BUDGET 2013-14
ANALYSIS
Budget 2013-14 is a step and decision of ardent importance to
the ruling party as it would act as a force to streamline its functioning. The
budget despite being crushed under the synonymous Diasporas of being populist
or pragmatic enjoys a long term developmental horizon.
The year 2012-13 marked the era of brutality on women and
hence to pacify such situations, government came up with several plans for
women and making it of utmost importance even than the tax slabs and indirect taxes.
Considering current scenario when the government had to press a button for
sustenance and revamp country’s growth rate in such a pessimistic global
business environment, the budgetary decisions needed to satisfy the emotional
and business quotients of the citizens.
The honorable finance minister P. Chidambaram was a steer to
navigate the ruling party to regain trust which it had lost due to revealing of
several scams and malfunctions.
Analyzing budget from the point of view of an Indian citizen
needs a detailed scrutiny in sector wise allocation editing the macro and micro
economical stage. Now, discussing on to the direct merits and demerits of
budget and fund allocations.
Merits
·
Government in an atmosphere of plummeting cash
supply in the market had to promote investments to savings . The decisions of liberalizing
RAJIV GANDHI tax free bonds and providing benefit of 1 lakh more for first
timers home loan seekers in addition to the RAJIV GANDHI equity scheme will add
to supply of money in investment format .
·
The agricultural sector is the backbone of
Indian economy and to take care of its well being accounted for relief measures
to agricultural ministry in terms of allocating an deficit of 7 lakh crore for agricultural
credit and the support prices for grains
and produce will be marginally raised .
·
The other supporting sectors such as health , education
, science and technology has been ardently supported by framing the opening of
AIIMS like institutes which might cater to the augmentation in level of R&D
of medical sector . Health and Education retaining the priority will empower
the backbone of long term development .
·
The vision of Women Bank will elevate the
societal status giving women an equal opportunity to establish itself as a
strong contender in the corporate race .The initial resistance in penetration
in a perfectly competitive market may lead them to learn to survive in cutting
edge competition and culminate to extended banking services to the deprived
women of the society .
·
Rural and SME sector empowerment is the new
mantra for long term development . Budget 13-14 has not neglected the required
speed for SME supports and adequately sufficed the SIDBI and such organizations
to promote the entrepreneurial aspects in an developing individual .
·
The allowance increase in writing off
depreciation for more than 100 crore investments may lead to heavy cash back to
the company making them cash rich , ultimately
scaling investments..
·
The increase in the duties of luxury goods such
as cigarettes and high end mobile may lead in increasing government revenue as
the demand will not plunge .
·
Planned expenditure of more than 5 lack crores
holds good for the ruling party and people a ray of light for a brighter future.
·
Food security bill though not discussed holds a
reign of execution in partly manner thorough mid day meals and allocating 10000
crores for National food security act .
Demerits
· The allocation of 1000 crores for women
empowerment calls for contractors to lobby supply chains and create business of
such funds .
·
The deduction of1% TDS on properties adds to
pessimism in the belief of making real estate market organized and transparent.
·
Increase of surcharge by 10 % for super rich
calls for the decrease in income claiming lucidity . This may promote more
black money with the super-rich .
·
The increase in surcharge for companies for
dividend distribution and corporate tax compels the business houses on mulling government’s
interest to revamp growth.
·
Denying increase in tax slabs has been
intoxicated by people as they have been habituated since last few budgets.
The budget holds proposition to revamp long term growth and
is a pure populist budget as it for the population of the country and not the
experts to claim their critics and remarks . The budget has declined the myth
of the country regarding ruling party’s approach to vote bank politics . This
decisions taken in turbulent times ensure the augmented vision of the
economists .
