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Feb 28, 2013, 05.04 PM IST | Source: IBNLive.com

Budget 2013: No changes in income tax rates or slabs

There has been no changes in either the income tax rates or slabs in the Union Budget 2013-14 but Finance Minister P Chidamabaram allowed some relief for those who earn between Rs 2-5 lakh per year by announcing that they would be granted a tax credit of Rs 2000.

There has been no changes in either the income tax rates or slabs in the Union Budget 2013-14 but Finance Minister P Chidamabaram allowed some relief for those who earn between Rs 2-5 lakh per year by announcing that they would be granted a tax credit of Rs 2000.

Defence Budget will be Rs 2,03,672 crore, which includes Rs 86,741 crore capital expenditure in 2013-14.

With an eye firmly on the Lok Sabha elections which are scheduled for early 2014, Finance Minister P Chidambaram focused on rural India while presenting Union Budget 2013-14 in Parliament on Thursday. He announced that the Ministry of Rural Development will be given Rs 80,194 crore in 2013-14 while about Rs 33,000 crore has been allotted for MGNREGA even as he cautioned that Indian economy was not out of the woods.

He announced that states which have completed Pradhan Mantri Gramin Sadak Yojana will be eligible for PMGSY-II, others will continue with PMGSY-I, which led to uproar from the Opposition benches. The Agriculture Ministry has been given Rs 27,049 crore and the average annual growth rate of agriculture and allied services is estimated at 3.6 per cent in 2012-13 when 250 MT foodgrains was produced, said Chidambaram.

Admitting the Indian economy is still to get back on the track of fast growth, Finance Minister P Chidambaram while presenting Union Budget 2013-14 in Parliament on Thursday said that even though it remains a challenge but added that he was confident that the country would bounce back.

Pointing out that food inflation is also a major cause of worry, he said that government will take steps on production side to control it. FDI, FII and external commercial borrowings are our choice and tight monetary policy is needed to contain inflation. We have to encourage foreign investments which are in accordance to meet the economic objectives. I have no choice but to rationalise expenditure," he said.

"Our economy has also slowed after 2010 and getting back to 8 per cent growth rate is a challenge for the country. Achieving high growth is not a novelty, we can do it again," said Chidambaram. Pointing that only China and Indonesia are growing at a rate faster than India, Chidamabaram added that there is no reason for gloom.

While presenting the Budget, the Finance Minister said that achieving high growth is not a novelty and India can do it again. "I seek support of this House and people of the country to navigate our economy in the time global economic crisis," he said.

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