2100 HRS
28th  February, 2013

THE HEADLINES:

• Union Budget for 2013-14 focusses on social and agriculture sector; up-liftment of women and weaker sections given priority; sops to encourage new investments.

• Increased allocation for health and education.

• Higher income group to pay more tax.

• Fiscal deficit pegged at 4.8 percent.

• Budget evokes mixed response from political parties and industry.

• Sensex tumbles 291 points.

• In Assembly elections, Left and Naga People's Front get absolute majority in Tripura and Nagaland assemblies,Congress two seats short of absolute majority in Meghalaya.

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Rich to pay more, 10 percent surcharge on Income over one crore rupees, no change in Tax in Income Tax slab, 2000 rupees tax benefit to income upto five lakhs, higher allocation for social sector with 46 percent hike for rural development and 17 per cent in education, 15 percent allowance to new investments by companies are some of the highlights of the Budget for the next fiscal. Presenting the Budget, the Finance Minister Mr. P.Chidambaram also announced ten thousand crore rupees more for the ambitious National Food Security.

Food security is as much basic human right as right to education and right to health care. The national food security bill is a promise of the UPA government. I sincerely hope that the Parliament will pass the bill as early as possible. Over an above the normal provisions for food security, I have set up a 10,000 crore rupees towards the implemental cost that is likely under the act.

Mr. Chidambaram said cheaper loans to farmers will continue and announced a 22 percent hike in the out lay for agriculture sector. The Finance Minister said that 1000 crore rupees fund to be named as NIRBHAYA fund to boost safety of women and a separate women bank will be set up and duty concession will be extended to Aircraft maintenance industry. Mr. Chidambaram proposed excise exemption to hand made carpets, textile flooring of coir and jute and cheap loan for handloom sector. He said there will be no change on excise and peak customs duty.

Mr. Chidambaram pegged fiscal deficit at 4.8 per cent. Turning to Indirect Taxes, he said duty on specified machinery for manufacture of leather and leather goods including footwear is to come down from 7.5 to five per cent.

Announcing the excise duty concessions, the budget provides relief to the readymade garment industry. Smokers are not spared as specific excise duty on cigarettes will go up by 18 per cent.

Health and Education for all remain the main priorities, the health sector will get an increased allocation of 24.3 per cent and education 17 per cent.

The allocation for the welfare programmes of Scheduled Castes and Scheduled Tribes children, the budget proposes 41 thousand 561 crore rupees. The allocation for the programmes for the welfare of minorities has been increased by 12 per cent.

To bring green revolution to eastern India, the budget proposes one thousand crore rupees to increase rice production in Assam, Bihar, Chhattisgarh and West Bengal.

Integrated Child Development Programme is proposed to get 17 thousand 700 crore rupees.

The budget proposes to increase allocation for defence to over two lakh three thousand crore rupees. It also proposes to expand private FM Radio Services to 294 more cities to cover all cities having more than one lakh population. About 839 new FM Radio Channels will be auctioned.

A Bill on the Direct Tax Code will be brought before the House in this session. The budget also proposes nine thousand crore rupees towards the first installment of the balance of Central Sales Tax compensation.

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The Prime Minister Dr Manmohan Singh today said if India succeeds in achieveing 8 per cent growth, the winner will be the people of India. In an exclusive interview to Prasar Bharti, Dr Singh said the finance minister has done a commendable job. Dr Singh said a multi pronged strategy needed to deal with challenges of fiscal deficit, inflation and currect account deficit.

If India needs eight percent growth rate, growth which is at the same time inclusive and sustainable what is it that each Ministry should do, the Finance Minister, I think mentioned these challenges. It is upto the collective wisdom of my council of Ministers to convert these challeges into opportunities to accelerate the tempo of growth to make it more inclusive, to make it more sustainable.

Addressing his post budget press conference in New Delhi, finance minister P Chidambaram said the main thrust of budget is to signal fiscal prudence.

The main thrust in the budget is the signal to the world, to every one else the we are following a fiscally prodent past that the fiscal deficit will be contained. If the fiscal deficity is contained other deficit will be contained in due course and I think we have demonstrated a capability to contain the fiscal deficity at 5.2, as I said myself as 5.3 and for the next year 4.8.

Planning Commission Deputy Chairman Montek Singh Ahluwalia has said, the budget will help the country get back to robust growth. Talking to a private TV channel he said, it also assures foreign investors.

The General Budget 2013-14 has evoked mixed reaction by various political parties and industry bodies.

The Congress has said the Union Budget for 2013-14 is excellent under the current circumstances. Talking to reporters in New Delhi today Party spokesman Sandeep Dikshit said the Finance Minister Mr P Chidambaram tried to bring in a balance between fiscal prudence and attracting investments into the country.

