Analysis of Accounting Budget 2012-13

2. Group Name. Roll No.
Pramodkumar Jha 1214AMS035
Jeenal Parmar 1214AMS060
Karen Menezes 1214AMS050
Kaushtubh kapdoskar 1214AMS040
Priyanka Patil 1214AMS062
Rahul Kamble 1214AMS038
Raj Patel 1214AMS061

3. ESTIMATION
REVENUE EXPENDITURE
FUTURE PERIOD OF TIME
Made for
Person
Family
Business
Government
Country
Multinational Organization

4. Annual Financial Statement
Presented on Last working Day
of February
By Financial Minister
In parliament
Facts
1st Union Budget of Independent India was presented by R.K
Shanmukham Chetty on November 26, 1947
Last Union Budget of India i.e Budget of 2012-13 is presented
by Pranab Mukherjee, the Finance Ministry of India on 16th
March 2012
Until the year 2000, the union budget was announced at 5 pm
on the last working day of the month of February
This practice was inherited from the Colonial Era, when the
British Parliament would pass the budget in the noon followed
by India in the evening of the day.
It was Mr. Yashwant Sinha, then the Financial Minister of India in
the NDA Government led by Atal Bihari Vajpayee, who Changed
ritual by announcing the 2001 Union Budget at 11 am
Currently P. Chidambaram is the Finance Minister of India and
he would be presenting Union Budget 2013-14 on 28 February
in Parliament

5. Thus, Slippage in it Revenue Collection or Increase in Subsidies
would make it difficult to achieve it target Fiscal Deficit
Increase in Reason For Higher Deficit
Budget Target Actual5.1 5.3
Fiscal Deficit in FY 12
Fiscal Deficit in FY 13
Strategies to achieve
Policy intended to reduce deficit and the accumulation of debt
Budget Target Actual4.6 5.9
Fall in Tax
Revenue
Increase in
Subsidy
Shortfall in Disinvestment
Target
Raising Source of Revenue
Excise Duty
Service Tax
Target Expenditure still remain high.

6. Individual Tax Payer
1,80,000
2,00,000
Tax Relief of Rs. 2000
Exemption Limit
Deduction
Upto
10,000 From Interest
From SAVING BANK ACCOUNT
For Bank Account Holder
For Individual Tax Payer
Higher Income Group
8,00,000
10,00,000Tax Slab
20% Tax SlabRajiv Gandhi Equity Saving Scheme
50% Tax Deduction to New
Retail Investors
Who Invest upto 50,000
directly in equity
Whose Annual income is below
Rs. 10 Lakh

7. Automobile Sector
Banking and Financial Services Sector
Cement Sector
FMCG Sector
Capital Goods Sector
Construction and Infrastructure Sector
Real Estate Sector
Oil Gas Sector
Pharmaceutical Sector
Utilities Sector

8. Announcement
1
Basic Excise Duty Hiked to 12% from 10%
Price hike in all Segment in the passenger car industry,
Which would dent the demand by some extent
1
Impact
Comment
Negative
Negative for Two wheeler, Four wheeler,
Auto ancillary Companies.

9. Announcement
1
Basic Custom Duty on Imported Large Cars/SUV/MUVs Whose
value exceed USD 40,000 Per Vehicles Increased by 75% From
60%
This would promote the manufacture, Sales and usage of
such vehicles in India
2
Impact
Comment
Positive
Positive for the manufactures of Hybrids
Vehicles like Mahindra & Mahindra

10. Announcement
1
Basic Custom Duty on Imported Large Cars/SUV/MUVs Whose
value exceed USD 40,000 Per Vehicles Increased by 75% From
60%
This would promote the manufacture, Sales and usage of
such vehicles in India
3
Impact
Comment
Positive
Positive for the manufactures of Hybrids
Vehicles like Mahindra & Mahindra

11. Announcement
1
Increase in income tax exemption limit from Rs. 180,000 to Rs.
200,000
Demand for two wheeler & lower end four wheeler to be
impacted positively with an increase in disposable income
4
Impact
Comment
Positive
Positive for Hero Motor Corp, Bajaj Auto, TVS
Motors, Maruti Suzuki, etc

12. Announcement
1
Hike in customs duty on bicycles from 10% to 30% and on
bicycle parts from 10% to 20%
This would increase the competitiveness of domestic bicycle
manufacturers
5
Impact
Comment
Positive
Positive for Domestic Manufacturers

13. Announcement
1
Allocation of Rs. 25,360 crore for NHDP proposal
Aggressive investments towards infrastructure development
would drive the demand for M&HC Vehicles
6
Impact
Comment
Positive
Positive for MHCV players like Tata Motors, ALL,
Eicher Motors

