Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: due date for vat payment :: TDS :: list of goods taxed at 4% :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: articles on VAT and GST in India :: VAT Audit :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ACCOUNTING STANDARDS
 
 
Budget Extravaganza »
 How Union Budget 2018 impacts individual taxpayers
  How Budget 2018 will be different due to GST
 This is how Budget 2018 announcements may help you save tax
 Here's why the government advanced the Budget date
 Will Budget 2018 Reduce Your Income Tax? 10 Expectations
 How Budget 2018 will be different due to GST
 Will Budget 2018 cut tax on switch from dividend to growth option in mutual funds?
 Startup eco-system looks forward to the budget for addressing tax dilemma
 High time to prioritise non-tax revenue in the Budget
 Govt may abolish dividend distribution tax in budget
 Budget making in the GST era: paradigm shift

Cash-strapped govt to cut defence spending?
February, 29th 2012

Faced with deteriorating finances, the government has decided on an unusual step: cutting the defence budget for this year.

According to sources, the Centre has proposed a cut of "a few thousand crores" in the defence budget for 2011-12. The Centre has never cut budget allocation for the military in recent years, even though the defence ministry has surrendered unspent money to the government several times in the past.

Sources said the "reluctant" move was prompted by acute fiscal distress, thanks to a huge shortfall in tax collection and disinvestment, as well as miscalculation of subsidies.

It is the first time in recent memory that the government is cutting the defence budget in the middle of a financial year. Last financial year, 2010-11, the ministry had overshot the budget by Rs 4,237.69 crore. In the years before that, the ministry had on several occasions surrendered capital budget allocations, failing to spend them in time. But never has the government introduced a budget cut before the financial year is over.

The government's decision is unusual for many reasons. One, the defence budget for 2011-12 was only 8.47% over the previous year because the revised budget had overshot the allocation. Second, the ministry is in the final stages of several contract negotiations.

Accordingly, sources said the government would proceed cautiously in approving new defence contracts in the current financial year, ending March 31. "We are not stalling modernization, we are going ahead with all contracts as planned," an official said. However, he admitted that the proposed cut in defence budget could mean at least a few purchases may have to be delayed to the next financial year starting on April 1.

The last quarter of the financial year is usually the busiest season for the defence ministry in terms of purchases. A large number of contracts are cleared in the final quarter. However, the "saving grace" is that this year, the ministry had already committed a significant portion of the capital budget meant for new purchases in the first three quarters, another source said.

The defence budget for 2011-12 presented in Parliament on February 28 last year was Rs 1.64 lakh crore. It was believed that the allocation was a sign of the government's efforts to insulate defence modernization from steps for fiscal austerity. The capital budget was Rs 69,199 crore, meant for new purchases. It is from this capital allocation that the government will be cutting a few thousand crores.

The unusual move to cut the defence budget, which will be reflected in the papers to be tabled in Parliament in the coming budget session starting on March 12, is reflective of the larger fiscal problems facing the government.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions