Budget
Highlights:
· Budget
identifies five objectives relating to growth recovery, private investment,
supply bottlenecks, malnutrition
and governance matters
· GDP growth to be
7.6 per cent (+ 0.25 percent) during 2012-13
· Amendment to the
FRBM Act proposed as part of Finance Bill. New concepts
of “Effective Revenue Deficit”
and “Medium Term Expenditure Framework”
introduced
· Central
subsidies to be kept under 2 per cent of GDP; to be further brought down
to 1.75 per cent of GDP over the
next 3 years.
· Proposed: Mobile
based fertilizer management system; LPG transparency portal;
scaling up and rolling out of
Aadhar enabled payment for government schemes in
at least 50 districts.
· Rs. 30,000 crore
to be raised through disinvestment
· Efforts to reach
broadbased consensus on FDI in multi-brand retail
· Rajiv Gandhi
Equity Saving Scheme: to allow income tax deduction to retail
investors on investing in
equities
· Rs. 15,888 crore
to be provided for capitalization of public sector banks and
financial institutions
· A central “Know
Your Customer” depository to be developed
· Swabhimaan:
remaining habitations to be covered; to be extended to more
habitations; ultra small branches
to be set up in Swabhimaanhabitations
· Investment in 12th Plan in
infrastructure to go uptoRs. 50,00,000 crore; half of
this is expected from private
sector
· Tax Free Bonds
of Rs. 60,000 crore to be allowed for financial infrastructure
projects
· Allocation of
Road Transport and Highways Ministry enhanced by 14 per cent to
Rs. 25,360 crore
· Financial
package of Rs. 3,884 crore for waiver of loans to handloom weavers
and their cooperative societies;
mega handloom clusters in Andhra, Jharkhand;
weaver service centres in
Mizoram, Nagaland and Jharkhand ; powerloom mega
cluster in Maharashtra; Rs. 500
crorepilot schemes for geo-textiles in North-
Eastern region
· Rs. 5,000 crore
India Opportunities Venture Fund to help small enterprises
· Allocation to
agriculture enhanced; RKVY gets Rs. 9,217 crore; BGREI gets Rs.
1,000 crore; Rs.2242 crore
project to improve dairy productivity; Rs.
500 crore for coastal aquaculture
· Various other
agricultural activities merged into 5 missions
· Target for
agricultural credit raised to Rs. 5,75,000 crore
· Interest
subvention for short-term crop loans to farmers at 7 per cent interest
continues; additional 3 per cent
for prompt paying farmers
· Rs. 200 crore
for awards to incentivise agricultural research
· Provisions under
rural housing fund increased to Rs. 4,000 crore from Rs.
3,000 crore
· Interest
subvention of 1 percent on housing loans uptoRs. 15 lakh extended for
one more year
· AIBP allocation
raised by 13 per cent to Rs. 14,242 crore
· National Mission
on Food Processing to be started in cooperation with State
Governments
· Scheduled Caste
Sub Plan allocation increases by 18 per cent to Rs. 37,113 crore;
Tribal Sub Plan by 17.6 per cent
to Rs. 21,710 crore
· Multi-sectoralprogramme
to address maternal and child malnutrition in 200 high
burden districts
· 58 per cent rise
in allocation to ICDS, at Rs. 15,850 crore
· Rural drinking
water and sanitation gets 27 per cent rise in allocation to Rs.
14,000 crore; PMGSY gets 20 per
cent rise to Rs. 24,000 crore
· Projects
covering length of 8800 km to be awarded under NHDP against 7,300
km during 2011-12
· RTE-SSA gets Rs.
25,555 crore allocation, showing an increase of 21 per cent;
6000 schools to be set up at
block level as model schools in the 12th Plan; Credit
Guarantee Fund to be set up for
better flow of credit to students
· National Urban
Health Mission is being launched
· 34 per cent
increase in allocation to National Rural Livelihood Mission, to Rs.
3915 crore
· Rs. 1000 crore
allocated for National Skill Development Fund
· Bharat
Livelihood Foundation to be established to support livelihood
interventions particularly in
tribal areas
· Widow pension
and disability pension raised from Rs. 200 to Rs. 300 per month
· Grant on death
of primary breadwinner of a BPL family in the age group 18-64
years doubled to Rs. 20,000
· Defence services
get Rs. 193407 crore; any further requirement to be met
· 4000 residential
quarters to be constructed for Central Armed Police Forces
· UID-Aadhar to
get adequate funds for enrolment of 40 crore persons, in addition
to the 20 crore persons already
enrolled
· White Paper on
Black Money to be laid in the current session of Parliament
· Tax proposals
mark progress in the direction of movement towards DTC and
GST
· Income tax
exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit
of 20 per cent tax slab raised
from Rs.8 lakh to Rs.10 lakh
· Interest from
savings bank accounts deductible upto Rs.10,000; deduction
of upto Rs.5,000 for preventive
health check-up
· Senior citizens
without business income exempt from advance tax
· Investment
linked deduction of capital expenditure enhanced for certain
businesses; new sectors eligible
for investment linked deduction
· Turnover limit
for compulsory tax audit for SMEs raised from Rs.60 lakh to
Rs.1 crore
· STT on cash
delivery reduced by 20 per cent to 0.1%
· General Anti
Avoidance Rule being introduced to counter aggressive tax
avoidance
· A number of
measures proposed to deter generation and use of unaccounted money
· All services to
attract service tax except those in the negative list
· Central Excise
and Service Tax being harmonized
· Standard rate of
excise duty raised from 10 per cent to 12 per cent; service tax
rates raised from 10 per cent to
12 per cent; no change in peak customs duty of 10
per cent on non-agricultural
goods
· Relief in
indirect taxes to sectors under stress; agriculture, infrastructure, mining,
railways, roads, civil aviation,
manufacturing, health and nutrition, and
environment get duty relief
· Certain
cigarettes and bidis attract higher excise duty; large cars attract higher
customs duty
· Excise imposed
on unbranded jewellery also; measures to minimize impact on
small artisans and goldsmiths;
branded silver jewelleryexempted from excise
duty
· Net gain of
Rs.41,440 crore due to taxation proposals
· Total
expenditure budgeted at Rs. 14,90,925 crore; plan expenditure at Rs.
5,21,025 crore – 18 per cent
higher than 2011-12 budget; non plan expenditure at
Rs. 9,69,900 crore
· Fiscal deficit
targeted at 5.1 per cent of GDP, as against 5.9 per cent in revised
estimates for 2011-12
· Central
Government debt at 45.5 per cent of GDP as compared to Thirteenth
Finance Commission target of 50.5
per cent
· Medium-term
Expenditure Framework Statement to be introduced; will set forth
3-year rolling target for expenditure indicators
No comments:
Post a Comment