Highlights of Union Budget 2013-14

NEW DELHI: India must make tough spending choices, finance minister P Chidambaram said on Thursday, even as he unveiled a bigger-than-expected outlay for the coming fiscal year in one of the most highly anticipated Indian budgets of recent years.



Following are highlights of the Budget:

FISCAL DEFICIT
* Faced with huge fiscal deficit, India had no choice but to rationalise expenditure

GROWTH
* India faces challenge of getting back to its potential growth rate of 8 pct

* India must unhesitatingly embrace growth as highest goal

SPENDING
* Total budget expenditure seen at 16.65 trillion rupees in 2013/14

* India's 2013/14 plan expenditure seen at 5.55 trillion rupees

* Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 pct of budget estimate

* Set aside 100 billion rupees towards spending on food subsidies in 2013/14

CURRENT ACCOUNT DEFICIT
* India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit

INFLATION
* Food inflation is worrying, will take all steps to augment supply side

CORPORATE SECTOR AND MARKETS
* Plans to issue inflation-indexed bonds

* Proposes capital allowance of 15 pct to companies on investments of more than 1 billion rupees

* Foreign institutional investors can use investments in corp, govt bonds as collateral to meet margin requirements

* To implement quickly recommendations of financial sector legislative reforms commission

* Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors

POWER AND ENERGY SECTOR
* Proposes zero customs duty for electrical plants and machinery

* Proposes to move to revenue-sharing from profit-sharing policy in oil and gas sector

BANKING
* To provide 140 billion rupees capital infusion in state-run banks in 2013/14

* To allocate 10 billion rupees for India's first women's bank

AGRICULTURE
* To allocate 801.94 billion rupees to rural development in 2013/14

* Plan to allocate 270.49 billion rupees for agriculture in 2013/14

FINANCE MINISTER COMMENTS
* "Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working."

News Resource : http://timesofindia.indiatimes.com/business/budget-2013/union-budget/Highlights-of-Union-Budget-2013-14/articleshow/18724197.cms

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