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Union Budget 2013-14 (Apr-Mar

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Dear Sir/Madam, It gives us great pleasure to present you ready reckoner of “Union Budget for 2013-14 (Apr-Mar) presented by Finance Minister P. Chidambaram in Lok Sabha today”. The live coverage of the budget, its impact and real-time information on financial markets is exclusively available to our clients through NewsWire18 Workstation. Please refer NW18 workstation for news, views and analyses by market experts on the Budget. Please feel free to call us for any clarifications. Thanks & Best Regards, C.B.Divahar 9381324605

NewsWire18 Ltd No.168, 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034.

36 trln rupees * Pegs FY14 corporate tax revenue at 4. .65 trln rupees * FY14 total Plan spend pegged 5.Highlights of the Union Budget for 2013-14 (Apr-Mar) presented by Finance Minister P.98 bln rupees * FY14 recovery from loans. Thursday.6 bln rupee * FY14 small savings receipt seen at 57.80 trln rupees * FY14 non-tax revenue pegged at 1.8% of GDP * FY14 revenue deficit projected at 3.168.975 trln rupees * FY14 divestment mop-up aim at 400 bln rupees * FY14 divest mop-up in non-government cos seen 140 bln rupee * Pegs FY14 customs duty collection at 1. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034.4% more than FY13 revised estimates * FY14 non-Plan expenditure estimated 11.55 trln rupees * FY14 Plan spend 29. union territories 5.54 bln rupees * Transfer to state.2%.84 trln rupees * FY14 fiscal deficit projected at 4.4 bln rupee * FY14 gilt redemptions seen at 1.NW18: Highlights of Union Budget for 2013-14 NewsWire18. FISCAL ESTIMATES * FY14 total spend pegged 16.29 trln rupees * FY14 net market borrowing seen at 4.87 trln rupees * FY14 svc tax revenue pegged at 1.09 trln rupees * FY14 excise revenue pegged at 1.195 trln rupees * Kept 500 bln rupees for gilt buyback/switch * Gilt buyback/switches for better debt management * Miscellaneous capital receipts pegged 558.87 trln rupees in FY14 * FY14 total subsidy seen 2. advances seen 106.3% of GDP * FY14 total capital receipts seen at 6.09 trln rupees * FY14 gross market borrowing seen at 6. Feb 28 NEW DELHI .68 bln rupee * Net MSS receipts pegged 200 bln rupees * FY14 external assistance pegged 105.31 trln rupees * FY14 petroleum subsidy seen 650 bln rupees * FY14 food subsidy seen 900 bln rupees * FY14 fertiliser subsidy seen 660 bln rupees * FY15 fiscal deficit pegged at 4.14 bln rupee * FY14 total non-debt receipts pegged 664.72 trln rupees * FY14 short-term borrowing pegged 198.4% * Pegs FY14 gross tax revenue at 12. Chidambaram in the Lok Sabha today: . 3.45 trln rupees * FY14 nominal GDP growth pegged 13.6% in FY16 * Need to bring down fiscal deficit to 3% by FY17 NewsWire18 Ltd No.

technology ministry * To allocate 39. tight RBI policy * Fiscal consolidation can't be done only by spend cuts * Faced with huge fiscal gap. sanitation * 14 bln rupees for water purification plans FY14 * To allot 151.15 bln rupees for mid-day meal scheme FY14 * To allot 245. ALLOCATIONS * FY14 defence allocation 2.8 bln rupees for Department of Atomic Energy * To allot 56.67 bln rupees to human resource ministry * 212.58 bln rupees for Sarva Shiksha scheme * 132. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. no choice but curtail spend * Gross domestic savings down 6% in FY12 * Private sector remains main contributor to savings .83 bln rupees for high school education scheme * 58.168.36 bln rupees to child budget FY14 * Allot for girl child development plan 52.03 trln rupees * 867. . family welfare * To allot 1.61 bln rupees for Scheduled Castes sub-plan * Gender budget allot 971.11 bln rupees FY14 * To allot more 2 bln rupee to child.27 bln rupees for medical training & research * To allot 658.84 bln rupees for Indira Awas scheme * Rural guarantee plan allocation hiked to 330 bln rupees * Allocates 148.1 bln rupees to disability dept FY14 * To allot 47.4 bln rupees in FY14 for defence CAPEX * To allot 62.39 bln rupees in FY14 for new national health mission * Allot 16.3 bln rupees for health.5% by FY17 * Need to have zero effective revenue deficit FY17 * Economic space constrained by high fiscal gap * Economic space constraints on low saving.7 bln rupees to science.* Need to bring down revenue deficit to 1.84 bln rupees * To allot 177 bln rupees for child development scheme * Allocation for HRD 17% over FY13 revised estimate * To allot 152.34 bln rupees FY14 * Allotment to minority ministry 35.15 bln rupees to Department of Space * To allot 801.9 bln rupees for UPA flagship schemes FY14 * 330 bln rupees for rural employment scheme * Allocate 415.6 bln rupees for drinking water.73 bln rupees Nehru urban renewal mission * PMGSY allocation for FY14 at 217 bln rupees NewsWire18 Ltd No. women welfare ministry * To allot 373.98 bln rupees to the tribal sub-plan * To allot 772.5 bln rupees to 6 AIIMS-like institutes * FY14 for new national health mission allocation up 24% * To allot 272.

