What is a Budget?
Budget is defined as a finical document of expected income and upcoming expenditure for the next financial year. Both state government and central government prepares a budget and is submitted to Legislative Assembly and Parliament for further discussions respectively.
When will be the Indian Budget 2012-2013 Presented?
Usually every year the budget is presented to Union Finance Minister on the last day of February, but this year due to elections the Union Budget 2012-13 is presented on March 16th 2012 and Railway Budget is presented two days prior to presenting Union Budget i.e., on March 14th 2012 to Union Railway Minister Mr. Dinesh Trivedi.
Highlights of Indian Union Budget 2012-13:
Union Budget 2012-13 is going to come with many new things like,
• There might be an increase in tax exemption limit. The limit is likely to be increased from Rs 1,80,000 to Rs 3,00,000 and it would be a great change if approved.
• Currently, the highest tax percent (30%) is paid by persons whose annual income is over 8,00,000 and this amount is likely to be changed to 10,00,000
• Under the current tax law, the income tax exemption for people who are paying interest on housing loans is Rs 1,50,000 and this might be doubled to Rs 3,00,000 per year.
• Considering the increase in the fuel charges, the exemption limit for transport allowances from individual house to work place may be increased as the current limit of Rs 800 per month is too low.
• Considering the increase in the fees at educational institutions, the exemption limit may increase from the current limit of Rs 100 per month per child with a maximum of 2 children.
• Considering the fact of medical expenses, DTC has proposed an increase in the limit to Rs 50,000 from the current year limit being Rs 15,000.
• The Government is planning to relook on the current HRA scheme.
• Considering the type of investments that are covered under section 80C, there might be chance of increase in the current deduction limit which is Rs 1,00,000.
• From farmers point of view Agriculture Minister has demanded to decrease the interest rate on crop loans from 4% to 3% for people who are paying on time.
• Minister of Petroleum and Natural Gas has requested to reduce the excise duty on branded diesel as there is a strong decline fuel sale.
Highlights of Railway Budget 2012-13:
The Railway Minister Mr. Dinesh Trivedi is intended to propose a Railway Budget for 2012-13 to the Parliament on 14th March 2012 which is 2 days prior to submission of Union Budget 2012-13.
• There might be a hike in the price for all sectors varying from commodity to commodity in the range of 15 percent to 35 percent in order to expand the World's second largest rail network.
• A legislation to protect all railway related law and order issues, with name Railway Protection Force (RPF), is likely to be discussed in the parliament at the time of presenting railway budget.
• There is a chance of introducing a new bullet train between Ahemadabad and Mumbai.
• Lot of proposals are being made in setting up separate terminal for long distance trains.
• Proposals for introducing new trains to places like Kolhapur, Surat, Shirdi, Amravati, Jammu, Chennai, Bangalore and Guwahati are being made.
• Proposal of separate terminus for Pune-Lonavla trains are made.
• There is need of good railway system in North-Easter states, so a proposal to dedicate a zone particularly for North-Eastern Frontier Railway is made.
All these are various proposals that are made in the Union and Railway Budget 2012-13. Let's see what proposals from the above list are going to be considered and implemented for the upcoming financial year. As mentioned above the Union Budget will be presented on 16th March and Railway Budget will be presented on 14th March in the parliament. After discussing all the issues a final conclusion will be given on April 1st 2012, which is start of the financial year 2012-13.
So keep yourself tuned for the latest updates on Indian Union Budget 2012-13.