The budget as is seen by the common Indian...

1. The presentation of the central budget is keenly awaited by every individual, family and the nation as a whole as it impacts them, this way or that way. It also impacts the government departments, state governments as every segment of society is connected to it. 

2. The budget to be presented on 28th February, 2013 shall be for the year 2013-14. The budget is being prepared and presented in the precarious economic conditions of the economy which is suffering from high rate of inflation and falling economic growth. The budget should therefore, aim at not only taming the price rise but also ensure the faster forward movement of the economy. The other important aspect is the ensuing general elections to be held during 2014. So, therefore, this budget is special for the nation. 

3. However, what could be perspectives from the common man as to how it should be and what should be expected from this budget. The government has been giving statements every now and then that fiscal deficit is growing and is a matter of concern. Very right. Very high fiscal deficit is also one of the reasons for the high degree of inflation which may ultimately be a decisive factor in the general elections. 

This deficit which now stands at 5.3 percent of the Gross Domestic Product is to be brought down to 4.8 percent by the next fiscal year. The objective is quite laudable. This not unattainable provided the revenues are generated and the in essential expenditures are curtailed. It has been often seen in the past that whenever the government reduced the tax rates, the amount of receipts bounced. People love to pay taxes. The lower rates shall also reduce the scope of tax avoidance and evasion. 

It is suggested that the tax limit in respect of income tax should be increased. This is needed in two views. Number one, it would leave more income in the hands of a common man who may be encouraged to spend more which is the core for the development. Number two, leaving more income would also ensure more real income in their hands on account of high single digit level inflation. The economy growth requires demand generation and the measures taken by the Reserve Bank of India exactly aim at that. The time has come to raise the exemption limit for the direct taxes. 

On the other hand, the implementation of GST ( Goods and Service Tax) should be expedited as this would ensure balancing the structural problems in the indirect taxes. The twin objectives should be the credit management and the widening of the tax net. The expectations of the people have increased particularly after the taking over of Shri P. Chidambaram as the Finance Minister. 

4. On the other hand, the wasteful expenditure needs to be sufficiently curtailed. The subsidies could be one of the targets. The burden of more than Rs. 1 lakh crore is required to be lightened. A clear road map needs to be set up to cap the subsidy bill. Investors' sentiments shall also have to properly exploited. The expenditure on the foreign jaunts is another sector. It is essential to see that expenditure on the plan sectors is increased which would ensure capital creation.