The document summarizes key aspects of the Union Budget presented in India. It discusses proposals related to fiscal consolidation targets, revenues from divestment and taxes, and risks to achieving the fiscal numbers. It also outlines various impacts of the budget on consumers and industries, including increases in taxes on air-conditioned restaurants, mobile phones, and luxury homes. Measures to support women, skill development, and small and medium enterprises are also summarized. Finally, the document presents results of a survey on public perceptions of the budget.

1. PRESENTED BY : REHA VASHIST
VARINDER SINGH
JASMEET KAUR
SUDHANSHU VARMA

2. “Not so long ago, India appeared to be cruising towards superpower Dom . The
bad weather Struck, at home and abroad. With elections looming on the
horizon , Chidambaram faces a Twin challenge :
“Keep Congress hopes afloat while steering the economy out of choppy
waters”. He’s soaked the rich , made a splash for women, and sought to shore
up investments .

3. “I acknowledge that the Indian economy is challenged,
but I am absolutely confident that with your Cooperation,
we will get out of the trough and get on to the high
growth path.”

4. National Budget Cycle
4

8. A general government operating surplus (i.e. a surplus
on the day-to-day or recurrent operations of the
general government sector) of $196 million is forecast
for 2012-13. This is the difference between
forecast revenue of $25.5 billion, and recurrent spending
(or expenses) of $25.3 billion. Combined with
an affordable level of borrowings, the operating surplus
helps fund the Government’s investment in
economic and social infrastructure, which in 2012-13
totals $7.6 billion.

9.  Divestment target of Rs 40k Cr laid out in the budget.

10. Tough Targets
TO ACHIEVE THIS IT IS
RELYING ON
• Higher GDP growth
expectation
• Revenues from 10%
surcharge on the super
rich and companies
• Direct taxes growth of
18.2%
• Indirect taxes growth of
20.1%
RISKS TO FISCAL NUMBERS
• Assumption of nominal GDP
growth of 13.4% in 2013-2014
against the CSO estimate of 11.7%
for FY13.
• Government expects moderation in
Inflation to boost growth, but it
may remain sticky
• Revenues of 40k Cr from Telecom
sector may be difficult due to state
of Industry.
• 40k Cr from stake sales in PSUs may
be difficult if Stock markets remain
choppy.

13. Fiscal Consolidation
-20,000,000
-10,000,000
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
2010/11 2011/12 2012/13 2013/14 2014/15
N$ 000
Revenue and
Grants
Total
Expenditure
Budget
Balance
13

15. Set Top Boxes
Import Duty on set top boxes hiked to 10% from 5%. This will increase cost of
set top boxes.
Impact :- Spur local manufacturing of set top boxes, one of fast moving
electronic goods that represent a market of $2 billion over the next two years.

16. Eating out in AC restaurants
Eating out will cost more. Service tax will be levied on all air-conditioned restaurants.
Impact:- Expect to pay Rs 120 more on a bill of Rs 1000

17. Homes
Abatement in service tax for 1 Cr-plus or 2000 sq.ft. plus homes reduced from 75% to
70%.
Impact :- Cost of such luxury homes will go up as your service tax component will go
up.
Raw silk
Duty on raw silk has been increased from 5% to 15%. Use of raw silk as dress material
will hence cost more.

18. Mobiles phones
Excise duty on mobile phones costing more than Rs 2000 raised to 6%. As a result, mobile
phones will cost more.
Impact:- Cost of smart mobile phone rises
Excise duty on marbles from Rs 30 per square metre to Rs 60 per square metre. Cost of
marbles when used in households will increase.

19. Handmade carpets
The Union Budget exempted handmade carpets and textile floor coverings of coir or
jute from excise duty. This makes handmade carpets and coir jute textile floor
coverings cheaper for the housewife.
Leather and leather goods including footwear
The Union Budget reduced customs duty on specified machinery for manufacture of
leather and leather goods, including footwear, from 7.5% to 5%. Prices of leather
goods and leather footwear will come down.

20. Precious and Semi Precious stones
Housewives can now purchase precious and semi precious stones
without guilt. The Budget reduced customs duty on precious and semi-
precious stones from 10% to 2%.
Limits on Personal import of jewellery relaxed
Impact:- Male passengers can now bring in jewellery worth Rs 50,000
and women up to Rs 1 lakh.

23. IMPACT ON INVESTORS
Proposal
Tax benefit for new
stock, MF investors
extended for two more
years.
The govt. to issue inflation
linked bonds and national
security certificates.
Impact
 Investors will get a tax benefit of
up to Rs 25k, first timers will have
taste of equity and mutual funds.
Hit by Inflation, investors look for
safe returns may be attracted
towards the new product and buy
less gold.

24. FOR WOMEN
One of recurring themes of this Budget was women.
 FM announced the setting up of a Rs 1000 Cr “Nirbhaya Fund” for the “Dignity and
Safety of women” and will lend to businesses that are run by women, employ
women, support livelihood.
 Rs 200 Cr to end “gender discrimination” to help “Vulnerable groups” like single women
& widows.

25. SKILL DEVELOPMENT
Target of skilling 50 million people in the 12th Plan period, including 9 million
in 2013-14. allocated Rs 1,000 crore for skill development.

26. IPO
Measure:- SMEs, including start ups, permitted to list on the SME exchange sans IP
Impact:- Will allow greater liquidity, and bring down listing costs
GOOD NEWS FOR GARMET MAKERS
Measure:-Zero duty regime brought back for branded ready made garments
Impact:- Ready made garments price to fall by about 3%. A branded shirt priced at Rs
1250, will now cost around 1200 .

31. ASTON MARTIN

33. IMPACT

41. 1.HOW DO YOU FEEL ABOUT BUDGET?
21%
77%
2%
OPINION ABOUT BUDGET
BAD GOOD VERY GOOD

42. 2.RANK BUDGET ON THE SCALE OF 1 T0 10?
1 2 3 4 5 6 7 8 9 10
0 0
2
6
7
13
10
6
3
0
RATINGS
NO OF RESPONDENTS

43. 3.DO YOU THINK BUDGET WILL CONTRIBUTE TO GDP GROWTH?
YES
65%
NO
35%
CONTRIBUTION TO GDP GROWTH

44. 4.BANK FOR WOMEN ,IS IT A GOOD IDEA OR BAD?
GOOD
80%
BAD
20%
BANK FOR WOMEN

45. 5.10% SURCHARGE ON INCOME ABOVE 1 CRORE JUSTIFIED?
GOOD
55%
BAD
45%
10% SURCHARGE ON INCOME ABOVE 1 CRORE

46. 6.SALES TAX INCREASED BY 6% ON MOBILES ABOVE RS 2000 JUSTIFIED OR NOT?
YES
47%
NO
53%
SALES TAX INCREASED BY 6% ON MOBILES

47. 7.IMPORT DUTY ON SET UP BOX APPRICIATED OR NOT?
YES
55%
NO
45%
IMPORT DUTY ON SET UP BOX

48. 8.WILL BUDGET INCREASE INVESTORS CONFIDENCE?
YES
45%
NO
55%
INVESTORS CONFIDENCE

49. 9.CAN WE MOVE TO DOUBLE DIGIT GROWTH RATE WITH THIS BUDGET?
YES
32%
NO
68%
DOUBLE DIGIT GROWTH RATE

50. 10.IS IT A POPULIST BUDGET OR ECONOMICALLY BALANCED BUDGET?
49%
51%
BUDGET
POPULIST BALANCED