800 tax payers with income over 10 mln rupees * Education cess to continue at 3% * Dividend distribution surcharge raised to 10% vs 5% * Donation to national children fund to get 100% tax relief NewsWire18 Ltd No.000 rupees for income of 500.5 bln rupees for sports university at Patiala * Allot 2. non-Plan too conservative . 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034.5 bln rupees for healthcare plan for elderly * To give 10 bln rupees to skill development fund for youth * 115 bln rupees for backward regions grant fund FY14 * Allot 10 bln rupees for 'Nirbhaya' women safety fund * To provide 2.2% of GDP * FY13 divestment mop-up seen 240 bln rupees * FY13 gross market borrowing seen at 5.000 rupees * Surcharge of 10% on people with income over 10 mln rupees * Surcharge on high income tax payers only for one year * 10% surcharge on cos with income above 100 mln rupees * 5-10% surcharge on local co with income over 100 mln rupee * Only 42. DIRECT TAX * Little room to raise tax rates in constrained economy * No case to revise either tax slabs or rates * Personal income tax slabs unchanged FY14 * Direct tax proposals to yield 133 bln rupees in FY14 * Some relief to tax payers in 200. child nutrition plan .8% * FY13 revenue gap revised to 3.168.58 trln rupees * FY13 petroleum subsidy seen 969 bln rupees * FY13 food subsidy seen 850 bln rupees * FY13 fertiliser subsidy seen 660 bln rupees * FY13 Plan expenditure was too ambitious * FY13 non-Plan expenditure too conservative * FY13 effective revenue gap revised to 2.31 trln rupees * FY13 Plan spend too ambitious. Guwahati * To allot 3 bln rupees for mother.7% of GDP vs 1.000 bracket * Tax credit of 2.4% * 12th Plan total expenditure revised to 14.000-500.5 bln rupee to sports coaching institute over 3 yr * Grant 1 bln rupee each to four universities * 1 bln rupee grant each to Aligarh.* 1. . FY13 REVISED * FY13 net short-term borrowing revised to 457 bln rupees * FY13 fiscal deficit estimate revised to 5. Banaras universities * Allocate 1 bln rupee grant to TISS.9% of GDP vs 3.

ETF redemption cut to 0.001% * 100% tax deduction for donation to national children fund * 1% TDS on immovable property transfer of over 5 mln rupees * Agricultural land exempt from TDS on property deals * 20% withholding tax on profits distributed by unlisted cos * Royalty to overseas parents to attract 25% tax vs 10% * Tax holiday for power plants extended to Mar 2014 * Sops for power projects to continue for 1 year * 15% tax on dividend from overseas arms to continue * No income tax on investor protection fund of depositaries * Financial institutions securitisation trust exempted from tax * Tax on interest from rupee infra bonds cut to 5% vs 20% * Non-tax sop to MSME to stay for 3 years post move to higher class . fee to foreign co vs 10% * 20% tax on profit shared by unlisted cos via shr buyback * Income Tax pass through to some alternative invest funds * Income Tax pass through to some angel investor funds * 25% tax on Securitisation Trust income distribution to HUF * 25% tax on Securitisation Trust income given to individual * 30% tax on Securitisation Trust income distribution to cos * Securitisation Trust exempt from income tax * Tax on interest paid to NRI in long-term infra bond cut * 5% tax on interest paid to NRI in long-term infra bonds * No tax on distribution of dividend from foreign subsidiary * Foreign subsidiary dividend to continue to attract 15% tax * Transaction tax of 0.017% * Transaction tax on MF.* Income Tax Sec 90. cheroot. INDIRECT TAX * No change in standard rate of excise duty * No change in peak basic custom duty rate on non-agri goods * No change in standard rate of service tax * Indirect tax proposals to yield 47 bln rupee FY14 * Customs duty on leather making machine cut to 5. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. . 90A relating to tax residency * 25% tax on technical svc royalty.5% * To up specific excise duty on all cigarettes by 18% * 18% hike in excise duty on cigar.0% vs 7. 90A amendment from assessment 2013-14 * Tax residency paper not sufficient to claim DTAA benefit * To amend Income Tax Sec 90.168.01% on non-farm commodities futures * Commodity Transaction Tax on non-farm derivatives trade * Transaction tax on equity futures cut to 0. cigarillo * To impose service tax on all air-conditioned restaurants * Sops for low-cost housing to continue NewsWire18 Ltd No.01% vs 0.

.168. semi-precious stone cut to 2% * Two additions to service tax negative list NewsWire18 Ltd No.5% * Import duty on raw silk to be raised to 15% from 5% * 10% export duty on unprocessed ilmenite * 2% customs duty on bituminous coal * To up import duty on luxury cars to 100% from 75% * Excise duty on some SUVs raised to 30% from 27% * To raise excise duty on non-taxi SUVs to 30% * Excise duty on truck chassis cut to 13% from 14% * Excise duty hike on SUVs not for vehicles used as taxis * Extends sops on some electric. vessels * Duty on 800CC and above motorcycles raised to 75% vs 60% * Zero excise duty on cotton at fibre stage * Female passengers can get 100. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. hybrid vehicle part by 1 yr * To provide certain concessions to aircraft MRO industry * Import duty on yachts raised to 25% from 10% now * Ships.000 rupees * Excise duty on marble hiked to 60 rupee/sq mtr vs 30 rupee * Basic customs duty on dehulled oatgrains cut to 15% * No change in 10% basic customs duty on non-farm pdts * Interest subvention on crop loans extended to pvt banks * 5% duty on export of upgraded ilmenite * Basic customs duty on steam coal increased to 2% * Basic customs duty on textile machinery. jute handmade carpets exempt from excise duty * Farm produce testing service included in negative list * Export duty on rice bran oil.* Films exhibited in cinema halls to pay no service tax * Moots voluntary compliance encouragement plan for svc tax * Vocational courses exempt from service tax * Coir.000 rupees to 6% * No change in mobile phone excise duty up to 2.000 rupees * To up duty on mobile phones above 2. parts cut to 5% * Basic customs duty on hazelnut cut to 10% from 30% * 10% export duty on de-oiled rice bran oil cake withdrawn * Import duty on 800cc and above motorcycle raised to 75% * Customs on stainless steel wire cloth stripe cut to 5% * 4% excise duty levied on silver made of zinc/lead smelting * Exempted some galvanized steel sheet from export duty * Zero-excise duty route restored for branded readymade garment * Customs on pre-form precious.000 rupee duty-free gold * Male passengers can get duty-free gold worth 50. oil cakes withdrawn * To up import duty on set-top boxes to 10% from 5% * Cut custom duty on leather footware machines to 5% vs 7. vessels exempted from excise duty * No countervailing duty on imported ships.

