Finance Minister will be busy in finalising the Union Budget’2013 to be presented on 28th February’2013. There are really many challenges before him to address and present a budget which will boost economic growth of the country.
Finance Minister will be busy in finalising the Union Budget’2013 to be presented on 28th February’2013. There are really many challenges before him to address and present a budget which will boost economic growth of the country. The GDP growth for the year end 2013 is likely to be around 5.5 percent and all eyes are on union budget. Not only we Indians but the world is also looking very closely to the developments in India as this budget will decide the future course investment in the economy of the country. Fiscal deficit and current account deficit are the major concerns at present and overcoming people’s expectations is a big challenge for the finance minister. Corporate world are also looking positively that this budget will be pro growth and not a populist budget looking general election in one year’s time.
Recently Government has also taken many steps to contain the deficit including hike in diesel price and CNG prices. Now the diesel price is partly decontrolled and diesel price is likely to be increased by 45 to 50 paisa every month. The Government also collected a sum 12,000 crores by disinvestment of NTPC shares recently. But the measures are not sufficed but want more doses from Government to speed up the economic growth. Rupee has appreciated recently against dollar but the crude oil price on the other hand is near to USD 95 per barrel. In this scenario containing deficit will be a major challenge for the government. RBI has also taken cautious approach and has reduced repo rate by 0.25 percent only.
Increasing service tax and excise duty will lead to dissatisfaction across the class and may back fire Government. In my view Finance Minister look into the following areas which can really help in increasing revenue and as well as reducing the deficit.
1) Focus on Wealth Tax :
2) Promote Gold Deposit Scheme:
3) Reduce Expenses:
Increasing tax every time will not solve the problem. You have to search for other areas either to increase the revenue or to reduce the expenditure. I hope Finance Minister will take this in to account while presenting his budget and not load more taxes on poor and middle class family.
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