14. 1
Announcement
Impact
Comment
Capital infusion would help banks in regulatory
compliance and fund business growth
Positive
Positive for PSU banks like SBI, IOB, UBI, BOI etc
Recapitalization of PSU Banks, RRBs and other
financial institutions to the tune of Rs 15,888 crore:

15. 2
Announcement
Impact
Comment
This is likely to improve the savings bank deposits for
the banks
Positive
Positive for the overall banking sector
Saving Bank interest deductible up to Rs10,000

16. 3
Announcement
Impact
Comment
Financial Institutions to benefit from cost effective
funding avenues
Positive
Positive for financial institutions such as NHAI,
IRFC, IIFCL, HUDCO, NHB and SIDBI.
Rise in overall limit of issuance of tax free bonds from
Rs. 30000 crore last year to Rs. 60000 crore

17. 4
Announcement
Impact
Comment
This will increase the retail participation in equity
market and improve the depth of the domestic capital
market
Positive
Positive for the financial services sector.
Introduction of Rajiv Gandhi Equity Savings Scheme
for a 50% income tax deduction.

18. 1
Announcement
Impact
Comment
Customs duty on coal has been exempted
Marginal reduction in the input cost
Positive
Positive for the cement players like India Cements,
Madras Cement and UltraTech Cements

19. 2
Announcement
Impact
Comment
Various initiatives like interest subvention of 1% and allowing
ECB for low cost affordable housing projects
The continued focus of the government on affordable housing
will lead to volume growth for cement companies
Positive
Positive for Industry as a whole

20. 3
Announcement
Impact
Comment
Allocation for Road Transport and Highways for road
development increased by 14% to Rs. 25,360 crore
increased allocation towards infrastructure projects is
positive for the cement players
Positive
Positive for Industry as a whole

21. Comment
Announcement
Increase in standard excise duty from 10% to 12%
Impact
Minimal impact as most FMCG companies have low single-digit excise
payouts as their facilities are located in excise-free zones
Negative
Negative for HUL and Asian Paints as a higher proportion of their
sales come from excisable facilities
1

22. Comment
Announcement
Increase in allocation to NRLM by over 34 per cent to Rs. 3,915 crore
and to Employment Generation programme by 23 per cent to Rs.
1,276 crore
Impact
This will lead to an increased demand for FMCG products from the
rural population
2
Positive
Positive for FMCG companies whose 30-50% of total revenues comes
from rural India

23. Comment
Announcement
Increase in Tax Slabs
Impact
Higher disposable income in the hands of consumers will be positive
to FMCG and consumer durable industry
3
Positive
Positive for the entire sector

24. Comment
Announcement
Customs duty on titanium dioxide reduced to 7.5% from 10%
Impact
It will improve the operating margins of the paint industry as the raw
material is imported
4
Positive
Positive for Asian Paints, Berger Paints, Kansai Nerolac, Akzo Nobel
etc

25. Comment
Announcement
Increase of excise duty by 10% on cigarettes
Impact
This will result in an increase in duty. However, players with strong
pricing power can pass on the duty hike through further price hikes in
its cigarette portfolio
5
Neutral
Neutral for the players like ITC, VST Industries, Godfrey Phillips

26. Comment
Announcement
Impact
Increased spending on major infrastructure projects
Higher allocation will result in all-round growth for the sector as it
will encourage more capital investment.
1
Positive
Positive for the entire sector

27. Comment
Announcement
Impact
Increased allocation to Defence at Rs. 193,407 crore
It will revive demand for the sector
2
Positive
Positive for BEL, M&M, Tata Motors, Pipavav Shipyard, BEML, L&T etc

28. Comment
Announcement
Impact
Power sector to issue tax-free bonds worth Rs. 10,000cr for financing
projects; ECBs to part finance rupee debt of power projects; Customs
duty on imported coal to be waived off
These reforms will boost investment in the power and infrastructure
sectors, resulting in a surge in orders for the capital goods segment.
3
Positive
Positive for the entire sector

29. Comment
Announcement
Impact
In 2012-13 Union budget Government Announced Allocation to tax
free bond for financing infrastructure projects doubled from
Rs.30,000 crore to Rs.60,000 crore.
This will help in meeting the long term needs of the sector and will
boost infrastructure development in Railways, ports, housing and
highways development.
1
Positive
It is very positive for the entire infrastructure.

