica

lre

port

s on

Cus

tom

s,

AW

AR

DS

&CE

RTIF

ICAT

IONS

.IS

O

2700

1ce

rtific

atio

n in

Jul

y20

11-T

he

proj

ect

was

cer

tifie

d fo

rco

mpl

ianc

e to

ISO

2700

1 sta

ndar

ds o

fIn

form

ation

Secu

rity

by S

TQC

(a b

ody

unde

r Dep

t. of

IT)

"Sec

urit

y in

e-

go

ve

rn

an

ce

"aw

ard

by D

ata

Secu

rity

Cou

ncil

of In

dia (

DSC

I) in

Dec

embe

r, 20

12.

The L

AN

has

been

impl

emen

ted

and

is u

nder

tech

nica

lsu

ppor

t an

dm

aint

enan

ce.

The

faci

litie

s ar

ebe

ing

enha

nced

tom

eet

the

dem

and

for

addi

tion

alno

des

and

equi

pmen

t suc

h as

line p

rinte

rs.

The

D

ata

War

ehou

se

isun

der

tech

nica

lsu

ppor

t an

dm

aint

enan

ce.

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

149 Indirect Taxes

- A

utom

atio

n of

Cen

tral

Exc

ise

& S

ervi

ce T

ax(A

CES

)

Tax

Dat

a. T

his w

ould

be av

aila

ble t

o al

l use

rgr

oups

ov

er

the

MPL

S ne

twor

k(C

BEC

WA

N)

with

user

fr

iend

lyin

terf

ace,

fo

ran

alyt

ical

rep

ortin

gpu

rpos

es i

nclu

ding

data

min

ing.

Ens

urin

g a

larg

ede

gree

of

tran

spar

ency

an

dre

duce

d int

erfa

ce w

ithC

entr

al E

xcis

e an

dSe

rvic

e Tax

ass

esse

esth

roug

h au

tom

ated

wor

kflo

w

of

all

busi

ness

pro

cess

es.

Cen

tral

E

xcis

e an

dSe

rvic

e Tax

(bot

h re

turn

san

d pa

ymen

ts d

ata)

hav

ebe

en

deve

lope

d an

dho

sted

on

the

ED

Wpo

rtal,

usin

g th

e ' b

est o

fbr

eed'

B

usin

ess

Inte

llig

ence

sof

twar

eto

ols.

Soph

istic

ated

dat

aan

alys

is h

as b

een

take

nup

by

the

stat

isti

cal

serv

ice

cent

re s

et u

p as

part

of th

e DD

W P

roje

ct..

AC

ES

has

been

impl

emen

ted

in a

ll 10

4C

entr

al

Exc

ise

and

Serv

ice

Tax

Com

mis

sione

rate

s.

Ad

dit

ion

al

licen

ces

are

bein

gpr

ocur

ed

for

CBE

C o

ffice

rs fo

rfa

cilit

atin

g ac

cess

to

the

data

War

ehou

se

and

trai

ning

ses

sion

sfo

r fi

eld

form

atio

ns h

ave

been

org

aniz

ed.

Requ

ests

for

dat

afr

om t

he B

oard

,T

RU

and

oth

erof

fice

s ar

e al

sobe

ing

proc

esse

d on

day

to d

ay b

asis

.

The A

CES

pro

ject

has

been

impl

emen

ted

and

is u

nder

tech

nica

lsu

ppor

t an

dm

aint

enan

ce.

Ad

dit

ion

al

func

tiona

litie

s ar

epl

anne

d su

ch a

sde

tail

ed

MIS

Rep

orts

cov

erin

gC

entra

l Exc

ise an

dSe

rvic

e Ta

xR

egis

trat

ion

,Re

turn

s, A

udit

and

Refu

nds.

Furt

her,

the

AC

ES w

ebsi

te

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

150Outcome Budget 2013-2014

The

Gat

eway

pro

ject

aim

s to

li

nk

the

Cus

tom

s co

mm

unity

thro

ugh

a si

ngle

netw

ork.

E-fi

ling

ofC

usto

ms

docu

men

tan

d e-

paym

ent

ofcu

stom

dut

y th

roug

hth

is

proj

ect

has

impr

oved

exc

elle

nce

in C

usto

ms

busi

ness

proc

ess

like

on-li

neas

sess

men

t,

duty

paym

ent

and

clea

ranc

e etc

. The

up

grad

atio

n ex

erci

se fo

rth

e gat

eway

pro

ject

isfo

r de

velo

pmen

t of

capa

bilit

ies t

o ha

ndle

elec

troni

c tra

nsac

tion

in a

con

soli

date

den

viro

nmen

t an

den

hanc

emen

t of

qual

ity

of s

ervi

cede

live

ry

to

the

Cus

tom

s T

radi

ngPa

rtner

s. It

has

also

esta

blis

hed

seam

less

- G

atew

ay P

roje

ct f

orC

usto

ms u

pgra

datio

nM

igra

tion

from

the I

CES

1.0

to t

he u

pgra

ded

vers

ion

of t

he C

usto

ms

EDI

Syst

em (

ICES

1.5

)w

as c

ompl

eted

for a

ll 41

Cus

tom

s lo

cati

ons

inA

pril

2011

. The

upgr

aded

vers

ion

of t

he C

usto

ms

ED

I Sy

stem

(I

CE

S,ve

rsio

n 1.

5) h

as b

een

impl

emen

ted

at

111

Cus

tom

s lo

cati

ons.

ICEG

ATE

for I

CES

1.5

isno

w o

pera

tiona

l at

111

Cus

tom

s loc

atio

ns to

o. It

also

shar

es h

uge

amou

ntof

dat

a w

ith th

e he

lp o

fm

ore t

han

127

mes

sage

s,ex

chan

ged

with

var

ious

trade

par

tner

and

oth

erG

ovt.

agen

cies

.

is

bein

g m

ade

bili

ngua

l an

din

tegr

atio

n of

AC

ES w

ith th

e e-

Biz

pr

ojec

t of

Dep

artm

ent

ofC

omm

erce

an

dIn

dust

ry i

s be

ing

impl

emen

ted.

ICES

1.5

is

now

impl

emen

ted at

111

Custo

ms l

ocat

ions

.N

ew fu

nctio

nalit

ies

incl

uded

in

the

appl

icat

ion

incl

ude

faci

lity

for

onlin

ere

fund

of

serv

ice

tax,

on

line

regi

strat

ion o

f DFI

Alic

ence

s, ce

ntra

lized

bond

man

agem

ent

and

e-pa

ymen

t of

cust

oms

du t

ies

from

any

of

the

auth

oriz

ed ba

nks a

tan

y cu

stom

slo

cati

on.

Oth

erm

odul

es s

uch

asau

tom

atio

n of

prec

ious

ca

rgo,

grea

ter

inte

grat

ion

wit

h A

CE

S an

dR

MS,

and

onl

ine

inte

rface

with

SEZ

are

unde

rde

velo

pmen

t. A

tpr

esen

t 12

7

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

151 Indirect Taxes

data

tra

nsm

issi

onam

ongs

t va

riou

sG

ovt.

Age

ncie

s.

RMS

seek

s to

prov

ide

trade

faci

litat

ion

and

effe

ctiv

e enf

orce

men

t

mes

sage

s ar

eex

chan

ged b

etw

een

cust

oms

and

its

Trad

e Pa

rtne

rsth

roug

h ICE

GAT

E.M

anda

tory

e-

paym

ent

mul

tiple

chal

lan

faci

lity

unde

r ne

w

e-pa

ymen

t ga

tew

ayha

s bee

n in

trodu

ced,

whi

ch h

as b

een

appr

ecia

ted by

trad

ean

d in

dust

ry a

t a

larg

e.

D

ata

trans

miss

ion w

ith e-

PAO

has

alr

eady

been

est

ablis

hed.

Onl

ine t

rans

miss

ion

of d

ocum

ents

and

Lice

nses

un

der

Cha

pter

-3 R

ewar

dSc

hem

e be

twee

nCu

stom

s and

DG

FTis

abou

nt to

star

t. It

is al

so p

ropo

sed

toim

plem

ent

the

rem

aini

ng m

essa

ges

wit

h th

e Tr

ade

Partn

ers f

inal

ized

inco

nsul

tatio

n w

ithth

em. D

iscus

sion

onon

line i

nter

face

with

SEZ

is in

pro

cess

.

A up

grad

ed ve

rsio

nof

R

isk

Ma

na

ge

me

nt

- Se

ttin

g up

of

R

isk

Man

agem

ent S

yste

m(R

MS)

A n

ew v

ersi

on o

f Ri

skM

anag

emen

t Sy

stem

(RM

S 3.

1) c

ompa

tible

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

152Outcome Budget 2013-2014

Syste

m (R

MS

3.1)

com

patib

le w

ith th

eIC

ES 1

.5 v

ersi

onha

s be

enim

plem

ented

and i

sno

w ro

lled o

ut in

79cu

stom

s loc

atio

ns.

It is

plann

ed th

at th

eRM

S w

ill

beim

plem

ente

d at

addit

ional

sites

and t

heex

tent

of

tra

defa

cilit

atio

n be

ing

prov

ided

w

ill

been

hanc

ed. R

MS

for

expo

rt ca

rgo

is als

opla

nned

.

Web

site

for

LTU

has b

een

set u

p.- S

ettin

g up

of a

por

tal f

orLa

rge T

axpa

yer U

nits

(LTU

)to

faci

litat

e tax

pay

ers.

ICE

S de

velo

pmen

t/m

aint

ence

of

ICES

1.0

&1.

5 ve

rsio

ns.

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

thro

ugh

inte

llige

ntin

terd

ictio

n of

onl

yhi

gh r

isk

carg

o fo

rcu

stom

s a

long

with

an an

assu

red c

usto

ms

clea

ranc

e pr

oced

ure

for

spec

ial

clie

nts

havi

ng g

ood

trac

kre

cord

and

who

mee

tsp

ecif

ied

crit

eria

iden

tifi

ed

by

the

Cus

tom

s.

- The

por

tal f

acili

tate

sfo

r tax

pay

ers i

n th

eir

inte

ract

ion

wit

hC

entr

al E

xcis

e &

Serv

ice

Tax

and

Inco

me

Tax/

Corp

orat

e Tax

. The

rew

ill b

e si

ngle

poi

ntin

terfa

ce be

twee

n Ta

xA

dmin

istr

atio

n of

CB

EC

/CB

DT

and

Larg

e Tax

paye

rs.

ICE

S 1.

0 ha

s be

enph

ased

out

and

ICES

1.5

has

been

deve

lope

d an

d ro

lled

out

at 1

09 C

usto

ms

loca

tions

. Pr

ojec

t is

wit

h th

e IC

ES

1.5

vers

ion

has

been

impl

emen

ted.

The n

ew v

ersi

on (R

MS

3.1)

is o

pera

tiona

l in7

9C

usto

ms

loca

tion

sin

clud

ing

the

23lo

cati

ons

whe

re o

ldve

rsio

n (R

MS

2.7)

was

in ex

isten

ce.

- A

n LT

U s

peci

fic

web

site

ha

s be

ende

velo

ped.

Th

e LT

Us

are

curr

entl

yop

erat

iona

l at

Ban

galo

re,

Che

nnai

,D

elhi

and

Mum

bai.

ICE

S 1.

5 is

und

erm

aint

enan

ce.

New

mod

ules

to

enha

nce

func

tiona

litie

s and

mee

tch

ange

s in

polic

ies a

reco

ntin

uous

ly d

evel

oped

153 Indirect Taxes

The

pi

lot

iscu

rren

tly

inm

ain

ten

an

ceph

ase.

____

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

in m

aint

enan

ce p

hase

alon

g w

ith

deve

lopm

ent

ofad

ditio

nal m

odul

es.

Con

duct

ing

As

Isst

udy

of e

xist

ing

ITin

fras

truc

ture

and

proc

esse

s fo

r al

lSt

ates

/UT

CTD

s an

dC

entre

; dev

elop

men

tof

the

Reg

istr

atio

n,Re

turn

s and

Pay

men

tm

odul

es o

f th

e pi

lot

port

al;

DPR

prep

arat

ion

for

GST

roll

out

and

mai

nten

ance

pha

se o

fsi

x m

onth

s fo

r th

ed

ev

el

op

ed

appl

icat

ions

.

Mod

ern

fast

ves

sels

will

stre

ngth

en a

nti-

smug

glin

g ca

pabi

lity

of

Cus

tom

sD

ep

ar

tme

nt.

Impr

oved

co

asta

lse

curi

ty w

ill g

reat

lyhe

lp

in

curb

ing

smug

glin

g of

dang

erou

s/pro

hibi

ted

good

s, pr

even

tion

ofen

viro

nmen

t haz

ards

and

prot

ecti

on o

fen

dang

ered

spec

ies.

and

adde

d to

ICES

1.5

.

Dev

elop

men

t ph

ase

for

the

mod

ules

of t

he p

ilot

porta

l has

end

ed a

nd th

ede

liver

y of

AS

Is re

ports

and

mod

ules

of

the

deve

lopm

ent p

hase

hav

ebe

en

pres

ente

d an

ddi

scus

sed

at v

ario

usfo

rum

s of

Cen

tre

and

Stat

es.

The

or

ders

fo

rpr

ocur

emen

t of C

ateg

ory

I, II

I A a

nd II

I B v

esse

lsnu

mbe

ring

87

w

ere

plac

ed

to

the

Boa

tBu

ilder

s in

the m

onth

of

Mar

ch, 2

007.

Ord

er f

orsu

pply

of

Cat

egor

y II

vess

els

num

beri

ng 2

2w

as p

lace

d w

ith th

e Boa

tB

uild

er i

n D

ecem

ber,

2008

.

In C

ateg

ory-

IIIA

and

IIIB,

all v

esse

ls (3

0 in

III-

Lim

ited

purp

ose

proo

f of

conc

ept/p

ilot

syst

em f

orEs

tabl

ishm

ent o

f Com

mon

Port

al

for

Goo

ds

&Se

rvic

e Tax

(GST

)

In C

ateg

ory-

II a

lso,

all

vess

els

wer

e re

ceiv

ed.

Thi

s co

mpl

etes

th

epr

ocur

emen

t of

all

109

Mar

ine V

esse

ls.

Maj

or H

ead

4047

-Pr

even

tive

Func

tions

-A

cqui

sitio

n of

ship

san

d fle

ets

2.St

reng

then

ing

Ant

i-sm

uggl

ing

capa

bilit

y an

dim

prov

ed co

asta

l sec

urity

17.9

5N

IL

154Outcome Budget 2013-2014

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

Inst

alla

tion

of 3

Mob

ileG

amm

a R

ay S

cann

ers,

plac

emen

t of o

rder

and

start

of c

ivil

cons

truct

ion

for

4Fi

xed

X-R

ay S

cann

ers a

t ato

tal

proj

ect

cost

of

Rs.1

72.9

4 cr

ore (

recu

rrin

g)an

d R

s.18

.61

cror

e pe

ran

num

(non

-rec

urrin

g)

No

n-i

ntr

usi

ve

scan

ning

of

cont

aine

rs

wou

ldst

art

at T

utic

orin

,C

henn

ai an

d K

andl

aPo

rts. F

ixed

scan

ners

wou

ld b

e in

stal

led

atTu

ticor

in,

Che

nnai

,K

andl

a and

Mum

bai

Ports

.T

he

Scan

ning

Syst

ems

will

hel

p in

dete

ctio

n of

lar

ger

num

ber

of c

ases

of

irre

gula

ritie

s. T

his

wil

l al

so r

esul

t in

A an

d 33

in II

I-B)

wer

ede

liver

ed b

y th

e B

oat

build

er b

y Ju

ne, 2

009.

In C

ateg

ory-

I, de

liver

yof

all

24 v

esse

ls w

asco

mpl

eted

by

Aug

ust,

2010

.

In C

ateg

ory-

II, d

eliv

ery

of a

ll 22

ve

ssel

s w

asco

mpl

eted

by

Dec

embe

r, 20

12.

