Economics & Politics

Development is all that Mango People wish for… #Budget 2013

Development is all that Mango People wish for… #Budget 2013

It is only through consistent development that there could be some hope of improvement in the life of common Indian people, the Aam Admi. Only those totally going insane, drunk on the lethal combination of money power and political power can laugh at or ignore the millions and millions of people living in small and big cities, towns and villages of India as ‘mango people‘.

Father and son, a village in Motihar, Bihar, India

Father and son, a village in Motihar, Bihar, India

Home, a Village in Basti, Uttar Pradesh, India

Home, a Village in Basti, Uttar Pradesh, India

To see the misery of our people one need not do any in-depth micro or macro level analysis, I would suggest a simple thing which many of our leaders during India’s independent struggle did and suggested to others as well, just travel from one city to another, wherever you may wish to in the country. The only condition is to travel without the comfort of air-conditioned cabin. Inside the air-conditioned Airplane, or the first class of Indian Railway or an expensive SUV on the road, one is still excluded from the experience that the common people of India have to go through each day, just to survive.

Travel normal class, where one can see, hear, smell, touch & feel everything. Then only one can truly claim to know something about this country.

But alas, most of our leaders (Political, Religious & Business), intellectuals (Left, Right or Center) and even worst the national media (specifically the English language TV channels, news papers with majority having either the left/libral bend of mind or just manipulated by business houses which own them)  is far far away from the common people. In order to save themselves from the heat & dust of the environment and the smell & touch of our short & dark people, these people in high places have shut themselves off from the majority of population and living in their own fool’s paradise. Hoping and praying that everything will be alright one day.

There is nothing wrong in being positive and optimistic about the future. India will get the place it really deserve to be in the comity of developed, advance countries. It is recognized has a unique civilization and it will continue to be among the top countries to provide Thought & Spritual leadership to the world. But the passage from darkness to light, to infrastructural development, to improved economic and social conditions for its people will not come easily or swiftly if such an environment is not created which is suitable for fast paced development.

I personally believe that every Indian, urban or rural, is crying for development. What baffles me is the arrogance of these so called leaders who are blinded by the power, which is making them totally insensitive to the miseries of common people of India. I don’t know if they are a) Ignorant of the problems, d) Just silly idiots not to understand the concerns and don’t know how to deal with them c)  Self-indulgent to the core, don’t want to be bothered about it or d) know it all and want actively trying to maintain this Us (few royalty) Vs Them (majority commoner) divide

Now only thing left is wait for the next general election and see what destiny Indian population chooses to be. The much anticipated Union budget, which is going to be the last budget of UPA-2 before 2014 general election, was presented today by Finance Minister Mr. P Chidambaram. Some of the key points from his budget speech are:

Agriculture

  1. Foodgrain production in 2012-13 will be over 250 million Tons.
  2. Average annual growth rate of agriculture & allied services est. at 3.6% in 12-13 when 250mt foodgrains was produced
  3. Rs 27,049 crore allocation to the Agriculture Ministry in 2013-14
  4. Rs 7 lakh crore target fixed for agriculture credit for 2013-14 compared to Rs 5.75 lakh crore in the current year.
  5. Green revolution in east India significant. Rice output increased in Assam, Odisha, Jharkhand and West Bengal
  6. Rs 1,000 crore allocated for eastern states for improving agricultural production.
  7. Rs 5,387 crore to be allocated for integrated watershed programme for farmers in 2013-14, an increase from Rs 3,050cr.
  8. Indian Institute of Biotechnology will be set up at Ranchi.
  9. Rs 10,000 crore set aside for incremental cost for National Food Security Bill over and above food subsidy.
  10. Rs 5,000 crore will be made available to NABARD to finance construction of godowns and warehouses.

Infrastructure Development

  1. Government has decided to constitute a regulatory authority for the road sector.
  2. A company investing Rs 100 crore or more in plant and machinery in April 1, 2013 to March 31, 2015 will be allowed 15% investment deduction allowance apart from depreciation.
  3. Rs 80,194 crore allocation for Ministry of Rural Development in 2013-14. About Rs 33,000 crore for MGNREGA.
  4. States which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II
  5. DIPP and Japan’s JICA preparing plan for Chennai-Bengaluru Industrial corridor.
  6. Two new major ports to be set up in West Bengal and Andhra Pradesh
  7. Standing Council of Experts in Ministry of Finance to examine transaction cost of doing business in India.

