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Thursday, February 28, 2013

Union Budget -Facts


P Chidambaram presented the Union Budget for the eighth time in 2013, the second-highest by any Finance Minister

The maximum number of 10 budgets have been presented by Morarji Desai

Pranab Mukherjee, Yashwant Sinha, Y B Chavan and C D Deshmukh have presented 7 budgets each in the past.

Manmohan Singh and the country’s 4rth Finance Minister T T Krishnamachari have presented 6 budgets

R Venkatraman and H M Patel have presented 3 budgets each

Jaswant Singh, V P Singh, C Subramaniam, John Mathai and R K Shanmukham Chetty have presented 2 budgets each

Jawahar Lal Nehru, Indira Gandhi, Rajiv Gandhi, Charan Singh, N D Tiwari, Madhu Dandwate, S B Chavan and Sachindra Chaurdhuri have presented one budget each

Jawahar Lal Nehru, Indira Gandhi and Rajiv Gandhi had presented budget in their capacity as Prime Minister and Minister of Finance

Charan Singh (once) and Morarji Desai (on four occasions) presented budget as Deputy PM and Minister of Finance

So far, the country has seen 66 normal annual budgets; while there have been 12 interim budgets and four special- occasion budgetary proposals, also known as mini budgets.

The first such mini-budget was presented by T T Krishnamachari on November 30, 1956 in form of fresh taxation proposals through Finance Bills, demanded by the prevailing domestic and international economic situation

The second mid-year budget taxation proposals were also presented by Krishnamachari in August 1965

Third mini-budget was presented by Y B Chavan in December 1971 wherein he proposed additional measures for mobilisation of resources for defence requirements.

The last mini-budget proposals in Parliament was also made by Chavan in July 1974, wherein he made fresh taxation proposals to tackle inflation-related issues after only five months of the regular annual budget




 


Corporation Poll Results in 24 Cities since 2009


Urban Local Bodies (ULBs) Elections in Karnataka - March 7,2013

With the last date for withdrawing nomination papers ending on Wednesday, the battle lines were drawn for the urban local bodies (ULBs) elections to be held on March 7. 

For the first time, a quadrangular fight among the Congress, the Janata Dal (Secular), the Bharatiya Janata Party (BJP) and the Karnataka Janata Paksha (KJP) is emerging in the State.
As many as 21,974 candidates are contesting in 4,867 wards


According to the State Election Commission, no nomination papers were received for 24 of the 4,967 wards and 85 candidates were elected unopposed

In all, 5,900 candidates are in the fray as Independents and they are expected to give a tough fight to candidates field by political parties

The number of candidates of political parties in the fray are -
  • Congress 4,492
  •  BJP 3,954
  •  Janata Dal(S) 3,651
  •  Karnataka Janata Paksha 1,966
  •  Badavara Shramikara Mattu Raithara (BSR) Congress 1,496 and 
  • Communist Party of India (Marxist) 133 

Cong Wins Bellary, Mangalore, leads in 4 more; BJP trails

Congress has already won Bellary, Mangalore and Davanagere city corporations while it is way ahead in Gulbarga. The party is leading in four out of seven city corporations and is also doing very well in Dakshin Kannada.

BJP is ahead in Hubli-Dharwad .BJP has suffered a huge defeat in its stronghold of coastal Karnataka

There is close fight between Congress and JDS in Mysore. Yeddyurappa's Karnataka Janata Party (KJP) has put up a dismal performance in Shimoga  

 


Eastleigh By-Election

The Eastleigh by-election, which was the first time the coalition parties went head-to-head since 2010, was seen as a must win for both Clegg and David Cameron, with both leaders desperate to show their parties they were not condemned to lose in 2015.

The election came at a time when Nick Clegg(Deputy prime minister) leadership of his party, without whom the rightist Conservatives cannot govern or pass legislation, faces intense pressure.

