New tax for super rich in India's budget
NEW DELHI - Finance minister P. Chidambaram introduced a tax on the super rich while saying he had little choice but to "rationalise expenditure" in a budget that balanced fiscal prudence with some populism.
"Faced with a huge fiscal deficit, I have no choice but to rationalise expenditure. We took a dose of bitter medicine. It seems to be working," said Mr Chidambaram, focusing on growth and stability as he presented his eighth budget.
The finance minister said that expenditure would touch Rs 16.65 trillion (S$ 378 billion) for the next fiscal year that starts on April 1.
While keeping tax slabs intact, the finance minister did introduce a surcharge for 42,800 of India's super rich who have a taxable income of more than Rs 10 million and above.