RBI view * CSO estimated FY13 GDP growth at 5% * RBI estimated GDP growth at 5.2% in FY12 from 3.* Include vocational courses in negative list . INFLATION * Final FY13 GDP growth rate would be lower than CSO. TAX REFORMS * Work on Direct Taxes Code in progress * To introduce DTC bill before end of Budget session * To incorporate Jan decisions on anti-tax avoidance rule * GAAR modified provisions seen effective Apr 1. bad from inflation perspective * No choice but to rationalise spending * Govt expenditure boosts aggregate demand NewsWire18 Ltd No. . GROWTH.168. inclusiveness without high growth * Can achieve faster growth rates as seen earlier * Growth a necessary condition for development * We have achieved high growth before. 2016 * To set up tax administration reform commission * Need for state and central governments to pass a GST law * Allocates 90 bln rupee as CST compensation to states * Draft bill on GST in Parliament in next few months * To encourage voluntary compliance to boost svc tax collection * One-time amnesty scheme for service tax due from 2007 . 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. can do it again * UPA govt believes in inclusive development * India can become 7th largest economy by 2017 * Can become $5 trln economy by 2025 * Hope FY14 Budget will be testimony to inclusive growth * Global crisis spared none * India not unaffected by what is happening in rest of world * There is no reason for gloom or pessimism * Battle against inflation must be fought on all fronts * Food inflation is worrying * Govt spend is both good.1-6.5% FY13 * Overall GDP growth rate seen at 6.9% FY11 * Challenge to achieve trend growth rate of 8% * Only China to grow faster than India in FY14 * Average GDP growth of 8% in 11th Plan * Growth is highest goal * Achieving high growth not beyond our capacity * No development.7% in FY14 * Global econ growth slowed to 3.

. must be adequately capitalised * 140 bln rupees to PSU banks for recapitalisation FY14 * Will ensure PSU banks always meet Basel III norms * Gave 125 bln rupees to PSU bks for recapitalisation FY13 * PSU banks assured all branches to have ATMs by Mar 2014 * Plan to set up exclusive bank for women * Plan council for intl competitiveness of fincl sector * To provide 10 bln rupees initial capital for women's bk * To allot 60 bln rupees for rural housing fund under NHB * License to women bank by Oct 2013 * 20 bln rupee allocation to create urban housing fund * NHB to set up urban housing fund * KYC of banks sufficient for insurance policies * Insurance cos can open Tier 2 city branch without IRDA nod * Banking correspondence can sell micro-insurance pdts * Towns with 10. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. imports amount to 43% of GDP * Reliance on FX inflows to fund current acct deficit .168.000 people to have LIC. to cover MF investments * Rajiv Gandhi equity plan invest cap up by 200. coal imports * Current account deficit high on oil imports * Need $75 bln to finance current acct gap over next 2 yrs * Exports.5% . pulses supply-demand mismatch pushes up inflation * Efforts over last few mos brought dn WPI inflation to 7% * Efforts in last few mos brought dn core inflation to 4. GIC offices * Inflation indexed bonds to be introduced NewsWire18 Ltd No.* Need to augment supply side to fight food inflation * Oilseed. EXTERNAL SECTOR * Current account gap is greater worry * Current account deficit high on gold. FINANCIAL SECTOR * To introduce investment allowance for high value invest * To introduce 15% investment allowance to attract invest * Rajiv equity plan to be eased.000 rupee * 15% deduction for invest up to 1 bln rupee till FY15 * Expect to raise 250 bln rupees via tax-free bonds FY13 * Pvt sector infra investment seen 47% in 12th plan * To allow some institutions to issue tax-free bonds FY14 * To OK 500 bln rupee tax-free bonds in FY14 * To encourage infra debt funds to boost infra growth * PSU bks well regulated.

* To launch inflation-indexed certificates * To introduce inflation linked instruments * Scope of Rashtriya Swasthya Bima Yojana to be expanded * Hope insurance. FARM SECTOR * FY14 farm credit target 7 trln rupees * To allot 270.6% * FY13 total food grain output over 250 mln tn NewsWire18 Ltd No.49 bln rupees for agri ministry FY14 * To allot 34.54 bln rupees FY14 * Allot 22. PFRDA bill will be passed in this session * India capital market best regulated * OK to FII to trade in exchange traded FX derivatives * SEBI to ease norms for foreign portfolio investment * Allow FIIs to use corporate bond income for margin need * SMEs will be allowed to be listed without IPO * FII status for investment less than 10% in a company * FDI status for investment over 10% in a company * Distributors can become members of exchanges' MF segment * Stock Exchanges to have dedicated debt segment * MF distributors allowed to become stock exchange members * Insurance.75 trln rupees * Interest subvention for short-term farm loans to continue * Farm loan Interest subvention Plan to continue * Farmers who repay loan on time will get loan at 4% * To allot 5 bln rupees for crop diversification programme * To spend 10 bln rupee on green revolution in east India * Rashtriya Krishi Vikas scheme to get 99.15 bln rupees for agri research * Food security bill a promise of UPA govt * Farm credit will top FY13 target of 5. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. pension cos can directly trade in debt segment * Exchanges can introduce dedicated debt segment * ETFs will be eligible for pension.168. insurance investment * Post offices to move to core banking solutions * 5. .3 bln rupees to post offices for core banking solution * Need to encourage foreign investment * India doesn't have choice between FII and FDI * Foreign investment is an imperative * To remove distrust in minds of investors * Will improve communication of our policies to investors * Doing business in India should seem mutually beneficial .87 bln rupees for integrated watershed plan * 11th plan growth in farm sector was 3.5 bln rupees for food security mission * To allot 53.

.168.51 trln rupees for textile upgradation fund 12th Plan * Allocates 500 mln rupees to set up apparel parks * 960 mln rupees for interest subvention in textile FY14 * Loans at 6% rate for women textile entrepreneurs * Assure support to commerce ministry to boost exports * Initial work on Chennai-Bengaluru corridor started * To give Delhi-Mumbai corridor more funds if needed * To set up 2 new ports at Andhra Pradesh. gas policy to move to revenue sharing model * Natural gas pricing policy to be reviewed NewsWire18 Ltd No. W Bengal to add 100 mln tn capacity * To have Bengaluru-Mumbai Industrial corridor * Plan grid connecting waterways.000 buses from fund of Nehru urban renewal plan * Infra debt funds to be encouraged * 12th plan projects $1 trln for infra invest * 1.* Farm exports were 1.73 bln rupees for Jawaharlal Nehru urban plan * To use bulk of Nehru urban renewal plan for buying buses * To buy 10.384 trln rupees in Apr-Dec * To allot 50 bln rupees to NABARD for warehouses FY14 * 2 bln rupees for pilot plan for nutri-farms * To allocate 10 bln rupees to rice-producing East states * Plant Protection Institute to be set up in Chhattisgarh * Indian Institute of Bio-Technology to be set up at Ranchi * To launch national livestock mission in FY14 * Allot 750 mln rupee for coconut rejuvenation pilot plan * To allot 3.07 bln rupees for National livestock mission * 750 mln rupee more for revival of coconut palm in Kerala * Allot 100 bln rupees for food security plan FY14 * Credit guarantee fund to be created for small farmers * 1 bln rupee credit guarantee fund for small farmers . INFRASTRUCTURE * IIFCL. ADB to offer credit enhancement for infra cos * Rural Infra Dev Fund corpus raised to 200 bln rupees * To set up regulatory authority for road sector * Road construction facing financial stress * To set up regulatory body for road sector * Revival of invest in manufacturing sector a key challenge * 30 bln rupee road projects to be awarded in Apr-Sep * To allot 148. West Bengal * 2 ports at Andhra. ports * Delhi-Mumbai Industrial Project has made rapid progress * Work on 2 new smart industrial cities will start FY14 * Oil. roads. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034.

children * Funds for the sub-funds cannot be diverted * To create opportunities for youth to get skills for jobs * To launch new scheme for rural road development * PM rural road scheme for Andhra. . End NewsWire18 Ltd No. SOCIAL SECTOR * Giving enough funds to programmes for women.* Natural gas policy will be reviewed * To announce policy on Shale gas exploration * Shale gas projects to be encouraged * To move oil E&P pacts to revenue sharing from profit sharing * Must reduce dependence on imported coal * 5 mtpa LNG terminal to be fully operational in FY14 * Coal import estimated to rise to 185 mln tn by FY17 * To cut dependence on coal import in medium-.168.5 mln rupee 1st home loan to get more tax cut * No custom duty for plant. trained youth to give enormous boost to economy * Made modest. cautious start for direct cash transfer Jan 1 * Direct cash transfer scheme covered 1. Rajasthan * Skilled. machinery for semi-conductors * Wind energy sector deserves incentives * Generation-based incentives for wind energy projects * To expand pvt FM stations to 294 more cities * 294 more cities to be connected by FM radio * To auction 839 more radio channels in FY14 * Cities above 100. long-term * States must prepare plans immediately for power distribution cos * Urge state govts to approve recast of electricity boards * To give 5 bln rupee to SIDBI for factoring loan guarantee * To double SIDBI's refinance capacity to 100 bln rupees * Textile tech upgrade scheme to get 24 bln rupees FY14 * Additional tax sop for first time home owners * Up to 2.000 population to have pvt FM channels .1 mln people so far * Viability gap funds to city bodies for energy from waste * To cut number of centrally-sponsored plans to 70 vs 173 * Insurance for disabled to have 15% premium rate vs 10% now * Relaxation on insurance polices for disabled from Apr 1 * State health Plan contributions eligible for tax deduction * Centre health Plan contribution eligible for tax deduction * Initiatives underway to ensure women security * To set up national institute of sports coaching. Maharashtra * PM rural road scheme for Haryana. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034.

2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. Chidambaram has ensured fiscal deficit would be under control without increasing excise duty (standard rate) and service tax rates. on the Union Budget for 2013-14 (Apr-Mar). It looks like that diesel prices will be revised throughout the year.168. and also ensure that the common man and companies are not affected. On the whole. NW18: First View: YES Bank Chief Economist Shubhada Rao on FY14 Budget KOLKATA . YES bank. Chidambaram has refrained from populism and announced a balanced.Shubhada Rao.7 trln after cutting out redemptions.8% of GDP in 2013-14 is doable if disinvestment kick-starts in the beginning of the year and not left to the second half. Chidambaram today. Sobha Developers Ltd.6-4. but one will have to wait more to see its actual impact. Chidambaram today. Key highlights of the Budget include investment allowance of 15% on investment up to 1 bln rupees. presented in Lok Sabha by Finance Minister P. vice chairman and managing director. but those are not seen as inflationary.J. The gross borrowing number has come out at 6. The number initially is likely to keep the bond market cautious.First Views on Union Budget 2013-14 NW18: First View: Sobha Developers MD Sharma on FY14 Budget BENGALURU . He has tried to cut back subsidies.29 trln rupees and the net is 4.C. The finance minister refrained from any big-bang announcements. inducing financial savings and schemes in health and education sector. presented in the Lok Sabha by Finance Minister P. Finance Minister P. Sharma. Chidambaram has levied a surcharge on the rich and increased some of the indirect taxes. Chidambaram's emphasis on infrastructure funding needs and announcements such as public-private partnership with Coal India are positive. This shows that the government is focusing more on making sure that it controls planned and non-planned expenditures. NewsWire18 Ltd No. pragmatic and a rational budget. chief economist. . The fiscal deficit aim of 4. on the Union Budget for 2013-14 (Apr-Mar). Many announcements have been made to discipline subsidies.

