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Union Budget 2013-2014

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The finance minister, P. Chidambaram, presented the union budget in parliament yesterday. The total expense budgeted is INR 16,65,297.32 crores; a 16.4% increase over the revised budget of 2012-13. INR 10,56,330.70 crores of this is revenue, with taxes coming to INR 8,84,078.32 crores, ie, 53% of the budget. The rest are capital expenses, including a debt of INR 5,42,498.62 crores, which is 32.6% of the budget. This is down from the 34.4% of last year, but not yet at the level of 31% from the year before.

  1. Plan outlay is INR 5,55,322.00 crores, 33.35% of the total budget. This is down from 35% of the budget in the last two years. The difference has gone to various non-plan expenses. Public enterprises are supposed to contribute INR 2,61,055.39 crores to the center’s plan expense, bringing the total available for the plan to INR 8,16,377.39 crores. Of the plan outlay, INR 1,36,254.00 crores (16.7%) will go to states, leaving INR 6,80,123.39 crores with the center for the plan.
    1. Health is allocated INR 32,745.00, which is 1.97% of the budget. This has remained a stable fraction of the budget.
    2. Of this, education is allotted INR 65,869.00 through the ministry of Human Resource Development. This is 3.9% of the budget, down from 4.1% of last year.
    3. The allocation to science and technology has been cut by one third! INR 17,586.79 crores is channeled through three ministries and departments (S&T, DoS and DAE). This is 1.06% of the budget, down from 1.6% of the previous year’s projection. However, it is higher than the actual amount spent on science last year.
    4. All social services put together are allocated INR 1,90,574.66 crores. This is 11.4% of the budget. There is a huge increase in spending on arts and culture, water supply, urban development, and information and publicity. These look like election year spendings, and have come at the expense of long term goods like education and science.
  2. The non-plan budget will be spent more or less as before.
    1. Debt servicing will take up INR 3,70,684 crores (22.2%) of the budget, up by 1% from the previous year. This is also 33.4% of the non-plan outlay. In actual terms, this is INR 54,010 crores more than last year.
    2. Defence is projected to take INR 2,03,672 crores (12.2%) of the budget. This is an increase of INR 25,168 over last year. As always, defence has increased by more than the amount required by inflation.
    3. Petroleum subsidies will take INR 65,000 crores (3.9%) of the budget. This is a massive cut from being 6.8% of the budget last year. These savings have been essentially passed on to non-defence capital expense and to state governments.

If you want to compare this with the last year’s projected budget, you could take a look at the post on the union budget of 2012.

IE noted that this is an election budget:

Presenting his eighth annual Budget in Parliament, P Chidambaram, while increasing the total expenditure (Plan and non-Plan) to R16.65 lakh crore, tried to strike a chord with all major votebanks, doling out sops to women, youth, poor, minorities, disabled, elderly as well as the SCs and the STs.

Besides proposing a public sector bank that would lend mostly to women and their businesses, he also offered to set up a R1,000-crore fund in the wake of a spurt in crimes against them. “We have a collective responsibility to ensure the dignity and safety of women. We stand in solidarity with our girl children and women. And we pledge to do everything possible to empower them and keep them safe and secure,” said Chidamabram.

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Written by Arhopala Bazaloides

March 1, 2013 at 3:23 am

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