According to Shikha Sharma, MD and CEO of Axis Bank, long term savings should be given more incentives. This covers broad based savings instruments such as pensions, insurance, and long term savings through bank deposits.
In the last few years , it has been observed that the savings rate has declined to 30 per cent from a high of 37 per cent earlier on. Currency savings propel financial investments and boost gross domestic product (GDP). TO encourage financial savings, the budget should provide measures such as lower taxes for example , for bank deposits and equities.
Balancing and lowering budget deficits has always been a challenge every fiscal year. According to some analysts , the following sectors would be affected and could be negatively impacted by the Budget of 2013: the banking sector, the steel industry, the oil and gas production, the IT sector and ; the automobile industry.
Lets wait and see what actually happens in the Union budget.