4.30 pm Feb 28, 2013
How will Budget 2013 impact you?
How will Budget 2013 impact you? Talk to the undisputed expert in this field.
14 questions answered
- 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
- Vivian Fernandes 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
- Vivian Fernandes 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
- Was the couplet from Thirukkural appropriate...for the economic occasion? Asked by: K.S. Susindar
- Why is banking sector being recapitalised. Where is their money gone. NPA's? Asked by: kp vidyashankar
- Election budgets are the 'sweet nothings' of politics.FMs make promises they have no intention of keeping. Your views. Asked by: Harry
- Vivian Fernandes 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
- Is the extra surcharge on income of individuals earning above 1 cr a year justified? Asked by: Sasi
- The Nirbhaya Fund sounds promising. Whom will the government give the money to? Asked by: JJ
- What will be the impact on inflation? Asked by: Kamya
- Vivian Fernandes 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
- Has FM sent out the right signals to improve growth? Asked by: Priya
- Can the FM not order RBI to reduce borrowing costs and damn inflation? Asked by: kp vidyashankar
- Is which way this budget affects air conditioning industry? Asked by: pavan
Hosted byVivian Fernandes