Union Budget highlights 2012

Pranab Mukherjee played it safe in unveiling the Union Budget 2012-13. Here are the highlights:

Written by Agencies | New Delhi | Published:March 16, 2012 11:11 am

Finance Minister Pranab Mukherjee played it safe in unveiling the Union Budget 2012-13 on Friday,pledging reforms but setting only modest targets for trimming a ballooning fiscal deficit,disappointing investors and sending bond yields surging.

Here are the highlights of the Union Budget 2012-13:

* Budget identifies five objectives relating to growth recovery,private investment,supply bottlenecks,malnutrition and governance matters

* GDP growth to be 7.6 per cent (+ 0.25 percent) during 2012-13

* Amendment to the FRBM Act proposed as part of Finance Bill. New concepts of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” introduced

* Central subsidies to be kept under 2 per cent of GDP; to be further brought down to 1.75 per cent of GDP over the next 3 years.

* Proposed: Mobile based fertilizer management system; LPG transparency portal; scaling up and rolling out of Aadhar enabled payment for government schemes in at least 50 districts.

* Rs. 30,000 crore to be raised through disinvestment

* Efforts to reach broadbased consensus on FDI in multi-brand retail

* Rajiv Gandhi Equity Saving Scheme: to allow income tax deduction to retail investors on investing in equities

* Rs. 15,888 crore to be provided for capitalization of public sector banks and financial institutions

* A central “Know Your Customer” depository to be developed

* Swabhimaan: remaining habitations to be covered; to be extended to more habitations; ultra small branches to be set up in Swabhimaan habitations

* Investment in 12th Plan in infrastructure to go uptoRs. 50,00,000 crore; half of this is expected from private sector

* Tax Free Bonds of Rs. 60,000 crore to be allowed for financial infrastructure projects

* Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to Rs. 25,360 crore

* Financial package of Rs. 3,884 crore for waiver of loans to handloom weavers and their cooperative societies; mega handloom clusters in Andhra,Jharkhand; weaver service centres in Mizoram,Nagaland and Jharkhand ; powerloom mega cluster in Maharashtra; Rs. 500 crore pilot schemes for geo-textiles in North-Eastern region

* Rs. 5,000 crore India Opportunities Venture Fund to help small enterprises

* Allocation to agriculture enhanced; RKVY gets Rs. 9,217 crore; BGREI gets Rs. 1,000 crore; Rs.2242 crore project to improve dairy productivity; Rs. 500 crore for coastal aquaculture

* Various other agricultural activities merged into 5 missions

* Target for agricultural credit raised to Rs. 5,75,000 crore

* Interest subvention for short-term crop loans to farmers at 7 per cent interest continues; additional 3 per cent for prompt paying farmers

* Rs. 200 crore for awards to incentivise agricultural research

* Provisions under rural housing fund increased to Rs. 4,000 crore from Rs. 3,000 crore

* Interest subvention of 1 percent on housing loans uptoRs. 15 lakh extended for one more year

* AIBP allocation raised by 13 per cent to Rs. 14,242 crore

* National Mission on Food Processing to be started in cooperation with State Governments

* Scheduled Caste Sub Plan allocation increases by 18 per cent to Rs. 37,113 crore; Tribal Sub Plan by 17.6 per cent to Rs. 21,710 crore

* Multi-sectoralprogramme to address maternal and child malnutrition in 200 high burden districts

* 58 per cent rise in allocation to ICDS,at Rs. 15,850 crore

* Rural drinking water and sanitation gets 27 per cent rise in allocation to Rs. 14,000 crore; PMGSY gets 20 per cent rise to Rs. 24,000 crore

* Projects covering length of 8800 km to be awarded under NHDP against 7,300 km during 2011-12

* RTE-SSA gets Rs. 25,555 crore allocation,showing an increase of 21 per cent; 6000 schools to be set up at block level as model schools in the 12th Plan; Credit Guarantee Fund to be set up for better flow of credit to students

* National Urban Health Mission is being launched

* 34 per cent increase in allocation to National Rural Livelihood Mission,to Rs. 3915 crore

* Rs. 1000 crore allocated for National Skill Development Fund

* Bharat Livelihood Foundation to be established to support livelihood interventions particularly in tribal areas

* Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month

* Grant on death of primary breadwinner of a BPL family in the age group 18-64 years doubled to Rs. 20,000

* Defence services get Rs. 19,3407 crore; any further requirement to be met

* 4000 residential quarters to be constructed for Central Armed Police Forces

* UID-Aadhar to get adequate funds for enrolment of 40 crore persons,in addition to the 20 crore persons already enrolled

* White Paper on Black Money to be laid in the current session of Parliament

* Tax proposals mark progress in the direction of movement towards DTC and GST

* Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh

* Interest from savings bank accounts deductible up to Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up

* Senior citizens without business income exempt from advance tax

* Investment linked deduction of capital expenditure enhanced for certain businesses; new sectors eligible for investment linked deduction

* Turnover limit for compulsory tax audit for SMEs raised from Rs 60 lakh to Rs 1 crore

* STT on cash delivery reduced by 25 per cent to 0.1%

* General Anti Avoidance Rule being introduced to counter aggressive tax avoidance

* A number of measures proposed to deter generation and use of unaccounted money

* All services to attract service tax except those in the negative list

* Central Excise and Service Tax being harmonized

* Standard rate of excise duty raised from 10 per cent to 12 per cent; service tax rates raised from 10 per cent to 12 per cent; no change in peak customs duty of 10 per cent on non-agricultural goods

* Relief in indirect taxes to sectors under stress; agriculture,infrastructure,mining,railways,roads,civil aviation,manufacturing,health and nutrition,and environment get duty relief

* Certain cigarettes and bidis attract higher excise duty; large cars attract higher customs duty

* Excise imposed on unbranded jewellery also; measures to minimize impact on small artisans and goldsmiths; branded silver jewellery exempted from excise duty

* Net gain of Rs.41,440 crore due to taxation proposals

* 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

* Fiscal deficit targeted at 5.1 per cent of GDP,as against 5.9 per cent in revised estimates for 2011-12

* Central government debt at 45.5 per cent of GDP as compared to Thirteenth Finance Commission target of 50.5 per cent

* Medium-term Expenditure Framework Statement to be introduced; will set forth 3-year rolling target for expenditure indicators

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