Paym

ent

of c

ost

ofsp

ares

for C

ateg

ory

I &II

ves

sels

as

the

list o

fsp

ares

and

sup

ply

isex

pect

ed to

be f

inal

ized

in th

e nex

t fin

anci

al ye

ar20

13-1

4.

3 m

obile

scan

ners

and

4fix

ed sc

anne

rs ar

e lik

ely

to b

e in

stal

led

in 2

013-

14.

The l

ease

agre

emen

t for

acqu

irin

g la

nd

for

inst

alla

tion

of 3

mob

ilesc

anne

rs a

nd 4

fix

edsc

anne

rs h

ave

been

sign

ed w

ith

the

port

auth

orit

ies.

T

heco

ntra

cts f

or su

pply

and

inst

alla

tion

of a

ll 07

Scan

ners

hav

e be

ensi

gned

wit

h el

igib

le

The

pro

gres

s is

bein

g m

onito

red

byth

e Pr

ojec

tIm

plem

enta

tion

Com

mitt

ee.

Maj

or H

ead

4047

-A

cqui

sitio

n of

Ant

i-sm

uggl

ing

equi

pmen

ts

3.Fa

cilit

ate c

argo

clea

ranc

e,ef

fici

ent

hand

ling

of

incr

ease

d vo

lum

e of

cont

aine

r tra

ffic,

impr

oved

Cus

tom

s co

ntro

l th

roug

hno

n-in

trusiv

e exa

min

atio

n.

82.0

0N

IL

155 Indirect Taxes

12

34

56

78

4(i)

4(ii)

Non

-Pl

anPl

an

bidd

ers.

For c

onstr

uctio

n of

a n

ewof

fice

co

mpl

ex

for

Nat

iona

l A

cade

my

ofC

usto

ms,

E

xcis

e &

Nar

cotic

s (N

AC

EN)

atBa

ngal

ore.

Pur

chas

e of

buil

ding

fr

om

UT

I,M

umba

i, pa

ymen

t of

inre

spec

t of

NBC

C, P

laza

and

purc

hase

of

offic

ebu

ildin

g at

Guw

ahat

i and

for

othe

r sm

all p

ropo

sals

likel

y to

be m

ade.

-Pay

men

t of

sta

mp

duty

and

othe

r ch

arge

s to

be

mad

e to l

ocal

auth

ority

i.e.

Mun

icip

al C

orpo

ratio

n of

Gre

ater

M

umba

i in

resp

ect

of

buil

ding

purc

hase

d fro

m S

peci

fied

Und

erta

king

of U

nit T

rust

of I

ndia

in

Nov

embe

r,20

06 at

Mum

bai.

For

pur

chas

e of

67

flats

at

Nat

iona

l G

ames

Hou

sing

Com

plex

at

Ranc

hi, p

aym

ent

of R

s.12

.04

cror

es m

ade i

n tw

oin

stallm

ents

and

bala

nce

paym

ent o

f Rs.

1.24

cror

ew

ill b

e m

ade

at th

e tim

eof

taki

ng a

s pos

sess

ion.

incr

ease

d re

venu

eco

llec

tion

and

fas

tcl

eara

nce o

f car

go et

c.

The

ava

ilab

ilit

y of

adeq

uate

ow

n of

fice

spac

e w

ould

incr

ease

the

effic

ienc

y of

the

depa

rtmen

t.

The

ava

ilab

ilit

y of

re

si

de

nt

ia

lac

com

mod

atio

n w

illle

ad t

o hi

gher

sta

ffsa

tisfa

ctio

n re

sulti

ngin

en

hanc

edm

otiv

atio

n an

dpr

oduc

tivity

.

Paym

ent

in s

uch

case

s de

pend

s on

vario

us fo

rmal

ities

in

vo

lv

in

gco

nsul

tatio

n w

ithd

if

fe

re

nt

co

nc

er

ne

dau

thor

ities

.

The

deve

lope

r is

to

obta

inoc

cupa

ncy

and

Co

mp

leti

on

Cer

tific

ate.

Maj

or H

ead

4216

-A

cqui

sitio

n of

Resi

dent

ial

Acc

omm

odat

ion

To

mee

t sh

ortf

all

inr

es

id

en

ti

al

acco

mm

odat

ion

1.34

NIL

5.

Maj

or H

ead

4059

-A

cqui

sitio

n of

Offi

ceA

ccom

mod

atio

n

To m

eet s

hortf

all i

n of

fice

acco

mm

odat

ion

47.9

1N

IL4.

The p

urch

ase/

acqu

isitio

nof

offi

ce a

ccom

mod

atio

nw

ill br

idge

the s

hortf

all i

nre

quir

emen

t of

off

ice

spac

e.

The

pu

rcha

se

ofr

es

id

en

ti

al

acco

mm

odat

ion

wil

lbr

idge

the

sho

rtfa

ll in

requ

irem

ent.

Outcome Budget 2013-2014 156

REFORM MEASURES AND POLICY INITIATIVESCENTRAL BOARD OF EXCISE & CUSTOMS

Initiatives on Computerization and Automation

A futuristic and ambitious project of computerisation hasbeen taken up to consolidate the Customs, Excise and ServiceTax Servers, to bring all the system on a single network/platform,to set up a Data Warehouse and Disaster Recovery site and iscurrently under implementation. A Risk Assessment/Managementsoftware has been developed for identification of potential dutyevaders/smugglers and facilitate compliant trade. A RiskManagement Division has been established to give focused andspecified attention to this area.

The above measures, intended to provide benefit to both theDepartment and its clients, are to facilitate the assessment andcollection of duty and to further consolidate the strength ofDepartment in the following ways:

a) Speedier Clearance of Cargo.

b) Reduction in number of stages, transaction time andcosts.

c) E-filing of customs documents through the Gateway,on line assessment, duty payment and clearanceprocedures.

d) E-payment of customs duty through Nationalised bankswith Core Banking Solution.

e) Electronic Credit of drawback into the bank.

f) Interactive voice response systems like tele-enquiry,touch screen kiosks, SMS etc.

g) Encouraging Voluntary Compliance.

h) Simplification of procedures.

i) Synergy between various tax systems.

j) Transparency.

k) Minimization of manual interface.

The consolidation project of computerisation at a cost of` 598.97 crore was cleared by the Cabinet in November, 2007.The contracts for execution of various components of the projectwere given to various vendors and work is in progress.

Large Tax Payers Units (LTUs)

As an important measure for trade facilitation, the conceptof Single Window Service for Large Tax Payers paying exciseduty, income tax/corporate tax and service tax has been initiated.First LTU was operationalised in Bengaluru during 2006-07.Second LTU at Chennai became operational during 2007-08. In2008-09, LTUs were operationalised at Mumbai and Delhi.

Help Centres

The opening of the Help Centres since July 2005 at allCustoms and Central Excise Zones is a pioneering venture inpublic private partnership in the sovereign function of taxcollection. These centres provide an institutional mechanism forsmall tax payers, assessees, importers, exporters and serviceproviders in the form of guidance and education to them.

Container Scanners

With the successful completion of Pilot Project with theinstallation of one Mobile Gamma Ray Container Scanner andone Fixed X-Ray Container Scanner at Jawaharlal Nehru PortTrust (JNPT), Nhava Sheva, Mumbai, a major step was takentowards facilitation of cargo clearance, efficient handling ofincreased volume of container traffic and improved customscontrol through non-intrusive examination. In view ofencouraging results, the procurement process for 3 MobileGamma Ray Scanners and 4 Fixed X-Ray Scanners at othermajor ports at a cost of Rs.172.94 crores (non-recurring) andRs.18.61 crore per annum (recurring) has started afterobtaining Cabinet clearance in October, 2006. Tender foracquisition of 3 Mobile Scanners for installation at Kandla,Chennai and Tuticorin was re-floated in January, 2009 andtender for procurement of 4 Fixed Scanners for installation atKandla, Chennai, Tuticorin and Mumbai were floated inNovember, 2008. Sanction for acquisition of Mobile Scannershas been issued on 6th August, 2010 and for acquisition ofFixed Scanners on 24th September, 2010. The lease agreementfor acquiring land for installation of 3 mobile scanners and 4fixed scanners have been signed with the Port Authorities.The contract for supply and installation of all seven scannershave been signed with the eligible bidders. The three mobilescanners and four fixed scanners are scheduled to be start in2013-14.

Marine Fleet

The strategic importance of Customs Maritime Fleet alongthe Coast as a preventive arm of the Department to protect thecountry's maritime trade and to enforce Import/Export provisionsof Customs Act has been duly acknowledged, especially in viewof the growing threats of smuggling of arms and ammunition forterrorism and anti-national activities and that of narcotics drugs.A review of the existing fleet and future requirements was madeand proposal for replacing outlived, old and dilapidated vesselswith modernized and fast moving vessels in a phased manner ata cost of Rs.277.27 crore was cleared by the Cabinet in February,

157 Indirect Taxes

2007. Under the plan, customs organization was to get 109modern vessels of different categories with the following featuresand purposes:-

Category of Features Purpose

Vessels

Category-I (24 vessels) Speed – 25 knots, Coastal patrolling20M length with and surveillancehigh endurance

Category-II (22 vessels) High Speed-40 knots, Immediate interception12M length with of suspected vesselsless endurance

Category-III-A Speed – 30 knots, Useful in shallow(30 vessels) 9M length with waters, creeks

low endurance and harboursCategory-III-B Speed – 35 knots, Useful in shallow(33 vessels) 6M length with waters, creeks

low endurance and harbours

All vessels in Category-I, Category-II, Category-IIIA andCategory-IIIB have been received and deployed under userCommissionerates to carry out anti smuggling operations.

Utilization of 1% Incremental Revenue as Incentive Provision

In pursuance to Department of Expenditure's guidelines/instructions on expenditure management permitting revenuegenerating departments to prepare scheme to utilize 1% ofincremental revenue to encourage greater efforts at garneringrevenue, enhancing organizational efficiency, infrastructure andwherewithal, CBEC has sanctioned/allocated Rs.160.44 croresupto 31.01.2013 for various purposes viz.:-

Ä Capacity building/improvement of infrastructure inCentral Excise and Customs Ranges.

Ä Capacity building towards training facilities at NACEN.

Ä Capacity building for PAOs.

Ä Provision of Laptops to officers in the field formationstowards improvement in monitoring of tax collection,investigation and intelligence work.

Ä Hiring of vehicles for increasing organisationalefficiency and outdoor preventive activities.

Maj

or H

ead

2037

and

2038

-In

form

atio

nTe

chno

logy

Stre

ngth

enin

g of

IT

capa

bili

ty

for

e-go

vern

ance

150.

0015

0.00

1.T

he e

xpen

ditu

rein

curr

ed du

ring

the

FY 2

011-

12 w

asRs

.144

.31

cror

es.

An

All

Indi

a W

ide

Are

a N

etw

ork

linki

ng o

ver

500

buil

ding

s to

the

Nat

iona

l D

ata

Cen

tre,

D

ata

Rep

licat

ion

and

DR

Site

has

bee

nse

t up

to

lin

kC

BE

C

offi

cers

with

the

nat

iona

lda

ta c

entr

e an

ddi

sast

er r

ecov

ery

site

. T

he

Wid

eA

rea

Net

wor

k(W

AN

) ha

s be

enim

ple

me

nte

dex

cept

for

site

sfa

cing

fo

rce

maj

eure

is

sues

.H

elpd

esks

hav

ebe

en p

rovi

sion

edto

add

ress

use

rco

mpl

aint

s on

MPL

S W

AN

conn

ectiv

ity.

The

Wid

e A

rea

Net

wor

k(W

AN

) ha

s be

enim

plem

ente

d.

Co

un

try

-wid

eco

nnec

tivi

ty o

f al

lof

fices

und

er C

BEC

to th

e N

atio

nal D

ata

Cen

tre,

B

usin

ess

Con

tinu

ity

and

Dis

aste

r R

ecov

ery

Site

s.

- Set

ting

up o

f an

All-

Indi

aW

ide

Are

a N

etw

ork

(WA

N).

Rev

iew

of P

ast P

erfo

rman

ceST

ATU

S O

F O

UTC

OM

E W

ITH

REF

EREN

CE

TO O

UTL

AYS

201

1-12

Out

lay

2011

-12

(` In

Cro

re)

44(

i)4(

ii)BE

RE

Nam

e of t

heSc

hem

e/Pr

ogra

mm

e

2

Obj

ectiv

e/O

utco

me

3

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Proc

esse

s/Ti

mel

ines

6

Risk

Fact

ors

7

Stat

us a

son

31s

t Mar

2012 8

S. No. 1

158Outcome Budget 2013-2014

The

pro

ject

has

been

impl

emen

ted,

i.e. E

quip

men

t has

been

insta

lled

and

com

miss

ione

d an

dSy

stem

Acc

epta

nce

mile

ston

e re

ache

d,i.e

. so

ftw

are

appl

icat

ions

fo

rcu

stom

s and

cent

ral

exci

se a

nd s

ervi

ceta

x ha

ve

been

port

ed

and

are

runn

ing

from

the

thre

e na

tiona

l dat

ace

ntre

s.Pe

rson

nel

have

been

dep

loye

d fo

rex

tend

ing

Faci

lity

Ma

na

ge

me

nt

supp

ort

for

five

year

s.

Ad

dit

ion

al

info

rmat

ion

rela

ted

to th

e pr

ojec

t is

asfo

llow

s:

A

Net

wor

kO

pera

tions

Cen

tre(N

OC)

has b

een

set

up f

or p

rovi

ding

supp

ort

for

appl

icat

ions

use

rsan

d pr

o-ac

tive

mon

itorin

g of

the

infra

struc

ture

.A

hel

pdes

k is

in

oper

atio

n fo

r

The

D

epar

tmen

tw

ould

be

acqu

irin

gne

w

gene

rati

onse

rver

s an

d st

orag

eeq

uipm

ent t

o pr

ovid

ec

en

tr

al

iz

ed

com

puti

ng,

data

stor

age,

se

curi

tyin

fras

tru

ctu

re,

faci

litie

s man

agem

ent

and

rela

ted

func

tiona

litie

s to

all

Dep

artm

enta

l an

dex

tern

al

user

sac

cess

ing

the

CB

ECsy

stem

. All

rele

vant

appl

icat

ions

wou

ld b

eho

sted

on

th

ec

en

tr

al

iz

ed

infra

stru

ctur

e.

4(i)

4(ii)

BER

E

12

34

56

78

Indirect Taxes159

The

pro

ject

has

bee

nim

plem

ente

d.

Equ

ipm

ent

has

been

inst

alle

d an

dco

mm

issi

oned

an

dSy

stem

A

ccep

tanc

em

ilest

one

reac

hed,

i.e

.so

ftwar

e ap

plic

atio

ns fo

rcu

stom

s an

d ce

ntra

lex

cise

and

ser

vice

tax

have

bee

n po

rted

and

are

runn

ing

from

the

thr

eena

tiona

l dat

a ce

ntre

s.Pe

rson

nel

have

bee

nde

ploy

ed f

or e

xten

ding

Faci

lity

M

anag

emen

tsu

ppor

t for

five

yea

rs.

- In

stal

latio

n of

Cen

tral

serv

ers (

hard

war

e, st

orag

ean

d sec

urity

infra

struc

ture

)i.e

. Sys

tem

s In

tegr

atio

n

160Outcome Budget 2013-2014

4(i)

4(ii)

BER

E

12

34

56

78

- Pr

ovis

ion

of l

ocal

are

ane

twor

k (L

AN

) to

all

depa

rtmen

tal u

sers

Prov

isio

n of

loc

alar

ea n

etw

ork

to a

llD

epar

tmen

tal u

sers

.

Loca

l A

rea

Net

wor

kC

onne

ctiv

ity h

as a

lread

ybe

en p

rovi

ded

to C

BEC

user

s in

116

6 bu

ildin

gsw

ith

requ

isit

e IT

hard

war

e su

ch a

s Th

inC

lien

ts,

Net

wor

kPr

inte

rs,

Prin

t Se

rver

s,an

d Sc

anne

rs e

tc.

infr

astru

ctur

e an

da

pp

lic

ati

on

ssu

ppor

t fo

rop

erat

ions

an

dre

solu

tion

of t

heen

d us

er p

robl

ems.