we should see a pick up in the growth rate in the coming fiscal. he has done something to revive the investment sentiment. presented in Lok Sabha by Finance Minister P. NW18: First View: PM econ panel head Rangarajan on FY14 Budget NEW DELHI . manufacturing. He has focused a lot on the financial markets and incentives to attract household savings into the housing sector. On the borrowing side. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. It would even help growth as a whole because an improvement in housing sector will definitely help a lot of other sectors such as your cement and steel sector. Chidambaram has addressed the need of different sectors and different regions. agriculture. In taxes also. State Bank of India. the numbers seem to be a little worrisome for the bond market and are likely to push yields higher. It has revived the investment sentiment and you will see the full impact of the change in the sentiment during the course of the fiscal and the Budget has only strengthened the sentiment. SME. The PSU banks' funding infusion may improve banks' lending going forward and helping growth. on the Union Budget for 2013-14 (Apr-Mar). He also focussed a lot on education and skill development schemes and has announced reform measures for infrastructure. Chidambaram today. It is a prudent and balanced budget according to me. chief economist. Rangarajan.C. he had a good balance and it does look like the DTC and the GST will come soon. chairman. I think. Also. Prime Minister's economic advisory council.Brinda Jagirdar. All of this will contribute to the improvement in the investment picture. We must take into account also whatever actions government has taken in the recent period. He has indicated a number of measures both in real terms as well as in terms of the financial sector reforms.168. The move for introducing inflation indexed bonds is welcome. NewsWire18 Ltd No.5% higher than what we are seeing in the current year. Chidambaram announced some benefits for home loans which are likely to lead to a pick-up in banks' credit growth.NW18: First View: SBI Chief Economist Brinda Jagirdar on FY14 Budget KOLKATA . He also seems to have delivered on the fiscal consolidation front and the fiscal deficit target for the next year seems quite achievable if disinvestments proceed smoothly. Chidambaram today. There is nothing in the Budget. He (Finance Minister Chidambaram) has done something to provide some incentives for additional savings and more particularly. So. presented in Lok Sabha by Finance Minister P. combined with what he has said today and combined with what measures they have taken since September. . said the following to CNBCTV18 on the Union Budget for 2013-14 (Apr-Mar). which will really make it weaker. I certainly believe that the rate of growth in the economy in the coming fiscal (2013-14) will be at least 1% or 1.

indirect taxes and what industry needed was stability. Overall. .8% in the next financial year. on the Union Budget for 2013-14 (AprMar). Another positive is his ability to bring fiscal deficit to 5. I think the budget is fantastic. I think the rupee will come up. NW18: First View: ICAP. presented in Lok Sabha by Finance Minister P. which need not be bad. I mean everything remained just same. What I liked is that he increased the planned expenditure. There was nothing for the information technology industry. duties.Harsh Chitale. on the Union Budget for 2013-14 (Apr-Mar). head-India FX and Option Bhalotia on FY14 Budget MUMBAI . I think all the foreign investors are going to like it.Anil Bhalotia. .90%. and the gradual reduction target for the fiscal deficit to 4. Taxes on rich and luxury good was also more or less expected. Chidambaram today. which is an excellent sign. It was more or less a non-event. NW18: First View: SBI MF chief investment officer Munot on FY14 Budget MUMBAI . chief investment officer.2% in the current fiscal year. HCL Infosystems Ltd. but it's not necessarily negative either. I see rupee in the range of 53. presented in Lok Sabha by Finance Minister P. I think it is a very realistic and pragmatic budget.Navneet Munot. It shows that the government is working very seriously on the growth side and they really want domestic growth to pick up.00-54.NW18: First View: HCL Infosystems CEO Chitale on Union Budget 2013-14 NEW DELHI . head of India FX and Option. on the Union Budget for 2013-14 (AprMar). He (Finance Minister P. Where something could have been done more and I think opportunity has been missed was some concrete actions around kick-starting investments because in our country investment rate has gone down. the finance minister could not have done anything better. ICAP. Chidambaram today. chief executive officer. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. Nobody expected any changes on taxes and duties and sops they didn't come. I think the silver lining in the budget is the increase in the planned expenditure. SBI Mutual Fund.168. I didn't see anything.50 a dollar until the next two months. I think the market should rally. Everybody expected impetus on food security bill and extra thrust on social programmes. 10-year government bond yields will remain in the range of 7. Under the circumstances. presented in the Lok Sabha by Finance Minister P. NewsWire18 Ltd No. Chidambaram) didn't incur too much with taxes. Chidambaram today.80-7.

NW18: First View: IVRCL CMD Reddy on FY14 Budget HYDERABAD . The 140-bln-rupee capital infusion programme announced for public sector banks was on expected lines. and also to revive fortunes of the industry.L. we need to see the fine print of the proposals for debt funds. Mutual fund distributors have been allowed to become members of stock exchanges. I think the finance minister has done well considering the current global and domestic economic conditions. There are certain positive elements in the Budget such as encouragement for infrastructure debt funds and appointment of regulator for roads. Sudhir Reddy. it is still not clear how the projections will be achieved. chairman and managing director. on the Union Budget for 2013-14 (Apr-Mar). and companies' earning over 100 mln rupees are somewhat negative. Oriental Bank of Commerce. NewsWire18 Ltd No. Chidambaram today. IVRCL Ltd. Overall. The duties and functions of the road regulator are important things to watch out for. but we cannot say for now if the regulator will be helpful to us.168. It seems he has recognised the problems in the infrastructure sector. I guess that he did not reduce the tax-saving term deposit tenure to three years from five years as the government is also under pressure to ensure funds are raised for other savings schemes.Nothing has come out for the mutual fund industry from the budget. presented in Lok Sabha by Finance Minister P. but I don't know how many will be willing to become members. There is some disappointment that once again the government has chosen not to bring in parity between banks' tax-savings deposits tenure and mutual funds of a similar nature. presented in the Lok Sabha by Finance Minister P. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. I don't know how much money the government is going to collect with these kind of decisions. However. We hope those measures will be taken by policy makers in the coming months. It is a bit of de-motivation when some motivation was needed. . Oriental Bank is comfortable on capital levels till September as there is not much credit growth. chairman and managing director. there were no political gimmicks and the focus was clearly on fiscal consolidation. Measures have fallen short of our expectations. Rajiv Gandhi Equity Savings Scheme income limit has been raised to 12 lakh rupees (1. Bansal. Contrary to fears.S. However.E. The government could have come out with very specific information on these funds. on the Union Budget for 2013-14 (Apr-Mar). the budget is a good plan as the fiscal deficit projections are credible. which will not help get more money. Chidambaram today. Surcharge on individuals' earnings above 10 mln rupees. We were expecting a lot of measures for the revival of the industry. NW18: First View: Oriental Bank of Commerce CMD Bansal on FY14 Budget MUMBAI .2 mln).