 Eastleigh has been a Liberal Democrat seat for the best part of 20 years, and the party holds every council ward in the constituency.

Mike Thornton, a local Lib Dem councillor, was elected with 13,342 votes in the Eastleigh By-Election to replace Chris Huhne in parliament.Ukip candidate Diane James secured 11,571 votes, beating Tory Maria Hutchings into third place on 10,559 votes.Eastleigh by-election
 The Lib Dems polled 13,342 votes, UKIP 11,571 votes(almost 28 % of the vote, one of their best ever results in a British parliamentary election to date) the Conservatives 10,559 votes and the Labour party 4,088 votes.

Speaking after the result Thornton said he won "because the people of Eastleigh recognised the Lib Dems have always had superb record of delivery"



Diane James, UKIP's candidate, said the result was "a humongous political shock", while Nigel Farage, UKIP's leader, said the result showed Britons were weary of mainstream politics

Grant Shapps, the Conservative party chairman, denied the outcome was "a crisis" for Cameron, saying it was virtually unheard of for a governing party to win a new seat mid-term.

The Eastleigh vote does not truly reflect national sentiment - the opposition Labour party leads in the polls nationally with the Lib Dems trailing in third or fourth place  

Virgin Atlantic Unveils UK Airline Services


Virgin Atlantic has unveiled details of its UK domestic service, including that the operation is called Little Red.
It will launch on March 31,2013 in Manchester,April 5,2013  in Edinburgh and April 9,2013 in Aberdeen, providing a total of 26 daily services to Heathrow airport
Virgin won key take-off and landing slots at Heathrow after the struggling carrier Bmi was taken over by British Airways' parent company IAG.
Virgin founder Sir Richard Branson said on Friday Feb 28,2013 that Little Red will go head-on with BA

Mexico's SNTE Teacher's Union chose new leader


The SNTE teachers' union in Mexico has picked a new leader after previous head Elba Esther Gordillo was charged on Wednesday with fraud.Elba Esther Gordillo will now have to face the charges without SNTE backing
Juan Diaz de la Torre was appointed at an extraordinary congress of the SNTE

US civil rights leader Rosa Parks honoured with a commemorative statue


Late US civil rights leader Rosa Parks has been honoured with a commemorative statue in the US Capitol building in Washington DC.
Rosa Parks is the first black woman with a full-length statue in the Capitol's Statuary Hall, where sculptures of scores of famous Americans stand.

Rosa Parks had been previously awarded the Presidential Medal of Freedom in 1996 and the Congressional Gold Medal in 1999, both during the Bill Clinton administration.

The US Postal Service also issued a stamp in her honour on February 4,2013 which would have been her 100th birthday.

Note
Rosa Parks became an icon in 1955 after her arrest for refusing to give up her bus seat in Alabama to a white man.


US Senate Confirms Jack Lew as the New Treasury Secretary -Wednesday Feb 27,2013


On Wednesday Feb 27,2013,Jack Lew has been confirmed as the next US treasury secretary in a 71-26 vote of the Senate.

Jack Lew was recently chief of staff to President Barack Obama, who nominated him to the new role

Diego Maradona Appeals for Justice in Italian Tax Dispute - Monday Feb 25,2013


Diego Maradona(Argentina) has appealed to Italian authorities for "justice" in a long-running tax dispute

Diego Maradona was convicted in 2005 and ordered to pay 37.2 Million Euros($50.4 Million)including 23.5 Million Euros in Interest for late payments

was convicted in 2005 and ordered to pay 37.2 million euros ($50.4 million), including 23.5 million euros in interest for late payments - See more at: http://www.dailystar.com.lb/Entertainment/Celebrities/2013/Feb-05/205176-diego-maradona-denies-italy-tax-fraud-claims.ashx#axzz2MCD1gh2y
was convicted in 2005 and ordered to pay 37.2 million euros ($50.4 million), including 23.5 million euros in interest for late payments - See more at: http://www.dailystar.com.lb/Entertainment/Celebrities/2013/Feb-05/205176-diego-maradona-denies-italy-tax-fraud-claims.ashx#axzz2MCD1gh2y
He insists senior figures at the Napoli club at the time were responsible for the situation.