A S

ingl

e Si

gn-o

n(S

SO)

appl

icat

ion

has

al

so b

een

conf

igur

ed

and

roll

ed

out

for

prov

idin

g po

licy

base

d ac

cess

for

CBE

C's

offic

ers

tod

if

fe

re

nt

appl

icat

ions

. SS

Oid

s ha

ve

been

crea

ted

for

abou

t19

,000

offi

cers

.T

he

mai

lm

essa

ging

solu

tion

has

been

m

ade

onlin

e fr

om D

ata

Cen

ter

to p

rovi

deof

fici

al

mai

lac

coun

ts t

o ab

out

20,0

00 o

ffice

rs.

Loca

l Are

a N

etwor

kC

onne

ctiv

ity

has

alre

ady

been

prov

ided

to C

BEC

user

s in

abo

ut 1

180

build

ings

w

ithre

quisi

te IT

hard

ware

such

as T

hin C

lient

s,N

etw

ork

Prin

ters

,

161 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

- E

stab

lishm

ent

of D

ata

war

ehou

se.

CBEC

wou

ld b

ecom

ea c

entra

lized

repo

sitor

yof

all C

usto

ms,

Cen

tral

Excis

e and

Ser

vice

Tax

Dat

a. T

his

wou

ld b

eav

aila

ble

to a

ll us

ergr

oups

over

the M

PLS

netw

ork

(CB

EC

WA

N)

w

ith

user

frien

dly

inte

rface

, for

anal

ytic

al r

epor

ting

purp

oses

inc

ludi

ngda

ta m

inin

g.

The

data

war

ehou

se h

asbe

en im

plem

ente

d.

Prin

t Ser

vers

, and

Scan

ners

etc.

Usin

gLA

N,

the

Com

miss

ione

rate

s,C

usto

ms

Hou

ses,

Dir

ecto

rate

s,D

ivis

ions

, IC

Ds,

Land

C

usto

ms

Stat

ions

an

d th

eC

entra

l Ex

cise

/Se

rvice

Tax

Ran

ges

are

able

to s

ecur

elyco

nnec

t/acc

ess

the

cent

ral

com

putin

gfac

ility.

With

this

the

LAN

Proje

ct ha

s bee

nco

mpl

eted e

xcep

t for

sites

facin

g shi

fting

orot

her

forc

e m

ajeu

reis

sues

. H

elpd

esks

have

be

enpr

ovis

ione

d to

addr

ess

user

com

plain

ts on

LA

Niss

ues.

CBE

C's

Ente

rpris

eD

W

calle

dSm

artV

iew

ha

sbe

en r

olle

d ou

t for

Dep

artm

enta

l use

rsan

d co

mpr

ehen

sive

end-

use t

rain

ing h

asbe

en im

parte

d to

ala

rge

num

ber

ofof

ficer

s. (T

his

has

enab

led,

for t

he fi

rst

time,

a 3

60 d

egre

evi

ew

of

the

162Outcome Budget 2013-2014

4(i)

4(ii)

BER

E

12

34

56

78

taxp

ayer

ac

ross

Cus

tom

s, C

entr

alEx

cise

& S

ervi

ceTa

x. S

mar

t V

iew

has a

use

r - fr

iend

lyin

terf

ace

for

acce

ssin

g pr

e-de

fined

repo

rts an

dm

ulti

- dim

ensio

nal

anal

ysis,

alon

g with

an a

d-ho

c qu

ery

faci

lity.

It al

so h

asda

ta m

inin

g an

dte

xt

min

ing

capa

bilit

ies,

whi

char

e be

ing

used

to

assi

st

RM

D

inpr

ofili

ng e

ntiti

esin

volv

ed in

Impo

rtan

d E

xpor

t.Fu

rthe

r, th

e D

ata

War

ehou

se is

als

oca

teri

ng t

o da

tare

ques

t fr

omag

enci

es o

utsi

deC

BE

C (

such

as

Min

istr

y of

Com

mer

ce

and

Indu

stry

, C

AG,

Co

mp

eti

tio

nC

omm

issio

n et

c).

Aro

und

75C

usto

ms,

Cen

tral

Exci

se an

d Se

rvic

eTa

x pr

e-de

fine

dre

ports

hav

e be

ende

velo

ped

so fa

r in

the

Dat

a

163 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

War

ehou

se b

ased

on r

equi

rem

ents

take

n fro

m v

ario

usfi

eld

offi

ces,

Dire

ctor

ates

(su

chas

DR

I, D

GoV

,D

GC

EI)

, T

RU

,B

oard

etc

. The

sere

port

s ar

eav

aila

ble t

o the

user

thro

ugh

CB

EC

sap

pli

cati

on

s'in

terf

ace

wit

h a

clic

k of

the

mou

se.

Add

ition

ally

, th

eTA

X 3

60 p

roje

ctha

s be

enim

plem

ente

d as

an

exte

nsio

n of

CB

EC

's D

ata

war

ehou

se p

roje

ct.

It en

able

s Sea

mle

ssD

ata

Exc

hang

ebe

twee

n C

BEC

,C

BD

T

and

the

Sale

s Ta

xA

dmin

istra

tion

ofth

e St

ate

ofM

ahar

asht

ra, a

ndal

low

s a 36

0 de

gree

view

of a

taxp

ayer

acro

ss In

com

e Tax

,Se

rvice

Tax,

Cen

tral

Exc

ise,

Cus

tom

san

d St

ate

VAT

.O

ther

Sta

tes s

uch a

sG

ujar

at h

ave

sent

requ

ests

fo

rim

plem

enta

tion

ofsim

ilar p

roje

cts

for

thei

r Sta

tes.

164Outcome Budget 2013-2014

4(i)

4(ii)

BER

E

12

34

56

78

All

Indi

a ro

ll ou

t of

AC

ES

wit

h al

lm

odul

es

was

com

plet

ed

on23

.12.

2009

in

all

10

4C

omm

issi

oner

ates

of C

entr

al E

xcis

ean

d Se

rvic

e Tax

.

Mig

ratio

n of

the

Cus

tom

s E

DI

Syst

em

to

the

upgr

aded

ver

sion

(ICES

1.5

) has

bee

nco

mpl

eted

.T

he

upgr

aded

vers

ion

of

the

Cus

tom

s E

DI

Syst

em

(IC

ES,

vers

ion

1.5)

has

been

impl

emen

ted

at 1

03 C

usto

ms

loca

tions

.

With

the

mig

ratio

nof

IC

ES

from

vers

ion

1.0

tove

rsio

n 1.

5, a

new

vers

ion

of

Ris

kM

an

ag

em

en

tSy

stem

(R

MS

3.1)

AC

ES

has

been

impl

emen

ted

in a

ll 10

4C

entr

al

Exc

ise

and

Serv

ice

Tax

Com

mis

sione

rate

s.

The u

pgra

ded

vers

ion

ofth

e C

usto

ms

ED

ISy

stem

(IC

ES, v

ersi

on1.

5)

has

been

impl

emen

ted

at 1

03C

usto

ms l

ocat

ions

.

A n

ew v

ersi

on o

f R

isk

Man

agem

ent

Syst

em(R

MS

3.1)

com

patib

lew

ith

the

ICE

S 1.

5ve

rsio

n ha

s be

enim

plem

ente

d.

Ensu

ring

a la

rge

degr

eeof

tr

ansp

aren

cy

and

redu

ced

inte

rfac

e w

ithC

entr

al

Exc

ise

and

Serv

ice

Tax

asse

sses

thro

ugh

auto

mat

edw

orkf

low

of a

ll bu

sine

sspr

oces

ses.

The

Gat

eway

pro

ject

aim

s to

link

the

Cus

tom

sco

mm

unity

th

roug

h a

sing

le n

etw

ork.

E-f

iling

of C

usto

ms

docu

men

tth

roug

h th

is p

roje

ct h

asim

prov

ed

on-l

ine

asse

ssm

ent,

duty

paym

ent

and

clea

ranc

epr

oced

ure.

T

heup

grad

atio

n ex

erci

se fo

rth

e gat

eway

pro

ject

is fo

rde

velo

pmen

t of

capa

bili

ties

to h

andl

eel

ectro

nic t

rans

actio

n in

ac

on

so

li

da

te

den

viro

nmen

t an

den

hanc

emen

t of

qua

lity

of se

rvic

e de

liver

y to

the

Cus

tom

s Tr

adin

gPa

rtner

s.

RM

S se

eks

to p

rovi

detr

ade

faci

lita

tion

and

effe

ctiv

e en

forc

emen

tth

roug

h in

tell

igen

tin

terd

ictio

n of

onl

y hi

ghri

sk c

argo

for

cus

tom

sal

ong

with

an

an a

ssur

ed

-Aut

omat

ion o

f Cen

tral

Exci

se &

Ser

vice

Tax

(AC

ES)

- G

atew

ay P

roje

ct f

orC

usto

ms u

pgra

datio

n

- Se

tting

up

of R

isk

Man

agem

ent S

yste

m(R

MS)

165 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

com

patib

le w

ith th

eIC

ES 1

.5 v

ersi

onha

s be

enim

plem

ente

d.

The

new

ver

sion

(RM

S 3.

1)

isop

erat

iona

l in

69

Cus

tom

s lo

catio

nsin

clud

ing

the

23lo

catio

ns w

here

old

vers

ion

(RM

S 2.

7)w

as in

exi

stenc

e.

Web

site

for

LT

Uha

s be

en s

et u

p.LT

Us

are

curr

ently

oper

atio

nal

atB

an

ga

lor

e,

Che

nnai

, Del

hi a

ndM

umba

i.

The

or

ders

fo

rpr

ocur

emen

t of

Cate

gory

I, II

I A an

dII

I B

ve

ssel

snu

mbe

ring

87 w

ere

plac

ed to

the

Boa

tB

uild

ers

in

the

mon

th o

f M

arch

,20

07.

Ord

er f

orsu

pply

of C

ateg

ory

II

vess

els

num

berin

g 22

was

plac

ed w

ith th

e Boa

t

The n

ew v

ersi

on (R

MS

3.1)

is o

pera

tiona

l in

69C

usto

ms

loca

tion

sin

clud

ing

the

23lo

cati

ons

whe

re o

ldve

rsio

n (R

MS

2.7)

was

in e

xist

ence

.

------

cust

oms

clea

ranc

epr

oced

ure

for s

peci

alcl

ient

s ha

ving

goo

dtra

ck re

cord

and

who

mee

t sp

ecif

ied

crite

ria id

entif

ied

byth

e C

usto

ms.

- A

n LT

U s

peci

fic

web

site

has

bee

nde

velo

ped.

The

LTU

s ar

e cu

rren

tlyop

erat

iona

l at

Ban

galo

re, C

henn

ai,

Del

hi a

nd M

umba

i.O

ther

LTU

at K

olka

tais

pl

anne

d to

be

op

erat

ion

alis

eddu

ring

2010

.

Mod

ern

fast

ves

sels

will

stre

ngth

en a

nti-

smug

glin

g ca

pabi

lity

of

Cus

tom

sD

ep

ar

tme

nt.

Impr

oved

co

asta

lse

curi

ty w

ill g

reat

lyhe

lp

in

curb

ing

smug

glin

g of

dang

erou

s/pr

ohib

ited

good

s, pr

even

tion

ofen

viro

nmen

t haz

ards

and

prot

ecti

on o

fen

dang

ered

spec

ies.

- Set

ting

up o

f a p

orta

l for

Larg

e Ta

xpay

er

Uni

ts(L

TU

) to

fac

ilit

ate

tax

paye

rs.

In C

ateg

ory-

II, 0

8 ve

ssel

sar

e ex

pect

ed

to

bede

live

red

to

the

Dep

artm

ent d

urin

g 20

11-

12.

Maj

or H

ead

4047

-Pr

even

tive

Func

tions

-A

cqui

sitio

n of

ship

s and

flee

ts

Stre

ngth

enin

g A

nti-

smug

glin

g ca

pabi

lity

and

impr

oved

coa

stal

sec

urity

13.5

038

.27

2.

166Outcome Budget 2013-2014

4(i)

4(ii)

BER

E

12

34

56

78

Bui

lder

in

Dec

embe

r, 20

08.

In C

ateg

ory-

IIIA

and

IIIB

, all

vess

els

(30

in II

I-A

and

33

in

III-

B)

wer

ede

live

red

by t

heB

oat

buil

der

byJu

ne, 2

009.

In

Cat

egor

y-I,

deliv

ery

of a

ll 24

vess

els

was

com

plet

ed

byA

ugus

t, 20

10.

In C

ateg

ory-

II, a

ll22

ves

sels

hav

ebe

en r

ecei

ved

byD

ecem

ber,

2012

The

cont

ract

s of

insta

llatio

n of

fixe

dx-

ray

scan

ners

at

Che

nnai

an

dTu

ticor

in h

ave

been

signe

d. P

rogr

ess

ofth

e pr

ojec

t dep

ends

on ac

quisi

tion o

f land

from

th

e Po

rtau

thor

ities

an

dtim

ely ap

prov

al fro

msta

tuto

ry a

utho

rities

.Th

e pro

gres

s is b

eing

mon

itore

d by

the

Pr

oj

ec

tIm

plem

enta

tion

Com

mitt

ee.

3 m

obile

sca

nner

s an

d 4

fixed

scan

ners

are l

ikel

y to

be i

nsta

lled

in 2

011-

12an

d 201

2-13

resp

ectiv

ely.

Sanc

tions

for

aw

ard

ofco

ntra

ct

to

elig

ible

bidd

ers

have

bee

n is

sued

on 6

th A

ugus

t, 20

10 i

nre

spec

t of m

obile

scan

ners

and

on 2

4th

Sept

embe

r,20

10 i

n re

spec

t of

fix

edsc

anne

rs.

Supp

ly o

rder

sha

ve n

ot b

een

plac

ed w

ithth

e se

lect

ed b

idde

rs a

sla

nd f

or i

nsta

llatio

n of

Non

-intru

sive

sca

nnin

gof

cont

aine

rs w

ould

star

tat

Tut

icor

in,

Che

nnai

and

Kan

dla

Ports

. Fix

edsc

anne

rs

wou

ld

bein

stal

led

at T

utic

orin

,C

henn

ai,

Kan

dla

and

Mum

bai P

orts.

The

Scan

ning

Sys

tem

sw

ill h

elp

in d

etec

tion

ofla

rger

num

ber

of c

ases

of i

rreg

ular

ities

. Th

isw

ill

also

re

sult

in

incr

ease

d re

venu

eco

llec

tion

an

d fa

stcl

eara

nce

of c

argo

etc

.

Inst

alla

tion

of

3

Mob

ile G

amm

a R

aySc

anne

rs, p

lace

men

tof

ord

er a

nd s

tart

ofci

vil c

onst

ruct

ion

for

4 Fi

xed

X-R

aySc

anne

rs a

t a

tota

lpr

ojec

t co

st

ofR

s.17

2.94

cr

ore

(rec

urri

ng)

and

Rs.

18.6

1 cr

ore

per

annu

m

(non

-re

curr

ing)

Maj

or H

ead

4047

-A

cqui

sitio

n of

Ant

i-sm

uggl

ing

equi

pmen

ts

Faci

litat

e car

go cl

eara

nce,

effi

cien

t ha

ndli

ng

ofin

crea

sed

volu

me

ofco

ntai

ner t

raffi

c, im

prov

edC

usto

ms

cont

rol

thro

ugh

non-

intru

sive e

xam

inat

ion.

70.0

043

.65

3.

167 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

For

purc

hase

of

offic

e sp

ace

from

NB

CC

in

N

ewD

elhi

for

use

by

CBEC

, an a

dvan

cepa

ymen

t of

Rs.3

0.00

cror

e was

mad

e in

Mar

ch,

2008

.

Part

paym

ent

ofR

s.7.9

5 cr

ore

was

also

m

ade

toN

BC

C

up

toM

arch

, 20

10 o

nco

mpl

etio

n of 7

5%of

inte

rior w

ork

inth

e of

fice

spac

e.O

ther

pay

men

t has

not b

een

mad

e as

the

com

plet

ion

certi

ficat

e ha

s no

tbe

en o

btai

ned

byth

e N

BC

C w

hich

is n

eces

sary

for

exec

utio

n of

su

bl

ea

se

ag

re

em

en

tbe

twee

n N

BC

Can

d C

BEC

.