30. Comment
Announcement
Impact
Infrastructure spending to go up to Rs 50 lakh crore during 12th
period five year plan.
This will result in larger number of new orders getting announced
resulting in a robust order book of the construction companies.
2
Positive
It is Positive for the entire infrastructure sector. L&T to be the major
beneficiary

31. Comment
Announcement
Impact
VGF scheme extended to irrigation, capital investment in fertiliser
sector, oil and gas pipelines, telecommunication towers etc
It will push large projects under these sectors and will help in
attracting higher private investment into the sector.
3
Positive
It is Positive for Ramky Infra, IVRCL, RCF, Chambal fertilizer, GAIL,
Bharti Airtel, IDEA, GTL Infra etc

32. Comment
Announcement
Impact
ECB for capital expenditure on the maintenance and operations of toll
systems for roads and highways.
This move will encourage public private partnerships in road
construction projects
4
Positive
It will be Positive for IL&FS Transport, IRB Infra,L&T, NCC,etc

33. Comment
Announcement
Impact
Boost infrastructure development in railways, ports, housing and
highways development.
It will impact on Better highways would aid efficient and timely
delivery of cargo for road logistics Players.
5
Positive
It will be Positive for IL&FS Transport, IRB Infra, IVRCL Infra, etc

34. Comment
Announcement
Impact
Allowed to raise money through ECBs for low cost affordable housing
projects.
Easier access to funds at a lower rate of interest.
1
Positive
Positive for Parsvnath, Puravankara, Sobha Developers and other
Small developers.

35. Comment
Announcement
Impact
Service tax rate increased from 10% to 12%.
This would result in an increase in the cost to the end user as the cost
of development will go up.
2
Negative
Negative for the entire sector.

36. Comment
Announcement
Impact
Extension of 1% interest subvention on housing loan upto Rs 15 lacs
where the cost of the house does not exceed Rs 25 lacs.
Such incentives would spur up the demand for residential projects
and continue to benefit developers having low-cost affordable
housing projects.
3
Positive
Positive for all realty companies catering to this segment, mainly in
tier II and III cities.

37. Comment
Announcement
Impact
Increase in income-tax slab.
Higher disposable income in the hands of consumers will lead to
increased demand for the entire sector.
4
Positive
Positive for the entire sector.

38. Comment
Announcement
Impact
Increase in cess on crude petroleum oil produced in india from Rs.
2500/Metric tonne to Rs 4500/Metric tonne
Will increase the cost of production, thereby impacting margins
1
Negative
Negative for oil Exploring companies like Cairn India, Reliance, ONGC,
Oil India etc.

39. Comment
Announcement
Impact
Oil & Gas Pipelines infrastructure eligible of “Viability gap funding”.
The proposal would act like catalyst thereby increase investment into
the pipeline infrastructure.
2
Positive
Positive for GAIL, GSPL, IGL

40. Comment
Announcement
Impact
Removal of 5 Percent custom duty on LNG imports
This will benefit importer of LNG including power sponge iron and
fertilizer companies
3
Positive
Marginally Positive for Petronet LNG, GAIL etc

41. Comment
Announcement
Impact
Increase in Service tax from 10% to 12%
This would make the healthcare services more costlier
1
Negative
Negative for Entire Sector

42. Comment
Announcement
Impact
MAT announced for partnership units
Negative for companies that have partnership unit, as it would result
in higher tax outflow
2
Negative
Negative for Sunpharma, Cadila Healthcare

43. Comment
Announcement
Impact
Allocation for NRHM proposed to be increased from by 15% to Rs.
20,822cr
This will strengthen the rural health infrastructure
3
Positive
Positive for all pharmaceutical companies

44. Comment
Announcement
Impact
Exemption from income tax of upto Rs. 5,000 spent on preventive
health check-up
Exemption for check-up expense will help healthcare services
4
Positive
Positive for all pharmaceutical companies

45. Comment
Announcement
Impact
Waiver of basic custom duty on coal
This will benefit the companies with imported coal based projects
1
Positive
Positive for NTPC, Adani Power, Tata Power, JSW Energy, GMR Infra,
GVK Power and NPCIL

46. Comment
Announcement
Impact
Tax free bonds of Rs. 10000 crore to be allowed for financing Power
sector in 2012-13
It would help to improve funding for the sector
3
Positive
Positive for the whole power sector

49. • Taxes and Non-Tax Revenue,
• Interest and dividend on investments made by the
government,
• Fees and other receipts for services rendered by the
government.
If Revenue Receipt is less than Revenue Expenditure then it may
leads to Revenue Deficit on other side it may lead to Revenue
Surplus
IMPACT

50. ₹ 569,869.00
₹ 664,457.00
₹ 771,071.00
₹ 218,602.00
₹ 125,435.00
₹ 164,614.00
₹ 0.00
₹ 100,000.00
₹ 200,000.00
₹ 300,000.00
₹ 400,000.00
₹ 500,000.00
₹ 600,000.00
₹ 700,000.00
₹ 800,000.00
₹ 900,000.00
2010-2011 2011-2012 2012-2013
Tax Revenue (net to centre) Non-Tax Revenue
PERCENTAGE
16.60
35.31
-42.62
-24.70
-60.00
-40.00
-20.00
0.00
20.00
40.00
Tax Revenue (net to centre) Non-Tax Revenue
2011-12
2012-13
Base Year – 2010-11

