Union Budget 2013-14: LIVE

Finance Minister P. Chidambaram presented Union Budget 2013-14 in Parliament on Thursday. Full Coverage

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P. Chidambaram
Finance Minister P. Chidambaram

- Have limited surcharge to 1 year as revenue under pressure low: FM.

- Food and fertiliser subsidy will be last to be transferred through the Direct Benefit Transfer (DBT) scheme: P Chidambaram.

- The new PSU bank for women will employ and lend predominantly to women: P Chidambaram.

- Have levied surcharge on only 42,800 people. This step will not promote tax evasion. Companies making an income of more than Rs 10 cr have to pay this surcharge only for one year. Our taxes are not more as compared to other countries. This will certainly not promote tax evasion, says Union Finance Minister P Chidambaram.

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- We are as confident of achieving 6.7 per cent grwoth as we can be: P Chidambaram.

- We will provide more money for Food Security Act if needed: P Chidambaram.

- Only way to contain current account deficit is to boost exprts: FM.

- We have put aside Rs 9,000 crore for GST to show our commitment: FM.

- Surcharge on super rich won't encourage tax evasion, says P Chidambaram.

- Won't breach fiscal deficit target of 4.8 per cent: P Chidambaram.

- Immediate goal is to pass growth rate of 6 per cent: FM.

- Can't set a deadline on GST, ball is in court of state governments: FM.

- In regard to spectrum allocation, next year spectrum revenue will be divided into licence fee, revenue sharing and one-time fee: P Chidambaram.

- Uncertainty in spectrum auction will be resolved and spectrum will be auctioned: FM

- Fuel subsidy bill is likely to be smaller because we are correcting diesel prices, says P Chidambaram.

- Double taxation avoidance agreement has two conditions - residence and the beneficial ownership: FM.

- I can't predict what mid-course corrections will take place. It is difficult to say at the moment, says Union Finance Minister P Chidambaram.

- We have every reason to believe that fuel subsidy will be lower this year: P Chidambaram.

- Once we achieve growth of 6.1 to 6.7 per cent next year, we should aim at 7 per cent in 2014-15, says P Chidambaram.

- Next year there is no reason to believe that tax revenues will grow at lower rate when the economy will grow at above 6 per cent: FM

- We will allocate more money for the Food Security Bill, if needed, once it is passed, says finance Minister P Chidambaram.

- Fiscal policy must go hand-in-hand with monetary policy: FM.

- Growth not en end in itself; it must bring relief to people in terms of education, healthcare, jobs, safety: FM.

- Growth can mean something only if it translates into something that is material: P Chidambaram.

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- 2013-14 will be better than 2012-13 in terms of growth, inflation control and investment, says P Chidambaram.

- Monetary policy alone cannot contain inflation: P Chidamabaram.

- We have contained fiscal deficit at 5.2 per cent: Finance Minister P Chidambaram.

- FM says fiscal policy must do its part in containing inflation while hoping that monetary policy authority will also do its part.

- 2013-14 will be a better year than 2012-13, says Chidambaram.

- In medium- to long-term, the only way to contain current account deficit is to increase exports: FM.

- Once fiscal deficit is contained, other deficits will be taken care of, says Chidambaram.

- Main thrust of Budget is that we are following a fiscally prudent path, fiscal deficit will be contained: FM.

- Another set of decisions and measures will be announced in reply to Budget discussion and Finance Bill in Parliament: FM.

- Economy is challenged in a number of ways, says FM.

- Now is the time for patience when the economy is challenged, says Chidambaram.

- Finance Minister P Chidambaram addresses media post-Budget.

- There is decline in prices of imported shoes only. No relief to any class...Now 1 per cent tax has been imposed on flats too, says senior SP leader Ram Gopal Yadav.

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- Communist Party of India (CPI) leader Gurudas Dasgupta termed it a "lollypop" offered by the government. He said it was a "budget of deceit".

- Communist Party of India-Marxist (CPI-M) leader Sitaram Yechury said, "In this budget, the way he (Chidambaram) managed is by presuming. He has presumed that taxes will grow up. These are unrealisable. In the first nine months of the last year the central excise collection fell by 16 per cent. From where is he going to get an increase in the tax revenues?"

