Scribd
Upload
36 views4 pages

Highlights Union Budget 2012

The Union Budget for 2012-13 aims to focus on domestic demand-driven growth, private investment revival, and addressing supply bottlenecks. Key points include a fiscal deficit target of 5.1% of GDP, total expenditure of 14.9 trillion rupees, plan expenditure increase of 18%, subsidies kept under 2% of GDP, a disinvestment target of 300 billion rupees, and expectations of GDP growth at 7.6% and a smaller current account deficit. Reforms proposed include allowing more foreign investment and external commercial borrowing.

Uploaded by

Debanjan Deb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
36 views4 pages

Highlights Union Budget 2012

The Union Budget for 2012-13 aims to focus on domestic demand-driven growth, private investment revival, and addressing supply bottlenecks. Key points include a fiscal deficit target of 5.1% of GDP, total expenditure of 14.9 trillion rupees, plan expenditure increase of 18%, subsidies kept under 2% of GDP, a disinvestment target of 300 billion rupees, and expectations of GDP growth at 7.6% and a smaller current account deficit. Reforms proposed include allowing more foreign investment and external commercial borrowing.

Uploaded by

Debanjan Deb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Highlights Of Union Budget 2012 -13 / Union Budget

2012 At a Glance



(1) Five Objectives of Budget for fiscal year 2012-13 :

a. Focus on domestic demand driven growth recovery;

b. Create conditions for rapid revival of high growth in private investment;


c. Address supply bottlenecks in agriculture, energy and transport sectors,
particularly in coal, power, national highways, railways and civil aviation;

d. Intervene decisively to address the problem of malnutrition especially in the
200 high-burden districts; and


e. Expedite coordinated implementation of decisions being taken to improve
delivery systems, governance, and transparency; and address the problem of
black money and corruption in public life.


(2) FISCAL DEFICIT

Fiscal deficit is 5.9 percent of GDP in 2011-12
Fiscal deficit estimated to be 5.1 percent of GDP in 2012-13

(3) BORROWINGS

Net market borrowing to be Rs. 4.79 lac crores in 2012-13




(4) SPENDING

Total expenditure in 2012-13 seen at 14.90 lac crores rupees,
(increase of 29%)
Plan expenditure budgeted at Rs.5,21,025 crores in 2012-13,
(increase of 18%)

(5) SUBSIDIES :

Subsidies to be kept under 2 percent of GDP in 2012-13;
Major subsidies bill estimated at Rs. 1.8 lac crores in 2012-13
Food subsidy bill in 2012-13 seen at Rs. 75000 crores
Fertilizer subsidy bill in 2012-13 seen at 609.7 billion rupees
Petroleum subsidy bill in 2012-13 seen at 435.8 billion rupees
Revised petroleum subsidy bill for 2011-12 at 684.8 billion rupees

(6) Capitalisation of PS Banks
To inject Rs. 15888 crores rupees to capitalize state-run banks in
2012-13

(7) REVENUE AND TAXES
Gross tax receipts seen at Rs.10.8 lac crores in 2012-13
Non-tax revenue seen at Rs. 1.64 lac crores in 2012-13
No change in corporate tax rates
Income tax exemption limit raised to Rs 2 lakh to provide relief of Rs
2,000 for all assesses; 20% tax on income between 5 lacs and 10 lacs.
Deduction of upto Rs 10,000 for interest earned on saving bank
accounts;
Service tax rate raised from 10% to 12% to bring Rs18,660 crores;
Concept of negative list introduced for service tax. Proposed to levey
tax on all services except 17 items in the negative list
Proposed to provide full exemption on import duty of thermal coal for
power plants
Proposed to double basic customs duty on gold
Proposed to introduce a new scheme called Rajiv Gandhi Equity Savings
Scheme. The scheme would allow for income tax deduction of 50 per cent to
new retail investors, who invest up to Rs 50,000 directly in equities and
whose annual income is below Rs 10 lakh. The scheme will have a lock-in
period of 3 years.

(8) GROWTH AND INFLATION EXPECTATIONS
Expect headline inflation to moderate in next few months and remain
stable thereafter
Economy expected to grow at 7.6 percent in 2012-13
Economy expected to grow at 6.9 percent in 2011-12
Signs of economy turning around in March quarter

(9) POLICY REFORMS

Allow external commercial borrowing of up to $1 bln to raise working
capital for airlines industry for 1 year
To allow qualified foreign investors in Indian corporate debt markets
To allow external commercial borrowing to part finance rupee debt in
power projects
Proposes to remove sector-specific restriction on venture capital fund
investments
Hope to achieve " broad-based consensus" to open multi-sector to
foreign investors

(10) DEFENCE SECTOR SPENDING

Allocates Rs 1.93 lac crores for defence in 2012-13 (increase of 18%)

(11) INFRASTRUCTURE DEVELOPMENT

To award contracts to build 8,800 km of roads in 2012-13
Government doubles allocation for tax-free bonds to 60000 crores
rupees for financing infrastructure projects in 2012-13


(12) DISINVESTMENT

Disinvestment target in 2012-13 of Rs. 30000 crores


(13) AGRICULTURE

Expects country to become self-sufficient in urea production in five
years
Proposes to raise agricultural credit target in 2012-13 to Rs, 5.75 lac
crores rupees

(14) CURRENT ACCOUNT
Current account deficit seen at 3.6 percent of GDP in 2011-12
Expect smaller current account deficit in 201213


(15) Miscellaneous :
Cinema industry exempted from service tax.
Branded silver jewellery fully exempt from excise duty.
Customs duty on warning systems/track upgrade equipment for
railways reduced from 10 percent to 7.5 percent.
Import duty on equipment for iron ore mining reduced from 7.5 to 2.5
percent.
Allocation of Rs.200 crore for research on climate change.

You might also like