Union Budget 2013-14 Tabled, No change in IT Slabs

The Union Finance minister P. Chdambaram has presented the Union Budget for the fiscal 2013-14 on Thursday in Lok Sabha.

The Budget was one of the populist budgets, as no burden on the income tax payers - no changes in the income tax slabs.


The Minister has given tax credit of 2000 rupees for the income tax payers between 2 lack rupees to 5 lakh rupees.


Women safety has been given prominence in the union budget 2013-14, Rs. 1000 crore for Nirbhaya Fund.


Not only that the finance minister has also suggested for First Women Bank in India for women.

For investors the SEBI to ease norms to attract from FIIs.


Here are the Budget Highlights:

Budget Allocations:

In the Union budget the planned expenditure is pegged at Rs. 555,322 crore which is around 30 per cent more than the budget estimation of last year.

Taxes:

There is no change in the income tax slabs, but tax credit of Rs2000 for the tax-payers under the slab of Rs.2 lac to Rs.5 lac.

Imposes 5-10% surcharge on local companies income above Rs 10 crore

No changes in Education Cess,

Cigarette to cost more as the excise tax has been increased,




FISCAL DEFICIT
FM proposed that India need to rationalize expenditures like coal, oil or gold imports to control fiscal deficit. The fiscal deficit has reduced a value of 4.8% which was 5.2% in last fiscal year.



Education:
Giving priority to the education sector, which has been neglected, the Finance Minister has increased the budget allocation to Rs. 65, 867 crores, which is higher 17 per cent from the last year’s budget allocation. Rs. 13215 crore has been provisioned for mid day meal scheme, one of the flagship schemes of the UPA government.


Agriculture:
The agriculture sector grew by around 3 per cent in the last fiscal year; the finance minister has allocated Rs. 27,049 crore to the Agriculture Ministry.

Rs. 500 crore For crop diversification and Farm Credit Target has been set at Rs. 7 lakh crore for the fiscal year 2013-14;

Defense:

In the budget, the finance minister increased the Defence allocation to Rs. 2.03 lakh crore, Rs. 6,275 crore has been granted to to ministry of science and technology and Rs. 5,880 crore to Department of Atomic Energy.

Women Empowerment:

Acting tough on the women empowerment, the finance minister declared Rs. 1000-crore Nirbhaya Fund for this cause. Also aimed to set up India’s First Womens Bank and approved Rs. 1000 crore as Initial capitalization for Women Bank.

Health and Family Welfare:
In the budget, Rs. 37,330 crore have been allocated for Ministry of Health & Family Welfare.

Stock Markets/Investors:
Due the slowdown the stock markets were tumbling often, the interest of stock markets to be protected. The finance minister announced that Security Exchange Board of India (SEBI) would simply its norm to attract Foreign Institutional Investors (FIIs) into Indian economy market. This will help to boost the investment inflow into the country strengthening it. FIIs can trade in Forex derivaties, 10% stake threshold to be seen as fdi, 15% allowance for investment above Rs. 100 cr, investment allowance of 15% of investment, to approve Rs. 50k crore in tax free bonds.

Urban Housing :
In the budget, Rs. 2000 crore has been allocated for Urban Housing Fund, NHB will set up an Urban Housing Fund.

Infrastructure:
To Set Up Regulator For Road Projects and Infra Debt Funds To Be Encouraged

Allocations:
Additional Rs. 10,000 Cr For Food Bill
Mgnrega Allocation Hiked To Rs. 33,000 Cr
Rs. 15,184 Cr For Indira Awas Scheme
Rs. 80,200 Cr For Rural Development

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Budget 2013-14: Focus more on Education?

The finance minister P. Chidambaram will table the Union Budget 2013-14 in Lok Sabha today. What could be there in the budget , when the economy is reeling under the economic slowdown?


Entire focus is on the fiscal roadmap for the development or boosting the economy. And the budget would also feature some of the core aspects toward achieving higher growth rate and lower fiscal deficit.


Will there be a prominence for education or higher education in the budget? Will the government introspect into the loss to education sector due to the slowdown. Is is possible that there would be more education cess, which would yield more revenue for the eduction sector.

The expenditure on the education would be hardly around 1 per cent of the GDP. Most the the institutes and colleges were affected due the slowdown or downturn. The slower growth rate of the economy has been taking toll on the job market, and ultimately on the eduction sector.

It would be interesting to see, if the government declares more measures for the education sector in the budget that is going to be tabled today in Parliament.

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Railway Budget 2013-14: Highlights

The Union Railway Minister Pawan Kumar Bansal has presented the much awaited railway budget for the fiscal 2013-14. The maiden railway budget of Mr. Bansal was passengers friendly, as there was no hike in the fares mentioned in the budget. But for Talkal or cacelling ticket would cost more for the passengers, as the minstry to cover the loss from these sources.

The fares were hiked in January 2013 by the Railway Ministry.

Introduced 67 Express Trains and 27 passenger train in the budget.

The last year’s railway budget was presented by former minister Dinesh Trivedi on March 2012, which focused to invest Rs.7.35 lakh crore in 12th Five year plan by railways.

In the Raiway Budget for 2013-14, 1.05 lah crore expenditure in the 12th Five Year Plan.

West Begal people have been disappointed with the railway budget. There is some special attention to Odisha state in this budget.

Citing the financial position, the railway minister told that the railway has repaid the loan of 3000 crore taken from the finance ministry.

