India unveiled higher-than-expected spending for fiscal 2013/14 on Thursday, aiming to fund it with higher revenues - including new taxes on the rich and large companies - in a budget aimed at reviving growth amid the country's worst slowdown in a decade.
FISCAL DEFICIT
* Fiscal deficit seen at 5.2 pct of GDP in 2012/13
* Fiscal deficit seen at 4.8 pct of GDP in 2013/14
BORROWING
* Gross market borrowing seen at 6.29 trln rupees in 2013/14
* Net market borrowing seen at 4.84 trln rupees in 2013/14
* Net short-term borrowing seen at 198.44 bln rupees in 2013/14
* To buy back 500 bln rupees worth of bonds in 2013/14
SPENDING
* Total budget expenditure seen at 16.65 trln rupees in 2013/14
* Non-plan expenditure estimated at about 11.1 trln rupees in 2013/14
* India's 2013/14 plan expenditure seen at 5.55 trln rupees
* Revised estimate for total expenditure is 14.3 trln rupees in 2012/13, which is 96 pct of budget estimate
SUBSIDIES
* 2013/14 major subsidies bill estimated at 2.48 trln rupees from 1.82 trln rupees
* Petroleum subsidy seen at 650 bln rupees in 2013/14
* Revised petroleum subsidy for 2012/13 at 968.8 bln rupees
* Estimated 900 bln rupees spending on food subsidies in 2013/14
* Revised food subsidies at 850 bln rupees in 2012/13
* Revised 2012/13 fertiliser subsidy at 659.7 bln rupees
TAX
* Propose surcharge of 10 pct on rich taxpayers with annual income of more than 10 mln rupees a year
* To increase surcharge to 10 pct on domestic companies with annual income of more than 100 mln rupees
* For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 pct to 5 pct
* To continue 15 pct tax concession on dividend received by India companies from foreign units for one more year
* To impose withholding tax of 20 pct on profit distribution to shareholders
* Amnesty on service tax non-compliance from 2007
* 10 bln rupees for first instalment of balance of GST (Goods and Services Tax) payment
* Propose to reduce securities transaction tax on equity futures to 0.01 pct from 0.017 pct
* To introduce commodities transaction tax (CTT)
* CTT on non-agriculture futures contracts at 0.01 pct
GROWTH
* India faces challenge of getting back to its potential growth rate of 8 pct
* India must unhesitatingly embrace growth as highest goal
REVENUE
* Expect 133 bln rupees through direct tax proposals in 2013/14
* Expect 47 bln rupees through indirect tax proposals in 2013/14
* Target 558.14 bln rupees from stake sales in state-run firms in 2013/14 vs estimate of 240 bln rupees in 2012/13
* Expect revenue of 408.5 bln rupees from airwave surcharges, auction of telecom spectrum, licence fees in 2013/14
CURRENT ACCOUNT DEFICIT
* India's greater worry is current account deficit
* Will need more than $75 bln this year and next year to fund current account deficit
INFLATION
* Food inflation worrying, will take all steps to augment supply side
CORPORATE SECTOR AND MARKETS
* To issue inflation-indexed bonds
* Propose capital allowance of 15 pct to companies on investments of more than 1 bln rupees
* Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements
* Insurance, provident funds can trade directly in debt segments of stock exchanges
* FIIs can hedge forex exposure through exchange-traded derivatives
* Investor with less than 10 pct stake in a company will be regarded as FII, more than 10 pct stake as FDI (foreign direct investor)
* Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors
* To implement quickly recommendations of financial sector legislative reforms commission
* To cut factory gate duty on trucks to 13 pct from 14 pct
POWER AND ENERGY SECTOR
* Zero customs duty for electrical plants and machinery
* Move to revenue-sharing from profit-sharing policy in oil and gas sector
* To equalise duties on steam and bituminous coal to 2 pct customs duty and 2 pct cvd (countervailing duty)
FOREIGN TRADE
* To cut duty on exports of precious and semi-precious stones to 2 pct from 10 pct
BANKING
* To provide 140 bln rupees capital infusion in state-run banks in 2013/14
DEFENCE
* To allocate 2.03 trln rupees to defence in 2013/14
AGRICULTURE
* 801.94 bln rupees to rural development in 2013/14
* 270.49 bln rupees for agriculture in 2013/14
FINANCE MINISTER COMMENTS
* "Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working."
(Compiled by Matthias Williams, Annie Banerji, Arup Roychoudhury and Satarupa Bhattacharjya)
Source:- (Reuters)