"Why do I have to pay and not them?" he said at a news conference flanked by lawyers and bodyguards.
"I'm a victim because I earned a lot but I didn't know anything about contractual questions.
"I didn't kill anyone. I'm here to seek justice."

Note
Diego Maradona played for Serie A club Napoli between 1984 and 1991, helping them to win two league titles in that time
During a visit in 2009, Italian police seized a diamond earring from him that was later auctioned for 25,000 euros - five times its asking price - to help pay off his tax bill.
During another visit to Naples in 2006, police seized two Rolex watches.

Kingfisher Airlines Loses Flying Rights - Monday Feb 25,2013


The Union Civil and Aviation Ministry, on Monday, stripped the beleaguered Kingfisher Airlines of international and domestic flying slots. 

The Ministry of Civil Aviation said it was withdrawing with immediate effect Kingfisher's international bilateral traffic rights "on account of non-utilisation", affecting routes to Bangladesh, Hong Kong, Nepal, Singapore, Sri Lanka, Thailand, UAE Dubai and the UK

These international traffic rights will be made available to other carriers, making an extra 25,000 seats available per week, "some of which are much in demand by these carriers"

The Ministry of Civil Aviation has also withdrawn the domestic slots at Indian airports allocated to Kingfisher and will make these available to other domestic carriers

The move comes close on heels of a decision taken by the consortium of bankers to start recalling their loans amounting to Rs.7,500 crore. “The government has decided to withdraw all international bilateral traffic rights allocated to Kingfisher Airlines with immediate effect,’’ the statement added. 

Under the said rights, Kingfisher Airlines was allowed to fly the sky of eight countries, namely, Bangladesh (14 services a week), Hong Kong (14 services a week), Nepal (7 services a week), Singapore (7 services a week), Sri Lanka (14 services a week plus 21 services a week from unlimited 18 destinations), Thailand (21 services a week), UAE Dubai (21 services a week) and Great Britain (7 services a week each from Mumbai, Delhi and Bangalore).These traffic rights were allocated to Kingfisher Airlines between 2008 and 2011.
                                                                           
 




Slovenian Govt Falls in No-Confidence Vote - Wednesday Feb 27,2013


Slovenian Parliament voted to oust conservative Prime Minister Janez Jansa, after smaller parties left his coalition.

The government of Slovenia, beset by economic turmoil and allegations of corruption, has fallen

Janez Jansa was accused by the anti-corruption watchdog in January of tax irregularities and has been struggling to implement austerity measures to combat the country's financial crisis.

The Slovenian parliament ousted PM Janez Janša government after a no-confidence vote on Wednesday Feb 27,2013 and supported Alenka Bratušek for new PM-designate

55 MPs voted for the dismissal of the government while 30 were against


MPs asked Opposition Leader Alenka Bratusek to form a new government.She will become the first woman to lead Slovenia since its independence from Yugoslavia in 1991.
The new PM-designate has two weeks to form the cabinet that parliament will have to support.If she fails to secure coalition partners, President Borut Pahor could call early elections

Slovenian Coalition Govt loses Majority as Civic List quits

 A junior partner in Slovenia's ruling coalition has quit, depriving the government of its parliamentary majority.Civic List leader Gregor Virant said it was pulling out after Prime Minister Janez Jansa refused to resign over a corruption scandal.

The crisis comes as tens of thousands of public sector workers join a strike.The strike includes a rally by several thousand people in the centre of the capital, Ljubljana.Teachers, university lecturers, doctors and other state employees are protesting against austerity measures including a 5% wage cut.

JanezJansa insists that the measures are necessary to restore public finances damaged by the eurozone crisis.

