In the Financial year 2012-13 ,Fiscal deficit of the country is expected at 5.2 per cent of GDP and the country has targeted a fiscal deficit of 4.8 per cent of GDP in 2013-14. I am going to describe the steps which government have announced in budget or will take in future to decrease the fiscal deficit of the country.
Contribution through Direct Taxes
- Surcharge of 10 percent on persons (other than companies) whose taxable income exceed ` 1 crore to augment revenues
- Increase surcharge from 5 to 10 percent on domestic companies whose taxable income exceed ` 10 crore.
- In case of foreign companies who pay a higher rate of corporate tax, surcharge to increase from 2 to 5 percent, if the taxable income exceeds ` 10 crore.
- In all other cases such as dividend distribution tax or tax on distributed income, current surcharge increased from 5 to 10 percent.
- Proposal to increase the rate of tax on payments by way of royalty and fees for technical services to non-residents from 10 percent to 25 percent.
Contribution through Indirect Taxes
- Duty on Set Top Boxes increased from 5 to10 percent.
- Duty on raw silk increased from 5 to 15 percent.
- Duty on imported luxury goods such as high end motor vehicles, motor cycles, yachts and similar vessels increased.
- Specific excise duty on cigarettes increased by about 18 percent. Similar increase on cigars, cheroots and cigarillos.
- Excise duty on SUVs increased from 27 to 30 percent. Not applicable for SUVs registered as taxies.
- Excise duty on marble increased from `30 per square meter to ` 60 per square meter.
- Proposals to levy 4 percent excise duty on silver manufactured from smelting zinc or lead.
- Duty on mobile phones priced at more than `2000 raised to 6 percent.
Deduction in subsidy spending.
Disinvestments in PSUs