The 2013-14 Budget will be presented when the Indian economy is going through one of its most difficult phase. The 2012-13 Budget had forecast a growth rate of 7.6% and an inflation rate of 6.5%. In the first half of 2012-13, the economy grew by around 5.3% & likely to be almost same in the second half of the year.
Despite having difficult situation in the economy, whether in terms of fiscal deficit, high current account deficit, double digit consumer inflation & weak global conditions, the Indian economy has managed to grow above 5%. Although 5.3% GDP is much lower than the comfort level of 8% to 9% which was achieved during the period 2006 to 2011 but still better than other peer group countries.
This is the time, when the budget should come with such progressive measures that at least it will shows a direction to tackle with current situation and revive the spirits in the economy.
Education is one of the important area in which attention of the Government is required. What lacks in our education system is the basic facilities (like infrastructure, trained educators, use of latest technologies), practical exposure on subjects etc. Unless & until the country has proper education system, it will be difficult to have skilful man force as a final product on which future of the economy depends.
Agriculture sector should also be in focus in the budget because more than half of the population & manufacturing sector majorly dependent on it. There should be proper allocation of money towards research & development especially in new technology/innovation, which will help the agriculture sector to grow. The more technology will be advanced; better will be the quality of the product with the same inputs and reduction in the wastages as well. As far as export sector is concerned, apart from various incentives new technology and innovations are also required for exporters in order to become more competitive in the global markets.
The only way to reduce current account deficit, which is mainly due to high import of gold, coal, and oil, is to give boost to our export sector and discourage gold import.
The budget will also watched for measures which will build strong supply chain in the market (better transportation, storage facilities) and relieve supply side pressure on inflation.
The budget should include attractive tax saving schemes, increasing existing bracket of tax savings i.e. section 80C, reducing the lock in period of 5 years for investment in fixed deposits etc. With the introduction of such schemes, huge amount of money from the public will get invested, which results in less availability of money with public. This will relieve demand side pressure on inflation and also bring overall upturn in investment cycle thereby positive impact on the growth as well.
IIP numbers announced on 12th Feb 2013 also showed weakness in industrial sector especially with negative growth of 0.7% in manufacturing vis-à-vis positive growth of 2.8% in the same month in 2011. Therefore the Union budget should refrain from raising any taxes or duties and introduction of new taxes.
As far as fiscal consolidation is concerned, it is necessary to cut down spending on non productive schemes and to redirect Government spending towards productive purposes that can stimulate the economy, thereby generating more jobs and incomes. The MNREGA scheme, direct cash transfer of subsidy, deregulating fuel prices, cap on LPG cylinders, deferment of GAAR provisions are some good steps by the Government towards the growth of the economy.
Initiatives such as implementation of GST and DTC which should have been introduced much earlier are implemented without much delay.
There is no doubt that India is one of the fastest growing economy in the world but to become a developed country, the Government should take quick action on policy reforms along with its proper implementation & execution rather than waiting for critical situation to come.
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Name: Amit Dobhal
Email Id:[email protected]
Sir,
I have a suggestion regarding the Budget 2013.
The government should give deduction benefit say for max amt to 50,000 apart from deduction of Rs. 1,00,000/- in case of House/Shop Insurance which is done to avoid loss due to fire, natural calamity or an accident. This will be helpful to the economy in 2 ways:
1. People will start investing the amount to avoid taxes which will bring funds in to the economy
2. In case of a natural calamity, the major loss in an area is that people loose there households which they have built with years of hard work + Government has to interfere and help them out with various bail out packages from the tax payers money to redevelop their homes and to establish their homes.
By providing a scheme of deduction the government can establish a structure whereby it can create an environment to safeguard the homes/shops which are their only source of livelihood.
The govt can establish a law stating that an insurance of house is compulsory if the stamp duty value of the house is more than say Rs.10,00,000/- which will also increase the growth potential for various insurance companies already operating in the country.
Thus it can help the economy in two ways by boosting the insurance sector and to help the common man in case of an unwanted situation.
I hope this suggestion reaches out to the government in some way and the government can develop a structure to bring this policy into reality if they find the idea of any help to the country.
With Warm Regards,
Mohit Oberoi
Email: [email protected]
Sir…
There is an another suggestion that the minimum prescribed amount of Rs.2000/- u/s 80 GG of Income Tax Act for Rent Paid should also get enhanced because this above amount is applicable since the A.Y. when the basic exemption limit was 18000/- yearly…Now its 180000/-. And the inflation rate, cost of living and rent of premises etc. are too high, so the exemption limit u/s 80 GG for House Rent should be at least 10000/- p.m.
With best regards
Pankaj Soni
Respected Sir’s,
I have a suggestion for this budget that may be very helpful for India’s growth in future.
Dear Sir, India has a history to save, to preserve for future, for upcoming expenses and everybody want to invest for his or family bright future, if we follow our basic principal then we realize that why we still standing as strongest nation till we are developing, if we see US, UK then we have very small resources and position how we stand in front of bad situation or “mandi”, why Indian entrepreneur like Banks or other need not for stimulus packages, the only reason “Our Savings” .
Dear Sir lack of proper investment scheme people’s are getting fraud, fraud due to lack of Govt. tax saving scheme then everyone go for higher return and facing problem as you usually read in newspapers.
Sir you are requested to enhance the limit of 80 C which is Rs. 1,00,000 to 2,00,000/- or 2,50,000/-.
The limit can be enhance by some restriction say ……..
1. You can put additional amount in education of dependents or tuition fees can be extra from rs. 1,00,000/- investment so that every person want to save tax and utilize amount in his/her children education.
2. Some special Govt. Bonds with different Interest rate and lock in period i.e. Higher Lock in Period get much higher interest rate and lower lock in period get lower interest rate as greedy sentence…
3. As well as education medical facility bonds for Govt. so that anybody can invest and get return from bonds as well as insurance free (Incentive Scheme)
4. You can rejuvenate post office as special deposit scheme so everybody can benefit for tax as well as investment income and post office utilization can also increase, thousands of post office employees will get work and thousands of “Agents” can be get self employed;
Very sorry to say that at present Govt. has no Agent commission scheme, thousands of people get en employment due to Govt. policies, before change any policy Agents were get commission and they brought; lot of investment for Govt., at present mostly 80c limit use in Insurance (Ulip) Linked so very few persons enjoying the govt. policy.
5. Get bonds like NHAI, or may be some new say “Gramin Vikas”; “Other Infra bonds” so that Govt. can get full Investment Rs. And can be spend as per their policy or planning.
With Best Regards
Hemant Rathi