Union Budget 2013-14 presented by Finance MinisterFinance Min P Chidambaram announced a sharp increase of Rs 1.25 lakh crore in agriculture credit target to Rs 7 lakh crore for next fiscal and allocated additional Rs 10,000 crore in subsidy for implementing the Food Security Bill.
Following are some of the key highlights of the Union Budget 2013-14 presented by Finance Minister P Chidambaram in Parliament.
than Rs 5.59 lakh crore in FY13
An insipid budget
The Union Budget for 2013-14 seems to be a populist one that neither creates any impact on the economy, nor does it address the long-term growth needs.
While the Budget may prove to be positive for FIIs as they can now invest in corporate & government bonds as collateral to meet margin requirements, the Tax Residency Certificate has again become an issue.
The piecemeal perks in some sectors are just not enough to accelerate growth. India continues to face the challenge of getting back to its potential growth rate of 8% along with bringing down inflation. The target to achieve a higher growth rate and a decrease in fiscal deficit looks unlikely in these conditions. The Budget also does not give any direction to address the issue of high current account deficit. The expenditure programme announced by the government would actually be inflationary.