The Finance Minister P. Chidambaram announced Union Budget, which came as large disappointment for most industries and common man, who are looking at reduction in taxes. As expected, Chidambaram has made steep hike in allocation to social and rural schemes, eyeing general elections due next year. At the same time, he has pegged fiscal deficit at 4.8% for next fiscal. Overall, Budget can be termed as neutral.
Commenting on the budget, Rashid Bilimoria, CEO, BluFin and Debopam Chaudhuri, VP, Research, BluFin, said, ''Disappointment at the 5-10% surcharge on local companies with income above 100 million that will not be growth spurring. Also, the budget remains populist in terms of an overall increase subsidies include food subsidies. However there were positive elements around widening participation in financial markets including proposed cut in STT.''
''The Union Budget of 2013-14 appears to be very neutral in its approach with a balanced take on populism and economic growth. Though fiscal deficit appears to be coming under control based on estimates from the Finance Minister, I am sceptical about the wide capital account deficit. There were no clear indications highlighted to woo foreign capital or boost domestic savings, two key ways of bridging this gap,'' he added.