Union Budget 2012 – 2013 Expectations
Finance Minister Pranab Mukherjee will present the union budget for 2012-13 on March 16th. The budget presentation postponed due to the election in the five states of the country. Usually the budget session is divided into two parts. The second part will begin on April 24 and it may continue till May 22. The changes in the income tax may affect the common man. There may be some changes in excise duties of consumer goods like cigarettes; computers, mobiles and it affect badly the ordinary person. Interest for housing loan has a chance for increase. Increase in the rate of corporate tax or other surcharges are the biggest fear for Businesses.
Highlights in the Budget:
- The 2013 financial year is very important for the markets and economy. Unsustainable fiscal deficit is the main problem of the macro economy. The centre fiscal deficit increased from 2.8% in 2007-08 to 5.8 % in FY 2012.
- The service tax and excise tax are likely to be increased by 2 percentages.
- For boosting the higher spending in research and development the Central government may incentivise the pharma sector.
- It may reduce the taxes and duties on life saving drugs.
- There is chance for reduce the excise duty on branded diesel based on the request from the Ministry of Petroleum & Natural Gas.
- Union Finance Minister Mr Pranab will introduce new polices to push the entrepreneurs for more investment.
- For helping the export sector, small to medium enterprises minister will add new measures.
- fiscal and tax incentives are demanded by Association of Biotechnology Led Entrepreneurs (ABLE) in the budget.
- It will increase the income tax from Rs 1.8 lakh to Rs 3 lakh .
- There is reduction from the existing 4% of the crop loan to 3%.
- Dr. Montek Singh Ahluwalia the Deputy Chairman of the Planning Commission of India suggested reported that Ministry of Finance has interest in introducing the fiscal consolidation for the coming year budget 2012-13.
- Jewellery exporters asked for some changes in tax
- HSBC reports government may target keeping deficit below 5%
- For natural gas across the states taxes may reduce.
- Urea pricing may have no change.
- Tax reduction in some hospital imports.
- Tax rates for cement, steel, metals etc may reduce.