Paym

ent o

f sta

mp

duty

and

oth

er

The

pur

chas

e of

off

ice

acco

mm

odat

ion

wil

lbr

idge

the

sho

rtfa

ll i

nre

quir

emen

t of

of

fice

spac

e.

scan

ners

is

yet

to b

eha

nded

ov

er

to

the

Cus

tom

s D

epar

tmen

t by

the

conc

erne

d Po

rtA

utho

ritie

s.

Paym

ent

in s

uch

case

sde

pend

s on

va

riou

sfo

rmal

itie

s in

volv

ing

cons

ulta

tion

w

ith

diff

eren

t co

ncer

ned

auth

oriti

es.

-Fur

ther

pay

men

t in

resp

ect

of

offi

cesp

ace

in

NB

CC

build

ing,

Sak

et, N

ewD

elhi

pur

chas

ed i

nM

arch

, 200

8.

-Pay

men

t of

sta

mp

duty

an

d ot

her

char

ges t

o be

mad

e to

loca

l au

thor

ity i

.e.

Mum

bai

Mun

icip

alC

orpo

rati

on

inre

spec

t of

bui

ldin

gpu

rcha

sed

from

Sp

ec

if

ie

dU

nder

taki

ng o

f U

nit

Trus

t of

Ind

ia i

nN

ovem

ber,

2006

at

Mum

bai.

-Pay

men

t fo

rpu

rcha

se o

f of

fice

acco

mm

odat

ion

atC

henn

ai

from

TNSC

B, p

urch

ase

ofof

fice

spac

e fo

r LT

Uat

Kol

kata

and

for

othe

r sm

all p

ropo

sals

likel

y to

be

mad

e.

Maj

or H

ead

4059

-A

cqui

sitio

n of

Offi

ceA

ccom

mod

atio

n

To m

eet s

hortf

all i

n O

ffice

Acc

omm

odat

ion

40.0

07.

004.

168Outcome Budget 2013-2014

4(i)

4(ii)

BER

E

12

34

56

78

char

ges

in r

espe

ctof

bu

ildi

ngpu

rcha

sed

from

SUU

TI at

Mum

bai

paya

ble

to l

ocal

auth

orit

y i.

e.M

un

ic

ip

al

Cor

pora

tion

of

Gre

ater

Mum

bai i

sst

ill

pend

ing

asdi

sput

e re

gard

ing

rate

of s

tam

p du

tyis

yet

to b

e se

ttled

.O

ther

pro

posa

ls fo

rpu

rcha

se o

f of

fice

acco

mm

odati

on fr

omTN

SCB

at C

henn

aian

d of

fice

spac

e fo

rLT

U, K

olka

ta h

ave

been

dro

pped

.

For

purc

hase

of 6

7fla

ts a

t N

atio

nal

Gam

es

Hou

sing

Com

plex

at R

anch

i,pa

ymen

t of R

s.12.

04cr

ore

was

mad

e in

two

inst

alm

ents

.Ba

lanc

e pa

ymen

t of

Rs.1

.24 c

rore

wou

ldbe

mad

e at

the

time

of ta

king

poss

essio

n.Pr

opos

al fo

r pur

chas

eof

re

side

ntia

lac

com

mod

atio

n at

Shill

ong h

as no

t bee

nfin

alise

d.A

gain

st

RE

ofR

s.4.

00 c

rore

, the

actu

al e

xpen

ditu

rew

as R

s.0.8

2 cr

ore.

The

pr

opos

als

invo

lve

obta

inin

gcl

eara

nce

from

CPW

D,

Min

istr

y of

Urb

an D

evel

opm

ent,

SFC

et

c.

afte

rfo

llow

ing

the

due

proc

edur

e pre

scrib

edin

GFR

s.

The

pu

rcha

se

ofr

es

id

en

ti

al

acco

mm

odat

ion

wil

lbr

idge

the

sho

rtfa

ll in

requ

irem

ent.

Paym

ent

for

purc

hase

of

resi

dent

ial

prem

ises

at

Shil

long

an

d ot

her

paym

ents

in

resp

ect

ofot

her

ongo

ing

proj

ects

likel

y to

be

mad

e.

Maj

or H

ead

4216

-A

cqui

sitio

n of

Res

iden

tial

Acc

omm

odat

ion

To

mee

t sh

ortf

all

inr

es

id

en

ti

al

acco

mm

odat

ion

4.00

4.00

5.

169 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

Maj

or H

ead

2037

and

2038

-In

form

atio

nTe

chno

logy

Stre

ngth

enin

g of

IT

capa

bili

ty

for

e-go

vern

ance

150.

0017

8.00

Aga

inst

R

E

ofR

s.17

8.00

cro

re,

the e

xpen

ditu

re u

pto

Dec

embe

r, 20

12is

Rs.7

7.21

cro

re.

The W

AN

is u

nder

op

era

tio

na

lsu

ppor

t an

dm

aint

enan

ce.

Incr

ease

in

band

wid

th is

bein

gpr

ovis

ione

d to

cate

r to

inc

reas

edde

man

d. P

rovi

sion

of

inte

rnet

band

wid

th

ispl

anne

d to

ena

ble

filin

g of

Cen

tral

Exci

se an

d Se

rvic

eTa

x re

turn

s whi

chha

s be

en m

ade

man

dato

ry.

Al

te

rn

at

eco

nn

ecti

vit

ybe

twee

n da

taC

entr

e an

dD

isaste

r Re

cove

rySi

te

is

bein

gpr

ovid

ed to

ens

ure

redu

ndan

cy.

The W

ide A

rea

Net

wor

k(W

AN

) ha

s be

enim

plem

ente

d.

Co

un

try

-wid

eco

nnec

tivi

ty o

f al

lof

fices

und

er C

BEC

to th

e N

atio

nal D

ata

Cen

tre,

B

usin

ess

Con

tinu

ity

and

Dis

aste

r R

ecov

ery

Site

s.

- Set

ting

up o

f an

All-

Indi

aW

ide A

rea

Net

wor

k.

STAT

US

OF

OU

TC

OM

E W

ITH

RE

FER

EN

CE

TO

OU

TL

AYS

2012

-13

Out

lay

2012

-13

(` In

Cro

re)

44(

i)4(

ii)BE

RE

Nam

e of

the

Sche

me/

Prog

ram

me

2

Obj

ectiv

e/O

utco

me

3

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

Proc

esse

s/Ti

mel

ines

6

Risk

Fact

ors

7

Stat

us a

son

31s

t Dec

2012 8

S. No. 1 1.

4(i)

4(ii)

BER

E

12

34

56

78

170Outcome Budget 2013-2014

The

pro

ject

has

been

im

plem

ente

dan

d is

un

der

Fa

ci

li

ti

es

Man

agem

ent.

The L

AN

has

bee

nim

plem

ente

d and

isun

der

tech

nica

lsu

ppor

t an

dm

aint

enan

ce.

The

faci

litie

s ar

ebe

ing

enha

nced

tom

eet

the

dem

and

for

addi

tion

alno

des

and

equi

pmen

t suc

h as

line p

rinte

rs.

The

D

ata

War

ehou

se is

unde

rte

chni

cal

supp

ort

and

mai

nten

ance

.A

dditi

onal

lice

nces

Acq

uiri

ng o

f ne

wge

nera

tion

ser

vers

and

stor

age

equi

pmen

t to

prov

ide

ce

nt

ra

li

ze

dco

mpu

ting

, da

tast

orag

e,

secu

rity

infr

astr

uct

ure

,fa

cilit

ies m

anag

emen

tan

d re

late

dfu

nctio

nalit

ies

to a

llD

epar

tmen

tal

and

exte

rnal

us

ers

acce

ssin

g th

e C

BEC

syst

em. A

ll re

leva

ntap

plic

atio

ns w

ould

be

host

ed

on

the

ce

nt

ra

li

ze

din

frastr

uctu

re.

Prov

isio

n of

loc

alar

ea n

etw

ork

to a

llD

epar

tmen

tal u

sers

.

CBE

C w

ould

bec

ome

a ce

ntra

lize

dre

posi

tory

of

al

lC

usto

ms,

C

entr

alEx

cise

and

Ser

vice

Tax

Dat

a. T

his w

ould

- In

stal

latio

n of

Cen

tral

serv

ers (

hard

war

e, st

orag

ean

d sec

urity

infra

struc

ture

)i.e

. Sys

tem

s Int

egra

tion

- Pr

ovis

ion

of l

ocal

are

ane

twor

k to a

ll de

partm

enta

lus

ers

- Es

tabl

ishm

ent

of D

ata

War

ehou

se

The

pro

ject

has

bee

nim

plem

ente

d.E

quip

men

t ha

s be

enin

stal

led

and

com

mis

sion

ed

and

Syst

em

Acc

epta

nce

mile

ston

e re

ache

d, i

.e.

appl

icat

ions

for c

usto

ms

and

cent

ral

exci

se a

ndse

rvic

e ta

x ha

ve b

een

porte

d an

d ar

e ru

nnin

gfr

om th

e th

ree

natio

nal

data

cen

tres.

Pers

onne

lha

ve b

een

depl

oyed

for

exte

ndin

g Fa

cili

tyM

anag

emen

t sup

port

for

five

year

s.

Loc

al A

rea

Net

wor

kCo

nnec

tivity

has

alre

ady

been

pro

vide

d to

CBE

Cus

ers

in 1

166

build

ings

wit

h re

quis

ite

ITha

rdw

are

such

as

Thin

Cli

ents

, N

etw

ork

Prin

ters

, Prin

t Se

rver

s,an

d Sc

anne

rs et

c.

The D

ata W

areh

ouse

has

been

impl

emen

ted.

171 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

- A

utom

atio

n of

Cen

tral

Exc

ise

& S

ervi

ce T

ax(A

CES

)

be av

aila

ble t

o al

l use

rgr

oups

ov

er

the

MPL

S ne

twor

k(C

BEC

WA

N)

with

user

fr

iend

lyin

terf

ace,

fo

ran

alyt

ical

rep

ortin

gpu

rpos

es i

nclu

ding

data

min

ing.

Ens

urin

g a

larg

ede

gree

of

tran

spar

ency

an

dre

duce

d in

terf

ace

with

Cen

tral

Exci

sean

d Se

rvic

e Ta

xas

sess

ees

thro

ugh

auto

mat

ed w

orkf

low

of

all

busi

ness

proc

esse

s.

AC

ES

has

been

impl

emen

ted

in a

ll 10

4C

entr

al

Exc

ise

and

Serv

ice

Tax

Com

mis

sione

rate

s.

are b

eing

pro

cure

dfo

r C

BEC

offic

ers

for

faci

lita

ting

acce

ss t

o th

e da

taW

areh

ouse

. I

t is

plan

ned

that

the

TAX

360

pilo

tp

ro

je

ct

impl

emen

ted

for

Seam

less

D

ata

Exch

ange

bet

wee

nC

BEC,

CBD

T an

dth

e Sa

les

Tax

Adm

inis

tratio

n of

the

Stat

e of

Mah

aras

htra

sha

llbe

ex

tend

ed

toot

her S

tate

s.

The

AC

ES p

roje

ctha

s be

enim

plem

ented

and i

sun

der

tech

nica

lsu

ppor

t an

dm

aint

enan

ce.

Ad

dit

ion

al

func

tiona

litie

s ar

epl

anne

d su

ch a

sde

tail

ed

MIS

Rep

orts

cov

erin

gCe

ntra

l Exc

ise an

dSe

rvic

e Ta

xR

egis

trat

ion

,Re

turn

s, A

udit

and

Refu

nds.

Fur

ther

,th

e A

CES

web

site

is

bein

g m

ade

4(i)

4(ii)

BER

E

12

34

56

78

172Outcome Budget 2013-2014

The

Gat

eway

pro

ject

aim

s to

li

nk

the

Cus

tom

s co

mm

unity

thro

ugh

a si

ngle

netw

ork.

E-f

iling

of

Cus

tom

s do

cum

ent

thro

ugh

this

pro

ject

has i

mpr

oved

on-

line

asse

ssm

ent,

du

typa

ymen

t an

dcl

eara

nce

proc

edur

e.T

he u

p gr

adat

ion

exer

cise

fo

r th

ega

tew

ay p

roje

ct is

for

deve

lopm

ent

ofca

pabi

litie

s to

hand

leel

ectro

nic t

rans

actio

nin

a c

onso

lida

ted

envi

ronm

ent

and

enha

ncem

ent

ofqu

alit

y of

ser

vice

deli

very

to

th

eC

usto

ms

Tra

ding

Partn

ers.

Mig

ratio

n fro

m th

e IC

ES1.

0 to

the

upg

rade

dve

rsio

n of

the

Cus

tom

sED

I Sy

stem

(IC

ES 1

.5)

was

com

plet

ed fo

r all

41C

usto

ms

loca

tion

s in

Apr

il

2011

. T

heup

grad

ed v

ersi

on o

f the

Cus

tom

s E

DI

Syst

em(I

CES

, ver

sion

1.5

) ha

sbe

en im

plem

ente

d at

111

Cus

tom

s lo

cati

ons.

ICEG

ATE

for

ICES

1.5

is no

w o

pera

tiona

l at 1

11C

usto

ms l

ocat

ions

.

bili

ngua

l an

din

tegr

atio

n of

ACE

S w

ith th

e e-

Biz

pr

ojec

t of

Dep

artm

ent

ofC

omm

erce

an

dIn

dust

ry i

s be

ing

impl

emen

ted.

ICES

1.5

is

now

impl

emen

ted

at10

3 C

usto

ms

loca

tion

s.

New

func

tion

alit

ies

incl

uded

in

the

ap

pli

ca

tio

nin

clud

e fac

ility

for

onli

ne r

efun

d of

serv

ice t

ax, o

nlin

ere

gist

rati

on

ofD

FIA

lic

ence

s,ce

ntra

lized

bon

dm

anag

emen

t an

de-

paym

ent

ofcu

stom

s du

tie

sfr

om a

ny o

f th

eau

thor

ized

ban

ks..

Oth

er

mod

ules

such

as

auto

mat

ion

ofpr

ecio

us c

argo

,gr

eate

r int

egra

tion

wit

h A

CE

S an

dR

MS,

and

onl

ine

inte

rface

with

SEZ

are

unde

rde

velo

pmen

t. A

tpr

esen

t 10

3

- G

atew

ay P

roje

ct f

orC

usto

ms u

pgra

datio

n

173 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

mes

sage

s ar

eo

pe

rati

on

al

betw

een

cust

oms

and

its

Tra

dePa

rtne

rs t

hrou

ghIC

EG

ATE

. N

ewfu

ncti

onal

itie

spr

opos

ed t

o be

incl

uded

in

ICEG

ATE

incl

ude

man

dato

ry

e-pa

ymen

t th

roug

h17

Ban

ks f

or a

llth

e C

usto

ms

lo

ca

ti

on

s,

impl

emen

tatio

n of

onlin

e tr

ansf

er o

fli

cens

es s

uch

asD

FIA

, re

war

dsc

hem

e et

c. a

ndim

plem

enta

tion

ofe

PAO

. It

is a

lso

prop

osed

to

impl

emen

t th

er

em

ai

ni

ng

mes

sage

s with

the

Tra

de P

artn

ers

fina

lize

d in

cons

ulta

tion

with

them

an

d to

im

pl

em

en

tm

essa

ges

for

onli

ne i

nter

face

with

SEZ

.

4(i)

4(ii)

BER

E

12

34

56

78

174Outcome Budget 2013-2014

A up

grad

ed ve

rsio

nof

R

isk

Ma

na

gem

ent

Syste

m (R

MS

3.1)

com

patib

le w

ith th

eIC

ES 1

.5 v

ersi

onha

s be

enim

plem

ented

and i

sno

w r

olle

d ou

t in

69

cust

oms

loca

tions

.It

is pl

anne

d tha

t the

RM

S w

ill

beim

plem

ente

d at

addi

tiona

l site

s and

the

exte

nt o

f tra

defa

cilit

atio

n be

ing

prov

ided

will

be

enha

nced

. RM

S fo

rex

port

carg

o is

also

plan

ned.