Arun Nanda. Bharti Institute of Public Policy-ISB. but overall. so any relief there is good. Most of Mahindra & Mahindra's sport utility vehicles are sold for use in commercial fleets. This is a welcome step. presented in Lok Sabha by Finance Minister P. This is a knee-jerk reaction and I don't believe this is an indication of a long-term trend. . with all the right noises made. on the Union Budget for 2013-14 (Apr-Mar). as SUV sales for commercial use have not been taxed incrementally. the government still has maintained a fiscal deficit (aim) of 4. The budget seems a plus for the infrastructure sector. Mahindra & Mahindra Ltd. The former includes the move of extending SME (small and medium enterprise) benefits for 3 years after exiting the sector. NW18: First View: M&M Director Arun Nanda on FY14 Budget MUMBAI . Reduction in duty on chassis is significant as these are a big component of commercial vehicles.V. given the macro constraints. The adequacy and effectiveness of the steps taken will.V. In spite of more demand for populist measures. Commodities transaction tax will affect commodity markets. NW18: First View: Bharti Institute-ISB ED Chakrabarti on FY14 Budget HYDERABAD .S. The slant was on pro-disadvantaged. presented in Lok Sabha by Finance Minister P. The women's bank falls in the trick category. NewsWire18 Ltd No. Chidambaram today. so yields have gone up. some material some cosmetic. Andhra Bank. director. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. Capital infusion for public sector banks is definitely a good feature. Certain expectations have not come through. remain to be seen. treasury head. Venkatasubramanian. of course. Overall it's a quite reasonable budget. as well as the monetary reward for skill development.The gross market borrowing number announced has been high.168. presented in Lok Sabha by Finance Minister P. Chidambaram today.Rajesh Chakrabarti. on the Union Budget for 2013-14 (Apr-Mar). The promise to roll-out of direct benefits transfer in the next year seems unrealistic. executive director. it should be a good budget in the current scenario. but probably was unavoidable.8% for 2013-14 (Apr-Mar). on the Union Budget for 2013-14 (Apr-Mar).Chidambaram today. The focus on infrastructure is well-chosen as well as the emphasis on debt instruments to fund it. So today's move is favourable for the company. NW18: First View: Andhra Bank's Venkatasubramanian on FY14 Budget MUMBAI . Commercial vehicles are the worst affected segment of the automobile industry.

It is a conservative Budget and is more or less on expected lines. In terms of markets and tax. he has taken a pragmatic view. Chidambaram today. then there is scope for the Reserve Bank of India to ease policy rates. The development is more focussed in the social sector. NW18: First View: CARE Ratings Chief Economist Sabnavis on FY14 Budget KOLKATA .8% is likely to be achieved provided growth takes place. but I won't say it's out of the comfort zone. He has indicated that he is going to curb expenditure and improve revenue. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. commitment to growth. On a gross basis it is more but there are a lot of redemptions lined up this year so. Bank of Nova Scotia. Also. But they are largely doses of incremental taxes. market is also playing safe. Firstly.Madan Sabnavis. Although I am slightly disappointed that no radical steps have been taken for capital markets or to spur investments. Overnight indexed swap rates have gone slightly higher and 10-year government securities have also gone up. CARE Ratings. some tinkering has been done to tax structures and increase in customs duty of luxury vehicles etc. The move that he has taken on indirect taxes is largely on expected lines.nothing exciting. it should be a big cause of worry for the bond market. the market was expecting some more benefit in terms of corporate tax. As for the rates segment and to what matters to us bankers. . with the economic growth and credit growth not seen very good.. the net borrowing is too different from last year.M. So the budget is overall. It is more demonstrative. Chidambaram has focussed more on development. On the whole. So to that extent. I would say. But the finance minister is not expected to be an entertainer. on the Union Budget for 2013-14 (Apr-Mar). cut in rates etc. presented in Lok Sabha by Finance Minister P. NewsWire18 Ltd No. on the Union Budget for 2013-14 (Apr-Mar) presented in Lok Sabha by Finance Minister P. Borrowing seems to be slightly higher. which is the need of the hour. I was expecting it and then market was expecting overall lower borrowing programme as well.168.NW18: First View: Bank of Nova Scotia treasurer Natarajan on FY14 Budget MUMBAI . It's sort of boring in fact. Chidambaram today. banks would park their money in government bonds.5% and 7%. But if the government definitely walks the talk. Because. rather than resulting in any meaningful revenue. containing inflation. He has to address larger sections. Fiscal deficit of 4. it's positive and there was mention about curbing expenditure. growth and cutting expenditure. Coming to the borrowing. On subsidies. we need to wait for the actual government borrowing programme. chief economist. One word to explain the budget could be an 'unexpected non-event'. Natarajan.. We are expecting the GDP for FY14 to be somewhere between 6. the RBI believes in what actually happens as opposed to what statements are made. treasury head.

