Union Finance Minister P Chidambaram on 28 February 2013 tabled the Union budget in the Parliament for the financial year 2013-14.
P. Chidambaram was presenting his 8th Union Budget. The union Budget of 2013-14 emphasized fast track economic growth with due importance on infrastructure development, skill development, employment generation and funding for social schemes.
Three factors of Economic Concern discussed in the Union Budget 2013-14 were high fiscal deficit, slow growth and high inflation.
Expressing his confidence on India returning back to the higher growth path Chidambaram advocated for support from all quarters to navigate through economic crisis. The Union Budget of year 2013-14 stressed on achieving a growth of 8 per cent on an immediate effect.
The finance minister expressed his worry on Current Account deficit (CAD). CAD which required 75 billion Dollars to finance was high because of high import in Oil, coal and gold imports.
The Highlights of the Union Budget 2013-14 are as Follows:
• Total budget expenditure was Estimated at 16.65 trillion rupees in 2013-14
• India's 2013-14 plan expenditure seen at 5.55 trillion rupees
• To allocate 801.94 billion rupees to rural development in 2013-14
• Plan to allocate 270.49 billion rupees for agriculture in 2013-14
• RBI expected GDP growth of 5.5% for Financial Year 2013-14
• 80194 crore rupees allocation have been made for rural development schemes including MGNAREGA, PMGSY, INDIRA AWAS YOYANA. The Jawaharlal Nehru National Urban Renewal Mission will to continue during the 12th plan period.
• 3511 crore allocation to minorities which is 12 per cent hike over budget estimates, 110 crore rupees allotted for welfare of disabled.
• 65867 crore rupees have been allocated to the Ministry of Human resources development which is 17 per cent hike over the revised estimates.
• 500 Crore rupees have been earmarked for high tech crop diversification program.
• Allocations also include 13215 crore rupees for mid day meal programme. 27,049 crore rupees for agricultural ministry and additional 200 crore to women and child Welfare Ministry.
• 14000 crore Rupees will be provided for PSB recapitalization. He will constitute a panel on transaction costs, and financial policies.
• Education gets 65867 crore rupees, an increase of 17 percent over RE for 2012-13.
• ICDS gets 17700 crore rupees. This is 11.7 percent more than the current year.
• Drinking water and sanitation will receive 15260 crore rupees. 1,400 crore was provided for setting up water purification plants to cover arsenic and fluoride affected rural areas.
• Health and Family Welfare Ministry had been allotted 37330 crore rupees.
• Small Industries Development Bank of India (SIDBI) Refinance Fund doubled to an amount of 10000 crore rupees.
• Plans of Government are to encourage PPP projects along with Coal India.
• P Chidambaram announced setting up of a new all-women's bank.
• 1000 crore Rupees initial capital for a new women's bank which will be another public sector bank. The Bank will be set up by October 2013.
• An amount of additional 10000 crore rupees allotted for Food Security Bill in FY14.
• 3000 km of road projects will be awarded in first six months of FY14.
• Finance ministry approved 50000 crore Rupees tax-free bonds in FY14. The government expects to raise 25000 crore rupees via tax-free bonds in FY13.
• Refinancing capacity of SIDBI raised to Rs. 10,000 crore.
• Technology Upgradation Fund Scheme (TUFS) for textile to continue in 12th Plan with an investment target of 151000 crore Rupees.
• 14000 crore Rupees will be provided to public sector banks for capital infusion in 2013-14.
• A grant of 100 crore each has been made to 4 institutions of excellence including Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural
• New taxes to yield 18000 crore Rupees.
• A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied.
• Tobacco products, SUVs and Mobile Phones to cost more.
• Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs.
• Voluntary Compliance Encouragement Scheme launched for recovering service tax dues.
• 9000 crore Rupees earmarked as the first installment of balance of CST compensations to different States/UTs.
Budget in Indian Constitution
Budget in Indian Constitution is an annual financial statement. It is included in part V, Chapter 2 of PARLIAMENT Procedure in Financial Matters of Constitution of India.
As per the article 112 of Indian Constitution
The President shall in respect of every financial year cause to be laid before both the Houses of Parliament a statement of the estimated receipts and expenditure of the Government of India for that year, in this Part referred to as the annual financial statement.
(2) The estimates of expenditure embodied in the annual financial statement shall show separately-
(a) The sums required to meet expenditure described by this Constitution as expenditure charged upon the Consolidated Fund of India; and
(b) The sums required to meet other expenditure proposed to be made from the Consolidated Fund of India, and shall distinguish expenditure on revenue account from other expenditure.