Economy Decoded

Budget for the Youth? Do I Care?

By | 3 Mar, 2013 8:58 PM |

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SHARES

The most awaited budget finally comes, matching up to some people’s expectations while falling short of the others. Apart from the two big challenge (to revive country’s economic growth and to clear current fiscal deficit), that country faces today, Finance Minister P.Chidambaram has also to consider major issues like women safety, increasing health and sanitation problems etc. He has clearly allocated budget to all the sectors of the economy but one cannot deny that special care has been taken to make provisions for women- from allocating appropriate funds to the newly setup “NIRBHAYA FUND ” to opening first ever women bank in the country. There are also new proposals for the ” aam aadmi”. Following are the highlights of the budget for fiscal year 2013- 2014 for youth and locals-

  • Since food inflation is a cause of worry for almost all households, Finance Minister assured that steps will be taken to cut down the inflation.
  • Individual taxpayers with taxable income above 5 lakh will get a benefit of Rs 2000.
  • If you are planning to buy a new house, here’s some good news for you. Home buyers will get an additional deduction of 1lakh for home loans above 25lakh and 1.50lakh for home loan up to 25lakh(over and above 1lakh for self occupation).
  • The budget also proposes a TDS of 1% on the transfer of all immovable property. This has been done to put a stop to tax evasion.
  • Budget also proposes high import duties in case of luxury cars, motorcycle where it increased from 75% to 100% and excise duty on SUVs increased from 27% to 30%.
  • Additional 18% excise duty has been laid down on cigarettes and cigars.
  • Air conditioned restaurants have become more expensive with the increase in service tax at these places.
  • The price of mobile phones costing above 2000 has been raised. The excise duty has been raised to 6% from 1%.
  • Rs 65,867 crore has been allocated to the education sector with the aim of opening more institution and increasing vocational courses in state aided institutions. Health and family welfare has also been given due attention .
  • Finally the country will witness its first all women bank. Mr. Chidambaram has announced 1000core for the purpose which is to start by October, 2013.
  • Duty free limits for gold has been raised to 50000 and rs 1lakh in case of men and women respectively.
  • Rs 1000 crore has been allotted to Nirbhaya fund for the women empowerment and providing safety due to increase in the number of crimes against women.
Mr. Finance Minister has presented a safe budget in the wake of upcoming general elections in 2014. Special focus has been laid down to uplift the status of women in the society. While allotment of  sufficient funds to the education sector brings smile on the face of youth, increase in the price of mobile and service tax at AC restaurants spoils the fun.

Views presented in the article are those of the author and not of ED.

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