Former Finance Minister and BJP leader Yashwant Sinha said the budget was just a jugglery of statistics.

The 9,000 crore rupees compensation for the state governments for central Sales Tax, as stated by the Finance Minister, is a welcome step, for the BJP has been demanding this. But, 18-thousand crore rupees tax burden on the people will directly affect the price rise.

Samajwadi Party chief Mulayam Singh Yadav, an outside supporter of UPA, has said the budget is anti-farmer and anti-poor. Mr Yadav vowed to oppose it in Parliament.

Terming the budget as confusing, BSP chief Mayawati said the proposals are hollow and fail to provide relief to the common man and unemployed.

Calling it an election budget, CPI leader Gurudas Dasgupta said no efforts have been made to mobilize funds and generate revenue. He also criticized the cut in subsidies.

The senior CPIM leader Sitaram Yechuri has said that the budget will only enrich the rich and impoverish the poor, leading to higher inflation. He said the budget is good in symbolism and tokenism.

You want to cover up this fiscal deficit by sequzing expenditure which is essentially putting the burden on the poor, subsidy is not going so that in the general philosophy of the budget very clearly enrich the rich , improvish the poor and that is why I said that neither it is growsth oriented nor it is inclusive.

The Industry bodies FICCI and CII welcomed the Union Budget . FICCI President Naina Lal Kidwai termed the measures announced in the budget as responsible and well managed.

The budget has been pritty responsible budget, the fears we had were that it could have bbe not more populus that its impact has come through as. Expenditure has gone up to that extent that there is a degree of realism and populism that has come through.

CII President Adi Godrej termed the Union budget as development oriented and said it aims at inclusive growth.

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The News Services Division of All India Radio will broadcast a special programme on theUnion Budget. The programme can be heard on FM Gold and Rajdhani Channels from 9.30 p.m. to 10.30 p.m. tonight.

Experts in Delhi Studio will interact with experts in Chennai. Mumbai and Kolkata studio.

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THE BUSINESS WORLD

The Sensex at the Bombay Stock Exchange tumbled 291 points, or 1.5 percent, to close below the 19,000 mark, at a three-month low of 18,862, today, after the presentation of the Union Budget, and amid the monthly derivatives expiry. The Nifty slumped 104 points, to 5,693.But stock markets Japan, China, Hong Kong,South Korea and Singapore rose between 0.3 percent and 2.7 percent. Posting its second biggest fall this year, the rupee lost 50 paise, to end at a one-week low of 54.36 against the dollar. Gold fell 180 rupees, to 30,150 rupees per ten grams inDelhi. Silver lost 335 rupees, to 55,265 rupees per kilo. And Brent crude oil futures rose above 112 dollars a barrel, while US crude fell 19 cents, to 92.57 dollars a barrel.Pradeep Kumar, AIR News

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MOVING TO NEWS FROM THE ASSEMBLY POLLS;

The Left Front has swept the polls in Tripura, winning 50 seats in the 60 member assembly. The Congress bagged the remaining 10 seats. The BJP which contested 46 seats drew blank.

In Meghalaya, Congress is short of just two seats for absolute majority winning 29 seats in the 60 member assembly. Its alliance partner in the outgoing assembly United Democratic Party has won eight seats and Independents and others 15.

In Nagaland, the ruling Naga Peoples Front gets absolute majority winning 37 of the 59 constituencies elections for which were held in the 60 member House.

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In the byelections to assembly constituencies in West Bengal, Trinamool Congress, Congress and Forward Bloc have won one seat each in three constituencies in the state.

In the byelection to Chalfilh assembly constituency in Mizoram, Congress candidate Ngurdingliana has defeated his nearest Mizo Natinal Front rival Lalvenhima Hmar by a margin of over 2800 votes.

In Assam, Congress has won the Algapur bye-election to state assembly. Congress candidate Mandira Roy has defeated his nearest All India United Democratic Front, AIUDF candidate by a margin of 915 votes. In Punjab, ruling Shiromani Akali Dal candidate, Joginder Pal Jain has won the Moga bye election with a margin of more than 18800 votes defeating his Congress rival Vijay Sathi.

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Gangrape and murder charges were today ordered to be framed by a juvenile justice board against the minor accused of brutally raping along with five adults a 23-year-old girl in a moving bus in Delhi on December 16.

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In Bangladesh, the International Crimes Tribunal (ICT)-1 today sentenced to death senior Jamaat-e-Islami leader Delawar Hossain Sayedee on charges of "crimes against humanity" during the 1971 Liberation War. Sayedee who is also an ex-MP of the party was found guilty of crimes against humanity, including genocide, rape, arson attacks, looting and forcibly converting Hindus into Muslims during the War in collaboration with the Pakistani occupation forces.