Finance & Taxation

  1. Rs 14,000 crore capital infusion into public sector banks in 2013-14. PSU banks to have ATMs at all their branches by March 31, 2014.
  2. Rs.6,000 crore to be allocated for rural housing fund in 2013-14.
  3. All Regional Rural Banks and cooperative banks to be e-linked by this year-end.
  4. Incubators set up by companies in academic institutions will qualify for Corporate Social Responsibility (CSR) activities.
  5. No change in slabs and rate for personal income tax – Tax credit of Rs 2000 for every person to having income of upto Rs 5 lakh, this will benefit 1.8 crore people.
  6. 5 to 10% surcharge on domestic companies whose taxable income exceeds Rs 10 crore.
  7. Surcharge of 10% for individuals whose taxable income is over Rs 1 crore.
  8. First housing loan up to Rs 25 lakh would get additional deduction of interest of up to Rs 1 lakh in 2013-14.

Budget 2013 Infographic

Other points highlighted by Mr. Chidambaram are:

– Insurance companies will be empowered to open branches in Tier-II cities with approval of IRDA.

National Housing Bank (NHB) to set up urban housing bank fund and Rs 2,000 crore will be allocated in this regard.

– Investor with stake of 10% or less will be treated as FII; any stake more than 10% will be treated as FDI.

– FIIs will be allowed to participate in exchange traded currency derivatives.

– Commodities transaction tax levied on non-agriculture commodities futures contracts at 0.01 per cent.

– Modified GAAR norms to be introduced from April 1, 2016.

– No change in peak rate of customs duty for non-agriculture products.

– Direct Taxes Code (DTC) bill to be introduced in current Parliament session.

– No change in basic customs duty rate of 10% and service tax rate of 12%.

– Import duty on rice bran oilcake withdrawn.

– Series of concessions granted to Maintenance, Repair and Overhaul (MRO) business in the aviation sector.

– Import duty raised on set-top boxes from 5 to 10% to safeguard interest of domestic producers.

– 10% customs duty to be levied on unprocessed illuminate.

– Import duty raised from 75 to 100% on luxury vehicles.

– Duty free limit on gold raised to Rs 50,000 in case of male and Rs 100,000 in case of female.

– No countervailing duty on ships and vessels.

– Specific excise duty on cigarettes and cigars raised by 18 per cent.

– Excise duty on SUVs to be increased to 30 per cent from 27 per cent, SUVs registered as taxis exempted.

– Vocational courses offered by state-affiliated institutes to be exempted from services tax.

– Duty on mobiles above Rs 2,000 raised from one to 6%, based on their maximum retail prices.

– Service tax to be levied on all a/c restaurants.

– One time voluntary compliance scheme for service tax defaulters to be introduced. Interest and penalties to be waived.

– Direct tax proposals to yield Rs 13,300 crore, indirect tax proposal to give Rs 4,700 crore.

– Education cess to continue at 3%.

– Contributions made to central and state government health scheme eligible to tax benefit.

– Eligibility conditions for life insurance policies of persons suffering disabilities to be liberalised.

– Investor Protection Fund set up by depositories will be exempt from tax.

– Transactions on immovable properties usually undervalued.

– TDS of 1% on value of properties above Rs 50 lakh. Agriculture land exempted.

– Securities Transaction Tax (STT) reduced on equity future, mutual fund.

– Fiscal deficit will be 5.2% in current year and 4.8% in the next fiscal.

– Will redeem our pledge to reduce fiscal deficit to 3% by 2016-17 and revenue deficit to 1.5% of GDP.

– Tax Administration Reform Commission to be set up to regularly review tax law applications.

– In 2011-12, tax-GDP ratio was 5.5% for direct taxes and 4.6% for indirect taxes.

– Plan expenditure pegged at Rs 555,322 crore.

– Non plan expenditure pegged at Rs 11,09,975 crore for 2013-14.

– Low interest rate funds to be provided from Clean Energy Fund for green projects for a period of five years.

– Generation-based incentives to wind energy projects reintroduced, Rs 800 crore for Ministry of New & Renewable Energy.

– Constraints will not come in the way for providing additional funds for security of the nation.

– Rs 2,03,672 crore, including Rs 86,741 crore capital expenditure to Defence in 2013-14.

– Grant of Rs 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH.

– National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs 250 crore.

