India's growth medicine: P. Chidambaram 2013 budget

The Finance Minster P. Chidambaram delivered a carefully crafted budget on Thursday.Though the sensex saw a three month low on the next day of the budget release, the hopes are there for a growth in the economy. The budget aims to increase the sale of consumer goods, hence it lowered the taxes on such commodities. However, there is an increase in the taxes for a number of products.


The budget proved beneficial for a number of people who will heve to pay less taxes in the coming years.
This is how the budget affects your money:

INCOME                  OLD TAX                  NEW TAX                  SAVINGS

Rs.5 lakh                       30,900                          28,840                           2,060

   Rs. 6 lakh- 100 lakh       -                                        -                                       0   

Rs. 110 lakh                  3,223,900                      3,546,290                -322,390

This shows how the richer will have to pay more, and the common man will gain a little.

After the budget release, the Prime Minister said that the country will aim at 8% growth in the next years: "If India succeeds in getting a growth path of 8%, I think the winners will be the people of India."

The budget is overall good in my opinion, but a number of people say that id doen not meet the expectations of 'aam aadmi'. This is because the people were hoping a relief in terms of tax rates. This has clearly not been met as the taxes on a number of good have been increased, resulting in the rise of their prices.

This is how it goes:

Things that will get costlier:

1. set-top boxes
2. raw silk
3. SUV's 
4. marble
5. mobile above Rs. 2000
6. cigars
7. luxury bikes
8. yachts
9. power (electricity)
10. mobile call rates
11. restaurant meals
12. DTH television prices
13. residential rentals
14. commercial property rentals
15. parking fees

Things that will get cheaper:

1. home loans upto 25 lakh
2. leather goods
3. import of precious stones
4. branded apparel
5. peanut butter
6. de-oiled oat grains
7. truck chassis
8. handmade carpets
9. tapioca
10. henna powder
11. gold imports
12. ketchup
13. aerated drinks
14. juices
15. sugar confectionary

Apart from these, a number of other products will have the same rates or will have a minor change in their price. That's all from the budget.