Indian Union Budget 2013

[sob]

@Singh,

The defence outlay is lower considering Inflation.
Last year the outlay was Rs. 1,93,407 Crores. (India's Defence Budget 2012-13 | Institute for Defence Studies and Analyses)
Taking average inflation of 10% look where we will end up

 

[sob]

@nrj, for the reduction in fiscal deficit please go thru my post #3.

Firstpost has already worked the fudge behind this.

 

[sob]

What does he mean by TDS on value of immovable property???

 

[Singh]

What does he mean by TDS on value of immovable property???

Is it a form of estate tax ?

 

[Singh]

No DTC, NO GST.
Excise and Service Tax at same levels.

 

[sob]

@Singh,

On sale of property more than Rs. 50 lakh there will be TDS.

More Black money now , more black money

 

[sob]

@Singh,

On sale of property more than Rs. 50 lakh there will be TDS.

More Black money now , more black money

 

[Singh]

Please Clear Cache, cookies and let us know if you are still getting issues

 

[arya]

@Singh,

On sale of property more than Rs. 50 lakh there will be TDS.

More Black money now , more black money

well it should be 70 lakh at least

 

[cloud_9]

 

[cloud_9]

So 1p cut from Defence and another 1p cut from central plan goes to fuel a 2p hike in subsidies

 

[arya]

So 1p cut from Defence and another 1p cut from central plan goes to fuel a 2p hike in subsidies

pls tell in details any info given my fm till now

 

[nrj]

What is the point of in increasing Defense allocation if Armed Forces are going to return that money? It makes no sense at all. I would rather like to see FM approving big purchases like Air Tanker etc.

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[arya]

What is the point of in increasing Defense allocation if Armed Forces are going to return that money? It makes no sense at all. I would rather like to see FM approving big purchases like Air Tanker etc.

Sent from Nexus 7 using Tapatalk HD

oh really do you know how many deals will affect with defence cut ..

any ideas how many deals pending

 

[nrj]

oh really do you know how many deals will affect with defence cut ..

any ideas how many deals pending

Check MoD site if you want.

With/without defense cut, Armed forces are returning allocated money back to FM every year. This is common knowledge.

Problem is with the budgeting practice & special clause purchases going to FM. Recent autonomy given to MoD and Forces over equipment acquisition is a good move though.

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[Daredevil]

What is going to be expensive

Cigarettes & Cigars (18% duty)
Mobiles (6% duty)
SUVs
Imported motor vehicles and yachts
Eating in A/C restaurants
Earning more than 1 crore

 

[sob]

Re: Defence budget 2013-14

Love this article, specially the bikini comparison

Budget Analysis: Chidu has just used the bikini formula on you | Firstpost

Statistics are like a bikini. What they reveal is suggestive, but what they conceal is vital. This was stated by Aaron Levenstein, an American professor of business administration.

The finance minister P Chidambaram, has managed to use the bikini formula on the fiscal deficit number of the budget. Fiscal deficit is the difference between what a government earns and what it spends.

The fiscal deficit number that Chidambaram and his team have come up with is as Levenstein said is suggestive, but what it conceals is vital. The fiscal deficit for the year 2012-2013 (the period between 1 April 2012 and March 2013) is likely to stand at Rs 5,20,925 crore or 5.2% of the GDP.

When Pranab Mukherjee had presented the budget last year this number had been projected at Rs 5,13,590 crore or 5.1% of the gross domestic product.
Oil subsidies are an important part of the expenditure of the government. The number at the beginning of the year ( Budget 2012) had been assumed to be at Rs 43,580 crore while the revised figures in UB 2013 is Rs. 96,880 till December.

The oil subsidies when the last budget was presented had been assumed to be at Rs 43,580 crore. The budget presented today has revised this number to Rs 96,880 crore. But even that is not enough to make do for the losses that have been incurred by the oil marketing companies and who need to be compensated for the by the government.

So there is a gap of around Rs 60,000 crore.

The oil subsidies for the year 2013-2014 have been assumed to be at Rs 65,000 crore.

Since the budget presentation many of the economists have not been able to match the figures. Fudging Season is on.

 

[sob]

Re: Defence budget 2013-14

From the same article above

A tactic that the Congress led United Progressive Alliance has constantly adopted (as can be seen from the accompanying tables). The budgeted subsidies are substantially lesser than the actual number. This tends to underdeclare fiscal deficit at the beginning of the year.

A look at charts will be quite revealing

What these tables clearly tell us is that subsidies are underestimated almost every year and sometimes by huge margins. For the year 2012-2013 subsidies were expected to be at Rs 190015.13 crore. The revised estimate has come in at Rs 257654.43 crore, which is almost 36% higher. This makes it very difficult to believe the next year's subsidy target of Rs 231083.52 crore especially when more subsidies/sops are likely to be announced during the course of the next financial year in lieu of the 2014 Lok Sabha elections. If the government does meet this target then it will have to cut on other planned spending, like it has done this year. And that can't be good for the Indian economy.

Given this the fiscal deficit target of 4.8% of GDP or Rs 5,42,499 crore, for the next financial year is unlikely to be met.

@nrj, this I had pointed out to you earlier today now this is clears the situation more.

 

[sob]

Re: Defence budget 2013-14

Along with the Markets the Indian Rupee also falls to new lows against the US Dollar.

Rupee drops 1% to 54.45 as Budget disappoints – NDTV Profit

The rupee weakened sharply on Thursday, retreating from a three-week high hit earlier, after the 2013-14 Budget increased spending despite keeping fiscal deficit targets in place, while measures to attract foreign flows were seen as limited.

For the fiscal year starting in April, India proposes to raise spending by funding it with higher revenues in a budget aimed at reviving growth.

At 2:30 p.m., the partially convertible rupee was at 54.32/33 per dollar compared to its close of 53.86/87 on Wednesday. The unit dropped as low as 54.3350, its lowest since February 22.

This will put a huge strain on the economy as imports will get dearer. the major impact will be on crude oil, gold and many of the big defence purchases which are supposed to take place this year.

 

[thakur_ritesh]

What is the point of in increasing Defense allocation if Armed Forces are going to return that money? It makes no sense at all. I would rather like to see FM approving big purchases like Air Tanker etc.

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A case of chest thumping for budget gets huge coverage but roll backs don't as much.

To manage the fiscal mess, he will again do a roll back, that's granted. Technically the def budget should be assumed as 1,90,000crs and not 2,03,000crs, adjusting the inevitable roll back and like wise, the capital outlay be taken as 70,000crs, and not 83,000crs.