Dear Friends let me to share the Highlights of Union Budget Sector Wise:- DEFICIT AND INFLATION • Decline in fiscal deficit from 5.7% in 2011-12 to 4.5% in 2013-14 mainly achieved by reduction in expenditure rather than by way of realization of higher revenue. • Improvement in current account deficit from 4.7 % in 2012-13 to year end level of 1.7% mainly achieved through restriction on non-essential import and slow-down in overall aggregate demand. Need to keep watch on CAD. • 4.1 per cent fiscal deficit a daunting task in the backdrop of two years of low GDP growth, static industrial growth, moderate increase in indirect taxes, subsidy burden and not so encouraging tax buoyancy • The government is committed to achieve this target. Road map for fiscal consolidation outlines fiscal deficit of 3.6 % for 2015-16 and 3 % for 2016-17. • Inflation has remain at elevated level with gradual moderation in WPI recently. • The problem of black money must be fully addressed. • Bold steps required to enhance economic activities and spur growth in the economy. ADMINISTRATIVE INITIATIVES • Sovereign right of the Government to undertake retrospective legislation to be exercised with extreme caution and judiciousness keeping in mind the impact of each such measure on the economy and the overall investment climate. • A stable and predictable taxation regime which will be investor friendly and spur growth. • Legislative and administrative changes to sort out pending tax demands of more than Rs. 4 lakh crore under dispute and litigation. • Resident tax payers enabled to obtain on advance ruling in respect of their income-tax liability above a defined threshold. • Measures for strengthening the Authority for Advance Rulings. • Income-tax Settlement Commission scope to be enlarged. • National Academy for Customs & Excise at Hindupur in Andhra Pradesh. • The subsidy regime to be made more targeted for full protection to the marginalized, poor and SC/ST. • New Urea Policy would be formulated. • Introduction of GST to be given thrust. • High level committee to interact with trade and industry on regular basis to ascertain areas requiring clarity in tax laws is required to be set up. • Convergence with International Financial Reporting Standard (IFRS) by Adoption of the new Indian Accounting Standards (2nd AS) by Indian Companies. • Setting up of Expenditure Management Commission to look into expenditure reforms. • Employment exchanges to be transformed into career centres. A sum of Rs.100 crore provided . In my next post I will share with you the ECONOMIC INITIATIVES. Till then enjoy the Union Budget.
Posted on: Fri, 11 Jul 2014 09:18:41 +0000
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