Web

site

for

LTU

has b

een

set u

p.

The

or

ders

fo

rpr

ocur

emen

t of

Cat

egor

y I,

III

Aan

d II

I B

ves

sels

A n

ew v

ersi

on o

f R

isk

Man

agem

ent

Syst

em(R

MS

3.1)

com

patib

lew

ith th

e ICE

S 1.

5 ve

rsio

nha

s bee

n im

plem

ente

d.

The

new

ver

sion

(RM

S3.

1) i

s op

erat

iona

l in

79C

usto

ms

loca

tion

sin

clud

ing t

he 2

3 loc

atio

nsw

here

old

ver

sion

(RM

S2.

7) w

as in

exis

tenc

e.

- A

n LT

U

spec

ific

web

site

ha

s be

ende

velo

ped.

Th

e LT

Us

are c

urre

ntly

ope

ratio

nal

at B

anga

lore

, C

henn

ai,

Del

hi an

d M

umba

i.

------

------

-

RMS

seek

s to

prov

ide

trade

faci

litat

ion

and

effe

ctiv

e enf

orce

men

tth

roug

h in

tell

igen

tin

terd

ictio

n of

onl

yhi

gh r

isk

carg

o fo

rcu

stom

s a

long

with

an a

ssur

ed c

usto

ms

clea

ranc

e pr

oced

ure

for

spec

ial

clie

nts

havi

ng g

ood

trac

kre

cord

and

who

mee

tsp

ecif

ied

crit

eria

iden

tifi

ed

by

the

Cus

tom

s.

- The

por

tal f

acili

tate

sta

x pa

yers

in

thei

rin

tera

ctio

n w

ith

Cen

tral

Exc

ise

&Se

rvic

e Ta

x an

dIn

com

e Ta

x/C

orpo

rate

Tax

. The

rew

ill b

e si

ngle

poi

ntin

terf

ace b

etw

een

Tax

Adm

inis

trat

ion

ofC

BE

C/C

BD

T

and

Larg

e Tax

paye

rs.

Mod

ern

fast

ves

sels

will

stre

ngth

en a

nti-

smug

glin

g ca

pabi

lity

of

Cus

tom

s

- Se

ttin

g up

of

R

isk

Man

agem

ent S

yste

m(R

MS)

- Set

ting

up o

f a p

orta

l for

Lar

ge T

axpa

yer

Uni

ts(L

TU

) to

fac

ilit

ate

tax

paye

rs.

In C

ateg

ory-

II, a

ll ve

ssel

sw

ere

deli

vere

d to

the

Dep

artm

ent b

y D

ecem

ber,

2012

.

Maj

or H

ead

4047

-Pr

even

tive

Func

tions

-A

cqui

sitio

n of

ship

s and

flee

ts

Stre

ngth

enin

g A

nti-

smug

glin

g ca

pabi

lity

and

impr

oved

coas

tal s

ecur

ity

10.1

820

.00

2.

175 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

num

berin

g 87

wer

epl

aced

to

the

Boat

Bui

lder

s in

th

em

onth

of

Mar

ch,

2007

. O

rder

for

supp

ly o

f Cat

egor

yII

ve

ssel

snu

mbe

ring

22 w

aspl

aced

with

the B

oat

Bui

lder

in

Dec

embe

r, 20

08.

In C

ateg

ory-

IIIA

and

IIIB,

all v

esse

ls(3

0 in

III-A

and

33

in

III-

B)

wer

ede

live

red

by t

heB

oat

buil

der

byJu

ne, 2

009.

In

Cat

egor

y-I,

deliv

ery

of a

ll 24

vess

els

was

com

plet

ed

byA

ugus

t, 20

10.

In

Cat

egor

y-II

,de

liver

y of

all

22ve

ssel

s w

asco

mpl

eted

by

Dec

embe

r, 20

12.

Prog

ress

of

th

epr

ojec

t dep

ends

on

acqu

isitio

n of

land

from

th

e Po

rtau

thor

itie

s an

dti

mel

y ap

prov

alfr

om

stat

utor

y

De

pa

rtm

en

t.Im

prov

ed

coas

tal

secu

rity

will

gre

atly

help

in

cu

rbin

gsm

uggl

ing

ofda

nger

ous/p

rohi

bite

dgo

ods,

prev

entio

n of

envi

ronm

ent h

azar

dsan

d pr

otec

tion

of

enda

nger

ed sp

ecie

s.

No

n-i

ntr

usi

ve

scan

ning

of

cont

aine

rs w

ould

star

tat

Tut

icor

in, C

henn

aian

d K

andl

a Po

rts.

Fixe

d sc

anne

rs w

ould

be

inst

alle

d at

The l

ease

agre

emen

t for

acqu

irin

g la

nd

for

inst

alla

tion

of 3

mob

ilesc

anne

rs a

nd 4

fix

edsc

anne

rs h

ave

been

sign

ed w

ith

the

port

auth

orit

ies.

The

Inst

alla

tion

of 3

Mob

ileG

amm

a R

ay S

cann

ers,

plac

emen

t of

ord

er a

ndst

art

of c

ivil

cons

truct

ion

for

4 Fi

xed

X-R

aySc

anne

rs a

t a to

tal p

roje

ctco

st o

f Rs

.172

.94

cror

e (

Maj

or H

ead

4047

-A

cqui

sitio

n of

Ant

i-sm

uggl

ing

equi

pmen

ts

Faci

litat

e car

go cl

eara

nce,

effi

cien

t ha

ndli

ng

ofin

crea

sed

volu

me

ofco

ntai

ner t

raffi

c, im

prov

edC

usto

ms

cont

rol

thro

ugh

non-

intru

sive e

xam

inat

ion.

76.9

710

.17

3.

4(i)

4(ii)

BER

E

12

34

56

78

176Outcome Budget 2013-2014

auth

orit

ies.

T

hepr

ogre

ss i

s be

ing

mon

itore

d by

the

Pr

oj

ec

tIm

plem

enta

tion

Com

mitt

ee.

Paym

ent

in s

uch

case

s de

pend

s on

vario

us f

orm

aliti

esi

nv

ol

vi

ng

cons

ulta

tion

with

diffe

rent

conc

erne

dau

thor

ities

.

cont

ract

s for

supp

ly a

ndin

stal

lati

on o

f al

l 07

Scan

ners

hav

e be

ensi

gned

wit

h el

igib

lebi

dder

s.

3

mob

ile

scan

ners

and

4 f

ixed

scan

ners

are s

ched

uled

tobe

inst

alle

d in

FY-

201

3-14 -F

or c

onst

ruct

ion

of a

new

offi

ce c

ompl

ex f

orN

atio

nal

Aca

dem

y of

Cus

tom

s,

Exc

ise

&N

arco

tics

(NA

CEN

) at

Bang

alor

e. P

urch

ase

ofbu

ildi

ng

from

U

TI,

Mum

bai,

pay

men

t in

resp

ect o

f NBC

C, P

laza

and

purc

hase

of

offic

ebu

ildin

g at G

uwah

ati a

ndfo

r oth

er sm

all p

ropo

sals

likel

y to

be

mad

e.. -P

aym

ent o

f sta

mp

duty

and

othe

r ch

arge

s to

be

mad

e to

loc

al a

utho

rity

i.e.

M

unic

ipal

Cor

pora

tion

of G

reat

erM

umba

i in

res

pect

of

build

ing

purc

hase

d fro

mSp

ecifi

ed U

nder

taki

ng o

fU

nit

Trus

t of

Ind

ia i

nN

ovem

ber,

20

06

atM

umba

i.

Tutic

orin

, C

henn

ai,

Kan

dla a

nd M

umba

iPo

rts.

The

Sc

anni

ngSy

stem

s will

hel

p in

dete

ctio

n of

lar

ger

num

ber

of c

ases

of

irreg

ular

ities

. T

his

will

als

o re

sult

inin

crea

sed

reve

nue

colle

ctio

n an

d fa

stcl

eara

nce

of c

argo

etc.

The

avai

labi

lity

ofad

equa

te o

wn

offic

esp

ace w

ould

incr

ease

the

effic

ienc

y of

the

depa

rtmen

t.

(non

-rec

urri

ng)

and

Rs.

18.6

1 cr

ore

per

annu

m (-

recu

rrin

g)

The

purc

hase

of

offic

eac

com

mod

atio

n w

ill

brid

ge t

he s

hort

fall

inre

quir

emen

t of

off

ice

spac

e.

Maj

or H

ead

4059

-A

cqui

sitio

n of

Offi

ceA

ccom

mod

atio

n

To m

eet s

hortf

all i

n O

ffice

Acc

omm

odat

ion

28.0

04.

314.

177 Indirect Taxes

4(i)

4(ii)

BER

E

12

34

56

78

The

pr

opos

als

invo

lve

obta

inin

gcl

eara

nce

from

CPW

D, M

inist

ry o

fU

rb

an

Dev

elop

men

t, SF

Cet

c. a

fter

follo

win

gth

e du

e pr

oced

ure

pres

crib

ed in

GFR

s.

Lum

p-su

m

othe

rpa

ymen

ts in

res

pect

of

othe

r on

goin

g pr

ojec

tslik

ely

to b

e m

ade.

The

ava

ilab

ility

of

re

si

de

nt

ia

lac

com

mod

atio

n w

illle

ad t

o hi

gher

sta

ffsa

tisfa

ctio

n re

sulti

ngin

en

hanc

edm

otiv

atio

n an

dpr

oduc

tivity

.

The p

urch

ase o

f res

iden

tial

acco

mm

odat

ion

will

brid

geth

e sho

rtfal

l in

requ

irem

ent.

Maj

or H

ead

4216

-A

cqui

sitio

n of

Resi

dent

ial

Acc

omm

odat

ion

To

mee

t sh

ortf

all

inr

es

id

en

ti

al

acco

mm

odat

ion

4.00

0.10

5.

Outcome Budget 2013-2014 178

OVERALL PERFORMANCE

Salient features on overall performance of the CentralBoard of Excise and Customs (CBEC)

§ Total Indirect Tax Revenues amounted to ` 3,90,894crore in 2011-12 Union Excise Duties collectionaccounted for 37% (` 1,44,239 crore), Customs: 38%(` 1,49,300 crore) and Service Tax: 25% (` 97,355crore).

§ Indirect Tax Revenues have increased by 165.38% from` 1, 47,294 crore in 2003-04 to ` 3, 90,894 crore in2011-12.

§ There has been 9.95% increase in Customs Dutiescollections and 5.26% increase in Union Excise Dutiescollections in 2011-12 with reference to previous year.

§ Service Tax collections have increased by 37.32% in2011-12 over previous year. However, Service Taxcollections have shown phenomenal growth of1133.74% from 2003-04 (` 7,891 crore) to 2011-12 (`97,355 crore). The share of Service Tax in IndirectTax Revenues has increased from 1% in 1995-96 to24.90% in 2011-12.

§ In 2012-13 up to December, 2012, Indirect TaxRevenue collections amounted to ` 3,07,649 croreconstituting Union Excise Duties – ` 1,08,646 crore,Customs Duties – ` 1,18,744 crore and Service Tax –` 80,259 crore.

§ Total Indirect Tax collection up to December, 2012have shown growth of 35.59% over the comparativeperiod of previous financial year. Union Excise Duties,Customs Duties and Service Tax collectionsrespectively have increased by 26.44%, 22.79% and26.44% over the collections in the comparative periodof previous year.

§ The cost of collection of Indirect Taxes from the year2005-06 onwards are tabulated below:-

Cost of Collection

Head 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12of DutyCustoms 0.72% 0.56% 0.51% 0.72% 1.09% 0.67% 0.67%CentralExcise &Service Tax 0.67% 0.63% 0.64% 0.98% 1.32% 1.00% 0.96%

§ Indirect Tax Revenues have fallen from 5.3% of GDPin 2004-05 to about 4.47% of GDP in 2010-11.

§ Average expenditure on pay and allowances andaverage collection of revenue per employee for last

three years is given below:-

Year Average expenditure Average collection of

on pay and allowances revenue per employee

per employee (` in lakh) (` in crore)2009-10 4.20 4.37

2010-11 4.25 6.252011-12 5.68 7.31

E-Governance:Directorate General of Systems has completed the

implementation of the Information Technology (IT) InfrastructureConsolidation Project. The major infrastructure projectsimplemented as part of the Consolidation Project are:

(i) Wide Area Network (WAN) - An All India Wide AreaNetwork linking 20,000 Departmental users to theNational Data Centre, Data Replication and DR Sitehas been set up to link CBEC officers with the nationaldata centre and disaster recovery site. The Wide AreaNetwork (WAN) has been implemented except for sitesfacing force majeure issues. Helpdesks have beenprovisioned to address user complaints on WAN andLAN issues.

(ii) System Integration - Three National Data Centres, i.e.the Primary Data Centre and Business Continuity Sitein New Delhi and the Disaster Recovery Site in Chennaihave been set up. Servers, storage and securityequipment, etc have been installed in the data centresand software applications have been ported and arerunning from these data centres.A Network Operations Centre (NOC) has been set upfor providing support for applications users and pro-active monitoring of the infrastructure.A helpdesk is in operation for infrastructure andapplications support for operations and resolution ofthe end user problems.A Single Sign-on (SSO) application has also beenconfigured and rolled out for providing policy basedaccess for CBEC's officers to different applications.SSO ids have been created for about 19,000 officers.The mail messaging solution has been made onlinefrom Data Center to provide official mail accounts toabout 20,000 officers.In July 2011, the Directorate General of Systems andData Management, CBEC was certified to ISO/IEC27001:2005 Standard.

(iii) Local Area Networks (LAN) - Local Area NetworkConnectivity has been provided to CBEC users in about1160 buildings with requisite IT hardware such as ThinClients, Network Printers, Print Servers, and Scanners

179 Indirect Taxes

etc. Using LAN, the Commissionerates, CustomsHouses, Directorates, Divisions, ICDs, Land CustomsStations and the Central Excise/Service Tax Ranges willbe able to securely connect/access the central computingfacility.

CBEC's major applications are now hosted on a singlenetwork and computing facility. Details are as under:

Customs:

Migration from the ICES 1.0 to the upgraded version of theCustoms EDI System (ICES 1.5) was completed for all 41Customs locations in April 2011. ICES 1.5 is now implementedat over 100 Customs locations. New functionalities included inthe application include facility for online refund of service taxwhich marks the initial steps in the integration of ICES withACES, online registration of DFIA licences, centralized bondmanagement. Other modules such as automation of preciouscargo, greater integration with RMS, and online interface withSEZ are under development.

ICEGATE is an infrastructure project that fulfils thedepartment's EC/EDI and data communication requirements. TheICEGATE portal that provides e-filing services to the trade andcargo carriers and other clients of the Customs Department.Through this facility the Department offers a host of services,including on-line, electronic filing of the Bill of Entry (importgoods declaration), Shipping Bills (export goods declaration)and related electronic messages between Customs and the TradingPartners, document tracking, e-payment, online registration ofIPR and links to various other important websites. usingcommunication facilities (E-mail, Web-upload & FTP) using thecommunication protocols commonly used on the internet.Besides, data is also exchanged between Customs and the variousregulatory and licensing agencies such as DGFT, RBI, and DGCISthrough ICEGATE. All electronic documents/ messages beinghandled by the ICEGATE are processed at the Customs' end bythe ICES 1.5 application.

In August 2011, the SKOCH Digital Inclusion Award for2011 for e-governance was conferred on the ICEGATE Project.ICEGATE was also conferred the e-Asia award in November2011 in Taipai by Asia Pacific Council for Trade Facilitation andElectronic Business (AFACT).

