No Result
View All Result
  • Login
Wednesday, August 10, 2022
Afternoon Voice
SUBSCRIBE
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics
No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics
No Result
View All Result
Afternoon Voice
No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
  • Sports
  • Editorial
  • Opinion
  • Epaper
  • More

No policy, no paralysis – Interim Budget 2014

by Vaidehi Taman
February 17, 2014
in Editorial
A A
0

After taking over as Finance Minister in August 2012, Chidambaram had drawn up a financial amalgamation road map to lower the fiscal deficit to 4.8 per cent of GDP in 2013-14, 4.2 per cent in 2014-15 and 3.6 per cent in 2015-16. He said the government’s objectives included fiscal consolidation, reviving the growth cycle and enhancing manufacturing. The Minister had on several occasions said he had drawn a red line for the fiscal deficit and it would not be breached. As per current indications, the fiscal deficit has come down mainly on account of expenditure compression and higher realisation from the 2G spectrum auction. GDP growth has improved and will be 4.9 per cent for the current financial year.

Economic growth had slowed to a decade’s low of 4.5 per cent in 2012-13. Congratulations to Finance Minister for controlling fiscal deficit and lowering it down by 0.3 per cent than the previous financial year. It is the notable achievement of UPA Government. Many such things are said and done but after this interim budget people are confused, they don’t know whether to congratulate UPA or just see the fun of postponing all responsibilities to the new government to be formed in 2014.

In these nine years, UPA has taken the country to a primitive state, giving too many subsidies, paying less attention to education and health sectors. The next government will have to do something to reduce or do away with these freebies. No one can deny that Congress Party has got great economist minds like P. Chidambaram, Manmohan Singh and Montek Singh Ahluwalia but they are surrounded by dirty minds which has disease of corruption. I don’t think, currently any other party in India have talented economists like them. However, why they are not leaving corruption and working for the progress of the country? One cannot be 100 per cent corruption free. We Indians are still good if you eat 20 per cent and develop with remaining 80 per cent but today, the trend is going in reverse direction; we see 80 per cent corruption and 20 per cent development. Political parties should forget its differences and think for the progress of the country and its people. Manmohan Singh and P. Chidambaram never had free hand to frame the budget as they might have wanted. And it is a fact, a very bitter fact. Cars should be made costlier by increasing taxes and reduce the direct tax on income. Honestly, people will not be impacted as they do not buy a car every year. Increase in car cost will be set off by rebate on tax on income. Finance minister himself said luxury car sales (more than 50 lacs) is more than people declaring income above 1 crore. Congress is making auto and real estate a hub of black money.

Indirectly, it will lead to more pollution, more traffic on roads and more burdens due to fuel import cost. People with black money are rewarded. Only 2 per cent people pay tax on income in India. Increasing the lowest tax slab to 5 lacs and increasing the tax on cars by 1% is a win win situation for all honest people.

Leaving direct taxes untouched, Finance Minister P Chidambaram on Monday slashed excise duty on cars, SUVs and two-wheelers, and capital goods and consumer durables to boost manufacturing and growth. Presenting the interim Union Budget for 2014-15, he also provided service tax exemption for storage and warehousing of rice like it was done in case of paddy last year. Also, blood banks have been exempted from its purview. The 1 per cent surcharge on ‘super-rich’ having income above Rs. 1 crore in a year, and the 5 per cent surcharge on corporates imposed last year, has been allowed to lapse . The budget document does not give figures of the indirect tax concessions, which are valid up to June 30, 2014 and could be reviewed later. They will be notified later in the day.

He justified the excise duty relief saying, “However, the current economic situation demands some interventions that cannot wait for the regular Budget. In particular, the manufacturing sector needs an immediate boost. To encourage domestic production of mobile handsets, he restructured the excise duty for all categories fixing it at 6 per cent with CENVAT credit or 1 per cent without CENVAT credit. Customs duty structure on non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols has been pegged at 7.5 per cent to encourage to domestic production of soaps and oleo chemicals. Similarly, a concessional customs duty of 5 per cent on capital goods imported by Bank Note Paper Mill India Pvt Ltd has been provided to encourage to indigenous production of security paper for printing currency notes. Giving budget estimates, the minister said the current financial year will end on a satisfactory note with the fiscal deficit at 4.6 per cent; below redline of 4.8 per cent, and the revenue deficit at 3.3 per cent. The fiscal deficit for 2014-15 has been pegged at 4.1 per cent, which will be below the target of 4.2 per cent set by the new fiscal consolidation path. Revenue deficit is estimated at 3 per cent.

