Budget will provide breather to <i>aam aadmi</i>: Pranab

Budget will provide breather to aam aadmi: Pranab

Budget will provide breather to <i>aam aadmi</i>: Pranab Zeebiz Bureau

New Delhi: Finance Minister Pranab Mukherjee, Friday, expressed confidence that the policy road map prescribed in the Union Budget 2012-13 will steer the course of the economy and will provide a breather to the aam aadmi by containing inflation.

In his interactions with the press after presenting the Budget in the Lok Sabha earlier today, Mukherjee stressed that the fiscal consolidation is the need of the hour and the government is geared up to meet that objective. He said “We aim to get back to the path of fiscal consolidation as soon as possible.”

On high expectations from the current Budget, he said, “When I assumed Office in 2009, the global economy was going through a crisis…We need convergence of views on critical policy matters without that things are getting difficult.”

On Growth taking a beating

Referring to the existing economic ‘bottlenecks’, the Finance Minister said, “With the Eurozone economies still not recovering from the crisis situation, India is focusing on its domestic market.”

He said that global situation has made India to improve its domestic consumption, which will boost growth in the coming days.

On his attempt to make growth inclusive, he said “For inclusive growth, improvement of livelihood opportunities is very important and that’s why I made several such provisions in the Budget.”

Widening fiscal deficit

On widening of the deficit target, Mukherjee said that said that the disinvestment target of RS 30,000 crore for the next fiscal will help in arresting the trend.

He said, “To contain the deficit target, we aim to cut down expenditures on various heads and also look to mobilize tax collections.”

Cap on oil subsidy and GST?

“Oil subsidy went up to Rs 45,000 crore last year. For the next fiscal I expect the crude prices to remain at USD 115 per barrel. Though certain subsidies can’t be ruled out yet we aim to put a cap on certain subsidies” the Finance Minister said.

Regarding Goods and Service Taxes which he aims to implement by August, Pranab said “We need convergence of views with regard to GST. We need the support of the states and the Opposition for making Constitutional Amendment.”

Hike in Service Tax

In his Budget proposal, Mukherjee hiked the service tax rate from the current 10 percent to 12 percent. Defending his move, he said “The hike has been done keeping in view the GST. It is not a one year plan rather aims to align with the negative list and the upcoming GST.”

First Published: Friday, March 16, 2012, 15:08
Post Your Comment
 Your comment(s) on this article
The revised tax structure proposed in the budget will lead to the inevitable - inflation reaching double digits within the next 2-3 months and skyrocketing thereafter. The FM, PM & Dy. Chairman Planning Commission will resort to their two year old statement – inflation will moderate in 2-3 months as so on, but the inflation will continue unabated. According to the Budget snapshot based on the study conducted by Mckinsey, NCAER & Nielsen, a person earning rupees one lakh per annum will end up paying an additional amount of Rs. 15,840 pa to meet basic needs. This study necessarily does not include the expected fuel price increase which is anticipated any time! Given this background, FMs statement needs a slight modification - the aam aadmi will take their last breath due to inflation!!. It is true that government employees will get a breather by an increase in DA by 7-10%, (particularly when an early election cannot be ruled out). This money again is drained out of the common people a
ambujakshan LG - Ahmedabad
Lots of personel vehicle is on road now a days this means that people have money for petrol cant they use public vehicle or use personnel vehicle ocassionally only rich use cars but LPG or food items and medicnes are being used by the rich as well as the poor slash all the taxes on these items used also by the poor and increase taxes on petrol and costly cars because one can go without car but not without food or medicine. Also this will discourage use of personnel vehicle which is also not environment friendly and public transport use will be encouraged also less vehicles would mean less road accidents and less on road deaths put taxes on luxury and not on essential items aam admi is the poor one and not the rich one they have every thing in excess. I myself have car and superbike as well but i use them ocassionally when i can`t do without them like going out with family during night or at places which are not public transport friendly.
abhisekh - delhi
Subsidy from Kerosin fully withdrew
Lal chand Nahar - Guwahati
ye congress faltu hai ,ye humase tax ka paisa vassool karke corruption karate hai. hum me se kisi ne bhi income tax nahi bharana chahiye
Ajit Thorat - Walchandnagar
Overall the budget is moderate
D.k.sharma - jammu
Surely, an unplanned Budget by Pranav Da... Concession for Individual tax has been offset by increase in excise duty & service tax. Rising of service tax and excise duty will fuel the price hike again. I have seen a pack of cheese slice go from Rs. 88 per packet, 10 days back, to Rs. 93, 4 days back, to Rs. 99, yesterday. Why is this happening? Pathetic leaders.`` Now we have to pay more for everything….towards mobile bill, water bill, electricity bill, whatever we will avail…the list goes on. Either I am poor at Economics hence not able to understand his policy or Mr. Finance Minister is over smart!
Rajesh Tripathy - New Delhi
Stop all this corruption for better tomorrow and its time to change the Ministry from Congress to BJP We need freedom from corruption and unemployment Jai Hind
Raja Kundu - Dimapur-Nagaland
Stop all this corruption for better tomorrow
Raja Kundu - Dimapur-Nagaland
The views represented here are not neccesarily endorsed by www.zeenews.com and its allied websites. All messages will be moderated and no message that has inflammatory, abusive, derogatory language or any language deemed unfit for publication by the editor will be displayed. Though it will be endeavoured that as many messages as possible be displayed, there will be time lag between the submission and publication of the messages. The website reserves the right to publish or reject any message.

latest videos  
Q&A With fm Read More »
Budget will provide breather to aam aadmi: Pranab

FM expressed confidence that the policy road map prescribed in the Budget will steer the course of the economy.

opinion poll
Will the Budget be able to solve India`s deficit woes?
zee exclusive Read More »
A survivor’s Budget, at best!

As Pranab Mukherjee read out his Budget speech the politician in him was right up front.

Education not a priority in the Budget 2012-13 Union Budget 2012: What does it offer to women?
Food security still a distant dream Measly spending on major social sectors
Budget Plus