Macedonia Floods


Torrential rains in the last three days caused dozens of floods, affecting many villages and towns, and damaging crops. Extensive flooding has hit Macedonia after three days of heavy rain, leaving one man dead, bridges wiped out and homes and fields inundated.
About 1,000 people had been evacuated due to the floods in eastern Macedonia, after three days of heavy rain


Firefighters try to start a pump in a bid to drain the yard of a flooded house in Sveti Nikole, central Macedonia, on Tuesday, Feb. 26, 2013
 Macedonian Army soldiers draw water with buckets from the yard of a flooded house in Sveti Nikole, central Macedonia, on Tuesday, Feb. 26, 2013

A man stands knee deep in water, in the yard of his flooded house in Sveti Nikole, central Macedonia, on Tuesday, Feb. 26, 2013
 A flooded house casts a reflection in the water in the village of Murtino, southeastern Macedonia, Wednesday, Feb. 27, 2013

Dennis Bergkamp(Dutch) To Be Honoured With Statue


Arsenal are due to honour former Dutch striker Dennis Bergkamp by erecting a statue of him outside the Emirates Stadium.The statue will reportedly be based on this picture of Bergkamp at Newcastle in 2002

Nagaland Assembly Election Result -Thursday Feb 28,2013

NPF gets absolute majority in Nagaland

A total of 59 halls have been provided for counting in the districts with three-tier security layer in each. Over 10,000 counting personnel, including counting supervisors and counting assistants, are engaged in the counting process along with micro observers and Election Commission appointed observers.The entire process will be videographed.

In consonance with an Election Commission directive, the international border has been sealed

Counting of votes for 59 of the 60 Assembly seats in Nagaland began at 8.00 am on Thursday Feb 28,2013 
 NPF wins 28 seats
 INC wins 5 seats
 NCP wins 4  seats
Others wins 7 seats


NPF is leading in 10 seats. INC is leading in 3 and Others in 2 seats. 

Party
Wins
Lead
Win + Lead
NPF
28
10
38
INC
5
3
8
NCP
4
0
4
Others
7
2
9
Total
44
15
59

2013 Meghalaya Assembly Election Result -Thursday Feb 28,2013

Congress to retain power in Meghalaya

Counting of votes for 60 Assembly seats of Meghalaya, polling for which was held on February 23, began at 8.00 am on Thursday Feb 28,2013

INC wins 12 seats, UDP wins 5 seats and Others wins 3 seats . 
INC is leading in 24 seats, UDP is leading in 4 seats, Hill State People's Democratic Party is leading in 4 seats and Others lead in 5.


 
Party
Wins
Lead
Win + Lead
INC
27
3
30
UDP
8
0
8
NCP
2
0
2
Others
7
13
20
Total
44
16
60

 
 
 

Tripura Assembly Election Result -Thursday Feb 28,2013

Left Front retains Tripura by a landslide

The Left Front led by the CPI(M) came to power for a record fifth straight term defeating the Opposition Congress by a huge margin. According to the latest trends, the CPI(M) had won 44 seats and was also leading in 5 others. Chief Minister Manik Sarkar won the Dhanpur Assembly seat defeating his nearest Congress rival Shah Alam by 6,017 votes


 





Party
Wins
Lead
Win + Lead
CPI(M)
46
3
49
CPI
1
0
1
INC
10
0
10
Others
0
0
0
Total
57
3
60
 

Union Budget 2013 -14 - Thursday Feb 28,2013


Finance Minister P Chidambaram presented his 8th Union Budget and India's 82nd on Thursday Feb 28,2013. This is the last Union Budget before the 2014 Lok Sabha elections.