Mohammad Ghulam Azhar.168.NW18: First View: Tata Chemicals MD Mukundan on FY14 Budget MUMBAI . NW18: First View: PNB Gilts Managing Director Dubey on FY14 Budget MUMBAI . So it not that negative for the market. Since so many positive expectations were built in. PNB Gilts Ltd. The Budget addresses many concerns and clarifies many ambiguities. on the Union Budget for 2013-14 (Apr-Mar). Dubey. Tata Chemicals Ltd. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. The proposal in the budget for increasing the import duty on set-top boxes to 10% from the existing 5% would compel us to pass on the additional cost to subscribers.R. chief operating officer. there are no notable manufacturers of set-top boxes in the country at present. in the coming years.S. but that has not come. the weighted average duration for quite some time has been around 13 years. bonds have reacted negatively. The buyback is not such a negative for portfolio duration. managing director. We were expecting cut of 5%. What the government bond market was looking forward to was 'everything positive'. and the Budget speech has articulated the government's intent on this matter. Support for infrastructure projects is also welcome. on the Union Budget for 2013-14 (Apr-Mar). Chidambaram today. we would like our inventory to have a mix of both domestic and imported set-top boxes. The industry is eagerly awaiting the rollout of Goods and Services Tax. If you see. Mukundan. The hike in import duty has been done to encourage the domestic manufacturing of set-top boxes. Going forward. If you see. The Budget is quite neutral. on the Union Budget for 2013-14 (Apr-Mar). . The Budget lays down a clear road map for supporting small and medium enterprises. Market will take some time in understanding these things. Chidambaram today. presented in Lok Sabha by Finance Minister P. presented in Lok Sabha by Finance Minister P. DEN Networks Ltd. the net market borrowing is broadly in the same range as 2012-13 (Apr-Mar). However. presented in Lok Sabha by Finance Minister P. managing director.K. Chidambaram today. NW18: First View: DEN Networks COO Mohammad Ghulam Azhar on FY14 Budget NEW DELHI . Clarity on taxation of steam coal and bituminous coal is particularly appreciated as there was some confusion on taxation for companies running captive power plants. which would have facilitated the ongoing cable digitisation process in the country. NewsWire18 Ltd No. People had expected a lot of positive news in terms of reviving investment.

.2% in 2012-13 to 4. For steel sector. FII regulations are proposed to be made simple to facilitate more number of FIIs coming to India. on the Union Budget for 2013-14 (Apr-Mar). 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. He has pushed up the investment allowance. FII participation in the foreign exchange segment is also a positive action. raised expectations for small savings receipts.8% for 2013-14. Chidambaram today. So as long as investment is encouraged. on the Union Budget for 2013-14 (Apr-Mar). group chief finance officer. presented in Lok Sabha by Finance Minister P. The budget is a responsible and pragmatic one with several initiatives that should spur growth. NewsWire18 Ltd No. and spur investments and growth as this might be the last full budget prior to general elections.NW18: First View: South Indian Bank's Treasurer Murali on FY14 Budget MUMBAI .A.Koushik Chatterjee. presented in Lok Sabha by Finance Minister P. NW18: First View: HDFC Life CEO Chaudhry on FY14 Budget MUMBAI . Good fiscal health and more FII flows should lift sentiment in the stock market and be positive for the rupee. Chidambaram today. the finance minister has tried to have a balanced budget. and fiscal deficit target has been brought down from 5. which shows fiscal health is improving much more than in the past. NW18: First View: Tata Steel Group CFO Koushik Chatterjee on FY14 Budget MUMBAI . He has balanced the budget very well.168. Finance Minister has acknowledged that current account deficit is a big worry.7% in 2013-14 (Apr-Mar). Chidambaram today. With respect to the life insurance sector. A number of measures for financial and capital markets are a step in right direction. There is no major hike in direct or indirect taxes. Going forward also. which is what is needed. there wasn't anything specific but the sector looks at the economy and the market for growth. This budget reflects a tight ropewalk by the finance minister given that he has to bring back investor confidence. foreign direct investment and external commercial borrowings. There will be more encouragement for foreign flows by way of foreign institutional inflows. I think it is good for the sector as well. the fiscal deficit is projected to come down. presented in the Lok Sabha by Finance Minister P. With all this. treasury head. HDFC Life.. Tata Steel Ltd on the Union Budget for 2013-14 (AprMar).Amitabh Chaudhry. managing director and chief executive officer. Gross domestic product is seen growing 6. he introduced several positive measures that would aid growth including a clear hope on passing of the insurance and pension bills.Murali N. South Indian Bank.

the idea to put money into social schemes to raise standard of living of under-developed areas is right. on the Union Budget for 2013-14 (AprMar).Satish Jamdar. NewsWire18 Ltd No. nor take away anything. I was not hoping for any sops or other major changes in the Budget. presented in the Lok Sabha by Finance Minister P. NW18: First View: Principal Mutual Fund CIO Jain on FY14 Budget MUMBAI . . Though the step is in the right direction. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. presented in Lok Sabha by Finance Minister P. Chidambaram has followed a simple route--neither do anything. which is not surprising given that it is a pre-election budget. Principal Mutual Fund. There has not been any investment in the capital goods sector for a long time now.000 rupees for first-time home loan buyers is quite meaningful. We were only hoping for the investment climate to improve. Chidambaram today. it is not a positive or a negative budget and it is going to be more about execution and hoping that the government continues to work towards removing bottlenecks in the economy. chief investment officer. on the Union Budget for 2013-14 (Apr-Mar). However. Our manufacturing suffers due to lack of scale. The additional deduction of 100. Issues relating to land availability. it may take a long time to show effect. The divide between rich and poor needs to come down. the fact that there has not been too much of tinkering with tax rates is positive. and training need to be addressed. Blue Star Ltd. Chidambaram today. and so in the long-run his policies are good.Rajat Jain. Overall. But because he had such less elbow room. however. the need to push capital expenditure is recognized with the investment allowance. skilled labour. and I don't think the Budget is going to change that greatly. The investment allowance proposal is good. but the manufacturing sector needs much more. Other than that.168. and that is because participation of population is not high. managing director. Chidambaram's problem was that he did not want to tax more so all his effort has gone there.NW18: First View: Blue Star MD Jamdar on FY14 Budget MUMBAI . he has ended up giving in bits and pieces. In that sense. There are no major initiatives.

