Finance minister P Chidambaram presented a budget that set the S&P BSE Sensex packing. Here are 10 things you need to know about the Budget 2013-14:
Rich pay more taxes:
It is time for the rich to be worried as they would have to pay an additional surcharge of 10% on taxable income of over Rs 1 crore. This is because the budget raises taxes for them. The rich buying luxury cars will also have to pay 100% customs duty on high end sport utility vehicles. However, the budget gives relief to the common man through an additional Rs 1 lakh deduction on interest paid on home loans of up Rs 25 lakh.
Tax revenue:
The slowdown in the economy has hurt as Total tax revenue for the central government fell short of the target at Rs 7.42 lakh crore. In the year 2012-13 it was estimated that the total tax revenue would be around Rs 7.7 lakh crore. The finance minister has set an ambitious target of Rs 8.84 lakh crore for 2013-14. The amount that the government raises through levying taxes is known as the tax revenue which is generally an aggregation of income tax, corporation tax, excise duty, customs duty and service tax.
Fiscal deficit:
Fiscal deficit is the difference between the total expenditure of the government in a year and the revenue receipts cum the recoveries of loans. Fiscal deficit also represents the amount that the government will have to borrow to fund its shortfall. The lower the deficit the better it is for the country as it brings down inflation and interest rates. The fiscal deficit was estimated at Rs 5.1 lakh crore in last year’s Budget, however, this was revised to Rs 5.2 lakh crore today. So Mr Chidambaram has achieved that target and promises to take it down further. He has also promised that it would be 4.8% in 2013-14 at Rs 5.43 lakh crore. International investors and credit rating agencies pay a significant attention to this number.
Disinvestment:
Mr Chidambaram has increased the target of disinvestment to Rs 40,000 crore. The process of selling the stake of the central government in companies that it controls or in some cases where it has a small holding refers to disinvestment. In 2012-13, the government estimated of Rs 30,000 crore on the amount that would be raised through disinvestment.
Plan expenditure:
The Finance minister has set the target for plan expenditure at Rs 5.55 lakh crore for 2013-14, which is 30% higher than 2012-13. This is the expenditure that is incurred by the central government in consultations with the Planning Commission. Here the expectation is that Expenditure should result in helping create better infrastructure and facilities across the country.
Non-plan expenditure:
The target for non-plan expenditure is set at Rs 11.09 lakh crore. Expenses like salaries, pension, administrative costs, defence expenses, subsidies are all under non plan expenditure. A total of Rs 9.7 lakh crore was estimated to be spent under the non-plan expenditure in 2012-13. In the year gone by, India has spent more than Rs 10 lakh crore.
Growth outlook:
For everyone to prosper, the country needs faster economic growth. Mr Chidambaram in his budget did not give any predictions on the growth rate. He expects India would get back to high economic growth ways through measures announced. “The overall economy is expected to grow in the range of 6.1 to 6.7% in 2013-14,” said the economic survey on Wednesday. There is an assumption here that India would have a normal monsoon, which along with moderation in inflation as per the Economic Survey, should enable low interest rates and mild recovery of global growth.
Surprises in the budget:
The subsidy bill is estimated to be more than expected by the market at Rs 2,57,654 crore. The stock market built a significant expectation from the budget. At the time of going to press, the S&P BSE Sensex and NSE Nifty fell 1% at a time when markets across Asia surged. This indicates that the stock market is not too convinced about the ability of the government to manage its finances.
Expensive or cheap:
Any changes in duties or taxes make things consumed cheap or expensive. In this year’s budget, finance minister P Chidambaram has made sports utility vehicles, yachts and high-end mobile phones (of value over Rs 2,000) more expensive. Cigarettes will also get expensive. Handmade carpets, electric hybrid cars and leather and leather goods including footwear could get cheaper.