51. • Capital receipts are loans raised by the government from the
public which are called market borrowings,
• Borrowing by the government from the Reserve Bank and
commercial banks and other financial institutions through the sale
of treasury bills,

52. PERCENTAGE
₹ 12,420.00 ₹ 15,020.00 ₹ 11,650.00
₹ 22,846.00 ₹ 40,000.00 ₹ 30,000.00
₹ 373,591.00
₹ 412,817.00
₹ 513,590.00
0
100000
200000
300000
400000
500000
600000
2010-2011 2011-2012 2012-2013
Recoveries of Loans Other Receipts Borrowings and other liabilities *
20.93
-6.20
75.09
31.3110.50 24.41
-20.00
0.00
20.00
40.00
60.00
80.00
Recoveries of Loans Other Receipts Borrowings and other liabilities *
2011-12
2012-13
Base Year – 2010-11

53. 5.04
24.52
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Total Receipts
PERCENTAGE
2011-12
2012-13Base Year – 2010-11
₹ 1,197,328.00 ₹ 1,257,729.00
₹ 1,490,925.00
0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
2010-2011 2011-2012 2012-2013
Total Receipts

55. PERCENTAGE
2011-12
2012-13
Base Year – 2010-11
₹ 726,491.00 ₹ 733,558.00
₹ 865,596.00
₹ 91,808.00 ₹ 82,624.00 ₹ 104,304.00
0
200000
400000
600000
800000
1000000
2010-2011 2011-2012 2012-2013
On Revenue Account On Capital Account
0.97
19.15
-10.00
13.61
-20.00
-10.00
0.00
10.00
20.00
30.00
On Revenue Account On Capital Account

56. PERCENTAGE
₹ 314,232.00
₹ 363,604.00
₹ 420,513.00
₹ 64,797.00 ₹ 77,943.00
₹ 100,512.00
0
100000
200000
300000
400000
500000
2010-2011 2011-2012 2012-2013
On Revenue Account On Capital Account
15.71
33.82
20.29
55.12
0.00
10.00
20.00
30.00
40.00
50.00
60.00
2011-2012 2012-2013
On Revenue Account On Capital Account

57. PERCENTAGE
₹ 1,040,723.00 ₹ 1,097,162.00
₹ 1,286,109.00
₹ 156,605.00 ₹ 160,567.00 ₹ 204,816.00
0
200000
400000
600000
800000
1000000
1200000
1400000
2010-2011 2011-2012 2012-2013
Revenue Expenditure Capital Expenditure
5.42
23.58
2.53
30.79
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
2011-2012 2012-2013
Revenue Expenditure Capital Expenditure

59. 3.3
3.4 3.4
3.25
3.3
3.35
3.4
3.45
2010-2011 2011-2012 2012-2013
Revenue Deficit
Revenue Deficit
₹ 252,252.00
₹ 307,270.00
₹ 350,424.00
0
100000
200000
300000
400000
2010-2011 2011-2012 2012-2013
Revenue Deficit
Revenue Deficit
PERCENTAGE

61. PERCENTAGE
₹ 164,765.00
₹ 160,417.00
₹ 185,752.00
140000
150000
160000
170000
180000
190000
2010-2011 2011-2012 2012-2013
Effective Revenue Deficit
Effective Revenue Deficit
2.1
1.8 1.8
1.6
1.8
2
2.2
2010-2011 2011-2012 2012-2013
Effective Revenue Deficit
Effective Revenue Deficit
ERD= Revenue Deficit – of which, Grant for Creation of Capital Asset

63. PERCENTAGE
₹ 373,591.00
₹ 412,817.00
₹ 513,590.00
0
100000
200000
300000
400000
500000
600000
2010-2011 2011-2012 2012-2013
Fiscal Deficit
Fiscal Deficit
4.9
4.6
5.1
4.2
4.4
4.6
4.8
5
5.2
2010-2011 2011-2012 2012-2013
Fiscal Deficit
Fiscal Deficit

65. PERCENTAGE
₹ 139,569.00 ₹ 144,831.00
₹ 193,831.00
0
50000
100000
150000
200000
250000
2010-2011 2011-2012 2012-2013
Primary Deficit
Primary Deficit
1.8
1.6
1.9
1.4
1.5
1.6
1.7
1.8
1.9
2
2010-2011 2011-2012 2012-2013
Primary Deficit
Primary Deficit
Primary Deficit = Fiscal Deficit – Interest Payments