- There is nothing important in this budget...All announcements related to poor and Dalits look to be in air, says BSP supremo Mayawati.

- SP chief Mulayam Singh Yadav said the government ignored farmers and workers.

- There is decline in prices of imported shoes only. No relief to any class...Now 1 per cent tax has been imposed on flats too, says senior SP leader Ram Gopal Yadav.

- Shiromani Akali Dal MP Harsimrat Kaur Badal said she would give only two marks to the budget out of 10.

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- Actor-turned-MP Shatrughan Sinha called it a "lollypop budget" as he found it a "trap of numbers".

- Bihar Chief Minister and JD-U leader Nitish Kumar said, "Fight for special status is in its final stage. I am raising my voice for other backward states also...Money allocated for food security should be increased. Funds for Nalanda International University is a welcome step."

- Senior BJP leader Balbir Punj said, "Disappointing budget...It is purely an accountant work. Primary objective of budget is to be able to ignite the economy...The size of the cake is getting smaller and smaller."

- It is a very disappointing budget. The inflation would continue and the middle class would continue to suffer. There is no relief. I think the schemes should have been consolidated, says Janata Dal-United leader Sharad Yadav.

- Veteran leader Murli Manohar Joshi said it was an accountant budget, not a finance minister's budget.

- We were expecting agriculture and infrastructure based budget, but we are disappointed. They have not given anything...The finance minister could not see the face of the farmer and common man. This was an unimaginative, dull and boring budget. The expectations were that it will bring some hope to the country it has not happened. Common man was not even mentioned in the budget, says BJP leader Sushma Swaraj.

- This has very little to offer. Specially to the sectors which needed some help. First they put economy in distress then they come with some cosmetic changes. This is juglary, says BJP leader Arun Jaitley.

- Chidambaram has done a tight rope walk, but has managed well, says Minister of State for Home RPN Singh.

- We need to create 10 million jobs a year for the duration of the 12th Plan which can be achieved only if we reach eight percent GDP growth level, says PM Manmohan Singh.

- Chidambaram has laid out a roadmap with regard to investments, says PM.

- Finance Minister P. Chidambaram has done a commendable job given the challenges faced by economy, says Prime Minister Manmohan Singh on budget.

- Chidambaram's shortest, least interrupted and UPA II's last budget speech ends. Insta Analysis: Mr Minister had been promising a reasonable budget. However open-ended that was, he has lived up to his promise.

- This budget is cleverly drafted, says former finance minister Yashwant Sinha.

- Marbles to become expensive, duty increased from Rs 30 per sq mtr to Rs 60 per sq mtr.

- Reduction in basic customs duty from 7.5% to 2.5% on sugarcane planter, root or tuber crop harvesting machine and rotary tiller and weeder.

- Reduction in basic customs duty from 7.5% to 5% on specified coffee plantation and processing machinery.

- Extension of project import benefit to green house and protected cultivation for horticulture and floriculture at concessional basic customs duty of 5%.

- Reduction in basic customs duty on some water soluble fertilisers and liquid fertilisers, other than urea, from 7.5% to 5% and from 5% to 2.5%.

- Extension of concessional import duty available for installation of Mechanised Handling Systems and Pallet Racking Systems in mandis or warehouses for horticultural produce.

- Surcharge increased on domestic companies whose annual taxable income exceeds Rs 10 cr from 5% to 10%; in case of foreign companies the surcharge will increase from 2% to 5%.

- Surcharge on Dividend Distribution Tax increased from 5% to 10%.

- Education cess for all tax payers shall continue at 3%.

- Abatment on service tax on houses with a carpet area of 2,000 sq ft or more reduced from 75% to 70%.

- Negative list on service tax increased to 19 from 17.

- Zero excise duty at fibre stage for cotton; in case of yarn there will a duty of 12% at fibre stage.

- Service Tax exemption granted to films exhibited in cinema halls.

- Excise duty on mobile phones costing more than Rs 2,000 increased to 6%.

- 100% tax on high-end vehicles, 60% on imported bikes above 800 cc and 25% tax on yachts.

- All AC restaurants and cafes having an area of more than 2,000 sq ft to pay service tax.

- One time scheme for service tax defaulters; tax will be taken, penalty and other charges to be exempted.

- Higher import duties on yachts and SUVs; excise duty on non-taxi SUVs increased from 27% to 30%. Insta Analysis: Someone needs to define SUV. Is Bolero one?

- Duty cut on leather and leather goods.

- Female passengers can bring duty free gold of up to Rs 1 lakh.

- Male passengers can bring duty-free gold worth up to Rs 50,000.

- Cigarettes to get costlier; excise duty raised to 18%. Insta Analysis:Mr FM attempts humour too! Thankfully, no news on alcohol yet.

- Service tax to be levied on air-conditioned restaurants.

- Import duty on set top boxes and raw silk hiked by 5% to 10%. Insta Analysis: The most obscure part of Budget speech is underway.

- Service tax and excise tax unchanged at 12%.

- FICCI welcomes the announcement to move from profit sharing to revenue sharing for E&P projects as this will do away the ambiguity in calculation of cost recovery and approval of capital expenditure incurred by E&P companies before sharing profit petroleum with the government.

- Increase in import duty on high end motor vehicles from 75% to 100% and on motorcycles from 60% to 75%.

- No news on DTC again other than that it is still work-in-progress. Insta Analysis: This work-in-progress has been continuing for 8 years as our income tax laws remain rooted in 1961.

- Markets unhappy by FM's decision about no benefit on I-T slabs and exemptions; Sensex falls by 50 points, Nifty by 20 points.

- Financial Sector Legislative Reforms Commission (FSLRC) to submit its report next month.

- Tax Administration Reforms Commission is a good start to reform our tax system.

- Chidambaram announces inflation-indexed bonds.

- 1% TDS on property sale of more than Rs 50 lakh, agricultural land exempted.

- Dividend distribution tax raised from 5%to 10%. Insta Analysis: Could affect returns of some mutual fund schemes.

- 0.01% Commodity Transaction Tax to be levied on non-agriculture items.

- Commodities Transaction Tax introduced on non-agricultural commodities. Insta Analysis: You can rely on Chidambaram to think up new taxes nearly every Budget.

- Tax credit of Rs 2,000 to be given to people having income up to Rs 5 lakh, 1.8 cr people to be benefited.

- There are 42,800 people in the country who admitted to a taxable income exceeding Rs 1 crore per year; surcharge will be only for one year.

- Donations to National Children's Fund will be eligible for 100% tax deduction.

- 10% surcharge on those earning more than Rs 1 crore a year. Insta Analysis: Most important, we now have a definition of the much-debated "Super Rich" category. Secondly, 10% surcharge is not as bad as it was feared.

- There is no case to revise either the rates or the slabs for the personal tax; super rich taxed 10% surcharge on taxpayers with income over Rs 1 crore.

- Tax Administration Reforms Commission to be set up to review tax laws.

- Fiscal deficit: current 5.2%, next year 4.8%; revenue deficit: current 3.9%, next year 3.3%.

- FII can hedge forex exposure through ETFs.

- To allocate Rs 100 crore each to AMU, BHU, TISS-Guwahati and INTACH. Insta Analysis: Good to make targeted institution-specific allocation than general sector allocations.

- Rs 5.80 lakh crore to States and Union Territories.

- Banks to be allowed to act as brokers for insurance polices.

- As more women enter the labour force, there are more instances of violence against them; we pledge to take all steps to empower them; propose to set up Nirbhaya Fund to empower women and for their safety.

- Public Sector Banks to be re-capitalised by Rs 14,000 cr in 2013-14; all PSBs to have ATMs by 2014.

- I propose to increase the allocation for defence ministry to Rs 2,03,672 crore; Rs 86,721 cr for capital expenditure on defence.

- Cities with population of more than 1 lakh will be covered by private FM channel providers; 839 FM channels to be auctioned in 2013-14.

- National Institute of Sports, Patiala gets Rs 200 cr; AMU, BHU get Rs 100 cr each.

- Rashtriya Swasthya Bima Yojana to include rickshaw-pullers, taxi drivers and rag-pickers.

