Budgeting is the technique in which we identifying our income and expenditure and allocate the income for different expenditure. Davit Thomas
With modernization and acquisition projectslike126 fighter aircraft deal lined up the defense ministry allocation was 13.1% . Rs193407 core .The allocation made in the Budget for thefinancial year 2012-13 is about 1.9% of the GDP. Finance minister pranab Mukherjee said the allocation was based on the present need and any further requirement for the security of the nation.
In the Budget finance minister pranab Mk has proposed an allocation of Rs 10 core for building houses for economically weaker section under Rajiv Awas Yojna . A separate allocation of Rs 242 core has been made for the NCR Planning board which functions under the ministry of urban development . The NCR board is responsible for implementing the projects in the NCR cities.
The finance minister has proposed to reduce basic custom duty on soya protein concentrate and isolated soya protein to 10 % from the present 30% and basic custom duty on iodine has been reduced from 6 to 2.5% . The basic custom duty has been brought down to 5% from 10% on the import of probitics .
The service tax rate has been marginally raised from 10 % to 12% presenting the Budget in lok sabha on Friday the finance minister said to maintain a Healthy fiscal situation the government had raised the service tax with consequent changes in the rate from services that have individual tax rates .
The tax exemption limit for individuals has been hiked to 2 lakh from the current Rs 1.8 lakh while the tax slabs have been re-jigged to provide relief to tax payer. Presenting the union Budget for 2012-13 in lok sabah said the upper limit it for the 20% tax slab would be increased to 10 lakh .from 2 to 5 lakh 10% and 20% for income above 5 to 10 lakh .30% for income above 10 lakh.
Cement prices are likely to go up after the government proposed hike in excise duty on the building material from 10%to12% . The duty will be on the retail sale price after of 30 %.The proposal to raise excise duty is in sharp contrast with the expectation of the industry which was demanding to slash it down to 6to8 %.
Luxury cars will become more costly up to 3 lakh as disappointment such as Mercedes Benz and Audi deciding to pass on increased duties imposed in the Budget to consumer . This companies are planning to put an additional burden to the customer between 2 to 3 lakh . This is due to increase in excise and custom duty on large cars.
There is a big hole in yours pocket as pranab has hiked excise duty on daily use product like soaps shampoos detergent diaper cosmetic and toiletries and other FMCG goods 12%. Company are reeling under cost pressure the increase in excise duty could futher squeeze margins .
Cigarette smoking will now be be even more injurious to tobacco consumer. The Budget has increased excise duty on some cigarette hand made bidis pan masala gutka and chewing zarda . The duty hike will make cigarette above 65mm costlier with an duty will be chargeable on of the retail sale price declared on the pack.
Pranab mukherjee exempt the industry from service tax on copyrights related to recording of films. Indian industry is the only on industry in the world which pay more than 50% in taxation . This time they get some relief from taxation .
Presenting the Budget in the lok sabha FM announced a multispectral nutrition program to combat malnutrition . Two hundred high – burden district have been selected for the program . FM announced a hike of 58% in the Budgetary allocation for this scheme compared to last year.Rs10380 core in 2011-2012 To Rs 11931 core in 2012-2013. He also provide 750 core for Rajiv Gandhi scheme for empowerment of adolescent girls.
1. Economic growth estimated at 6.9% in current fiscal .Growth momentum to pick up to 7.6% in 2012-13 and 8.6% in 2013-14. 2. RBI expected to lower the interest rate . 3.Export grew by 40.5% in the first half of this fiscal and Import by 30.4% . 4.Forien trade performance to remain key driver of growth .
5. Food grain production likely to cross 250.42 million tones . Largely on back of increase in rice production. 6. Agriculture and service sector expected to perform well. 7. Industry growth pegged at 4-5% and improve further as economic recovery resume .