Budget – A figurative snapshot

1.       Fiscal Deficit 3.3% (3.7%) of GDP and Revenue deficit 1.5% (2%).

2.       Financial inclusion for additional 5 million farmers targeted. Allocation to bring additional 2.4 million hectares under irrigation.

3.       Aam Adami Bima Yojana introduced with govt. to share 50% of the premium – Rs.200 per year per person and balance to be funded by states.

4.       Tax exemption limit raised by 10.000.

5.       Additional 1% education cess to fund secondary education and award scholarships.

6.       Dividend distribution tax rose to 15% and to 25% for money market MF and liquid MF.

7.       ESOPs to qualify for FBT.

8.       Service Tax 12.5% for renting space for commercial purposes except for entertainment and sports.

9.       PAN fixed as sole identifier for all market transactions.

10.    Targeting the Commonwealth games, 5-yr income tax holiday has been extended for new 2-, 3-, 4-star hotels.

11.    Surcharge on corporate income up to Rs.1 crore has been done away with.

12.    Exemption for medical insurance premium increased to Rs.15, 000.

13.    Threshold limit for IT raised by 10,000 rupees.

14.    Commercial letting of property will attract service tax.

15.    Differential excise duty for cement – Rs.600 for ones selling above Rs.190 and Rs.350 for those selling below Rs.190.

16.    Tax to GDP ratio increases to 11.4% from 9.9%.

17.    Reduction in central sales tax to 3% from 4%.

18.    An allocation of Rs.40,000 crores for acquisition of RBI’s stake in SBI.

19.    No new futures contract in wheat etc. while short selling may be permitted soon.

 — Tejbir

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2 Replies to “Budget – A figurative snapshot”

  1. Biju,

    It might be taxing but I have to admit that this is first time in life I got a 19 point peek into the budget and could make out something out of it. Before this budget for me had been like “Whatever”..

    Yogi.

  2. Ok, Tejbir.

    Your budget allocated for this year is over. So next time, give us something that won’t tax the ‘Aam Aadmi’ like me, so much. ‘Something original’ like you asked Uma. 😉

    Advanced apologies for being a demanding reader..:-)

    Cheers,
    Biju

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