2. Main concern’s
2012-13
• Was to Improve macroeconomic environment
• Strengthen domestic growth drivers to sustain high growth
in the medium term and also
• Have to accelerate the pace of reforms and improve supply
side management of the economy.
2013-14
Higher growth leading to inclusive and sustainable
development

3. MY BUDGET was Focused more on:-
• Strengthening investment
environment.
• Infrastructure and industrial
development
• Poverty alleviation
• Rural development
• Employment
generation.

4. What steps I took to tackle with this?
• Strengthening
investment
environment.
• Infrastructure
and industrial
development
• Tax free bonds of Rs 60,000 crores for financing
infrastructure projects in FY 2012-13 .
• Rural Infrastructure Development Fund allocation
enhanced to Rs 20,000 crores.
• Road Transport and Highways Ministry allocation
enhanced by 14% to Rs 25,360 crores
• Equity participation of foreign airlines in an airport
undertaking upto 49% is under consideration
• Disinvestments IN PSU’s target have been set at Rs
30,000 crores, while 51% ownership and
management control to remain with the
Government,

5. What steps I took to tackle with this?
• Poverty alleviation
• Rural development
• Employment generation.

6. What was offered to “Aam Aadmi”?
• Introduction of “Rajiv Gandhi Equity Saving Scheme”
which allows income tax deduction of 50% to new
retail investors investing up to Rs 50,000 in equities
• Nation-wide roll out of mobile-based Fertilizer
Management System to provide complete
information on movement of fertilisers and subsidies.
• A small Change in Tax slab was not that great decision
but it was something which gave “Aam Aadmi” a
relief of few thousand bucks.

7. What was offered to “Aam Aadmi”?
• For the first home buyer taking a loan of up to Rs 25
lakhs will get benefit from the additional deduction of
interest of Rs 100,000, that can be claimed in accounting
year 2014/15.
• Nirbhaya Fund to empower women.
• Proposal to set up India's first Women's Bank as a public
sector bank.
• Rs 1,000 crore for skill development of ten lakh youth.

8. Does the budget have anything to offer to industry in a
positive manner?
• There are no corporate tax benefits.
• No change in Minimum Alternate Tax ('MAT') rate
(18.5%)
• No change in surcharge for domestic companies (5%)
• No change in surcharge on foreign companies (2%)
• FIIs to participate in exchange trade currency derivative segment to the extent of their
Indian rupee exposure in India,
• FIIs to use investment in corporate bonds and govt. securities as collateral to meet
margin requirements.
• Stock exchanges allowed to introduce a dedicated debt segment to develop the debt
market
• One is 15% investment allowance for companies doing capex in FY14 and FY15.
Speaking to corporates, a lot of them were really excited about this because this alone
can add around 2.5% to IRR of the companies
2013-14
2012-13

9. Changes in Taxation
• Service tax increased from 10% to 12%.
IMPACT OF THIS:-
This has been the biggest negative in 2012-13 budget.
Branded clothing, eating out, phone bills, coaching for
children’s, will see a rise with increase in service tax.
From March 1, 2013 onwards, service tax would apply on 30% of the
value of the property and services availed for its construction. That
means all such properties that cost Rs 1 crore or more or have a
carpet area of more than 2,000 square feet would become more
costlier. In real terms, the cost of service tax for a Rs 1-crore property
will increase by Rs 61,800.
This move is targeted at high-end construction where the component
of 'service' is greater.

10. IMPACT OF THIS :-
The small tax payer who keeps on
looking for some benefit to reduce
his/her taxability will be able to
save a good amount through this
change.
Income upto2 lakh- Nil
Income above 2 - 5 lakh- 10 %
Income above 5 -10 lakh- 20 %
Income above 10 lakh- 30 %
Income TAX SLABS :-
Income upto2 lakh- Nil
Income above 2 - 5 lakh- 10 %- Rs 2000
Income above 5 -10 lakh- 20 %
Income above 10 lakh- 30 %
Riche-Rich got a slap of
additional 10% surcharge.
Around 42,800 registered
“riche” will end up paying
40 % of their income.
2012-13
2013-14

11. GOOD/BAD DECISIONS 2012-13
• Small changes in “tax slabs” will
help tax payer to save some
amount, not that great decision
but small tax payer will get a
relief of few thousand bucks.
• Disinvestment of PSU to
generate money which was
again utilised for the
development of the country and
in the same time they retained
their ownership in the company.
what is the impact on inflation?
The budget has raised the excise,
customs and service tax rates in general.
Overall tax collections from excise,
customs and service tax are to increase,
which will have a bearing on the price
level. Though this would be product-
specific, the general impact on inflation
will be in the upward direction, especially
if we add the inflation being caused by
the recent freight increases. This one is a
negative.

12. GOOD/BAD DECISIONS 2013-14
• The duty-free limit of bringing
jewellery into India is been increased
by five times.
– For men, the duty-free limit has been
increased for jewellery worth Rs 50,000.
– For women, the limit has been increased to
Rs 100,000.
• FM has raised the limit for Tax-free
bond to 50,000 crore , which should
also give levy for NHAI, railways, power
ministry etc. to raise funds. But this
decision is excellent in terms of
pushing growth
• Crux of the budget is No Major Taxes
or Tax breaks for either the individual
or the corporate sector.
• Excise duty on SUVs was raised to 30
per cent from 27 per cent in the
Budget.

13. WHAT DO I THINK?
Budgets always have something for some people, it can't be that the
Budget will have everything for everybody. That would be an ideal
situation, no doubt, but for this to happen both inflation and current
account deficit has to be very low.

14. WHAT DO I THINK?
Both year budget have favoured few segments and
disappointments for others but if we check the
budget report, we can find that few things which
was missed in previous year budget was
Compensated this time and those which got
limelight last time are focused less. For instance tax
slab changes was made last time so this time FM
made a statement that he don’t see any necessity
in moulding the TAX SLABS further.

15. WHAT DO I THINK?
Last year, Industrial development was given priority where as
this time Rural development was the focus point. Both the
budget have their own pros and cons so it will be difficult to
point each of them.
As a member of this nation I would like to say that as long as
the steps taken then and now are favouring the Nation Growth ,
we should be happy. We, so called “AAM AADMI” want to grow
and the only way we can grow is when OUR COUNTRY GROWS.