1. BUDGET HIGHLIGHTS
• FM closes the Budget saying the aim was to encourage investment and initiatives
• Doubled custom duty on refined gold; branded silver jewellery exempted duty
• Raised import duty on large SUVs
• Duty on tobacco in packets raised
• Raise custom duty on standard gold bars, platinum
• Import of aircraft parts exempt from basic custom duty; Coal, LNG exempt from duty
• Thermal power companies exempted from custom duty for 2 yrs
• Large cars duty raised from 22% to 24%
• No change in peak custom duty; Standard excise duty hiked to 12%
• School education exempt from service tax
• Re-open tax assessment for 15 years of overseas assets
• All services to be taxed except the ones in negative list; increased to 12% from 10%
• Power stocks extended earlier gains after Mukherjee announced that external commercial
borrowings will be used to help finance rupee debts for projects in the sector
• Government also directed Coal India to sign fuel supply agreements with power producers
• Market borrowings for FY13 seen at Rs. 4.79 cr
• No change in corporate tax
• Propose to introduce DTC rates; no tax upto Rs. 2 lakh; 10% tax on 2 lakh to 5 lakh; 20% on 5 lakh
- 10 lakh; 30% on 10 lakh and above
• FY13 fiscal deficit is at 5.1% of GDP
• FY13 Plan expenditure up 18%
• Non tax revenue receipts at 1.65 lac cr; Gross taxes estimate at 10.6 of GDP
• 14 cr already enrolled under Adhaar; FM fund for over 40,000 cr enrollment
• Interest subsidy on loan farm extended; 1% loan subsidy on home loans upto Rs. 15 lac
• No case of polio reported in the last 1 yr due to government prevention efforts

2. BUDGET HIGHLIGHTS
• UID allocation at Rs. 14,232 cr for FY13
• Mid-day meal program has improved enrollment and nutrition of children
• Focus on micro-irrigation scheme projects; financing to be raised
• Kisan credit card scheme will be modified
• To increase agriculture credit by Rs. 1 lac crore in FY12; Rs. 5.75 lac cr in FY13
Union finance minister Pranab Mukherjee arrives at
Parliament to present the budget 2012-13 in New
Delhi on Friday. PTI photo
• To work on National food security system;
sustainable agriculture; oil seeds to increase
productivity; improve farm technology; protein
supplement to increase productivity
• Agriculture to be priority; initiative of green
revolution has increased paddy production; to
increase allocation for the same
• To reduce cost of direct import of ATF; consider foreign investment in airlines at 49%
• 8,800 kilometres will be developed under the National Highways Development Project in 2012-13
• Double tax infra free bonds to Rs. 60,000 cr in FY12
• Increase investments in infrastructure through PPP
• Rs. 15,888 cr for capitalization of PSUs
• Introduce new law for microfinance; to allow QFIs in bond market
• Simplifying process of IPOs; providing wider shareholder opportunities through electronic voting
• Introduce Rajiv Gandhi equity scheme scheme for retail investor; exemption of Rs. 50,000
• Have to fastrack policy decisions; effort on for consensus on FDI
• Rs. 30,000 cr for disinvestment in FY13
• DTC was intended for April rollout but will need more time; GST rollout in March also awaits expert
recommendations and will be operational in Aug 2012
• Mobile based fertilizer management system to be provided for transparent transfer of subsidy

3. BUDGET HIGHLIGHTS
• Subsidies related to food will be extended under the Food Security Act and will be 2% of the GDP
• Higher outlay in oil subsidies needed because of global price rise expected and avoid shock
• Current account deficit for FY12 likely to be at 3.6%
• Keeping in mind all global and domestic affects expect FY12 GDP at 7.6%, plus-minus 0.2%
•Inflation remained high most yr and moderated only in Dec; Food inflation declined in Feb. Expect
inflation to moderate further and remain stable there after
• Deal with malnutrition; coordinated implementation of delivery system and address problem of black
money
• Recognized goals for 12th 5 yr plan - Domestic demand driven growth recovery; increase private
investment
• FY12 GDP growth seen at 6.9%
• Mukherjee terms FY11 as year for economic recovery interrupted
• Pranab Mukherjee presenting the Union Budget 2012-13 in Parliament among chaos from members
• DMK MPs not attending Parliament for the Budget. MoS PMO V. Narayanasamy says DMK is busy
with by-polls
• The biggest challenge before Mukherjee would be to arrest decline in economic growth which is
expected to touch a three year low of 6.9% in the current fiscal, down from 8.4% in the two previous
years
• According to market talks, Pranab Mukherjee is expected to raise the income tax exemption limit to
at least Rs. 2 lakh in his budget proposals
• Finance minister Pranab Mukherjee to present the Budget 2012-13 at 11am