Union Budget 2013: Sops likely for salary earners before elections
Quotes
 

 

HomeNewsBudget ImpactExclusiveTaxRail Budget Celeb Speak Eco Survey
 

Union Budget 2013: Sops likely for salary earners before elections

Last Updated: Thursday, February 28, 2013, 00:02
 
 Comment 1
 
New Delhi: UPA-II's last budget may offer some sops to salary earners and households as Finance Minister P Chidambaram on Thursday will look to balance the compulsions of growth and fiscal prudence with election year politics.

The biggest challenge before Chidambaram, who will be presenting his eighth budget, would be to keep every constituent happy, arrest decelerating economic growth and bring down fiscal deficit to committed level of 4.8 percent of the Gross Domestic Product (GDP).

Only former Prime Minister Morarji Desai had presented Budget eight times.

The Budget is also significant as it would be the last before the general elections due in April-May next year. There can only be an interim budget before the elections.

Among other things, Chidambaram will be under pressure to earmark funds for schemes and programmes to fulfil electoral promises especially with regard of the Food Security Bill which seeks to provide subsidised foodgrain to poor as a matter of legal right.

The Economic Survey, which precedes the budget, is not in favour of imposition of tax on super rich, stating that government should focus on widening tax base in preference to raising rates. The final call, however, will have to be taken by Chidambaram.

As regards salary earners, they may get some relief with the Minister likely to raise the income tax exemption limit, which is currently at Rs 2 lakh per annum. The Parliamentary Standing Committee on Finance had suggested that the limit be raised to Rs 3 lakh and other slabs adjusted to provide relief to people reeling under the impact of high inflation.

Chidambaram is also expected to tweak schemes like Rajiv Gandhi Equity Savings Scheme (RGESS) to encourage individuals to invest surplus funds in stock markets. The effort would be to do away with grey areas and make schemes more attractive to first time investors.

The main task before Chidambaram would be to arrest declining growth, which is likely to fall to 10-year low of 5 percent in 2012-13. The contracting industrial production too will require the Minister's attention.

The Survey has indicated that growth in the next fiscal could be in the range of 6.1-6.7 percent.

The Finance Ministry may also announce steps to raise tax and non-tax revenue and cut expenditure to keep fiscal deficit under check.

On the taxes front, Chidambaram is likely to incorporate some of the provisions of the Direct Taxes Code (DTC) in the tax proposal, besides, announcing a roadmap for implementation of the Goods and Services Tax (GST).

As regards disinvestment, the Minister is likely to raise the target to Rs 40,000 crore for 2013-14, from Rs 30,000 crore budgeted for this fiscal. However, the government may raise only Rs 27,000 crore in the current fiscal.

While attributing declining growth to global and domestic factors, the Survey underlines the need for policy actions to spur growth.

PTI

First Published: Wednesday, February 27, 2013, 21:43

Comments

it is good if it is raised from 2 lakh to 3 lakh and being an aam admi after 3 lakh tax reduction should be @ 5%, 10% and 15% and so onie from 3000001 to 500000 @ 5% and so on-promilaraina -new delhi
First Prev 1 Next Last 

Post your Comments

Name
Place :
Email :  
Comments :  
 
Other Stories
MSME Sector

P Chidambaram proposed continuing non-tax benefits to these units for three years.

Full Article »

IT-BPO Sector

Clarity on tax issues related to R&D centres in IT soon.

Full Article »

Infrastructure

Big push to infra with Rs 50k cr tax-free bonds, two new ports.

Full Article »

Real Estate Sector

FM raised tax deduction limit by Rs 1 lakh for the first time home buyers.

Full Article »

Auto Sector

Excise duty on SUV will be raised to 30 percent from 27 percent.

Full Article »

More »

Latest Videos
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
Budget 2013: Tax slab remain unchanged Budget 2013: PM commends Chidambaram's budget Union Budget 2013: Chidambaram's Budget speech
rail budget
Rail Minister announced no hike in passenger fares.
know your fm
P Chidambaram- Man of all seasons.
Opinion Poll
How would you see Budget 2013 as?
Pragmatic
Populist
Non-event
 
 
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved