Union Budget 2013-14: P Chidambaram presents his 8th Budget today

Union Budget 2013-14: P Chidambaram presents his 8th Budget today

Union Finance Minister P Chidambaram Thursday is presenting his 8th Union Budget for Financial Year 2013-14. This budget may be the last budget of Congress led United Progressive Alliance (UPA) government budget as the next election is scheduled in April 2014 and if the election goes on before the scheduled date, it can be UPA's last budget.

With this budget, Chidambaram will try to achieve the higher growth rate with reduced inflation as the current fiscal has become the most sluggish year for UPA term in which India is growing at 5% rate while in March, there is an estimation of inflation to come down to 6.2%, the lowest since last 18 months.

There is also chance that Chidambaram may take some stern steps to revive the economy of the country and also he will eye on common men as this will be election budget.

He began his speech by seeking the support of all parties and stakeholders to help navigate the Indian economy through the current crisis. He said getting back to the growth rates of over 8-9 percent seen some years ago was the main challenge.

"We have done it before, and we can do it again," Chidambaram said, in what is his 8th national budget for the country. "Whatever may be the final outcome, growth is below potential. But there is no need for gloom."

Here are some highlights:

• 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
• Revised budget expenditure for 2012-13 at Rs.14 lakh 30,824 crore
• Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at 5 lakh 55,224 crore
• Rs.41,000 crore for Scheduled Caste plan
• Rs.97,000 crore for women's development
• 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
• 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.10,00 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.97,000 crore for women's development
• 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.

--With IANS Inputs--