New Delhi, Feb 28 (IANS): Amid high expectations of reversing the sharp slowdown in growth, Finance Minister P. Chidambaram presented India's 82nd budget in the Lok Sabha Thursday, saying that challenges remained but there was no need for gloom.

The finance minister began his speech by seeking the support of all stakeholders in helping navigate the Indian economy through the current crisis. He said getting back to high growth rates of over 8-9 percent seen some years ago was the main challenge.

"We have done it before. We can do it again," Chidambaram said, in what was his eighth budget and the last before the general elections slated next year. "Whatever may be the final outcome, growth is below potential. But there is no need for gloom."

The country's economic growth, as per official estimates, decelerated to 5 percent and 6.2 percent in the past two years, from 8.6 percent and 9.1 percent in the two years preceding them.

Chidambaram said the Indian economy was today constrained by three factors: high fiscal deficit, slow growth and high inflation. "My greater worry is current account deficit," he said, alluding to the high oil import bill the country has been burdened with.

"India will need $75 billion to finance the current account deficit," he said, adding that this could only be done by attracting foreign direct investment in large amounts.

"India does not have the choice in either welcoming or spurring foreign investment," he said, adding that projects will be cleared fast without worrying much over audit remarks and doing business in India will be seen as easy and mutually beneficial.

The finance minister said a whopping Rs.16.65 lakh crore (Rs.16.65 trillion or nearly $300 billion) would be spent under plan expenditure during 2013-14, which will be 30 percent higher than the outlay for this fiscal.

"I have provided sufficient funds to each ministry."

With the ensuing general elections in mind, the finance minister also significantly enhanced the outlays for areas such as women development, health, Scheduled Caste welfare, farm credit, malnutrition, rural job scheme, water and urban development.

He also announced a new public sector bank exclusively for women.

Besides, outlays were enhanced for human resource development, midday meal scheme, food security and integrated child development, while new schemes were announced to promote micro nutrients and encourage the use and repayment of farm credit.

The finance minister gave a lot of attention to infrastructure development and said the ensuing year will kick-start the process to invest $1 trillion in this key area during the 12th Plan period (2012-13 to 2116-17).

His measures included a regulatory authority for the road sector, scheme to spruce up the financial health of state-run power utilities and issuance of tax-free bonds.

Highlights

No service tax on vocational courses run by institutes affiliated to state governments

Service tax on all air conditioned restaurants regardless of whether or not they serve alcohol

No service tax on agricultural testing procedures

Rs.9,000 crore allocated for compensating state for differential in central sales tax and GST

Import duty on high-end vehicles raised from 75 percent to 100 percent

Concessions for encouraging MRO (maintenance repair overhaul) sector

Excise duty on cigarettes to be increased 18 percent

No change in customs duty on non-agricultural products

No change in service tax of 12 percent

Modified law to prevent tax avoidance to come into effect April 1, 2016

100 percent tax deduction for contributions to National Children's Fund

Education cess to continue at 3 percent

11 lakh people have benefited from direct cash transfers; scheme to be rolled out across the country during UPA-2 term (May 2014)

Property transactions skewered; TDS of one percent where transaction exceeds Rs.50 lakh

Tax on mutual fund redemptions reduced from .25 percent to .001 percent

No revision of personal income tax slabs; relief in first bracket through tax credit of Rs.2,000 for earnings up to Rs.5 lakh

Ten percent surcharge on income exceeding Rs.1 crore a year; only 42,800 people have declared such income

Tax Administrative Reforms Commission to be set up

Collective responsibility to ensure dignity and safety of women; recent incidents have cast a dark shadow; stand in solidarity with our girl children and women; will keep them safe and secure

Rs.1,000 crore allocated for establishing Nirbhaya Fund

Defence allocated Rs.2 lakh 3,672 crore

Cities to be encouraged to promote waste to energy projects

Low interest funds to be provided for promoting clean energy

Rs.800 crore provided to promoting wind energy

Two new ports to be set up in West Bengal and Andhra Pradesh to add 100 million tonnes handling capacity

Gas handling terminal at Dabhol in Maharashtra to be fully operational during 2013-14

State governments urged to sign restructuring plans with electricity discoms

Tax-free infrastructure bonds of Rs.50,000 crore to be issued

Textile ministry allocated Rs.50 crore for establishing apparel parks

Handloom sector allocated Rs.96 crore to benefit 150,000 weavers

Infrastructure debt funds to be encouraged

Regulator to be appointed for road projects; 3,000 km of road projects to be awarded in first six months of 2013-14

Incentive allowance of 15 percent over and above permitted depreciation to those investing over Rs.100 crore in infrastructure projects

Rajiv Gandhi Equity Scheme to be liberalised

Seven new cities identified along Delhi-Mumbai Industrial Corridor

Preliminary work begun on Bangalore-Mumbai Industrial corridor

Foodgrain production during 2013-13 estimated at 250 million tonnes

Rs.500 crore allocated for promoting crop diversification

Rs.200 crore allocated for promoting nutrient-rich crops

Rs.50 crore allocated for farmer-producer organisations

National Livestock Mission to be launched with allocation of Rs.307 crore

Hope parliament will pass food security bill; Rs.10,000 crore allocated for initial expenditure on implementation

Human resource development ministry to get Rs.65,867 crore

Rs.13,250 crore allocated for midday meals scheme

Rs.17,700 crore allocated for Integrated Child Development Scheme

Drinking water and sanitation ministry allocated Rs.15,260 crore

Allocation of rural development ministry allocation raised by 46 percent to Rs.80,294 crore; Rs.33,000 crore for rural jobs scheme

Budget expenditure for 2013-14 at Rs.16 lakh 65,297 crore; plan expenditure at Rs.5 lakh 55,224 crore

Rs.41,000 crore for Scheduled Caste plan

Rs.97,000 crore for women's development

Rs.110 crore for department of disabilities

Rs.37,330 crore for health ministry

Average growth during UPA-1 was 8 percent; high growth not a novelty

Current account deficit a worry because of high oil and gold imports

Will need $75 billion to finance current account deficit

Need to encourage FDI in consonance with economic priorities

WPI inflation down to 7 percent; food inflation worrying.