By Ruma Dubey

As expected, there was nothing major in the Budget. No word on fuel subsidy. Increase in expenditure and no fiscal consolidation. For once welfare schemes have not gone berserk, especially nothing on food security bill and that is a welcome reprieve. It is, in a way, more realistic, keeping in tune with the economic situation currently. There were no big bang announcements but overall, this is the best, under the given circumstances which the FM could have done. There is no cue as such for the RBI from this Budget and thus we might have to wait longer for the rate cut cycle to begin. The FM did a good job by giving the sops to the much needed coal and power sectors. And it was an extremely smart move to double the duty on refined gold as it will keep a check on smuggling while at the same time, get more revenue given the large quantity of gold being brought by Indians. Given the political situation we are in today the Govt could have in no way ushered in FDI in multi brand retail or aviation or reduced fuel subsidy and hiked fuel prices. At a time when the Govt is walking on the thin rope of staying in power or losing it all, this is the best that the FM could have done. Marginal reduction in tax exemption limit was good but an across the board hike in service tax by 2% and brining more services under the gambit is sure to pinch the common man. Next year will be an election budget; this Budget could have been Pranab Mukherjee’s last try at putting up a reformist Budget, but sadly political compulsions prevented him from doing so. And frankly, currently, the Railway Budget seems more Big Bang and reformist than this lackluster FY13 Union Budget. And well, it's back to life and looking for other triggers for the market once again! 

BUDGET HIGHLIGHTS FY13

• Economy expected to grow at 6.9% in FY12 and 7.6% in FY13, plus or minus 0.25%
• Current account deficit seen at 3.6% in FY12
• GST to be implemented from August 2012
• Net market borrowing for 2011-12 seen at Rs.4,79,000 crore
• PSU Divestment target at Rs.30,000 crore
• Defence capex up by 15% at Rs.79,579 crore; Rs.1,93107cr in FY13  
• Exemption up to Rs.2 lakh; 10% tax for income upto Rs.2-5 lakh; Income above Rs 10 lakh to be taxed at 30% 
• Senior citizens to be exempt from advance tax payments
• FY13 non plan expenditure at 9.7 lk cr; FY13 total expenditure at Rs 14.90 lk cr;
• Direct and indirect taxes to miss targets
• FY13 spectrum auction revenues seen at Rs.40,000 core
• Gross Govt borrowings for FY13 at Rs.5.69 lakh crore
• Changes IPO guidelines to increase pariticpation in the equity markets from smaller towns
• Fiscal responsibility and budget management Act (FRBM) will be introduced in the finance bill. 
• Decided to fully provide for food subsidy in the budget
• To introduce new scheme Rajiv Gandhi to encourage more retail participation
• Allow qualified FII into domestic corporate bonds

FISCAL DEFICIT

• Fiscal deficit seen at 5.9% of GDP in FY12
• Fiscal deficit seen at 5.1% of GDP in FY13
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SUBSIDY BILL IN FY13

• Food subsidy bill seen at Rs.75,000 crore
• Fertiliser subsidy bill seen at Rs. 60,974 crore
• Fuel subsidy bill seen at Rs.43,580crore
• Total subsidy outgo at Rs.77,784 crore
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AGRICULTURE

• Agriculture credit target raised to Rs 5.75lakh crore in FY13
• Additional 3% subvention to be available top prompt-payment     

WELFARE SCHEMES

• NRHM allocation hiked to Rs 20,820cr
• Rs 12,040cr in FY13 for backward area projects 
• Rs 14,000cr for rural drinking water and sanitation in FY13
• FY13 mid-day meal scheme outlay at Rs 11,937 Cr
• Propose National Mission for food processing
• UID allocation at Rs 14,232cr in FY13 
• Propose to allocate Rs 10,000cr NABARD for refinancing RRB
• Rs 1000 cr for National Skill Devpt Fund in FY13 
• FY13 National Social Assistance Scheme outlay at Rs 8447 cr
• Propose additional funds for Aadhar to cross 40 cr enrollment 

CORPORATE INDIA

• No change in corporate tax
• Remove cascading effect of dividend distribution tax
• Weighted tax reduction on R&D reduced by
• STT reduced by 20% on delivery transactions, now at 0.1%
• Withholding tax on ECBs reduced to 5% from 20%
• DTC deferred
• All services to be taxed except those in the negative list
• Introduction of compulsory reporting requirement of assets held abroad 
• Standard excise duty hiked to 12%
• Service tax raised from 10 to 12%
• No change in peak customs duty
• New sectors added to investment-linked deduction: bee-keeping, warehousing for sugar
• Govt services, education, entertainment, public transport exempted from service tax

BUDGET FY13: WINNERS AND LOSERS