India finance budget 2014 15- my expectation


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India budget 2014-15

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India finance budget 2014 15- my expectation

  1. 1. India Finance Budget 2014-15--- My Expectation In February 2014 then Finance Minister Mr P. Chidambaram presented interim budget for financial year 2014-15 with total budgeted expenditure of Rs. 17,63,214 crore, an increase of Rs. 1,72,780 Crore, a 10 percent increase over the revised estimate of 2013-14. Fiscal deficit was projected at Rs. 5,28,634 Crore which was 30 percentage of total expenditure. It is interesting to see how much additional expenditure will be planned by new finance minister and how he is going bridge the gap of deficit, so that he can bring “Ashchc Din”. “Ashchc Din” will come only if finance minister can raise additional resources or reduce expenditure on subsidies and freebees. Secondly additional revenue can be generated by way of widening the tax base and by encouraging more people to pay tax by reducing tax rates. To give relief to tax payers, there is a need to increase the exemption limits, this will give more money in the hands of people to save, spend and invest. Additional money in hands will encouraged to save and invest which can spur capital market and can result in revival of capital market which will result in creation of additional employment and will provide additional revenues in terms of direct and indirect taxes. To be specific I have some items on my wish list 1. Basic exemption limit need to be increased to at least Rs. 3, 00,000 from present Rs. 2,00,000. Recently I read in the paper that finance ministry is planning to make it Rs 5,00,000, that looks practically difficult with huge budget deficit. 2. 80C deduction need to be increased by another 2 lakhs, this will give boost to savings and investments which in turn give boost to capital market. 3. Bring back standard deduction which can give tax relief to salaried class. At least Rs. 1,00,000 standard deductions need to be provided to salaried class to get relief from rising inflation. 4. Abolish short term capital gains on securities sold through stock exchange, presently it is being taxed at 15 percent, loss of revenue can be compensated by increasing securities transaction tax (STT). This will give relief to small investors from maintaining books of accounts and will bring more small investors in market and can revive intermediaries of capital market.