State elections have just got over, and it indicated that the wave length of government and Aaam aadmi is not matching. The reason for this may be issues like inflation, corruption, black money, malnutrition.
Some were thinking that with this budget government will try to lure the aam aadmi and enhance its image, and at the same time some had opinion that its right time to take some strict reform decision for the better health of economy
In my views finance minister did it to some extent.
Here I tried to analysis the impact of budge on some key sectors and On the pocket of Aam Aadmi
Automobile sector
he excise duty on small cars(<<4m) ,two wheelers have been increased to 12%.
Similarly the excise duty on patrol cars (>4m engine capacity below 1200c) ,diesel cars (>4m engine capacity below 1500cc),have been increased to 15%.,and this increase will be directly passed on consumers.
After this budget fuel price may increase because in budget very limited subsides have been announced on petrol and diesel
About 25360 crore allocated to ministry of road transport and highways with target of 8800 km worth of project.which is also a positive sign for automobile sector .
Banking sector
The government will infuse 15888 crore in PSU banks .the additional capital will help banks banks regulatory compliance and fund business growth and it is positive for business growth.
Interest subvention scheme continued in 2012- 13. Additional subvention of 3% available for prompt paying farmers. This will improve the payment discipline in the agri segment, which has seen a sharp rise in the NPAs and is positive for PSU banks.
Government borrowings marked at Rs4.79 lakh crore (net). Since market borrowings will be higher than the FY2012 borrowings it will add pressure to bond yields and is negative for banks.
Capital goods and engineering
In budget import duty 14%-19% have been imposed which will have effect on domestic manufactures like BHEL, L&T
Defence expenditure has been increased to 193007 crore that is increase of 17.4% it’s a positive sign for companies providing defense equipment EX- BEL BEML L&T
3355 crore (up to 56) has been allocated for the solar and wind power projects its positive move for renewable energy player like Suzlon,ShriramPC,Moser Bear.
Education Sector
21% increase have been made in the allocation towards “’serve shiksha abhiyaan “”
26 additional projects sanctioned with total funding of Rs547 crore and target of 6.2 crore skilled workforce in 10 years. National Skill Development Fund provided Rs1,000 crore and its positive for companies like NIIT and Everonn who have tied up with National Skill Development Corporation (NSDC).
Some Key Points of budget which have direct impact on Aam Aadmi’s pocket.
The tax limit has been raised to 200000 from 180000
Tax slabs raised: In 2-5 lakh bracket levy will be 10 percent, for income between 5-10 lakh levy would be 20 percent and above 10 lakh it is 30 percent
The Price of LCD LED television may come down due to excise duty cut
Life saving drugs will be cheaper
Electric vehicles may cost less
price of daily use items may increase because excise duty on manufactured goods has been increased
Air travel, hotel stay, hiring a lawyer may cost more
Luxury cars, gold, polished gems to become dearer
Liquor cigarettes, beedis, pan masala would be costlier
Electric vehicles may cost less
price of daily use items may increase because excise duty on manufactured goods has been increased
Air travel, hotel stay, hiring a lawyer may cost more
Luxury cars, gold, polished gems to become dearer
Liquor cigarettes, beedis, pan masala would be costlier
Rahul Raghuwanshi,
1 MBA B
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References
http://answers.yahoo.com/question/index?qid=20070820202900AA69EHa
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