chairman. there is a lot of negative perception both globally and in India because of actions taken by the tax authority. Godrej Group.2% in the current financial year and to 4. I think this is a very important development. We particularly welcome the containment of the fiscal deficit to 5. there were no major positive or negative triggers for the markets or any particular sectors. It will add to gross domestic product growth. and president. as he did not announce any major populist measure and largely maintained stability in tax policies. chairman and managing director. Currently. Angel Broking. space and some of these areas which could help growth going forward. on the Union Budget for 2013-14 (Apr-Mar). inflation containment. Confederation of Indian Industry.8% in the next financial year. in the coming parliament sessions. I think the tax administration reforms the finance minister suggested are welcome. Generally.Adi Godrej.168. on the Union Budget for 2013-14 (Apr-Mar). for which the momentum still looks very much on track. NW18: First View: Godrej Group Chairman Adi Godrej on FY14 Budget NEW DELHI . and he has delivered on that front. save for some tweaking for higher income brackets and companies. In my view.Dinesh Thakkar. The fact that the GAAR (general anti-avoidance rule) provisions are going to be made into law. It will ensure that the rating of our economy is strong. provisions that they announced from the Shome committee through the finance bill are also extremely welcome. presented in Lok Sabha by Finance Minister P. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. and I think what the market will look forward to is the reform agenda being continued by the government outside the budget. Chidambaram today. The government's reform momentum had been so strong since September that there were expectations of some exciting measures in the budget too. that will divert investment from gold which has become quite high in the last couple of years and which will also help improve overall investments into the productive parts of the economy.NW18: First View: Angel Broking Chairman Thakkar on FY14 Budget MUMBAI . Chidambaram today. NewsWire18 Ltd No. the incentives for investment into the capital markets are welcome. . That was not the case. science. presented in Lok Sabha by Finance Minister P. but it does not mean the budget was a disappointment. We also generally felt that there was very good emphasis on agriculture especially technological inputs into agriculture. The finance minister has been seriously committed to bringing down the fiscal deficit.

Chidambaram today. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. on the Union Budget for 2013-14 (Apr-Mar). The surge in bond yields goes to show the high gross borrowing number but with open market operations and redemptions lined during the year the net borrowing should not be a worry and as soon as the bond market realises this I think yields will start easing.K. NW18: First View: HDFC Bank Economist Jyotinder Kaur on FY14 Budget KOLKATA . Chidambaram has highlighted the right problems but in terms of roadmaps there is no clarity and there is a lot more that he could have done with respect to boosting growth and investments. Overall.S. they seem to be more credible than last year.NW18: First View: IIFCL CMD Goel on FY14 Budget KOLKATA . In terms of fiscal consolidation. The 50. we hope this would help us garner more resources and disburse more in the next financial year. NewsWire18 Ltd No.000 crore rupees (500 bln rupees) limit on tax-free infra bonds is very positive. We are very pleased with the steps he has taken for the infrastructure sector and believe that this would increase the flow of resources in the sector. presented in Lok Sabha by Finance Minister P. We hope to raise 5500 crore rupees (55 bln rupees) through our first IDF. although more realistic than last year. The Budget is also encouraging the infrastructure debt funds. India Infrastructure Finance Co Ltd. on the Union Budget for 2013-14 (Apr-Mar). chairman and managing director. I still think are a bit unrealistic. HDFC Bank. economist. We would be finalising partners for our infrastructure debt fund in a week's time and launch the fund by the end of March. . Fuel subsidy may be contained but there are definite risks for food subsidy as the outgo on account of food security is big. Chidambaram today. Subsidies.Jyotinder Kaur. In terms of the targets set for FY14. presented in Lok Sabha by Finance Minister P.168. Goel. we feel these initiatives would help improve sentiment for the sector and would translate into a lot of new projects in the next financial year. Chidambaram has delivered and the RBI might now ease its stance going forward.

R. there is no move to introduce a wealth tax on super-rich individuals.C. Bank of Maharashtra. so banks will have to raise money from the markets. the yields will improve. End NewsWire18 Ltd No. on the Union Budget for 2013-14 (Apr-Mar). Rajendran. executive director. When market digests this.NW18: First View:Federal Bank President-Treasury Khajuria on FY14 Budget MUMBAI .V. It is a very balanced and I would say quite prudent Budget. no extravagance. What could have happened in a pre-election year Budget. this is a good budget. presented in Lok Sabha by Finance Minister P. All this will have a good impact on the markets in general. This Budget clearly shows the government's commitment to follow fiscal prudence and targeting the fiscal deficit to 4. a borrowing number of below 5 trln rupees should have been welcomed by the market. nothing of that sort is there. Despite much debate. Chidambaram today. The net borrowing for the next fiscal is pretty much in line with market expectations. if the buyback programme of 500 bln rupees is also accounted for then it comes to the number expected by the market. . In fact. NW18: First View: Bank of Maharashtra ED Rajendran on FY14 Budget MUMBAI . The budget ensures that each department has additional allocation while tax rates have not been raised despite cues for increase in taxes in countries like US. Federal Bank. Most banks can do this as the government holding is well above the mandatory 51% requirement. presented in the Lok Sabha by Finance Minister P. on the Union Budget for 2013-14 (AprMar). this is probably aimed at giving additional priority to women's requirements. This budget must be viewed from the perspective of not just what has happened but also what has not happened. It is surprising to see the gilts market reacting so negatively to the Budget. No wastages. but we need to see how the idea plays out. Given the constraints. 2nd Floor Kodambakkam High Road Nungambakkam Chennai – 600 034. There are already a large number of women personnel and women-centric programmes in the banking sector. The all-women bank is an interesting idea. as no additional tax burden has been imposed.168.8% of the gross domestic product for 2013-14 and also giving a well-defined roadmap on scaling down fiscal deficit and bringing it back to 3% of GDP. so the market has gone up.Ashutosh Khajuria. The announced capital infusion of 140 bln rupees is not enough to helm state-owned banks to meet their Basel III capital needs. Chidambaram today. president-treasury. However. The gross market borrowing is higher than the expectation of 6 trln rupees.