BEST OF BUDGET: MUST READS
It is time for the rich to be worried as they would have to pay an additional surcharge of 10% on taxable income of over Rs 1 crore. This is because the budget raises taxes for them. The rich buying luxury cars will also have to pay 100% customs duty on high end sport utility vehicles. However, the budget gives relief to the common man through an additional Rs 1 lakh deduction on interest paid on home loans of up Rs 25 lakh.
Tax revenue:
The slowdown in the economy has hurt as Total tax revenue for the central government fell short of the target at Rs 7.42 lakh crore. In the year 2012-13 it was estimated that the total tax revenue would be around Rs 7.7 lakh crore. The finance minister has set an ambitious target of Rs 8.84 lakh crore for 2013-14. The amount that the government raises through levying taxes is known as the tax revenue which is generally an aggregation of income tax, corporation tax, excise duty, customs duty and service tax.
Fiscal deficit:
Fiscal deficit is the difference between the total expenditure of the government in a year and the revenue receipts cum the recoveries of loans. Fiscal deficit also represents the amount that the government will have to borrow to fund its shortfall. The lower the deficit the better it is for the country as it brings down inflation and interest rates. The fiscal deficit was estimated at Rs 5.1 lakh crore in last year’s Budget, however, this was revised to Rs 5.2 lakh crore today. So Mr Chidambaram has achieved that target and promises to take it down further. He has also promised that it would be 4.8% in 2013-14 at Rs 5.43 lakh crore. International investors and credit rating agencies pay a significant attention to this number.
Disinvestment:
Mr Chidambaram has increased the target of disinvestment to Rs 40,000 crore. The process of selling the stake of the central government in companies that it controls or in some cases where it has a small holding refers to disinvestment. In 2012-13, the government estimated of Rs 30,000 crore on the amount that would be raised through disinvestment.
Plan expenditure:
The Finance minister has set the target for plan expenditure at Rs 5.55 lakh crore for 2013-14, which is 30% higher than 2012-13. This is the expenditure that is incurred by the central government in consultations with the Planning Commission. Here the expectation is that Expenditure should result in helping create better infrastructure and facilities across the country.
Non-plan expenditure:
The target for non-plan expenditure is set at Rs 11.09 lakh crore. Expenses like salaries, pension, administrative costs, defence expenses, subsidies are all under non plan expenditure. A total of Rs 9.7 lakh crore was estimated to be spent under the non-plan expenditure in 2012-13. In the year gone by, India has spent more than Rs 10 lakh crore.
Growth outlook:
For everyone to prosper, the country needs faster economic growth. Mr Chidambaram in his budget did not give any predictions on the growth rate. He expects India would get back to high economic growth ways through measures announced. “The overall economy is expected to grow in the range of 6.1 to 6.7% in 2013-14,” said the economic survey on Wednesday. There is an assumption here that India would have a normal monsoon, which along with moderation in inflation as per the Economic Survey, should enable low interest rates and mild recovery of global growth.
Surprises in the budget:
The subsidy bill is estimated to be more than expected by the market at Rs 2,57,654 crore. The stock market built a significant expectation from the budget. At the time of going to press, the S&P BSE Sensex and NSE Nifty fell 1% at a time when markets across Asia surged. This indicates that the stock market is not too convinced about the ability of the government to manage its finances.
Expensive or cheap:
Any changes in duties or taxes make things consumed cheap or expensive. In this year’s budget, finance minister P Chidambaram has made sports utility vehicles, yachts and high-end mobile phones (of value over Rs 2,000) more expensive. Cigarettes will also get expensive. Handmade carpets, electric hybrid cars and leather and leather goods including footwear could get cheaper.
BEST OF BUDGET: MUST READS
Tax revenue:
The slowdown in the economy has hurt as Total tax revenue for the central government fell short of the target at Rs 7.42 lakh crore. In the year 2012-13 it was estimated that the total tax revenue would be around Rs 7.7 lakh crore. The finance minister has set an ambitious target of Rs 8.84 lakh crore for 2013-14. The amount that the government raises through levying taxes is known as the tax revenue which is generally an aggregation of income tax, corporation tax, excise duty, customs duty and service tax.
Fiscal deficit:
Fiscal deficit is the difference between the total expenditure of the government in a year and the revenue receipts cum the recoveries of loans. Fiscal deficit also represents the amount that the government will have to borrow to fund its shortfall. The lower the deficit the better it is for the country as it brings down inflation and interest rates. The fiscal deficit was estimated at Rs 5.1 lakh crore in last year’s Budget, however, this was revised to Rs 5.2 lakh crore today. So Mr Chidambaram has achieved that target and promises to take it down further. He has also promised that it would be 4.8% in 2013-14 at Rs 5.43 lakh crore. International investors and credit rating agencies pay a significant attention to this number.
Disinvestment:
Mr Chidambaram has increased the target of disinvestment to Rs 40,000 crore. The process of selling the stake of the central government in companies that it controls or in some cases where it has a small holding refers to disinvestment. In 2012-13, the government estimated of Rs 30,000 crore on the amount that would be raised through disinvestment.
Plan expenditure:
The Finance minister has set the target for plan expenditure at Rs 5.55 lakh crore for 2013-14, which is 30% higher than 2012-13. This is the expenditure that is incurred by the central government in consultations with the Planning Commission. Here the expectation is that Expenditure should result in helping create better infrastructure and facilities across the country.
Non-plan expenditure:
The target for non-plan expenditure is set at Rs 11.09 lakh crore. Expenses like salaries, pension, administrative costs, defence expenses, subsidies are all under non plan expenditure. A total of Rs 9.7 lakh crore was estimated to be spent under the non-plan expenditure in 2012-13. In the year gone by, India has spent more than Rs 10 lakh crore.
Growth outlook:
For everyone to prosper, the country needs faster economic growth. Mr Chidambaram in his budget did not give any predictions on the growth rate. He expects India would get back to high economic growth ways through measures announced. “The overall economy is expected to grow in the range of 6.1 to 6.7% in 2013-14,” said the economic survey on Wednesday. There is an assumption here that India would have a normal monsoon, which along with moderation in inflation as per the Economic Survey, should enable low interest rates and mild recovery of global growth.
Surprises in the budget:
The subsidy bill is estimated to be more than expected by the market at Rs 2,57,654 crore. The stock market built a significant expectation from the budget. At the time of going to press, the S&P BSE Sensex and NSE Nifty fell 1% at a time when markets across Asia surged. This indicates that the stock market is not too convinced about the ability of the government to manage its finances.
Expensive or cheap:
Any changes in duties or taxes make things consumed cheap or expensive. In this year’s budget, finance minister P Chidambaram has made sports utility vehicles, yachts and high-end mobile phones (of value over Rs 2,000) more expensive. Cigarettes will also get expensive. Handmade carpets, electric hybrid cars and leather and leather goods including footwear could get cheaper.
BEST OF BUDGET: MUST READS
Fiscal deficit:
Fiscal deficit is the difference between the total expenditure of the government in a year and the revenue receipts cum the recoveries of loans. Fiscal deficit also represents the amount that the government will have to borrow to fund its shortfall. The lower the deficit the better it is for the country as it brings down inflation and interest rates. The fiscal deficit was estimated at Rs 5.1 lakh crore in last year’s Budget, however, this was revised to Rs 5.2 lakh crore today. So Mr Chidambaram has achieved that target and promises to take it down further. He has also promised that it would be 4.8% in 2013-14 at Rs 5.43 lakh crore. International investors and credit rating agencies pay a significant attention to this number.
Disinvestment:
Mr Chidambaram has increased the target of disinvestment to Rs 40,000 crore. The process of selling the stake of the central government in companies that it controls or in some cases where it has a small holding refers to disinvestment. In 2012-13, the government estimated of Rs 30,000 crore on the amount that would be raised through disinvestment.
Plan expenditure:
The Finance minister has set the target for plan expenditure at Rs 5.55 lakh crore for 2013-14, which is 30% higher than 2012-13. This is the expenditure that is incurred by the central government in consultations with the Planning Commission. Here the expectation is that Expenditure should result in helping create better infrastructure and facilities across the country.