- With the help of Ministry of S&T, I have identified amazing innovations; will allocate Rs 200 cr to scale them and make them available to people.

- Textile Upgradation Fund seen at Rs 1.51 lakh crore in the 12th Plan; to allocate Rs 2,400 crore for textile tech upgradation.

- Term loans at a discounted rate of 6% for handloom sector.

- SEBI to simplify KYC norms governing foreign investors.

- A company investing Rs 100 crore or more in plant and machinery between April 1, 2013 and March 31, 2015 will be allowed 15 per cent investment deduction allowance apart from depreciation.

- To provide appropriate incentives for semiconductors industry including zero customs duty on plants and machineries.

- Plan to issue inflation-indexed bonds.

- To streamline FII registration via designated brokers.

- Uniform KYC norms for insurance and banks is a great idea. People will find it easier to buy insurance covers.

- The Insurance Amendment Bill and the PFRDA Bill are before the House; hope that they will be passed soon.

- Many manufacturing projects stalled due to regulatory process.

- Bank's correspondents allowed to sell micro finance.

- Nirbhaya fund set up for safety of women. Ministry of Finance to contribute Rs 1000 crore. Insta Analysis: Good policy that factors in national sentiment. But more details needed to know what the money will be spent on.

- 17 per cent hike in allocation for education, 22 per cent hike in agriculture, 46 per cent increase for rural development.

- All towns with 10,000 plus population to have life and general insurance offices; insurance cover for poor unorganised workers a very good idea.

- SEBI will simplify procedures for entry of foreign portfolio investors to invest in India.

- An hour later, no walk-outs, no major protest. Insta Analysis: This is the benefit of taking controversial decisions well before the Budget.

- I believe that India's capital market is the world's best regulated market, says Chidambaram.

- 500 inland waterways have been declared as National Waterways.

- To allocate Rs 14,000 crore for capital infusion for public sector banks.

- Govt to monitor cost of doing business in India.

- Crop loans from private banks will be subsidised too.

- At present, farmers used to get crop loans at a subsidised 4 per cent a year rate from public sector banks, regional banks and cooperative banks if they repay in time.

Incentives to help municipal corporations convert up to 7,000 tonnes of garbage that India generates every year into energy. Insta Analysis: Good news not just for environment and pollution impact, but also for clean energy companies.

- India's first all-women public sector bank to be set up; it will have women employees and give loan primarily to women; propose to provide Rs 1,000 cr as initial capital.

- Propose to provide Rs 600 cr to rural housing fund in 2013-14.

- Insurance companies will be able to start branches in tier 2 cities and below without approval of IRDA.

- India's first all-women public sector bank to be set up.

- In 2013-14, FM propose to provide Rs 14,000 cr for capital infusion in public sector banks.

- Good news for savers: Inflation indexed bonds will also wean them away from gold; more tax incentives for investors putting money in mutual funds but revival of the industry will hinge on growth.

-In consultation with RBI, the FM proposes to introduce inflation indexed bonds or certificates; details will be announced later.

- I propose to continue with the Technology Upgradation funds scheme for textile sector.

- Preparatory work started for Bengaluru-Mumbai Industrial Corridor.

- New definition for FDI and FII. If foreign investment is less than/equal to 10%, then it is FII. More than 10% is FDI. Insta Analysis: Proposal could redefine caps and limits on foreign investment in almost every sector.

- Gold-RGESS will be liberalised and the investor will be allowed to invest in mutual funds; investors will be able to do this for a period of 3 successive years; the limit for investors wanting to invest in RGESS hiked from Rs 10 lakh to Rs 12 lakh.

- Need to improve communication of policies to remove distrust and fear among investors.

- Govt must conform to timeframe set for GST.

- Restore investment allowance for companies; great news for companies that already get huge tax breaks on depreciation; more tax sops to boost housing.

- Good news for home loan takers. People taking a home loan in 2013-14 for an amount up to Rs 25 lakh will be allowed an additional deduction of Rs 1 lakh

- Objective is to choose barge operators to transport bulk cargo on waterways; the first contract awarded for Haldia-Barraka.

- Group insurance cover extended to self-help groups, teachers in schools and nurses in hospitals. Insta Analysis: If successful, this will bring real inclusive growth even to urban India.

