Highlights of Union Budget 2012-13

MAJOR HIGHLIGHTS OF THE UNION BUDGET OF INDIA OF 2012-13

• Tax payer exemption limit to be raised to Rs 200,000 from Rs 180,000.
• Income Tax at 10% for Rs 2-5 lakh
• No change in corporate tax rates
• Cars to attract ad valorem rate of 27 per cent
• Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted
• Withholding tax on power, airlines, road and bridges, ports and shipyard, fertilisers, dams and affordable houses lowered to 5 pc from 20 pc for 3 years
• Full exemption from basic customs duty for equipment for road and highway construction.
• Import of equipment for fertilizer plants fully exempt from customs duty for three years.
• Standard excise duty rate raised from 10 per cent to 12 per cent.
• Service tax to yield additional revenue of Rs 18,650 crore.
• All services except 17 in the negative list to be brought under service tax net.
• Rs 193,407 crore provision made for defence services in 2012-13.
•  Rs 3,915 crore to be spent on National Rural Livelihood Mission.
• Rs 1000 crore to be provided for National Skill Development Corporation in 2012-13
• Interest subvention of 7 pc to women self groups for loans up to Rs 3 lakh, additional 3 pc for those making timely repayment.
• Rs 20,822 crore earmarked for National Rural Health Mission against Rs 18,115 crore this year
• Rs 20,000 cr to be spent on rural infrastructure development, including Rs 5,000 cr for creating warehousing facilities.
• Agriculture credit target to be raised by Rs 100,000 cr to Rs 5,75,000 cr, says FM
• Additional 3 per cent interest subvention to farmers for promptly repaying their dues
• Rs 15,850 cr to be allocated to Integrated Child Development Scheme in 2012-13 as against Rs 10,000 cr this fiscal.
• Allocation for rural drinking water and sanitation scheme increased from Rs 11,000 cr in FY 12 to Rs 14,000 cr in 2012-13.
• National Backward Region Grant scheme outlay raised by 22 per cent to Rs 12,040 crore
• Government to set up Rs 5000 crore venture fund for MSME sector.
• India will become self-sufficient in urea production in five years, says FM
• External commercial borrowings to the extent of USD one billion to be allowed for aviation sector for next year.
• Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from pvt sector: FM
• Govt to double tax free bonds for infrastructure financing to Rs 60,000 crore in next FY: Pranab
• 8,800-km of highways to be developed under National Highway Development Project in 2012-13: FM
• Rs 15,888 cr to be provided for capitalisation of public sector and regional rural banks and NABARD
• Microfin institution regulation bill, natl housing bank regulation bill, reg bank regulation bill and public debt management bill this session.
• Rs 15,888 cr to be provided for capitalisation of public sector and regional rural banks and NABARD.
• Rs 10000 crore of tax fee bonds for power sector
• To allow ECB funding to finance working capital needs of airlines
• To become self sufficient in urea production in next 5 years
• Share of manufacturing in GDP will be increased
• To allow ECB to fund part finance power rupee debt
• Oil and gas pipelines to be eligible for viable gap funding
• Inflation & current account deficit to come down next year
• Focus on removing infrastructure bottlenecks
• IPO equity offer above Rs 10 crore will have to be made electronically in capital market reforms.
• Government to raise Rs 30,000 crore in 2012-13 from disinvestment of stake in PSUs.
• Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.
• Efforts to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per cent, says FM
• Ensure rapid rise in private investment
• Frame policies that trigger domestic demand recovery
• India's GDP to grow by 7.6 per cent in 2012-13; plus, minus 0.25 per cent
• India's GDP to grow by 6.9 per cent in 2011-12  
• Economy is now turning around, manufacturing appears to be on revival
• Headline inflation to moderate further in next few months
• We have to expedite decisions to improve delivery systems
• Have to accelerate the pace of reforms
• Numerous economic indicators suggest economy is turning around
• Govt to fully provide for food subsidy and food security act in 2012-13.
• Pilot project for direct transfer of subsidiary for kerosene has been initiated in Alwar, Rajasthan.
• To implement DTC at the earliest
• To bring down subsidy to 1.7 % of GDP in the next 3 years
• To roll out computerized scheme for fertilizer subsidy transfer
• Significant slowdown in growth over the last two years
• To address black money, corruption in public life
• To enhance supply side; cut infra bottlenecks
• To focus on domestic demand, raise private investment
• Manufacturing sector appears to be on a revival path
• Needs to improve supply side management of economy
• Fiscal deficit rose due to subsidy
• High crude oil prices hit growth, averaged $115/bbl in 2011-12

Source : Compiled by G.D. Bhatnagar,  Head IT  of Hariyali Kisaan Bazaar