Non-plan expenditure:
The target for non-plan expenditure is set at Rs 11.09 lakh crore. Expenses like salaries, pension, administrative costs, defence expenses, subsidies are all under non plan expenditure. A total of Rs 9.7 lakh crore was estimated to be spent under the non-plan expenditure in 2012-13. In the year gone by, India has spent more than Rs 10 lakh crore.
Growth outlook:
For everyone to prosper, the country needs faster economic growth. Mr Chidambaram in his budget did not give any predictions on the growth rate. He expects India would get back to high economic growth ways through measures announced. “The overall economy is expected to grow in the range of 6.1 to 6.7% in 2013-14,” said the economic survey on Wednesday. There is an assumption here that India would have a normal monsoon, which along with moderation in inflation as per the Economic Survey, should enable low interest rates and mild recovery of global growth.
Surprises in the budget:
The subsidy bill is estimated to be more than expected by the market at Rs 2,57,654 crore. The stock market built a significant expectation from the budget. At the time of going to press, the S&P BSE Sensex and NSE Nifty fell 1% at a time when markets across Asia surged. This indicates that the stock market is not too convinced about the ability of the government to manage its finances.
Expensive or cheap:
Any changes in duties or taxes make things consumed cheap or expensive. In this year’s budget, finance minister P Chidambaram has made sports utility vehicles, yachts and high-end mobile phones (of value over Rs 2,000) more expensive. Cigarettes will also get expensive. Handmade carpets, electric hybrid cars and leather and leather goods including footwear could get cheaper.
BEST OF BUDGET: MUST READS
Non-plan expenditure:
The target for non-plan expenditure is set at Rs 11.09 lakh crore. Expenses like salaries, pension, administrative costs, defence expenses, subsidies are all under non plan expenditure. A total of Rs 9.7 lakh crore was estimated to be spent under the non-plan expenditure in 2012-13. In the year gone by, India has spent more than Rs 10 lakh crore.
Growth outlook:
For everyone to prosper, the country needs faster economic growth. Mr Chidambaram in his budget did not give any predictions on the growth rate. He expects India would get back to high economic growth ways through measures announced. “The overall economy is expected to grow in the range of 6.1 to 6.7% in 2013-14,” said the economic survey on Wednesday. There is an assumption here that India would have a normal monsoon, which along with moderation in inflation as per the Economic Survey, should enable low interest rates and mild recovery of global growth.
Surprises in the budget:
The subsidy bill is estimated to be more than expected by the market at Rs 2,57,654 crore. The stock market built a significant expectation from the budget. At the time of going to press, the S&P BSE Sensex and NSE Nifty fell 1% at a time when markets across Asia surged. This indicates that the stock market is not too convinced about the ability of the government to manage its finances.
Expensive or cheap:
Any changes in duties or taxes make things consumed cheap or expensive. In this year’s budget, finance minister P Chidambaram has made sports utility vehicles, yachts and high-end mobile phones (of value over Rs 2,000) more expensive. Cigarettes will also get expensive. Handmade carpets, electric hybrid cars and leather and leather goods including footwear could get cheaper.
BEST OF BUDGET: MUST READS
Surprises in the budget:
The subsidy bill is estimated to be more than expected by the market at Rs 2,57,654 crore. The stock market built a significant expectation from the budget. At the time of going to press, the S&P BSE Sensex and NSE Nifty fell 1% at a time when markets across Asia surged. This indicates that the stock market is not too convinced about the ability of the government to manage its finances.
Expensive or cheap:
Any changes in duties or taxes make things consumed cheap or expensive. In this year’s budget, finance minister P Chidambaram has made sports utility vehicles, yachts and high-end mobile phones (of value over Rs 2,000) more expensive. Cigarettes will also get expensive. Handmade carpets, electric hybrid cars and leather and leather goods including footwear could get cheaper.
BEST OF BUDGET: MUST READS
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