– Rs 532 crore to make post offices part of core banking.

– Rs 5,87,082 crore to be transferred to states under share of taxes and non plan grants in 2013-14.

– Comprehensive social security package being evolved by convergence of several schemes run by various ministries.

– Investor with stake of 10% or less will be treated as FII; any stake more than 10 per cent will be treated as FDI.

– FIIs will be allowed to participate in exchange traded currency derivatives.

– We will evolve schemes for cities to take up waste to energy projects.

– Small and medium companies to be allowed to listed on MSME exchange without making a public offer.

– Concessional 6% interest on loans to weavers.

– WPI inflation down to 7% and core inflation to 4.2%. Food inflation is still worrying

– Plan expenditure in 12th Five Year Plan revised to Rs 14,30,825 crore or 96% of budgeted expenditure.

– Budget expenditure is Rs 16,65,297 crore and Plan expenditure Rs 5,55, 322 crore

– The revised expenditure target is Rs 14,30,825 crore or 96% of Budget estimate for this fiscal.

– In 2013-14, the budget estimate is Rs 16,65,297 crore.

– One overarching goal to provide education and skills to youth for securing jobs in the 2013-14.

– FM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.

– Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

– Rs 3511 crore allocated to Minority Affairs Ministry which is 60% of the revised estimates.

– CFM allocates Rs 41,561 crore for SC sub-plan; Rs 24,598 crore for tribal sub plan.

– Rs 3511 crore allocated to Minority Affairs Ministry which is 60 per cent of the revised estimates.

– Rs 110 crore to be allocated to the department of disability affairs.

– Rs 37,330 crore allocated for Ministry of Health & Family Welfare.

– Rs 1069 crore allocated to Department of Aryush.

– Rs 4,727 crore to be allocated for medical education and research. Rs 1,069 crore to be given to Department of Ayush.

– In the Budget Rs 65,867 crore allocated to Ministry of HRD in 2013-14.

– 6 more AIIMS-like institutions to start functioning this year; Rs 1650 crore allocated for the purpose.

– Rs 5,284 crore to various Ministries for scholarships for SC/ST, OBC and minority students.

– Rs 13,215 crore to be provided for mid-day meal scheme.

– Rs 17,700 crore provided for Integrated Child Development Scheme.

– Rs 15,260 crore to be allocated to Ministry of Drinking Water and Sanitation.

– Rs 17,700 crore to be allocated for Integrated Child Development Scheme (ICDS.

– Rs 14,873 crore for JNNURM for urban transportation in 2013-14 against Rs 7,880 crore in the current fiscal.

– Additional sum of Rs 200 crore to Women and Child Welfare Ministry to address issues of vulnerable women.

– Four Infrastructure debt fund have been registered.

– Tax free bonds issue to be allowed up to Rs 50,000 crore in 2013-14 strictly on capacity to raise funds from the market.

– Rajiv Gandhi Equity Scheme will be liberalised to allow first time investor to invest in Mutal Fund and equity.

– Power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget.

– Power transmission system from Srinagar to Leh at the cost of Rs 1,840 crore, Rs 226 crore provided in current Budget.

– Current account deficit continues to be high due to excessive dependence on oil, coal & gold imports and slowdown in exports.

– Oil and gas exploration policy will be reviewed and moved from profit sharing to revenue sharing.

– Policy on exploration of shale gas on the anvil; natural gas pricing policy will be reviewed and uncertainty removed.

– Govt to set up India’s first women’s bank as a public sector bank by October.

– Coal imports during Apr-Dec 2012 crossed 100 million tonnes and expected to go up to 185 million tonnes in 2016-17.

– 5 million tons Dabhol LNG import terminal to be operate at full capacity in 2013-14.

– State governments to prepare financial restructuring plan for power distribution companies at the earliest.

– SIDBI’s re-financing facility to MSMEs to be doubled to Rs 10,000 crore.

– Rs 500 crore would be allocated for addressing environmental issues faced by textile industry.

– Public sector general insurance companies to set up adalts to clear disputes related to claims.

– Rashtriya Swasthya Bima Yojana benefit will be extended to rickshaw pullers, auto and taxi drivers and sanitation workers.

– Comprehensive social security package being evolved by convergence of several schemes run by various ministries.

– Schemes for cities to take up waste to energy projects.

– Small and medium companies to be allowed to listed on MSME exchange without making a public offer.

 

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