Tuesday 7 May 2013

Indian Budget 2013 Expectations Highlights | Income Tax Predictions Updates


Finance minister P Chidambaram today on 28th February, 2013 presented the Indian Budget which is one of the most highly anticipated Budgets of
recent years. Public was extremely seeking for this budget as the government looks to rein in a bloated fiscal deficit and restore confidence in Asia's third-largest economy. On Indian budget P Chidambaram said that Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working.

 So the latest updates for Union Budget 2013-14 are described below:

Indian Budget 2013 Expectations Highlights: 
Fiscal Deficit: Chidambaram said about huge fiscal deficit that India had no choice but to rationalise expenditure. 

Growth: For growth He said that India faces challenge of getting back to its potential growth rate of 8 pct. India must unhesitatingly embrace growth as highest goal.

Spending: According to the budget it is found that Total budget expenditure seen at 16.65 trillion rupees in 2013/14. India's 2013/14 plan expenditure seen at 5.55 trillion Indian rupees ($103 billion). Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 pct of budget estimate. Set aside 100 billion rupees towards spending on food subsidies in 2013/14.

Current Account Deficit: India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit.

Inflation: Food inflation is worrying, will take all steps to augment supply side.

Corporate Sector and Markets sector: Plans to issue inflation-indexed bonds * Proposes capital allowance of 15 pct to companies on investments of more than 1 billion rupees

Power and Energy sector: This sector Proposes zero customs duty for electrical plants and machinery.

 Proposes to move to revenue-sharing from profit-sharing policy in oil and gas sector

Agriculture: To allocate 801.94 billion rupees to rural development in 2013/14.

 Plan to allocate 270.49 billion rupees for agriculture in 2013/14.