With the announcement of the budget 2013 just round the corner on February 28, to be precise, all eyes are set on it. With the exports dropping down in levels, current account deficits rising up, GDP growth going astray and even the exports are adding to the already worse conditions; expectations from the budget all the more increases.
The much needed budget is anticipated to restore the Indian economy statistics.
In order to truncate the growing fiscal deficit the Indian government has taken a few stringent steps from hike in diesel and LPG prices to the hike in the railway fares. So to maintain a balance, the budget must be able to keep a check on the deficit, cutting down the expenditures and at the same time be a household friendly budget too. Possibly the expectations are in contrast to each other, but for the Finance Minister it doesn’t seem to be such a tough job being assured to have a growth oriented budget which would aim at balancing all the sectors of economy.
So before the actual budget is announced here are the few expected highlights of the Union Budget 2013-2014:
- Reducing Fiscal DeficitWith Mr. Chidambaram as our Finance Minister maintaining his true reputation of a reformist has till now benefited the country by recovering the investor sentiment. In future too we are hopeful of having a budget which would reduce the extravagant expenses and enhance the investments. This may result in the increasing excise duty and broadening of tax base. According to the speech of FM, the target of the deficit ratio would be 4.8 % to 5.3 % this year.
- Development ExpenditureExpenditure would include not only in land and agriculture development but also in the sectors like education, family planning etc.
- Investment in InfrastructureIn order to revive the infrastructural investments, the budget is most likely to focus on the investment I the areas like power, roads, etc. this must be implemented to recover the declining statistics.
- Relief to Household SectorWith ever increasing prices of commodities and petrol and diesel as well, the financial savings of the household sector substantially declined from 9.3% to 7.3%.Providing extra tax incentives for long term deposits or life insurance to attract individuals could help.
This and yes a much should be done in order to bring our economy to the level it should have been by now. Our very own Finance Minister has a great challenge ahead. And we as the citizens expect a very responsible and supportive budget in return. If done the right way it can for sure bring prosperity to our country.
Hopefully Mr. Chidambaram doesn’t fall short of our expectations.
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