Plan expenditure for the coming fiscal has been fixed at Rs. 555,322 crore, unchanged from current year, and non-Plan expenditure at Rs. 12,07,892 crore, marginally higher than 2013-14. Chidambaram said excise duty has been reduced from 12 to 10 per cent on capital goods and consumer non-durables falling under Chapter 84 and 85 of the Schedule to the Central Excise Tariff Act. Small cars, motorcycles, scooters and commercial vehicles will attract a lower excise duty of 8 per cent from the current 12 per cent, while SUVs will see a 6 per cent reduction in duty from 30 to 24 per cent. Large and middle segment cars will enjoy an excise duty of 24/20 per cent, down from 27/24 per cent. Outlining a 10-point vision for the future, the finance minister said India must achieve the target of fiscal deficit of 3 per cent of GDP by 2016-17 and remain below that level always. On current account deficit, he said there is no room for any aversion for it since the country will run a CAD every year for some more years and it can be financed only by foreign investments – FDI, FII or ECBs or any other foreign inflow. As a part of the vision, he said a developing economy must accept that when the aim is high growth, there will be moderate level of inflation.

Chidambaram always says the right things rightly and then goes on to take the wrong decisions, wrongly. They are sure, they will not be elected this time. In order to contain the fiscal deficit within the budgeted 4.8 per cent of the GDP, you are leaving a huge burden of unpaid bills for the next government.

Tags: Congress

Vaidehi Taman

Vaidehi an Accredited Journalist from Maharashtra is bestowed with three Honourary Doctorate in Journalism. Vaidehi has been an active journalist for past 16 years, and is also the founding editor of an English daily tabloid – Afternoon Voice, a Marathi web portal – Mumbai Manoos, monthly magazine Beyond The News, and The Democracy digital video news portal is her brain child. She is an EC Council Certified Ethical Hacker, OSCP offensive securities, Certified Security Analyst and Licensed Penetration Tester that caters to her freelance jobs. Besides journalism, she is also an Ethical Hacker, Philanthropist, and Author.

Recommended For You

Maharashtra to house transgender inmates is special jails
Editorial

Maharashtra to house transgender inmates is special jails

August 10, 2022
tejashwi yadav, rjd, bihar, nitesh kumar, bjp, bihar bjp
Editorial

It’s a game throne for Tejashwi Yadav

August 9, 2022
ed, enforcement directorate, purvashi raut, raut, pravin raut, purvashi, sunil raut
Editorial

Sanjay Raut’s daughter Purvashi is a pillar of strength for parents

August 8, 2022
eknath shinde, shinde, shiv sena, sena, devendra, fadnavis, cabinet, maharashtra cabinet, oath, maharashtra ministers
Editorial

Maharashtra Cabinet on 60/40 formula

August 4, 2022
eknath shinde, harish salve, manu sanghvi, congress, uddhav, thackeray, uddhav thackeray, shiv sena, sena, sc, shinde, thackeray, supreme court, hearing in sc, hearing in supreme court,
Editorial

Uddhav Thackeray and Eknath Shinde’s court battle would be heard tomorrow

August 3, 2022
ed, cbi, enforcement directorate, cbi agency, sanjay raut, raut, shiv sena, sena, bjp, raid, raut
Editorial

ED and CBI are run as errand boys of the government

August 2, 2022
ADVERTISEMENT

LATEST

Kirit Somaiya, BJP

Bail to Kirit Somaiya- Opposition calls it privilege as BJP leader

August 10, 2022
Maharashtra to house transgender inmates is special jails

Maharashtra to house transgender inmates is special jails

August 10, 2022
”Cong. think that by wearing black clothes, their period of despair will end. ” PM Modi on Cong. over 5 Aug protest

”Cong. think that by wearing black clothes, their period of despair will end. ” PM Modi on Cong. over 5 Aug protest

August 10, 2022
9 Indian fishermen arrested for trespassing in Sri Lankan waters

9 Indian fishermen arrested for trespassing in Sri Lankan waters

August 10, 2022
Devendra Fadnavis

Deputy chief minister Devendra Fadnavis says ” Real Shiv Sena has now come along with us”

August 10, 2022
ADVERTISEMENT
Afternoon Voice

© 2022 Newsmakers Publications Pvt. Ltd. | All rights reserved.

Important Links

  • Disclaimer
  • Privacy Policy
  • About Us
  • Contact Us
  • Support Parallel Media

Follow Us

No Result
View All Result
  • Home
  • Top News
  • City News
  • Nation
  • World
  • Business
  • Entertainment
    • Bollywood
    • Hollywood
  • Sports
    • Cricket
    • Hockey
    • Tennis
    • Football
    • Badminton
  • Editorial
  • Opinion
    • Column
    • Diary
    • Letters
  • Epaper
  • More
    • Editor’s Pick
    • Featured
    • Lifestyle
    • Different Strokes
    • Multimedia
    • Sci-Tech
    • Politics

© 2022 Newsmakers Publications Pvt. Ltd. | All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?