Posted in Finance Articles, Total Reads: 3442
, Published on 16 March 2012
Union budget 2012-13 was presented by Finance Minister Pranab Mukherjee in Lok Sabha. It identified five key objectives to be addressed effectively. They include growth recovery driven by domestic demand, focus on growth in private investment; address supply bottlenecks in agriculture, energy and transport sectors particularly in coal, power, national highways, railways and civil aviation; the problem of malnutrition by improvement in delivery system, governance and transparency and; address the problem of black money and corruption.
Highlights of budget 2012-13 are as follows.
GDP growth estimated at 6.9% in real terms in 2011-12.
Current account deficit at 3.6% of GDP for 2011-12.
Fiscal deficit targeted at 5.1 per cent of GDP in 2012-13, down from 5.9 per cent in 2011-12; Central Government debt at 45.5 per cent of GDP.
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.
Gross Tax Receipts estimated at Rs 10,77,612 crore, 15.6 per cent higher than original budget estimates and 19.5 per cent over the revised estimates for 2011-12.
Net tax to the Centre in 2012-13 estimated at Rs 7,71,071 crore; Non-Tax Revenue Receipts estimated at Rs 1,64,614 crore and Non-debt Capital Receipts at Rs 41,650 crore.
Total expenditure for 2012-13 budgeted at Rs 14,90,925 crore, including Rs 5,21,025 crore of Plan Expenditure and Rs 9,69,900 crore as Non-Plan Expenditure.
Defence services get Rs. 1,93,407 crore; any further requirement to be met
India's GDP growth in 2012-13 expected to be 7.6% +/- 0.25%
Income tax exemption limit raised from Rs 1,80,000 to Rs 2,00,000; 10 per cent tax for 2-5 lakh income; 20 per cent for 5-10 lakh and 30 per cent beyond Rs 10 lakh.
Savings bank account interest up to Rs 10,000 exempted from tax.
Direct Tax Code (DTC) Bill to be enacted at the earliest.
Drafting of model legislation for the Centre and State Goods Services Tax in concert with States is under progress.
Efforts on to allow FDI in multi-brand retail and permitting foreign airlines invest in domestic players.
Qualified Foreign Investors to get access to corporate bond market.
Rs 30,000 crore to be raised from disinvestment
Securities Transaction Tax on cash delivery reduced by 25 per cent to 0.1
Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50% to new retail investors (whose annual income is below Rs 10 lakh), who invest upto Rs 50,000 directly in equities. The scheme will have a lock-in period of 3 years.
Rs 15,888 crore to be provided for capitalization of public sector banks and financial institutions.
During 12th Five Year Plan period, investment in infrastructure to go up to Rs 50 lakh crore, half of which is expected from private sector.
Tax free bonds of Rs 60,000 crore to be allowed for financing infrastructure projects in 2012-13.
Many services and goods to cost more: No change in corporate tax rate, but standard rate of excise duty, as also service tax rates, raised from 10 per cent to 12 per cent; No change in peak customs duty of 10 per cent on non-agri goods.
Import duty on equipment for iron ore mining reduced from 7.5 to 2.5 percent.
Large cars, imported bicycles, cigarettes, bidis and some imported jewellery to cost more; branded silver jewelry may get cheaper
External Commercial Borrowing (ECB) to be permitted for working capital requirement of airline industry for a period of one year, subject to a total ceiling of US $ 1 billion.
External commercial borrowings permitted to low-cost housing sector.
Sectors like agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment to get duty relief.
Turnover limit for compulsory tax audit for SMEs raised from Rs 60 lakh to Rs 1 crore.
Direct tax proposals to give in net revenue loss of Rs 4,500 crore and net gain of Rs 45,940 crore from indirect taxes, resulting into a net gain of Rs 41,440 crore.
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