How does the Budget affect your life?

The Union Budget 2013-14 for India was announced by Finance Minister P Chidambaram on 28 February on schedule. After many deliberations and back-and-forth’s, the final budget will come into effect on 1 April. While most of us will not be terribly affected by the new budget, it is important to know where more of our money will be leaving our hands and where we could possibly spend less than we did in the previous year. So, to help the youth keep a track of what will be more expensive and what will be cheaper as of 1 April 2013, Youth Inc gives you a short break up below.

Education and the Budget:

The finance minister announced that the Government is “commited to the creation of Nalanda University as a centre of educational excellence.”

Indian Institute of Agricultural Bio-technology will be set up in Ranchi.

The following ‘Institutes of Excellance’ were given a grant of Rs 100 crore: Aligarh Muslim University (AMU), Banaras Hindu University (BHU), Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural Heritage (INTACH).

The course fees of vocational courses is likely to drop now that the service tax on these courses has been waived.

You will pay more for:

Eating out – The previous budget required air-conditioned eateries serving alcohol to charge its patrons a service tax. However the new budget makes it mandatory for customers to pay a 5% service tax at all air-conditioned eateries. Eating out is going to get a little more expensive.

Cigarettes – The new budget will see a rise in the special excise duty levied on cigarettes and other tobacco products, so smoking is going to become 18% more expensive.

Gadgets – The new budget will see an increase in duty on mobile phones because of which all cell phones costing less than Rs. 2000 will be unaffected but those costing Rs. 2000 or more will see a rise in prices.

Vehicles – To encourage the manufacture of motor vehicles in the country, the Finance Minister has opted to raise import duty. Cars which are manufactured outside the country and imported will now be more expensive than cars which are produced within the country. Motorcycles with an engine capacity of 800cc or higher will also be more expensive.

You will pay less for:

 

Branded clothes – The previously existing central excise duty on branded clothing will be lifted in accordance with the new budget. This means that all brand conscious customers will be able to shop for their favourite brands at a cheaper price.

Medicine – The budget allocation for alternative and traditional medicine means that those opting for Ayurveda, Siddha, Unani and Homeopathy treatments will be able to enjoy medical care for cheaper.