New mantra-Higher growth & inclusive development!

By | February 28, 2013

Some opening Notes on Finance minister’s Speech as it rolls out live.
“People and Human resources is the key focus of the budget.

–      Current account deficit, Oil imports, Gold imports – 75 Billion Current account Deficit. No choice between welcoming and spurning Foreign investment – FDI, FII or ECB. Foreign investment is imperative and consistent with economic objectives.

–      Supply demand imbalance has to be fought. This will help in taming inflation. Especially food inflation. Augmenting supply side to support growth.

–      Huge Fiscal deficit has forced to rationalize expenditure. 16% rise in Expenditure. There is a 29.4 % higher plan in expenditure for 2013-14.

–      Opportunities for youth to help them acquire skills and earn good incomes are the primary concern.

–      41500 Crores to Schedule caste sub plan. 21000+ crores to Schedule Tribe.

–      97134 Crore for women. 77236 crore for child welfare.

–      Impetus on Educational schemes. Corpus of Maulana Azad fund increased by 150 crores and the fund to also focus on medical support. Rs 100 Crore for launching medical aid.

–      110 crore for the department of disabled welfare.

–      Health for all and education for all is biggest concern. 37000+ crores allotted for the same.

–      4000+ crores for Medical Education.

–      150 crores for Geriatric care.

–      Education – Rs 65867 crore for Ministry of Human Resources for Education (17% more than last year) – Rs 27258 for Sarva Shiksha Abhiyaan.

–      Investment 3983 – Rashitrya Madhyamik Shiksha.

–      Scholarships for Minority and reserved classes. Rs 5284 crore for that. 700 crore more than last year.

–      Nalanda university reconstruction committed.

–      17700 crore for early child care.

–      Multi sectoral program for maternal health care. 300 Crore for the program

–      Clean Drinking water – 15260 crore for Drinking water and Sanitation ministry. 1400 crore for setting up water purification plants.

–      33000 crore for NREGS.

–      Jawaharlal Nehru National Urban Renewal Mission – Rs 14873 crore allocated for the current year. Money used for buying 10000 buses.

–      Agriculture is doing well. Growth rate is 3.6% as against 2.4% earlier. Total Food grain production will be over 250 million tones.

–      27900 Crore for Agricultural department. Targeted 7 Lakh crore rupees for 2013-14. Interest subvention to continue. Good repayment will help farmers get loans at 4%.

–      1000 Crore for supporting Eastern states for Agriculture. Watershed management is focus. 5387 Crore for the same.

–      Farmer Producer Organisations will be supported. Matching equity grants up to Rs 10 Lakh for FPO. Rs 50 Crore Allotted. credit Guarantee fund for Small farmers. 1000 Crore allotted.

–      National Livestock mission to attract investment. 307 Crore for the mission.

–      Food security is a basic right. National Food security bill is a promise of the Government. 10000 Crore for food subsidy extra.

–      Improve communication of policies to attract foreign investments.

–      Infrastructure sector to be focused. 55 Lakh Crore needed for the sector. Innovative funds needed to mobilise funds for investment infrastructure. Infra Debt funds will be encouraged to provide long term and low cost debt. Four Industrial Development Funds already started and will be the first of many.

–      17700 crore for midday meal.

–      Road projects to be given support. 3000 Km road projects to awarded for 6 states in first 6 months of 2013-14

–      Cabinet committed on investments will help decision making and guide investments.

–      100 Crore or more investment will get 15% investment deduction for companies for investing in equipment.

–      Incentives for Semiconductor wafer tab including 0% customs for plant and machinery.

–      Gross domestic saving has fallen. Household sector to be provided incentives for investment rather than gold.

–      Rajiv Gandhi equity scheme to be revised.

–      Loan – First home up to Rs 25 Lakh gets additional deduction of interest up to 1 Lakh in 2013-2014.

–      Investments that will help to protect against inflation for small investors. These will be protected against the negative effects of inflation.

–      Getting back to 8% growth is a challenge.

–      Additional 10000 Crore for Food security bill

–      16.66 Trillion rupees expenditure planned

–      MSME help in jobs. Too many do not grow due to fear of losing benefits. To encourage benefits of preferences will stay for up to 3 years after they move out of category. Non tax benefits to stay for 3 years.

–      Enhance refinancing capability of SIDBI to be raised to 10000 crore for MSME support.

–      Factoring act has been passed. credit guarantee fund for factoring given Rs 500 Crore via SIDBI

–      Incubator support – New companies bill to make sure companies spend 2% for CSR. Funds provided to technology incubators within Academic institutions will be considered as part of CSR.

–      2400 Crore for modernisation of power loom industry. Apparel parks to be setup within SITP. 50 crore for Ministry

–      Integrated Processing Development Scheme to address the environmental concerns of Textiles industry – 50 crore allotted.

–      Handloom sector demand for working capital loans at 6% interest accepted. Rs 96 crore allotted additional given for interest subvention

Clean and Green Energy

–      Low cost finance to lend to green projects.

–      Reintroduction of Generation of Wind Energy based projects – 800 crore allocated.

–      National Skill Development Corporation – 5 Crore to be skilled in 12th plan. 9 million in 13-14 – Funds to be released for the same. 5% of Border area development fund, 10% of Schedule caste fund to be used for the same.

–      Close to 3 Lakh crore for Defence

–      Close to to 12000 Crore for Science and technology and space.

–      Amazing S&T inventions. 200 Crores to organizations which will support scalability of inventions.

–      AMU, BHU, TISS, INTACH to be supported.

–      Sports -National institutes of Sports Coaching – 250 Crore and Patiala

–      Private FM stations in 294 cities. Cities with population above 1 Lakh will have one FM Radio station.

–      655 crore for Panchayati Raj deparment.

–      Postal Department to be part of Core Banking system – 532 crore provided for same.

3 faces of India

–      Promise to Women – Collective Responsibility to ensure dignity and safety – More Women entering public spaces. Nirbhaya Fund to be given 1000 Crore for protection of Women.

–      Youth – Motivate them to join Skill Development – Training to be given and upon passing will get a certificate and monetary reward of 10000/- Rs 1000 Crore to train 10 Lakh Yout.

–      Poor – Aapka Paisa Aapka Haath – Direct Bank transfer benefit to the poor to be completely rolled out before next elections.

–      Plan Expenditure – 33% of total expenditure.

–      Non- Plan Expenditure –

Fiscal Deficit contained at 5.2% for current – for next year 4.3 %

Fiscal deficit to be 3% by 2016

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