Key facts: GDP growth is 6.9 per cent in real terms in 2011-12. Fiscal deficit at 5.9 per cent of GDP in RE 2011-12. Y-O-Y Inflation rate has came down to 9.1%. Sectoral share: manufacturing 27%, service 59% and agriculture and allied 14% food grains production for the year 2010-11 is 244.78 mn tones.
BUDGET OVERVIEW:Revenue: (in cr.) Tax Receipt : 771071 Non Tax Receipt : 164614 Total revenue Receipt : 935685 Capital Receipt : 41650 (11650+30000) Total receipt : 977335Expenditure: (in cr.) planned expenditure : 521025 non planed expenditure : 969900 total expenditure : 1490925Fiscal deficit: (in cr.) : 513590 (5.1%)
BUDGET HIGHLITHES: Income tax exemption limit raised to Rs.2 lakh Defence to get Rs.1.93 lakh crore Excise duty and Service tax rate raised from 10 per cent to 12 per cent. Number of proactive steps taken on black money . Allocation of Rs.14,000 crore for rural water supply and sanitation.
Continued……………, Infrastructure sector is given with great importance. External commercial borrowing Hope to raise Rs.30,000 crore from disinvestments. agriculture and services continued to perform well. Rajiv Gandhi Equity Savings scheme is proposed.
Key Highlights: investment in infrastructure to Amount to 50 Sector go upNHAI 10000 lakh croreIRFC 10000 Tax free bonds worth Rs.60000 crores is toIIFCL 10000 be allowed.HUDCO 5000NATIONAL HOUSING BOARD 5000 Initiatives to public private partnershipsSIDBI 5000 (PPP).PORT 5000 First Infrastructure Debt Fund with an initialPOWER SECTOR 10000 size of 8,000 crore launched
Key Highlights: agricultural credit increased in 2012-13 to Rs. 5,75,000 crore. interest subvention scheme for providing short term crop loans to farmers at 7% interest P.A. Allocation of Rs. 10,000 crore to NABARD for refinancing the Regional Rural Banks. Transforming KCC into smart cards Reduction in custom duty from 7.5% to 2.5% in agriculture and related sectors.
Conclusion:The Union Budget 2012-13 tries to give a more realisticpicture of India government’s fiscal position.However, just like previous budget some questions stillremain on subsidies. Major subsidies for 2012-13 imply adecline of 14% from 2011-12. All the major subsidies arepegged to be lower compared to 2011-12 except foodsubsidy. Even in food subsidy the rise is a marginal 3%considering Food Security Act is to be implemented thisyear. Hence, there could again be some issues on subsidyfront.
Thank You "Mistakes are the portals of Discovery." - James JoyceSHIVADEVA SWAMY SHISHIR ARYAL SANDEEP KUMAR S