Risk Management System (RMS) has been upgraded andported on the central computing facility in the Data Centre. Theobjective of the Risk Management System (RMS) is to enablethe Indian Customs Administration to strike an appropriatebalance between trade facilitation and enforcement. Under theRMS, Bills of Entry filed by importers in the Indian CustomsEDI System (ICES) are processed for risk and a large number ofconsignments are allowed clearance without examination basedon the importers' self assessment. Other consignments go forassessment or examination or both depending on the evaluationof risk by the RMS. RMS also provides for an assured customsclearance procedure for special clients having good track record

and who meet specified criteria identified by the Customs. Theimplementation of the RMS was one of the most significant stepsin the ongoing Business Process Re-engineering and e-governance initiatives of the Central Board of Excise andCustoms.

Central Excise and Service Tax:

Automation of Central Excise and Service Tax (ACES) is acentrally-hosted, web-based and workflow-based softwareapplication to automate the entire business processes relating toCentral Excise and Service Tax that includes online registration,online filing and processing of returns, claims, intimations andpermissions, filing and processing of excise related exportdocuments, dispute resolution , audit, etc. ACES has also beenmade available on Online Learning Module (LMS) for impartingknowledge and understanding of the ACES application to theDepartmental Officers and the Assessee. ACES has been rolledout in all 104 Central Excise and Service Tax Commissioneratesas on 23.12.2009. ACES Certified Facilitation Centres (CFCs)have been made operational. These CFCs have been set up bymembers of the Institute of Chartered accountants of India (ICAI),Institute of Cost and Works Accountants of India (ICWAI) andInstitute of Company Secretaries of India (ICSI). This initiativeaims at providing services to taxpayers who may not haverequisite IT infrastructure/ resources, to use ACES.

Data Warehouse

CBEC's Enterprise DW called SmartView is a web-basedanalytical reporting solution that is specifically designed for fastquerying and sophisticated analytical capabilities, using the latestBusiness Intelligence (BI) tools. It has the capability to extractthe data from various online transactional systems such as ICES1.5 (Customs), ACES (Central Excise & Service Tax Returns)and EASIEST (Central Excise & Service Tax Payments), at aregular pre-set frequency. CBEC's Data Warehouse is hosted onCBEC's centralized, consolidated IT infrastructure. It is expectedto serve as a single repository for Indirect Tax data providing aholistic nation-wide view of the Customs, Central Excise andService Tax data. This has enabled, for the first time, a 360 degreeview of the taxpayer across Customs, Central Excise & ServiceTax. SmartView has a user - friendly interface for accessing pre-defined reports and multi - dimensional analysis, along with anad-hoc query facility. It also has data mining and text miningcapabilities, which are being used to assist RMD in profilingentities involved in Import and Export.

Around 75 Customs, Central Excise and Service Tax pre-defined reports have been developed so far in the Data Warehousebased on requirements taken from various field offices,Directorates (DRI, DGoV, DGCEI, etc), TRU, Board etc. Thesereports are available to the user through CBECs applications'interface with a click of the mouse. The SmartView applicationhas been rolled out for Departmental users and comprehensiveend-use training has been imparted to a large number of officers.Information generated by CBEC's Data Warehouse is also being

Outcome Budget 2013-2014 180

supplied to formations outside the CBEC such as Ministry ofCommerce and Industry and Competition Commission of India.

CBEC has also implemented a pilot project Tax 360, as anextension of Data Warehouse Project. It enables seamless DataExchange between CBEC, CBDT and the Sales TaxAdministration of the State of Maharashtra, and allows a 360degree view of a taxpayer across Income Tax, Service Tax, CentralExcise, Customs and State VAT. Tax 360 Project is being extendedto few other states also.

The above measures, intended to provide benefit to both theDepartment and its clients, are to facilitate the assessment andcollection of duty and to further consolidate the strength ofDepartment in the following ways:

a) Speedier Clearance of Cargo.b) Reduction in number of stages, transaction time and costs.c) E-filing of customs documents through the Gateway, on

line assessment, duty payment and clearance procedures.d) E-payment of customs duty through Nationalised banks

with Core Banking Solution.e) Electronic Credit of drawback into the bank.f) Document tracking facility.g) Encouraging Voluntary Compliance.

h) Simplification of procedures.

i) Synergy between various tax systems.

j) Transparency.

k) Minimization of manual interface.

In addition, CBEC's Data Warehouse has been implemented.This has enabled, for the first time, a 360 degree view of thetaxpayer across Customs, Central Excise & Service Tax. TheData Warehouse has a user - friendly interface for accessing pre-defined reports and multi - dimensional analysis, along with anad-hoc query facility. It also has data mining and text miningcapabilities, which are being used to assist RMD in profilingentities involved in Import and Export.

Procurement of Scanners

Container scanners can scan import and export cargocontainers arriving at the ports and help customs officers indetecting contraband drugs, arms and ammunition and otherundeclared cargo. A Pilot Project involving installation of oneMobile Gamma Ray Scanner and one re-locatable X-Ray Scannerat Jawaharlal Nehru Port Trust (JNPT), Nhava Sheva wascompleted in 2005. With the successful completion of the PilotProject, a major step was taken towards facilitation of cargoclearance, efficient handling of increased volume of container

traffic and improved customs control through non-intrusiveexamination. In view of the encouraging results, procurement 3Mobile Scanners for installation at Kandla, Chennai and Tuticorinand 4 Fixed Scanners for installation at Mumbai, Kandla, Chennaiand Tuticorin has been initiated. The contracts for installationof these scanners have been signed and these scanners areexpected to be commissioned by 2013-14.

The numbers of containers scanned, cases booked andamount realized in preceding three years are as under:-

Year Containers scanned throughMobile Scanner Fixed Scanner

2010-11 87303 552862011-12 28253 (was in 77079

operational duringsome period)

2012-13(upto Dec.2012) 45223 48113

During 2010-11, 36 cases were booked through FixedScanner where the value of goods seized was ` 8.59 crore andcustoms duty involved was ` 1.81 crore. During 2011-12, 122cases were booked involving the value of seized goods was `36.23 crore and customs duty of ` 7.17 crore. During 2012-13(upto December, 2012)), 88 cases were booked involving thevalue of seized goods at ` 27.73 crore involving customs dutyof ` 4.48 crore.

Procurement of Marine Vessels

Cabinet Committee of Economic Affairs (CCEA) hadapproved the procurement of 109 marine vessels at a cost of `358.19 on 22.02.2007 including five years AMC. All 24 CategoryI vessels have been delivered and deployed at Mumbai (03),Goa(02), Mangalore(03), Cochin(04), Pune (Ratnagiri) (02) andone vessels each at Ahmedabad (Umargaon), Jamnagar(Okha),Kandla, Visakhapatnam, Chennai, Trichy (Tuticorin), Trichy(Nagapattinam), Visakhapatnam-II (Kakiinada), Kolkatta andBhubneshwar-I (Paradip) Commissionerate.

All 22 sanctioned Category-II vessels, have been deliveredand deployed at Mumbai (03), Jamnagar (02), Pune (Ratnagiri)(02), Mangalore(02), Ahmedabad (01), Goa(01) and KandlaCommissionerate (01), Cochin(03), Chennai(01), Trichy(02),Vizag(01), Bhubneshwar(01) and Kolkata(02).

All 63 Category-III vessels (30 vessels in Cat-IIIA & 33 inCat-I(IIB have been delivered and deployed at Mumbai(07),Goa(02), Mangalore(02), Pune (04), Cochin(04), Ahmedabad(02), Jamnagar (02), Kandla (02), Chennai (03), Visakhapatnam(01), Visakhapatnam-II(02), Guntur(01), Tjrichy (10), Kolkatta(10), Bhubneshwar (02), Patna (03) and ShillongCommissionerate (06).

181181 Indirect Taxes

0

5000

0

1000

00

1500

00

2000

00

2500

00

3000

00

3500

00

4000

00

4500

00

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

Colle

ctio

ns fr

om In

dire

ct Ta

xes

(

Rs. i

n Cr

ores

)

Cust

oms

Cent

ral E

xcise

Serv

ice T

ax

Tota

l

182Outcome Budget 2013-2014

0.72%

0.56%

0.51%

0.72%

1.09%

0.67%

0.67%

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

Cost

of Co

llecti

on of

Custo

ms D

uties

in

term

s of P

erce

ntag

e

0.67%

0.63%

0.64%

0.98%

1.32%

1.00%

0.96%

2005

-06

2006

-07

2007

-08

2008

-09

2009

-10

2010

-11

2011

-12

Cost

of Co

llecti

on of

Cent

ral E

xcise

&

Serv

ice Ta

x in t

erm

s of P

erce

ntag

e

183183 Indirect Taxes

SUM

MA

RIS

ED

PO

SIT

ION

OF

SCH

EM

ES

UN

DE

RD

EM

AN

D N

O.4

4 - I

ND

IRE

CT

TA

XE

S

(` i

n cr

ore)

S. N

o.Sc

hem

e

2011

-12

2012

-13

2013

-14

BER

EA

ctua

lBE

RE

Act

ual

BE(u

p to

Dec

., 12

)

1.St

reng

then

ing

of IT

Cap

abili

ty fo

r e-

gove

rnan

ce15

0.00

150.

0014

4.31

150.

0017

8.00

77.2

115

2.00

2.A

cqui

sitio

n of

Shi

ps &

Fle

ets

13.5

038

.27

3.23

10.1

820

.00

1.44

17.9

5

3.A

cqui

sitio

n of

Con

tain

er S

cann

ers

70.0

043

.65

43.2

976

.97

10.1

70.

0082

.00

4.A

cqui

sitio

n of

Offi

ce A

ccom

mod

atio

n40

.00

7.00

0.00

28.0

04.

311.

0047

.91

5.A

cqui

sitio

n of

Res

iden

tial A

ccom

mod

atio

n4.

004.

000.

814.

000.

100.

001.

34

Tota

l27

7.50

242.

9219

1.64

269.

1521

2.58

79.6

530

1.20

Perc

enta

ge w

.r.t.

RE

78.8

937

.47

184Outcome Budget 2013-2014

STAT

EM

EN

T SH

OW

ING

SC

HE

ME

-WIS

E A

CT

UA

L E

XPE

ND

ITU

RE

VIS

-À-V

IS B

E/R

E F

OR

TH

E Y

EA

RS

2010

-11,

201

1-12

AN

D 2

012-

13

(` i

n cr

ore)

S. N

o.D

escr

iptio

nsM

ajor

Hea

d20

10-1

120

11-1

220

12-1

3BE

RE

Act

ual

BER

EA

ctua

lBE

RE

Act

ual

(upt

o D

ec.1

2)R

even

ue S

ectio

n1

MH

-203

7 (C

usto

ms)

Col

lect

ion

of C

usto

ms

2037

850.

2691

8.84

903.

2998

1.51

978.

0396

0.56

1047

.03

1051

.21

797.

49C

usto

ms

Wel

fare

Fun

d20

370.

000.

000.

000.

006.

140.

006.

205.

580.

00M

issio

ns A

broa

d20

371.

401.

551.

551.

702.

102.

102.

302.

302.

302

MH

-203

8 (U

nion

Exc

ise D

utie

s)C

olle

ctio

n of

Uni

on E

xcise

Dut

ies

2038

1627

.10

1827

.38

1800

.94

1970

.27

1964

.87

1938

.32

2103

.84

2126

.49

172

9.83

Prin

ting

of B

ande

rols

etc.

2038

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Dire

ctor

ate

of I

nspe

ctio

n20

3827

.97

30.4

830

.32

31.8

334

.76

31.7

537

.12

38.7

127

.90

Syst

ems

and

Dat

a M

anag

emen

t20

3813

1.80

83.7

812

4.97

135.

1513

4.80

131.

25

138

.00

165.

4978

.36

Vigi

lanc

e20

3811

.38

12.0

811

.79

12.6

112

.32

11.6

113

.10

12.7

3 8

.20

Nat

iona

l Aca

dem

y of

Cus

tom

s,Ex

cise

& N

arco

tics

2038

21.5

736

.58

39.9

737

.83

43.3

7

4

1.09

44.3

144

.60

2

8.44

Dire

ctor

ate

of P

ublic

ity &

Pub

lic R

elat

ions

2038

26.2

927

.02

27.0

130

.21

31.3

5

3

1.18

35.4

433

.48

9.16

Dire

ctor

ate

of C

entra

l Exc

ise I

ntel

ligen

ce20

3827

.56

29.3

325

.93

30.7

332

.92

29.

8833

.91

36.6

624

.99

Oth

er O

ffice

s20

3811

.97

12.8

711

.37

13.5

012

.88

11.9

713

.63

13.5

3 8

.58

3H

ousin

g - M

aint

enan

ce &

Rep

air

2216

6.00

4.75

2.29

6.00

5.30

3.96

7.00

5.00

1.39

4M

H-3

606

(Aid

Mat

eria

l)A

id M

ater

ial &

Equ

ipm

ent

3606

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Tota

l- R

even

ue S

ectio

n27

43.3

029

84.6

629

79.4

332

51.3

432

58.8

4

319

3.67

3481

.88

3535

.78

2716

.64

185185 Indirect Taxes

5A

cqui

stio

n of

Mar

ine

Vess

els

4047

48.0

042

.00

21.8

713

.50

38.2

73.

2310

.18

20.0

01.

44A

cqui

stio

n of

Con

tain

er S

cann

ers

4047

73.0

036

.95

11.3

370

.00

43.6

543

.29

76.9

710

.17

0.00

Maj

or W

orks

4047

0.20

0.05

0.00

0.05

0.03

0.00

0.05

0.25

0.00

6A

cqui

stio

n of

Offi

ce B

uild

ings

4059

132.

0051

.00

88.9

240

.00

7.00

0.00

28.0

04.

311.

00

7A

cqui

sitio

n of

Rea

dy B

uilt

Res

iden

tial

Build

ings

4216

11.0

02.

000.

974.

004.

000.

824.

000.

100.

00

Tota

l- C

apita

l Sec

tion

264.

2013

2.00

123.

0912

7.55

92.9

547

.34

1

19.2

034

.83

2.44

Gra

nd T

otal

3007

.50

3116

.66

3102

.52

3378

.89

3351

.79

3

241.

0136

01.0

835

70.6

127

19.0

8R

ecov

erie

s-0

.50

-0.5

0-5

.24

-0.5

0-0

.50

-0.5

4-0

.50

-0.5

0-0

.29

Net

3007

.00

3116

.16

3097

.28

3378

.39

3351

.29

3

240.

4736

00.5

835

70.1

127

18.7

9

S. N

o.D

escr

iptio

nsM

ajor

Hea

d20

10-1

120

11-1

220

12-1

3BE

RE

Act

ual

BER

EA

ctua

lBE

RE

Act

ual

(upt

o D

ec.1

2)

(` i

n cr

ore)

186Outcome Budget 2013-2014

S. N

o.O

bjec

t Hea

d20

10-1

120

11-1

220

12-1

3BE

RE

Act

ual

BER

EA

ctua

lBE

RE

Act

ual

(upt

o D

ec.1

2)

(` i

n cr

ore)

1Sa

larie

s20

14.7

323

56.1

623

34.4

625

21.0

025

00.0

024

76.8

027

00.0

027

60.0

022

63.3

42

Wag

es10

.50

11.1

810

.61

12.5

013

.00

12.2

914

.00

15.6

511

.30

3O

verti

me

Allo

wan

ce13

.00

10.7

59.

1012

.00

10.2

08.

7011

.00

9.89

4.71

4R

ewar

ds20

.00

16.8

016

.22

20.0

023

.15

19.0

120

.50

20.5

011

.70

5M

edic

al T

reat

men

t25

.00

24.0

021

.60

25.0

024

.90

23.1

826

.00

25.4

516

.93

6D

omes

tic T

rave

l Exp

ense

s48

.00

51.0

050

.97

55.0

056

.50

53.9

159

.50

60.6

041

.15

7Fo

reig

n Tr

avel

Exp

ense

s0.

601.

751.

191.

751.

751.

411.

751.

581.

418

Offi

ce E

xpen

ses

280.

0023

3.73

230.

3525

8.00

257.

5525

9.08

273.

0024

6.00

186.

929

Ren

t, R

ates

& T

axes

105.

0099

.00

95.0

911

0.00

127.

0011

5.92

119.

0012

4.00

70.9

410

Publ

icat

ions

1.00

1.15

1.22

1.20

1.16

1.11

1.20

1.40

0.86

11Ba

nkin

g C

ash

Tran

sact

ion

Tax

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

12O

ther

Adm

inist

rativ

e Ex

pens

es1.