Here are the highlights of Rail Budget 2013-14:
Railway has taken measures for Passenger Safety;
Try to work for zero train accidents;

13530 unmanned railway crossing present in India;

Plans to not add new level crossings;

Railway will upgrade tracks for the safety;

Rehabilitation for 17 distorted bridges by next year;

Women Passengers’ Security:
The Railways will create four more companies of Women Railway Protection Force

10% reservation for Women in recruitment of RPF;

Security Help Line numbers at Zonal Station to help women passengers;

Set up 8 Women Police Units;

Betterment of Sanitation and Cleanliness:
Will encourage bio-toilets in Trains,

Mechanized cleanliness in trains,

On-board housekeeping team in trains,

Facilities:

Free Wifi Connectivity in trains;

To avail First Aid facility at railway stations;

Special Coaches with All Amenities

“Anubhuti” named special coaches to be added to train, those will coach have all the facilities for the comfort of the passengers.

Special Attention towards Disabled Passengers:
For the comfort of disabled persons, the railways will install 179 escalations, 400 lists in railway stations;

Stations to be wheelchair friendly;



Adhar Card for Traveling

The Railways will use the data of Adhra card for various purposes, the minister had meeting with the UID chief Nandan Nekineni for this.

Internet/Online Booking Tickets:
Now the booking of ticket through online will be easy as the minister has been aiming to make it more effective user friendly.

1.20 lack users can book tickets through the IRCT website; currently 40,000 users have been able to book tickets simultaneously from the website.

Also working towards mobile ticketing;

Food Quality:
The railway has been taking to carter best quality food to passengers in trains.

Will consider for ISI certification of the vendor to carter food to passengers,

For grievances the Railway set up toll free number 1800 111 321 to complaint about the issues with the authorities.

Education for Youth to Know Freedom Movement:
Azadi Express – special trains to run across the state to educate youth and people about the freedom movement of India.

Freight Equations
India railways to join 1 billion freight club with China and Russia in the world;

Special Attention to North Eastern India:

For the first time the Arunachal Pradesh was brought into Indian Railway network ,

Railway infrastructure strengthened in Manipur.

Foot Over Bridge:
The Railways will be interested to work with the state governments over construction Foot Over Bridges near stations for the passengers.

Attention to Odisha

Special attention given to Odisha in the Railway budget, as the minister declared to set up Maintenance Workshop at Kalahandi. Wagaon Factroy in Ganjam district, a skill development centre in Koraput district.

Freedom Fighters Renewal:
The renewal of freedom fighters quota has been increased to 3 years , currently it was one year term.

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Budget Blues: Follow Canons of Taxation

As a student of economics, it is always fun to read about the canons of taxation in public finance.

Economists do always favor the changes of the fiscal policies and taxation in an economy to keep it fit and healthy.

India is going to witness the union budget for the fiscal year 2013-14 and the taxation is the prime concern for many in the country from individual tax payers to corporates.

There are many canons of taxation or principles of taxation in Indian economy too, alike other economies the world have.

It may be direct tax or indirect tax changes, it is sure to affect the budget of everyone in the country, and thanks to tough job to be done by the finance minister and administrative officers those always aim to minimize the burden of taxation.

When it comes to taxation in the country, the job becomes tougher for them. They need to strike a balance between the sentiments of the people using canons of taxation and fiscal consolidations.

Let’s have a look on the statistics, tax revenue as a percentage of GDP declined from 8.8 per cent in 2007-08 to 7.5 per cent in 2001-12.

Goods and Services Tax (GST) has been major concern for the economic planners while dealing with the debt consolidation, fiscal deficit and current account deficit.

Will there be rise in indirect tax in India? Will there changes in the income tax-slabs? How much I need to pay as tax? Will the EMI of home loan go up after the union budget?

There are basic questions one has in mind when the person thinks about the budget outcome. On Thursday, the budget session has been stared in Parliament with keynote address by the President of India.

Sine the economy growth rate is lowest in decade around 5 per cent and the fiscal deficit is high, it is obvious that the government would look for more adjustment in the taxes or disinvestments of PSUs.

Interestingly, the government needs to work on the framed rules or canons of taxation simultaneously working on fiscal deficit and adjusting taxation.

In the gloomy situation, there could be chances of higher taxes in India, but there might not be if the government prefers to present a popular budget as the general election will be held in 2014.

Best way to judge economy is to see the cannons on taxation used. 

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Financial Prospects in the Fiscal Year 2013-14

Many changes in the financial prospects are possible in the fiscal year 2013-14.Union budget for the last fiscal year will be tabled in the Parliament by the finance minister.

It is expected that, the government could table a populist budget in order to give some relief to the people those have been reeling under the pressure high-inflation, high fuel prices and low income-tax slabs.

Keeping the possible budgetary policy for the fiscal year, it could guess that there would be lot changes in the financial prospect in the year 2013-14. 

It is going to affect all the budges including household, industry and economy. The price of goods and services have gone up due to the impact of hike in the petrol and diesel.

Before the union budget, the people will see railway budget allocation, and chances are there there could rise in the freight charges in the railway budget as the passengers fairs have already been hiked in the last month.

Any hike in the freight would help the inflation to back into its massive form, which has been moderating, and considering moderation in the headline inflation the RBI cut the key interest rates.

It is sure that the changes in the income tax slabs going to change the financial prospect and individual preferences. The industrial bodies would be recommending the finance minster for a soft hear towards the corporate taxes in the budget 20013-14.

The health of India economy would also be big concern as the poor performance of agriculture and mining sectors cause a low growth rate of 5 per cent.

In a nutshell,  it is clear that there has been slowdown and everybody is going to affect in terms for the financial prospect in the fiscal year 2013-14.

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