Sparing the common man and taxing the super-rich - both individuals and corporates - Union Finance Minister P Chidambaram increased social spending but stayed away from blatant pre-poll sops in his Union Budget for 2013-14. Belying fears of profligate spending to win votes, the Finance Minister kept a tight grip on his fiscal deficit and current account deficit targets without raising income-taxes or excise taxes across the board.
He allowed some relief for those who earn between Rs 2-5 lakh per year by announcing that they would be granted a tax credit of Rs 2000 and left most of the items untouched by not tinkering too much with excise and customs duties. The move to grant tax credit will benefit 1.8 crore people, he said.