Finance Minister P. Chidambaram’s wife Nalini (second from right), along with her daughter-in-law Srinidhi, son Karti, on their way to attend the presentation of the budget in Parliament House on Thursday



Budget 2013-14 Highlights
  • Fiscal Deficit - 5.3 % of GDP for 2012-13 and 4.8 % of GDP for 2013-14(Estimate)
  • The estimate of Plan Expenditure is placed at Rs 5,55,322 crore. As a proportion of total expenditure, it will be 33.3% and the Non Plan Expenditure is estimated at Rs 11,09,975 crore.

  • The Current Account Deficit(CAD) continues to be high mainly because of our excessive dependence on oil imports, the high volume of coal imports, our passion for gold, and the slow down in exports.We have to find over USD 75 billion to finance the CAD. There are only3  ways - FDI, FII or External Commercial Borrowing (ECB)
  • The 12th Five Year Plan began in 2012-13 and the total expenditure had been fixed at Rs 14,90,925 crore. Due to the slowdown and the austerity measures, the revised estimate is Rs 14,30,825 crore or 96 percent of the budget estimate.The 12th Plan projects an investment of USD 1 trillion or Rs 55,00,000 crore in infrastructure. The Plan envisages that the private sector will share 47 percent of the investment.
  • In 2013-14,the Budget Estimate of total expenditure at Rs 16,65,297 crore and of plan expenditure at Rs 5,55,322 crore was fixed and the plan expenditure in 2013-14 will be 29.4 percent more than the revised estimate of the current year
  • Budget Allocation of Rs 203,672 crore for Defence(1.93 lac in 2012-13)
  • Budget Allocation of 37,330 crore to the Ministry of Health and Family Welfare
  • Budget Allocation of Rs 4,727 crore for medical education, training and research.
  • Budget Allocation of Rs 5,284 crore for thousands of scholarships given to students belonging to Scheduled Castes, Scheduled Tribes, Other Backward Classes and Minorities, and girl children
  • The Mid-Day Meal Scheme (MDM) will be provided Rs 13,215 crore
 Agriculture
Budget Allocation of  Rs 27,049 crore to the Ministry of Agriculture, an increase of 22 percent over the RE of the current year
 Investment allowance
A company investing Rs 100 crore or more in plant and machinery during the period 1.4.2013 to 31.3.2015 will be entitled to deduct an investment allowance of 15 percent of the investment. This will be in addition to the current rates of depreciation.
 Coal
Coal imports during the period April-December, 2012 have crossed 100 million tonnes. It is estimated that imports will rise to 185 million tonnes in 2016-17. If the coal requirements of the existing power plants and the power plants that will come into operation by 31.3.2015 are taken into account, there is no alternative except to import coal and adopt a policy of blending and pooled pricing
 Banking
Before the end of March, 2013,  Rs 12,517 crore to  be infused as additional capital into 13 public sector banks.In 2013-14,  a further amount of Rs 14,000 crore for capital infusion
Propose to set up India's first Women's Bank as a Public Sector Bank with Rs 1,000 crore as initial capital.
Insurance
All towns of India with a population of 10,000 or more will have an office of LIC and an office of at least one public sector general insurance company
Capital Market
To remove the ambiguity that prevails on what is Foreign Direct Investment (FDI) and what is Foreign Institutional Investment (FII), it is proposed to follow the international practice and lay down a broad principle that, where an investor has a stake of 10 % or less in a company, it will be treated as FII and, where an investor has a stake of more than 10 %, it will be treated as FDI.
FIIs will be allowed to participate in the exchange traded currency derivative segment to the extent of their Indian rupee exposure in India.
FIIs will also be permitted to use their investment in corporate bonds and Government securities as collateral to meet their margin requirements
The list of eligible securities in which Pension Funds and Provident Funds may invest will be enlarged to include exchange traded funds, debt mutual funds and asset backed securities.
Broadcasting
Proposed to expand private FM radio services to 294 more cities. About 839 new FM radio channels will be auctioned in 2013-14 and, after the auction, all cities having a population of more than 100,000 will be covered by private FM radio services.
Postal Service
IT driven project to modernise the postal network at a cost of Rs 4,909 crore.
Central Sponsored Schemes
In 2013-14, to transfer resources to the tune of Rs 5,87,082 crore to the States and UTs under share of taxes, non-plan grants and loans, and central assistance
To the women of India
Proposed to contribute Rs 1,000 crore for security of women and set up 'Nirbhaya fund'. Ministry of Women and Child Development and other ministries concerned will be requested to work out the details of the structure, scope and application of the fund.
To the youth of India
A large number of youth must be motivated to voluntarily join skill development programmes and it is proposed to ask the National Skill Development Corporation to set the curriculum and standards for training in different skills and 1000 cr set apart for this scheme

