Expectations from the Union Budget 2013-14

The finance minister of India will present the union budget for the fiscal year 2013-14 in the Parliament in February 2013. The people of India have various expectations from the union budget.

There have been many macro-economic issues related to common-men, Aam Admi in this country, who may get some good relief in terms of many schemes and services if declared in the forthcoming budget.

The government may try to fulfil the demands of the people in the budget, but it has some limitations, as it needs to take care of the economy, which has been facing the global slowdown.

The cap on the LPG usage for customers was the major setback for the users, but the implementation of cap on number of LPG cylinders, the government could able to check around 700 crore rupees subsidies in the few months.

And in long-run, it may give more and more check on subsidies, which could help the economy to bounce back from the glow growth to fast pace race.

Income Tax: There may be some changes in the income tax slabs to give some relaxation to the families reeling under the pressure of the high inflation, high fuel prices, and cap on LPG usage. There might be some good news for the senior citizens and women in income tax filing. There may be little variation in the current income tax slabs, which may give a minor relief to the income tax payers, as the government has been on a path for economic reforms to boost the economy.

Agriculture: Major focus could be given to agriculture and the subsidies for farmers. Monsoon was normal the year so as the cultivation in the country last year and there may be some more relief from the government over crop credits for farmers. There may be some more measures to ensure the contribution from agriculture sector to the GDP.

Senior Citizens: In the forthcoming budget, the senior citizens might get some special attention in the entire scheme meant for them by the government of India. The security of senior citizens, travelling and pension could be given more priority. The interest rates for the deposits by senior citizens might get more interest rate on those.

Subsidies: The government may take some good measures to back its economic reforms while focusing on the subsidies. But the expectations would be on the contrary to the approach of the government in checking the subsidies. People would have to have subsidies to make their life easy, while the government is trying to keep the fiscal deficit around 5.3 per cent. It’s very hard for the government keep fiscal deficit low with having more and more subsidies.

Though the government is on a path of economic reforms but will try to meet the expectation of the people by presenting them a popular union budget for 2013.

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Indian Economy to Recover from Slowdown?

Indian economy will recover from the clutches of the slowdown. The GDP growth rate might project at 5.7 per cent for the fiscal year 2012-13, but it will revive its position from there, with help of some good economic reforms.

The UPA government has initiated the economic reforms, which are actually terms are 'need of the hour' and would boost the Indian economy.

Some tough decision like reducing sub-sidies on energy products would be consider to give a relief to oil companies from dipping further into losses. However, the hike in petrol or diesel prices, are going to affect the budget of common men.

The decision of such, would be against the people but necessary to keep up the growth momentum. The target set of 8 per cent growth rate for Indian economy in the 12th Five Year Plan is enough to indicate the possible economic reforms the government would consider to achieve it.

It is clear that in the year 2013, people might need to lose some extra money on their transport following further possible hike in the petrol and diesel prices.

The union budget 2013-14 will be tabled in Parliament in the month of February 2013, by the finance minister. It is speculated that the budget would  aim for clear revive of economy from the clutches of economic slowdown.

On the other hand, if the trend of populist budget follows keeping the 2014 election, then the revival of India economic growth might be in trouble. Since, India will witness its mega election battle for Lok Sabha, in 2014 general election involving huge expenditure of government fund.

And subsidies may be high to keep all sectors happy,that also would weight high on Indian economy. There are two sides of coin, one side good economic reforms and the other side is to give plenty of subsidies to back into the power gain. There are options, lets wait and watch which side of the coin will fall, after toss.

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