Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: empanelment :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARDS :: TDS :: Central Excise rule to resale the machines to a new company
 
 
« Indirect Tax »
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017
 Why tax radar may detect your cash deposits after Nov 8
 Income tax notices to religious, charitable trusts
 ICAI starts course on accounting technicians
 More trouble ahead as Tata Trusts get I-T summons for tax avoidance

Fiscal deficit shrinks to 4.9% on spending cuts, higher tax revenues
June, 01st 2013

Amidst the gloom of a second successive quarter of below five per cent growth numbers, came a ray of hope — the fiscal deficit for 2012-13 at 4.9 per cent of GDP.

This is seen as a remarkable achievement, since even the revised estimates for 2012-13 had pegged the fiscal deficit at 5.2 per cent of GDP. This may give the Government some elbow room on subsidies and the RBI scope for lowering interest rates.

The final numbers for the deficit released on Friday came on the back of spending cuts and higher tax revenues, and placed the budget estimate of a deficit of 4.8 per cent of GDP, for the ongoing financial year, in a more realistic light.

PRESSURE TO DELIVER

However, Union Finance Minister P. Chidambaram said the surprise numbers put additional pressure on the government to deliver on deficit reduction. This was because the numbers were helped by the inability of many arms of the government to actually spend the budgeted amount, and not because of planned spending cuts. “This year, we have done better than the revised estimates because many ministries were unable to spend even the amount given to them in the revised estimate. Then, there was some additional non-tax revenue of about Rs 7,000 crore. So, we have done 4.9 per cent, but that puts pressure on us for FY14 (2013-14) to do much better than 4.8 per cent,” Chidambaram told reporters. The Finance Ministry feels that the target of deficit at 4.8 per cent will be possible, if revenues go up sharply over the estimate, or expenditure is less. But with elections looming, spending is unlikely to be cut. “I don’t wish to compress expenditure this year; therefore, revenues have to go up,” Chidambaram confirmed.

The Government aims to collect Rs 6.68 lakh crore as direct taxes (income tax, corporate tax, securities transaction tax and gift tax) and Rs 5.65 lakh crore as indirect taxes (customs duty, excise duty and service tax). Both these will need a growth rate of over 19 per cent, against a growth rate of over 13 per cent for direct taxes and over 20 per cent in indirect taxes in 2012-13.

Commenting on the latest development on fiscal front and ways ahead, Aditi Nayar, Senior Economist with ICRA, said, “While the fiscal deficit target for 2013-14 of 4.8 per cent of GDP has been adhered to in the Budget Estimates, the underlying assumption of a 13.4 per cent economic growth in nominal terms, sharp pick-up in revenues from telecom and containing the total subsidy bill at Rs 2.3 lakh crore may be tested over the course of the year.”

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

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