- Doing business with India should be easy, friendly and helpful.

- Building the northeast-Myanmar-China road with external aid great idea.

- To target $1 trillion in infrastructure in the 12th plan.

- Two new ports in West Bengal and Andhra Pradesh.

- The natural gas pricing policy will be reviewed; any LP blocks that have been stalled will be cleared.

- We need to reduce dependence on imported coal.

- The govt has approved a scheme for financial restructuring of discoms; urge state govts to prepare the plans immediately.

- Revenue sharing model for oil exploration companies, in place of profit sharing model in the works so far. Insta Analysis: Could help settle the biggest dispute between Reliance Industries and the petroleum ministry.


- Rs 15,260 crore to be allocated to ministry of drinking water and sanitation: Chidambaram.

- Rs 5,000 crore to NABARD to build cold storages and godowns.

- The Delhi-Mumbai Industrial Project has made rapid projects; work on two new smart industrial cities will start during 2013-14.

Rs 10,000 crore for the Food Security Bill, which is still a bill.Insta Analysis: Sonia Gandhi's favourite legislation is getting ready to be an election plank.

- Rajiv Gandhi Equity Saving Scheme limit raised from Rs 10 lakh to Rs 12 lakh.

- For home loans taken during 2013-14 interest exemption raised by Rs 1 lakh to Rs 2.5 lakh.

- To promote savings, Inflation Index Security Certificate scheme to be introduced.

- Tax-free bonds of Rs 50,000 crore to be issued for infrastructure development.

- The road construction sector faces challenges not envisaged earlier, including financial stress; regulatory authority to be set up.

- Cabinet Committee on Investment has been set up to monitor and guide the projects to remove bottlenecks.

- National Food Security Bill -- Over and above food subsidy Rs 10,000 crore as implementation cost; expect Parliament to pass the Bill at the earliest.

Housing loan and equity investment made more liberal to discourage people from investing in gold. Insta Analysis: With gold import duty already hiked two months ago, more people will shift to financial savings. Good news for stock markets.

- FM proposes to seek help of Asian Development Bank and World Bank to invest in roads in NE states and connect them to Myanmar.

- Need to improve communication of policies to remove distrust and fear among investors.

- Good idea to start pilot projects on micro-nutrient rich crops.

- Rs 250 crore allocated for food security mission.

- Rs 1,000 core allocated for green revolution in east India.

- Rs 5,387 crore allocated for water savings plans.

- Provided sufficient funds for flagship programmes.

- JNNURM is being continued in the 12th Plan; Rs 14,873 cr to be provided to the mission: Chidambaram.

- Farmers have responded to the price signals and produced more; Rs 27,049 cr to be allocated to the agriculture ministry.

- First time investors will benefit a lot since they can invest in mutual funds too, and not just equity shares. Insta Analysis: First time investors will benefit a lot since they can invest in mutual funds too, and not just equity shares.

- Rs 1,400 crore for water purification plants; to allocate Rs 15,260 crore for water, sanitation.

- Small and marginal farmers vulnerable; watershed management crucial; Rs 5,387 cr allocated for Integrated Watershed Programme.

- Agriculture Credit to be raised to Rs 7 lakh crore.

- To allocate Rs 500 crore for crop diversification projects.

- Indian Institute of Biotechnology to be set up in Ranchi.

- 45 percent hike in rural budget allocation.

- Flagship schemes of UPA government to get Rs 80,194 cr, an increase of 46 per cent.

- Rs 14,700 cr to National Urban Renewal Mission, more low floor buses to be bought; 14,000 buses bought in FY 2012-13.

- A large part of the JNNURM to be spent on purchase of buses especially in the hilly areas.

- Will allocate Rs 17,700 cr to ICDS.

- Total expenditure at Rs 16.65 lakh crore; plan expenditure seen at Rs 5.53 lakh crore.

- Rs 33,000 crore to be allocated to MNREGA.

- Rs 169 crore given for development of Ayurveda, Siddha, Unani (natural medicine) and homeopathy.

- Multi-sectoral programme to fight malnutrition will be implemented, Rs 300 cr to be allocated, 100 districts to be covered.