Handloom Sector
Working Capital and Term Loans at a concessional interest of 6 %
Tax Proposals
In 2011-12, the tax GDP ratio was 5.5 percent for direct taxes and 4.4 percent for indirect taxes. These ratios are one of the lowest for any large developing country.In 2007-08, the tax GDP ratio touched a peak of 11.9 percent. In the short term, we must reclaim that peak.
Direct Taxes
  • Tax Reforms Commission Proposed
  • No Revision in the Tax Slabs and the Tax Rates as they were introduced only last year.However,a relief of Tax Credit of Rs 2000 to the tax payers in the first bracket of Rs 2 lakh to Rs 5 lakh is proposed that will benefit 1.8 crore tax payers(Estimate)
  • Education Cess for all tax payers shall continue at 3 %
  • 10% Surcharge to be levied on Income of 1 crore and above to Indl/HUF/PF
  • 10% Surcharge on Domestic Cos. on Income exceeding Rs 10 crore per year.
  • Tax benefit to the first-home buyer who takes a loan for an amount not exceeding Rs 25,00,000  get an additional deduction of interest of Rs 100,000 to be claimed in AY 2014-15. If the limit is not exhausted, the balance may be claimed in AY 2015-16. This deduction will be over and above the deduction of Rs 150,000 allowed for self-occupied properties under section 24 of the Income-tax Act
  • Donations made to the National Children's Fund will now be eligible for 100 percent deduction
  • Investment allowance at the rate of 15 percent to a manufacturing company that invests more than Rs 100 crore in plant and machinery during the period 1.4.2013 to 31.3.2015
  • Securities Transaction Tax (STT) Reduced -
                               -Equity futures: from 0.017 to 0.01 percent
                               - MF/ETF redemptions at fund counters: from 0.25 to 0.001 percent
                               - MF/ETF purchase/sale on exchanges: from 0.1 to 0.001 percent, only on the seller
  • Proposed to levy Commodity Transaction Tax (CTT) on non-agricultural commodities futures contracts at the same rate as on equity futures, that is at 0.01 percent of the price of the trade.
  • Transactions in immovable properties are usually undervalued and underreported. One-half of the transactions do not carry the PAN of the parties concerned. With a view to improve the reporting of such transactions and the taxation of capital gains,  TDS at the rate of one percent on the value of the transfer of immovable property where the consideration exceeds Rs 50 lakhs.(agricultural land will be exempt)is levied

Indirect Taxes
  • No change in the peak rate of basic customs duty of 10 percent for non-agricultural products
  • No change in the normal rate of excise duty of 12 percent and the normal rate of service tax of 12 percent. 
  • Import Duty on Cars/Motorcycles/Yachts increased
                       motor vehicles from 75 % to 100 %
                       on motorcycles with engine capacity of 800cc or more from 60 % to 75 % and
                       on yachts and similar vessels from 10 % to 25 %.  

  • SUVs occupy greater road and parking space and ought to bear a higher tax and it is proposed to increase the excise duty on SUVs from 27 % to 30 %.(SUV Taxi's Exempted)
  • mobile phones priced at more than Rs 2000, duty raised to 6%
  • proposed to levy service tax on all air conditioned restaurants.