How will Budget 2013 impact you?
- Just seen some points, highlights, from tax benefit perspectives, investment guide lines etc. seems to be that government is directionless and they are just pulling on. what do you think. Asked by: Subodh Deshpande
- I cannot agree with you. The Budget is neither directionless nor lacking in focus. The Finance Minister had three themes before him: to squeeze expenditure, restart the investment cycle, and address the current account deficit by shoring up investor confidence. He has done all three. For instance, total expenditure has increased by just 12 percent, in line with nominal GDP (that is GDP unadjusted for inflation). But Plan expenditure, which is a proxy for government investment, has gone up 29 percent to Rs 5.5 lakh cr. He has provided many incentives for investment,like tax deduction for investments made by manufacturing companies above Rs 100 cr in plant and machinery, a big allocation for states to 10,000 buses, an assurance that 3,000 km of road contracts will be awarded and that a regulator will be set up to resolve highway disputes, two ports to be set up, Coal India to sign joint ventures with private companies to increase coal production etc. To curb the greed for gold and to increase household savings in financial instruments, he has proposed inflation-indexed bonds. He has also made it easier for Foriegn Institutional Investors to bring money to the country.
- You are a economist I admire. What is wrong with this budget Asked by: kp vidyashankar
- There are many things I like about the budget. What I do not like is the bank for women in the public sector. We have too many public sector banks; so we should not have added another. We should move beyond such symbolism. I am not sure that subsidies (like food) are fully provided for. We have to go by the FM's assurance that the fiscal deficit will be contained.
- If someone's income after deduction under 80C is 4.80lac, I am eligible for tax credit? Asked by: Ramesh
- Yes, you will be eligible for a tax credit of Rs 2,000.
- Was the couplet from Thirukkural appropriate...for the economic occasion? Asked by: K.S. Susindar
- Why not? He was talking about the high-mindedness or philosophy that has informed his Budget. Should be frown on erudition in a finance minister?
- Why is banking sector being recapitalised. Where is their money gone. NPA's? Asked by: kp vidyashankar
- This is not only for a provision for bad loans, but also to meet the new Basel norms. Without meeting those norms, banks will not be able to expand their lending.
- Election budgets are the 'sweet nothings' of politics.FMs make promises they have no intention of keeping. Your views. Asked by: Harry
- It is true that the previous finance minister (Pranab Mukherjee) did not attach too much sanctity to figures. But finance ministers cannot get away with fiction. Their numbers are closely watched through the year and institutional investors vote with their feet. Credit rating agencies also keep a watch. No FM can fool around with numbers without the country paying a price for it.
- Is there anything for senior citizens? Asked by: Hari
- If inflation-indexed bonds happen, senior citizens should gain because they generally invest in fixed deposits, whose value gets eroded when inflation rises.
- Is the extra surcharge on income of individuals earning above 1 cr a year justified? Asked by: Sasi
- There is no fairness in taxation. But in a crunch situation, those that are better able to pay should.
- The Nirbhaya Fund sounds promising. Whom will the government give the money to? Asked by: JJ
- This is one of those symbolic gestures. But it costs Rs 1,000 cr!
- What will be the impact on inflation? Asked by: Kamya
- If the fiscal deficit in contained to the level promised, it will have a positive impact, in the sense that inflation will be contained. The incremental increase in diesel prices every month will add to inflation, but if diesel prices were not increased, we would have generalized inflation caused by an increase in government borrowing. Overall, if the government reduces its spending, inflation rate should fall.
- How do you rate the budget? Asked by: Anu
- I have already said it is a good budget.
- Has FM sent out the right signals to improve growth? Asked by: Priya
- Yes. In fact, the change in mood among investors has been palpable since he returned to the Finance Ministry.
- Can the FM not order RBI to reduce borrowing costs and damn inflation? Asked by: kp vidyashankar
- Interest rates in our country are not regulated as they were before reforms were initiated in 1991. The RBI is an independent institution and events in the past make it clear that RBI governors do not even follow the FM hints (to reduce interest rates).
- Is which way this budget affects air conditioning industry? Asked by: pavan