- Sarva Shiksha Abhyan -- Right to Education -- Rs 27,258 cr; Midday Meal Scheme -- Rs 13,215 cr.

- Thousands of scholarships for students belonging to SC, STs and disadvantaged classes.

- FM allocates Rs 65,860 crore to education, new health mission to get 24.5% increase over RE.

- To allocate more than Rs 25,000 cr for tribal welfare.

- We need $75 billion to fund our current account deficit account next year. Insta Analysis: Ambitious goal Mr FM, but where is the money?

- Allocation for HRD 17% over the RE of the current year.

- Rs 150 crore to be provided for geriatric growth.

- The new national health mission will get 24.5% increase over the RE.

- Sexual harassment at workplace to be taken care of; Ministry of Women and Child Development given Rs 200 cr for new schemes for the same.

- Rs 110 cr to be allocated to department of disability.

- There is no reason for gloom or pessimism.

- Made sufficient allocation for programmes relating to women an children.

- Single women and widows must be able to live with dignity; WCD has been asked to design schemes.

- Government has no option but reduce the expenditure...to bring down the fiscal deficit.

- All flagship schemes have been adequately funded.

- My budget for 2013-14 has one overarching goal to create opportunities for youth to get skills to get jobs and adequate incomes.

-Had no choice but to rationalise expenditure; have retrieved some economic space and to advance our socio-economic objectives.

- Economy has slowed down after 2010.

- Food inflation is worrying; we will take all steps to meet demand.

- Current Account Deficit is a major cause of concern; gold and oil imports are high.

- Plan expenditure will be 29.4% more than revised estimates in the current year.

- China and Indonesia only large economies growing faster than India.

- We are not affected by what happened in the rest of the world.

- FDI, FII and external commercial borrowings our choice: FM

- China and Indonesia only large economies growing faster than India.

- CAD high due to high imports in coal and oil.

- Economic space right now constrained by high fiscal deficit, tight monetary policy to contain inflation.

- Foreign investment is imperative to meet our economic objectives.

- We are not unaffected by what happens in the global economy; global economic growth slowed from 3.9% in 2011 to 3.2% in 2012.

- I seek the support of the House, people of India.

- Higher growth with inclusive growth is our mantra; without growth no inclusive development: FM.

- We have examples of states growing at fast rate, but leaving behind women, SC, ST; UPA believes in inclusive development.

- Foreign investmnet is imperative.

- Only China might grow faster than India.

- Battle against inflation should be fought on all fronts.

- No reason for gloom or pessimism.

- Global economic growth slowed from 3.9% in 2011 to 3.2% in 2012.

- Between 2004 and 2008 and again in 2009-10 and 2010-11 the growth rate was over 8 per cent, says Chidambaram.

- Economy has slowed after 2010-2011.

- Chidamabaram begins his Budget speech in Parliament. He says:

- Chidambaram presents Budget in Lok Sabha.

- Union Cabinet approves General Budget 2013.

- Finance Minister P. Chidambaram reaches Parliament to present India's 82nd Union Budget in the Lok Sabha.

- Chidambaram may announce steps to raise tax and non-tax revenue and cut expenditure to keep fiscal deficit under check.

- Sensex up nearly 163 points, Nifty nears 5850 ahead of Budget 2013.

- Sensex opens about 150 points higher on Budget expectations.

- Chidambaram arrives at North Block ahead of Budget presentation.

- Chidambaram to present Budget in Lok Sabha at 11.10 am.

- Finance Minister P.Chidambaram leaves his residence for Finance Ministry.

India and the world would be keenly watching the annual federal budget, the last regular one before the 2014 general elections, that Finance Minister P. Chidambaram would present on Thursday in which he is expected to unveil economic policies and measures to spur investment-led growth, enforce fiscal prudence and ease people's concern.

Chidambaram has said he would present a "responsible" budget, given the state of the economy.

Analysts say the minister will have to balance the goals of boosting growth and cutting spending on expensive social welfare programmes, with the political interest of his Congress party as it prepares for the electoral battles ahead.

There are eight assembly elections scheduled in the coming months ahead of the Parliamentary poll.