182.

102.

493.

103.

003.

033.

002.

701.

7313

Adv

ertis

ing

& P

ublic

ity24

.00

22.8

022

.06

26.0

026

.96

26.2

131

.00

28.0

04.

7014

Min

or W

orks

11.5

013

.25

7.23

14.0

014

.75

11.1

817

.00

12.3

02.

6715

Prof

essio

nal S

ervi

ces

12.0

013

.35

13.1

214

.00

16.7

015

.75

17.0

015

.30

8.15

16O

ther

Con

tract

ual S

ervi

ces

0.00

0.00

0.00

0.00

0.00

0.00

0.00

17G

rant

s-in

-Aid

-Gen

eral

0.09

0.09

0.06

0.09

0.09

0.07

0.09

0.08

0.01

18Se

cret

Ser

vice

Exp

endi

ture

4.20

4.40

4.39

4.80

5.39

5.29

6.20

5.58

3.83

19O

ther

Cha

rges

(C

harg

ed)

0.50

0.50

0.45

0.50

0.50

0.16

0.50

0.50

0.09

(V

oted

)2.

002.

152.

042.

402.

602.

542.

942.

872.

5420

Mac

hine

ry &

Equ

ipm

ent

20.0

014

.50

11.2

020

.00

17.5

013

.72

22.0

019

.80

6.45

21In

ter A

ccou

nts

Tran

sfer

0.00

0.00

0.00

0.00

6.14

0.00

6.20

5.58

0.00

187187 Indirect Taxes

22In

form

atio

n Te

chno

logy

150.

0010

6.00

145.

5815

0.00

150.

0014

4.31

150.

0017

8.00

77.2

1To

tal -

Rev

enue

Sec

tion

2743

.30

2984

.66

2979

.43

3251

.34

3258

.84

3193

.67

3481

.88

3535

.78

2716

.64

Cap

ital

Sect

ion

23A

cqui

sitio

n of

Shi

ps &

Fle

ets

48.0

042

.00

21.8

713

.50

38.2

73.

2310

.18

20.0

01.

4424

Acq

uisit

ion

of A

nti S

mug

glin

g Eq

uipm

ent

73.0

036

.95

11.3

370

.00

43.6

543

.29

76.9

710

.17

0.00

25M

ajor

Wor

ks0.

200.

050.

000.

050.

030.

000.

050.

250.

00To

tal -

Maj

or H

ead

'404

7'12

1.20

79.0

033

.20

83.5

581

.95

46.5

287

.20

30.4

21.

44

26A

cqui

sitio

n of

O

ffice

Acc

omm

odat

ion

132.

0051

.00

88.9

240

.00

7.00

0.00

28.0

04.

311.

00

27Pu

rcha

se o

f Rea

dy B

uilt

Res

iden

tial

Acc

omm

odat

ion

11.0

02.

000.

974.

004.

000.

824.

000.

100.

00

Tota

l - C

apita

l Sec

tion

264.

2013

2.00

123.

0912

7.55

92.9

547

.34

119.

2034

.83

2.44

Gra

nd T

otal

3007

.50

3116

.66

3102

.52

3378

.89

3351

.79

3241

.01

3601

.08

3570

.61

2719

.08

Rec

over

ies

0.50

0.50

-5.2

40.

500.

50-0

.54

0.50

0.50

0.29

Net

3007

.00

3116

.16

3097

.28

3378

.39

3351

.29

3240

.47

3600

.58

3570

.11

2718

.79

S. N

o.O

bjec

t Hea

d20

10-1

120

11-1

220

12-1

3BE

RE

Act

ual

BER

EA

ctua

lBE

RE

Act

ual

(upt

o D

ec.1

2)

(` i

n cr

ore)

Outcome Budget 2013-2014 188

FINANCIAL REVIEWANALYSIS OF TRENDS IN EXPENDITURE

During 2011-12, total expenditure of `3241.01 crore was

4.46% more than the expenditure of `3102.52crore incurred in

2010-11. In Revenue Section, the increase is 7.20% which is

mainly due to more expenditure on pay & allowances.

Under Capital Section, there is a decrease of 61.54% in 2011-

12 vis-à-vis expenditure in 2010-11. This is mainly on account

of less expenditure towards payment in respect of purchase of

office space at NBCC Plaza in New Delhi as well less expenditure

due to non- installation of 3 Mobile Gamma Ray Scanners and 4

Fixed X-Ray Scanners.

In 2012-13, total estimated expenditure of `3570.61 crore,

which is 10.17% more than the expenditure of `3241.01 crore

incurred in 2011-12. In Revenue Section, the anticipated increase

is 10.71% which is mainly due to higher expenditure expected in

respect of pay & allowance as well computerization of the

Department.

Under Capital Section, there is an anticipated decrease of

26.43% in 2012-13 vis-à-vis expenditure in 2011-12. This is on

account of delay installation of scanners and less payment likely

to be made in respect of office space purchased at NBCC Plaza

in New Delhi.

Expenditure under 'Advertising and Publicity' was `26.21

crore in 2011-12, which is 18.81% more than the expenditure of

`22.06 crore in 2010-11. This is on account of more emphasis

on publicity programme in general and clearance of pending bills

pertaining to previous year. The estimated expenditure for 2012-

13 is `28.00 crore which is 6.83% more than the expenditure in

2011-12 on account of wider campaigns of publicity through

outdoor and miscellaneous media.

Under 'Information Technology' expenditure during 2011-

12 was `144.31 crore which is 0.87% less than the expenditure

of `145.58 crore incurred in 2010-11 because of less expenditure

towards implementation of most of the components of

consolidation of computerization programme during 2011-12.

For 2012-13, estimated expenditure of 178.00 crore is 23.35%

more than the expenditure incurred in 2011-12 because payment

is linked to completion of various stages of computerization and

some of the payment stages may spill over to next financial year.

For procurement of Marine Vessels, expenditure during

2011-12 was `3.23 crore which is 85.23% less than the

expenditure of 21.87 crore incurred in 2010-11 because payment

to the Boat Builders is linked with the construction and delivery

of boats. Expenditure of ` 20.00 crore is likely to be incurred

during 2012-13 towards scheduled payments for vessels. Out of

109 vessels to be procured,109 vessels (24 in Category-I, 22 in

Category-II and 30 in Category III-A and 33 in Category III-B)

have been delivered to the Department by December, 2012.

For procurement of container scanners, expenditure incurred

during 2011-12 was ` 43.29 crore which is 282.08% more than

the expenditure of `11.33 crore incurred in 2010-11 . During

2012-13, expenditure of `10.17 crore is likely to be incurred

towards payment of lease rent for acquisition of land from

concerned Port authorities and for advance payment for

procurement of scanners.

For acquisition of office accommodation, nil expenditure

during 2011-12 as against `88.92 crore in 2010-11. For 2012-

13, estimated expenditure is 4.31 crore towards payment towards

construction of new office complex of NACEN at Bangalore

and other projects.

For acquisition of residential accommodation, expenditure

incurred during 2011-12 was `0.82 crore which is 15.46% less

than against expenditure of `0.97 crore incurred during 2010-

11. For 2012-13, estimated expenditure of Rs 0.10 crore is for

miscellaneous projects.

189 Indirect Taxes

75%

7%

3%

1%4%

6%4%

Maj

or C

onst

ituen

ts o

f Exp

endi

ture

und

er th

e G

rant

of

Indi

rect

Tax

es in

BE

2013

-14

in te

rms o

f Pe

rcen

tage

Sala

ries

Offi

ce E

xpen

ses

Rent

,Rat

es &

Taxe

s

Adve

rtis

ing

& P

ublic

ity

Info

rmat

ion

Tech

nolo

gy

Oth

ers

Capi

tal

Outcome Budget 2013-2014 190

STATEMENT ON SURRENDER AND SAVING DURINGTHE FINANCIAL YEAR 2011-12

During the FY 2011-12 against a budgetary provision of`3386.39 crores including supplementary grant, there was anexpenditure of 3241crores during the year resulting into savingsand surrender of `145.39 crores. These savings are the net effectof total savings of `163.67 crores and total excess of `18.28crores under various sub-heads of the Revenue and Capital

Section of the Grant.These savings have been segregated into the following

categories.i) Normal Savings due to economical usage of the resources

: Nilii) Savings due to non implementation/delay in execution

of projects/schemes:-During the FY 2011-12, some of the schemes where there

were delays in execution/implementation are as follows:-

(` in crore) S. Sub Head/ Scheme/ Savings Remarks/ ReasonsNo. Programme1. Revenue-cum-Import/Export Trade control 21.20

functions- Commissionerates

2. Central Revenue Control Laboratory 3.28

3. Preventive and other functions- 5.22Commissionerates

4. Directorate of Revenue Intelligence 1.35

5. Inspection 2.74

6. National Academy of Customs, 2.61Excise and Narcotics (NACEN)

7. Directorate General of Central 3.86Excise Intelligence

8. Customs and Central Excise 1.04Settlement Commission

9. Systems & Data Management 3.90

10. Collection Charges- 27.49Commissionerates(HQ)

11. Collection of Land Customs 2.60

12. Other Items-Minor Works 1.77

Non filling up of vacant posts, less expenditure on purchase ofoffice related items, non finalization of proposals for rent revisionin respect of hired office building, less domestic/foreign toursundertaken and non completion of Local Area Network (LAN)projects.

Delay in finalizing of process for purchase of Equipments forlaboratories and less expenditure on the maintenance of machineand equipments.

Requirement of less funds towards wages and purchase ofequipments, machinery, furniture and office equipments and lesssanction of rewards.

Less sanction of rewards cases and non-finalization of proposalsfor hiring of office building.

Non-filling up of vacant posts, and requirement of less fundstowards purchase of furniture and office equipments.

Joining of less number of probationers, less expenditure towardswages and OTA and less expenditure towards purchase offurniture and office equipments than anticipated.

Non-filling up of vacant posts, non-finalization of rent revisionproposals and requirement of less funds for purchase ofComputers etc.

Non filling up of vacant posts and non finalization of proposalsfor rent revision in respect of hired Bus.

Non-finalization of proposals for rent revision and requirementof less funds towards wages, purchase of office furniture andequipments.

Non filling up of vacant posts and non-finalization of proposalsfor rent revision in respect of hired office buildings.

Non-filling up of vacant posts.

Requirement of less funds towards renovation of office premisesand maintenance of buildings.

191 Indirect Taxes

Less demand for maintenance and repairs of departmentalresidential buildings during the year.

Non fulfillment of the contractual obligations by the boatsuppliers, delay in finalization of the agreement for purchase of4 X-ray container Scanners and non finalization of the proposalsfor construction of pre fabricated premises at border check-posts.

Entire provision remain unutilized due to non-settlement of issueof stamp duty to Municipal Corporation of Delhi and theconversion of leasehold to free-hold in case of purchase of officebuilding of NBCC Plaza, Saket, UTI building at Mumbai andnon-finalization of the proposal for purchase of officeaccommodation at Guwahati.

Non materialization of proposal for purchase of residentialaccommodation during the year.

13. Major Head-2216 (Housing) 2.04

14. Capital Outlay on Other Fiscal Services 37.03

15. Capital Outlay on Public Works 40.00

16. Capital Outlay on Housing 3.19

(` in crore) S. Sub Head/ Scheme/ Savings Remarks/ ReasonsNo. Programme

iii) Surrenders/savings due to obsolete/defunct project/scheme or due to completion of project/scheme:Nil

Note:- This annexure is included in compliance of O.M.No.7(1)-B(AC)/2011 dated 23rd March, 2012 of Budget Division regardingsegregation of savings due to normal savings, under/non-utilization & surrender of funds for the financial year 2011-12 asdesired by the Standing Committee on Finance in its 33rd Report.

DEPARTMENT OF DISINVESTMENTINTRODUCTION

The Department of Disinvestment is mandated the followingwork:-

(1) (a) All matters relating to disinvestment of CentralGovernment equity from Central Public SectorEnterprises(CPSEs);

(b) All matters relating to sale of Central Governmentequity through offer for sale or private placementin the erstwhile CPSEs;

Note: All other post disinvestment matters,including those relating to and arising out of theexercise of call option by the strategic partner inthe erstwhile CPSEs, shall continue to be handledby the administrative Ministry or Departmentconcerned, where necessary, in consultation withthe Department of Disinvestment.

(2) Decisions on the recommendations of DisinvestmentCommission on the modalities of disinvestment,including restructuring;

(3) Implementation of disinvestment decisions, includingappointment of advisors, pricing of shares, and otherterms and conditions of disinvestment;

(4) Disinvestment Commission;(5) CPSEs for purposes of disinvestment of Government

equity only; and(6) Financial policy in regard to the utilization of the

proceeds of disinvestment channelised into the NationalInvestment Fund. (inserted through amendment dated12 January 2006 to the Allocation of Business Rules)

The Department is headed by Secretary (Disinvestment) whois assisted by four Joint Secretaries. There is also a post of ChiefExecutive Officer, National Investment Fund.

193 Outcome Budget 2013-2014

STAT

EM

EN

T O

F O

UT

LAY

S A

ND

OU

TC

OM

ES

2013

-14

S. No. 1

1. 2.

Nam

e of

the

Sche

me/

Prog

ram

e

2

Dis

inve

stm

ent

ofG

over

nmen

t of

Indi

a sh

areh

oldi

ngin

Cen

tral

Pub

licSe

ctor

Ent

erpr

ises

.

Wri

te

back

of

amou

nts w

ith A

MC.

Obj

ectiv

e/O

utco

me

3

To ra

ise re

sour

ces a

s wel

l as

unlo

ck tr

ue va

lue o

f CPS

Es.

Out

lay

2013

-14

(` in

Cro

re)

44(

i)4(

ii)4(

iii)

Non

-Pl

anC

EB

RPl

an B

udge

tB

udge

t

54.9

7...

...

Qua

ntifi

able

Del

iver

able

s/Ph

ysic

alO

utpu

ts5

`

40,

000

cror

e.

` 18

14 c

rore

.

Proj

ecte

dO

utco

mes

6

To

achi

eve

wid

edi

sper

sal o

f ow

ners

hip

of C

PSEs

.

To e

nhan

ce p

eopl

eow

ners

hip

of C

PSEs

.

Impr

ove

corp

orat

ego

vern

ance

.

Wil

l be

m

ade

avai

labl

e fo

rut

iliz

atio

n fo

rob

ject

ive

indi

cate

d in

NIF

Proc

esse

s/Ti

mel

ines

7

Disi

nves

tmen

t dep

ends

on

appr

oval

s by

Gov

ernm

ent,

and

then

by S

EB

I, R

BI

etc,

incl

udin

g pre

pare

dnes

sof

CPS

Es

No

stric

t tim

elin

es ca

nbe

pres

crib

ed. H

owev

er,

a ro

adm

ap is

pre

pare

dby

Dep

artm

ent w

hich

is m

onit

ored

on

are

gula

r bas

is.

1475

.00

cr. -

Apr

. 201

3

339.

00 cr

. - D

ec.,

2013

Rem

arks

/R

iskFa

ctor

s

8

-Re

quisi

te nu

mbe

rof

ind

epen

dent

dire

ctor

s no

tap

poin

ted

onth

e Boa

rd.

- Vo

latil

ity i

n th

est

ock

mar

kets

-D

omes

tic

&In

tern

atio

nal.

194Outcome Budget 2013-2014

195 Department of Disinvestment

REFORM MEASURES AND POLICY INITIATIVES

The following measures have been taken this year to makethe process of disinvestment more efficient and transparent.

Ø Buyback: On 07.02.2012 SEBI amended the guidelinesrelating to buyback of securities to provide for tenderingof the shares by all shareholders in proportion to theirshareholding. This is just like the provisions relating toRights Issue of Shares by companies. Through thisamendment the provisions have been made equitable toall shareholders compared to a favourable treatment tosmall shareholders. CPSEs have been enabled to usesurplus funds to buyback their share and buy shares ofother CPSEs from Government.

