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New Delhi: Finance
Minister P. Chidambaram Thursday proposed Rs.2,400 crore (approx
$430 million) to modernise the powerloom segment under the
technology upgradation fund scheme (TUFS) for the textile sector.
"I propose to continue the TUFS for the textile sector in the 12th
Plan with an investment target of Rs.151,000 crore," Chidambaram
said while presenting the union budget 2013-14 to the lower house
of parliament.
According to him, the budget also proposes to set up apparel parks
within integrated textile parks with an allocation of Rs.50 crore
to the textile ministry.
The finance minister also proposed to provide Rs.50 crore for
integrated processing development scheme which will be implemented
in the 12th Plan period to address the environmental concerns of
the textile industry.
The total outlay of the scheme in the 12th Plan period is
estimated to be about Rs.500 crore.
Chidambaram also voiced his concern over the handloom sector which
he called "in distress" and proposed to provide working capital
and term loans at a concessional interest of six percent.
"I propose to allocate an additional sum of Rs.96 crore in 2013-14
to the ministry of textiles for interest subvention," he said.
The finance minister added that the budget will leverage
assistance from multilateral development banks to extend scheme
for funds for regeneration of traditional industries (SFURTI) to
800 clusters during the 12th Plan with a planned outlay of Rs.850
crore.
Budget Highlights
No revision of personal income tax
slabs; relief in first bracket through tax credit of Rs.2,000 for
earnings up to Rs.500,000 (approx $9,000)
Ten percent surcharge on income exceeding Rs.1 crore (Rs.10
million/$180,000) a year; only 42,800 people have declared such
income
Collective responsibility to ensure dignity and safety of women;
recent incidents have cast a dark shadow; stand in solidarity with
our girl children and women; will keep them safe and secure
Rs.1,000 crore allocated for establishing Nirbhaya Fund
Rs.97,000 crore (Rs.970 billion/$18 billion) for women's
development
Defence allocated Rs.203,672 crore (Rs.2.03 trillion/$37 billion),
an increase of five percent
Import duty on high-end vehicles raised from 75 percent to 100
percent
Excise duty on cigarettes to be increased 18 percent
No change in service tax of 12 percent
No service tax on vocational courses run by institutes affiliated
to state governments
Service tax on all air conditioned restaurants regardless of
whether or not they serve alcohol
No service tax on agricultural testing procedures
Rs.9,000 crore allocated for compensating state for differential
in central sales tax and GST
Concessions for encouraging MRO (maintenance repair overhaul)
sector
No change in customs duty on non-agricultural products
Modified law to prevent tax avoidance to come into effect April 1,
2016
100 percent tax deduction for contributions to National Children's
Fund
Education cess to continue at 3 percent
11 lakh people have benefited from direct cash transfers; scheme
to be rolled out across the country during UPA-2 term (May 2014)
Property transactions skewered; TDS of one percent where
transaction exceeds Rs.50 lakh
Tax on mutual fund redemptions reduced from .25 percent to .001
percent
Tax Administrative Reforms Commission to be set up
Cities to be encouraged to promote waste to energy projects
Low interest funds to be provided for promoting clean energy
Rs.800 crore provided to promoting wind energy
Two new ports to be set up in West Bengal and Andhra Pradesh to
add 100 million tonnes handling capacity
Gas handling terminal at Dabhol in Maharashtra to be fully
operational during 2013-14
State governments urged to sign restructuring plans with
electricity discoms
Tax-free infrastructure bonds of Rs.50,000 crore to be issued
Textile ministry allocated Rs.50 crore for establishing apparel
parks
Handloom sector allocated Rs.96 crore to benefit 150,000 weavers
Infrastructure debt funds to be encouraged
Regulator to be appointed for road projects; 3,000 km of road
projects to be awarded in first six months of 2013-14
Incentive allowance of 15 percent over and above permitted
depreciation to those investing over Rs.100 crore in
infrastructure projects
Rajiv Gandhi Equity Scheme to be liberalised
Seven new cities identified along Delhi-Mumbai Industrial Corridor
Preliminary work begun on Bangalore-Mumbai Industrial corridor
Foodgrain production during 2013-13 estimated at 250 million
tonnes
Rs.500 crore allocated for promoting crop diversification
Rs.200 crore allocated for promoting nutrient-rich crops
Rs.50 crore allocated for farmer-producer organisations
National Livestock Mission to be launched with allocation of
Rs.307 crore
Hope parliament will pass food security bill; Rs.10,000 crore
allocated for initial expenditure on implementation
Human resource development ministry to get Rs.65,867 crore
Rs.13,250 crore allocated for midday meals scheme
Rs.17,700 crore allocated for Integrated Child Development Scheme
Drinking water and sanitation ministry allocated Rs.15,260 crore
Allocation of rural development ministry allocation raised by 46
percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme
Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan
expenditure at Rs.5 lakh 55,224 crore
Rs.41,000 crore for Scheduled Caste plan
Rs.110 crore for department of disabilities
Rs.37,330 crore for health ministry
Average growth during UPA-1 was 8 percent; high growth not a
novelty
Current account deficit a worry because of high oil and gold
imports
Will need $75 billion to finance current account deficit
Need to encourage FDI in consonance with economic priorities
WPI inflation down to 7 percent; food inflation worrying.
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2013
Union Budget
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