Ø Exchange Traded Fund: On the part of theDepartment of Disinvestment, an innovative methodfor disinvestment is being looked into. The newmethod, Exchange Traded Fund (ETF) based on

CPSE shares when launched, would provide investors,particularly the small investors, an opportunity to buya product that will represent number of public sectorshares, comprising the basket of ETF and thus, therisk gets minimized. For the Government, this methodwould provide an additional mechanism formonetization of its stakes in CPSEs in a stock neutral,time-efficient and non-disruptive manner.

Ø National Investment Fund: The National InvestmentFund has been restructured to utilize disinvestmentproceeds for recapitalization needs of CPSEs, PublicSector Banks and Public Sector Insurance Companies.The proceeds could also be used to subscribe to sharesof CPSEs on rights basis or on preferential basis, soas to ensure that Government’s shareholding in theCPSEs does not fall below 51%.

196Outcome Budget 2013-2014

REVIEW OF PAST PERFORMANCE

The Department of Disinvestment has no plan or non-planscheme. The entire Budget of the Department is under non-planfor payment of salary, wages, professional services and otheradministrative expenses, etc. The Budget Estimate for thefinancial year 2012-13 for the Revenue was ` 63.24 crore andRevised Estimate for financial year 2012-13 is ` 25.83 crore.

1. (i) Disinvestment transactions completed during 2012-13(upto February, 2013).

(a) National Buildings Construction CorporationLtd. (NBCC) – Disinvestment of 10% paid-upequity capital of the Company through a InitialPublic Offer in the Domestic Market. Governmentof India shareholding has come down from 100%to 90%. Government realized an amount ofRs.124.97 crore. The company got listed on thestock exchanges.

(b) Hindustan Copper Ltd. (HCL) – Disinvestmentof 5.58% paid-up equity capital of the Companythrough Offer for Sale in the Domestic Market.Government of India shareholding has come downfrom 99.59% to 94.01%. Government realized anamount of ` 807.02 crore.

(c) National Mineral Development CorporationLtd. (NMDC) – Disinvestment of 10% paid-upequity capital of the Company through Offer forSale in the Domestic Market. Government of Indiashareholding has come down from 90% to 80%.Government realized an amount of 5973.27 crore.

(d) Oil India Ltd. (OIL) – Government hasdisinvested 10% paid-up equity capital of Oil IndiaLimited out of Government’s holding of 78.43%through an “Offer for Sale in domestic market.Government realized an amount of 3141.51 crore.

(e) National Thermal Power Corporation Ltd.(NTPC) - Government has disinvested 9.50% paidup equity capital in NTPC out of Government’sshareholding of 84.50% through offer for sale indomestic market. Government realized an amountof `11457.54 crore.

(ii) Disinvestment transaction(s) under implementation:

(a) MMTC Limited (MMTC) – Government hasapproved disinvestment of 9.33% paid-up equitycapital of MMTC out of Government’s holding of99.33% through an “Offer for Sale of Sharesthrough Stock Exchanges” as per SEBI Rules andRegulations. Transaction is likely to be completedduring current financial year.

(b) Bharat Heavy Electricals Ltd. (BHEL) -Government has approved disinvestment of 5%equity out of Government shareholding. DRHP

was filed with SEBI on 30.09.11. The Issue couldnot be launched due to non-availability of requisitenumbers of Independent Directors. Due torestrictions imposed on investor relations activity,the DRHP filed with SEBI has been allowed to bewithdrawn by the Company. As SEBI has nowprovided auction route for sale of shares, thepossibility of the same in respect of BHEL is underconsideration. A decision to commence with thetransaction is yet to be taken in consultation withDepartment of Heavy Industry.

(c) Rashtriya Ispat Nigam Ltd. (RINL) - Governmenthas approved disinvestment of 10% paid up equitycapital of RINL. The RHP was filed with SEBI on27.09.2012. Preparatory action for appointmentof advisors has been completed. The Issue has beendefered for the time being.

(d) Steel Authority of India Ltd. (SAIL) - Governmenthas approved disinvestment of 10.82% paid upequity capital of SAIL out of GoI shareholdingthrough Stock Exchanges Mechanism. TheMerchant Bankers/Selling Brokers and LegalAdvisers for the Issue of SAIL have beenappointed.

(e) National Aluminium Company Ltd. (NALCO) -Government has approved disinvestment of12.15% paid up equity capital in NALCO out ofGOI’s holding of 87.15% through an ‘Offer forSale of Shares through Stock Exchanges’ as perSEBI Rules and Regulations. Merchant Bankers/Selling Brokers and the Legal Advisors for theIssue have been appointed. The OFS transactionwould be carried out after there is clarity withregard to the improvement in the performance in3rd quarter.

(f) Hindustan Aeronautics Ltd. (HAL) - Governmenthas approved disinvestment of 10% paid up equityin HAL out of GOI’s shareholding of 100%through an Initial Public Offering(IPO). The BookRunning Lead Managers and Legal Counsels tothe Issue have been appointed. Issue is expectedin financial year 2013-14.

(g) Rashtriya Chemicals and Fertilizers Ltd. (RCF)- Government has approved disinvestment of12.5% paid up equity in RCF out of GOI’sshareholding through stock exchange mechanism.The procedure for appointment of MerchantBankers/Selling Brokers is in progress.

(h) Neyveli Lignite Corporation Ltd. (NLC) -Proposal for disinvestment of 5% paid up equityof NLC out of GOI’s shareholding of 93.56%

197 Department of Disinvestment

II The Budgeted targets for disinvestment receipts and the amounts realized through disinvestment in CPSEs during2011-12 and 2012-13 (upto February, 2013) are given below:-

Year Budgeted targets Proceeds from RemarksDisinvestment

(` in crore) (` in crore) (` in crores)

2011-12 40000.00 13894.07 Power Finance Corporation Ltd. : `1144.55Oil & natural gas Corporation Ltd. : `12749.52

2012-13 30000.00 21504.31 National Building Construction Corporation Ltd. : `124.97Hindustan Copper Ltd. : `807.02National Mineral Development Corporation Ltd. : `5973.27

Oil India Ltd. : `3141.51

National Thermal Power Corp. Ltd. : `11457.54

III A sum of `1,15,47,67,364 has been received as income generated from Tranche-I of National Investment Fund at the endof November, 2012. Income from tranche-II will be received by 27.03.2013 and hence RE 2012-13 & BE 2013-14 may betaken as `196.00 crore as income from NIF.

through an Offer for Sale(OFS) has been mooted.Merchant bankers/Selling brokers and LegalAdvisors for the OFS in NLC transaction have beenappointed. Transaction is likely to be carried outin financial year 2013-14.

(i) Engineers India Ltd. (EIL) – Government hasapproved disinvestment of 10% paid-up equitycapital in Engineers India Limited (EIL) out ofGovernment shareholding of 80.40% through aprospectus based Further Public Offering (FPO)in the domestic market. Transaction is likely to becarried out in FY 2013-14.

(j) State Trading Corporation of India Ltd. (STC) -A proposal for disinvestment of 5% paid-up equitycapital in STC out of Government of Indiashareholding of 91.02% through an “Offer for Saleof Shares through Stock Exchanges” as per SEBIRules and Regulations is under consideration.

(k) Tyre Corporation of India Limited (TCIL) -Pursuant to the passage of the TCIL(Disinvestmentof Ownership) Bill 2007 by the Parliament, theCCEA on 16th Nov. 2008 approved disinvestmentin TCIL through outright sale. Pursuant to theabove decisions, Department of Disinvestmentconstituted an Inter-Ministerial Group(IMG) on13th October, 2011 for guiding the process ofdisinvestment through strategic sale in TCIL. TheAdvisor, the Legal Advisor and the Asset Valuerfor the transaction have been appointed. Inresponse to Advertisement requesting Global

Expression of Interest for TCIL transaction issuedon 13th and 20th July, 2012, three parties havesubmitted their EOIs. IMG in its meeting held on22nd November, 2012 considered and approved theDraft Sale documents viz CIM, SPA, DD&DRRules and RFP for TCIL transaction. Site visitsand due diligence by the bidders were completedin December, 2012.

(l) Scooters India Limited (SIL) - On a Cabinet Noteon revival of Scooters India Limited (SIL)sponsored by the Department of Heavy Industry,the Cabinet on 19.05.2011 inter-alia approved thetransfer of entire Government equity of 95.38% inSIL to a suitable strategic partner through theDepartment of Disinvestment and to introduce aresolution in both Houses of Parliament toauthorize the Government to identify and induct astrategic partner through DOD for SIL. The actualprocess of disinvestment in SIL to be carried outby DoD, would commence after the resolution isintroduced in and passed by the Parliament (forwhich action is being taken by DHI). DHIintroduced a resolution during Monsoon Session2011 of Parliament to facilitate induction ofstrategic partner. However, due to subsequentdevelopments, the resolution so introduced waswithdrawn. The DHI on reconsideration of thematter, has proposed revival of SIL on its ownthrough a draft CCEA Note sponsored by them inthat regard. A decision in the matter is pending.

FIN

AN

CIA

L R

EV

IEW

OB

JEC

T H

EA

D-W

ISE

EX

PEN

DIT

UR

E V

IS-À

-VIS

BE

/RE

FO

R T

HE

YE

AR

201

0-11

, 201

1-12

& 2

012-

13

(` in

cro

re)

S.N

o.D

escr

iptio

n20

10-1

120

11-1

220

12-1

3

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

B.E

.R

.E.

Act

ual

upt

o31

.12.

2012

RE

VE

NU

E S

EC

TIO

N

1Sa

larie

s2.

752.

792.

792.

993.

343.

243.

603.

462.

78

2W

ages

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

3O

vert

ime A

llow

ance

0.02

0.02

0.01

0.02

0.02

0.01

0.02

0.01

0.00

4M

edic

al T

reat

men

t0.

020.

040.

030.

040.

040.

040.

040.

040.

03

5D

omes

tic T

rave

l Exp

ense

0.10

0.40

0.52

0.40

0.40

0.14

0.40

0.20

0.12

6Fo

reig

n Tr

avel

Exp

ense

s3.

003.

002.

653.

003.

000.

303.

001.

000.

78

7O

ffice

Exp

ense

s0.

601.

000.

950.

951.

101.

101.

001.

000.

80

8Pu

blic

atio

n0.

010.

010.

000.

010.

010.

010.

010.

010.

00

9O

ther

Adm

inis

trativ

e Exp

ense

s0.

030.

030.

010.

030.

030.

030.

030.

030.

03

10Pr

ofes

sion

al S

ervi

ces

56.8

056

.04

56.0

655

.14

42.5

730

.31

55.0

920

.04

8.33

11In

form

atio

n Te

chno

logy

(ot

her c

harg

es)

0.03

0.03

0.03

0.05

0.07

0.08

0.05

0.04

0.04

Tota

l Rev

enue

Sec

tion

63.3

663

.36

63.0

562

.63

50.5

835

.26

63.

24

25.

8312

.91

CA

PITA

L SE

CT

ION

00.0

000

.00

00.0

000

.00

00.0

000

.00

00.0

000

.00

00.0

0

GR

AN

D T

OTA

L63

.36

63.3

663

.05

62.6

350

.58

35.2

6

6

3.24

2

5.83

12.9

1

AN

ALY

SIS

OF

OV

ER

AL

L T

RE

ND

S IN

EX

PEN

DIT

UE

The o

vera

ll Re

venu

e exp

endi

ture

und

er th

is G

rant

was

63

.05

cror

e in

2010

-11,

35

.26

cror

e in

2011

-12

and

12.

91 cr

ore i

n 20

12-1

3 (u

p to

Dec

embe

r 201

2). T

his e

xpen

ditu

reis

mai

nly t

o m

eet t

he re

quir

emen

ts o

f the

Sec

reta

riat

of t

he D

epar

tmen

t.

198Outcome Budget 2013-2014

199 Department of Disinvestment

Annexure

Demand No. 45 – Department of Disinvestment (Earlier 44)

During the financial year 2011-12 against a budgetary provision of 62.63 crore, an expenditure of 35.26 crore was incurredresulting in a savings of `27.37 crore.

These savings have been segregated into the following categories:-

(i) Normal savings : Savings resulting from economic use of Resources

Normal Savings : `0.17 crore (less requirement of administrative expenses)

(ii) Under/Non utilization : Savings due to non-implementation/delay in execution of projects/schemes

`27.20 crore (Due to Non completion of Public Offerings)

Note:- This annexure is included in compliance of O.M.No.7(1)-B(AC)/2011 dated 23rd March, 2012 of Budget Division regardingsegregation of savings due to normal savings, under/non-utilization & surrender of funds for the financial year 2011-12 asdesired by the Standing Committee on Finance in its 33rd Report.

200Outcome Budget 2013-2014

OR

GA

NIZ

ATIO

NA

L ST

RU

CT

UR

E

DE

PAR

TM

EN

T O

F D

ISIN

VE

STM

EN

T

FIN

AN

CE

MIN

IST

ER

SEC

RE

TAR

Y

JOIN

T S

EC

RE

TAR

Y &

CE

O, N

IFJO

INT

SEC

RE

TAR

YJO

INT

SEC

RE

TAR

Y(M

s. S

angi

ta C

hour

e)(S

hri A

lok

Tand

on)

(Shr

i Pra

mod

Agr

awal

)

I.A

ll m

atte

rs r

elat

ing

to D

isin

vest

men

tin

CPS

Es

unde

r M

in/D

eptt

:-

Rai

lway

s-

Ship

ping

-C

ivil

Avia

tion

-W

ater

Res

ourc

es-

Com

mun

icat

ion

&In

form

atio

n Te

chno

logy

-In

form

atio

n &

Bro

adca

stin

g-

Tour

ism

-So

cial

Jus

tice

& E

mpo

wer

men

t-

Dev

elop

men

t of

NER

-Te

xtile

s-

Petro

leum

& N

atur

al G

as-

Che

mic

als

& F

ertil

izer

s-

Com

mer

ce &

Ind

ustry

II.

Mat

ters

rel

atin

g to

:-

Med

ia-

CC

EA p

aper

s &

fol

low

up

-La

bour

(V

RS/

VSS

) iss

ues

-D

isinv

estm

ent

Com

miss

ion

(Res

idua

l mat

ters

)-

Inve

stm

ent

Com

miss

ion

-N

atio

nal I

nves

tmen

t Fu

nd-

CPG

RA

M

III.

Gri

evan

ce O

ffic

er fo

r D

oD

I.A

ll m

atte

rs r

elat

ing

to D

isinv

estm

ent

in C

PSE

s un

der

Min

/Dep

tt :

-Po

wer

-M

ines

-St

eel

-A

gric

ultu

re-

Con

sum

er A

ffairs

, Foo

d &

Publ

ic D

istri

butio

n-

Fina

nce

II.

Mat

ters

rel

atin

g to

:-

Gen

eral

Adm

inis

tratio

n-

Esta

blis

hmen

t-

Parli

amen

t-

R&

I-

Bud

get

-C

ash

-C

oord

inat

ion

-M

isc.

III.

Disi

nves

tmen

t da

ta m

anag

emen

t

I.A

ll m

atte

rs r

elat

ing

to D

isinv

estm

ent

in C

PSE

s und

er M

in/D

eptt

-C

oal

-H

eavy

Ind

ustri

es &

Publ

ic E

nter

pris

es.

-D

efen

ce-

Ato

mic

Ene

rgy

-Sp

ace

-Sc

ienc

e &

Tec

hnol

ogy

-N

ew &

Ren

ewab

le E

nerg

y-

Urb

an D

evel

opm

ent

-H

ousin

g &

Urb

anPo

verty

Alle

viat

ion

-M

icro

, Sm

all &

Med

ium

Ente

rpris

es I

ndus

tries

-H

ealth

& F

amily

Wel

fare

II.

Nod

al O

ffic

er fo

r-

e-go

vern

ance

-IT

-D

oD w

ebsit

e-

IPv6

Pol

icy

impl

emen

tatio

n

III.

App

ella

te A

utho

rity

und

er R

TI

IV. P

olic

y

*C

hief

Exe

cutiv

e O

ffice

r, N

atio

nal I

nves

tmen

t Fun

d, a

dditi

onal

cha

rge

held

by

JS(S

C).