Union Budget 2012-13: Highlights

Pranab presented a Budget that is controversy free and low on sops for the masses.

Written by Agencies | New Delhi | Published:March 16, 2012 11:07 am

Finance Minister Pranab Mukherjee proposed trimming the government’s subsidy burden and called for speeding the pace of economic reforms,which have been stalled by political gridlock,in his budget speech in parliament on Friday.

HIGHLIGHTS

Cars to attract ad valorem rate of 27 per cent.

Upper limit raised from Rs 8 lakh to Rs 10 lakh for 20 per cent bracket

Individual income tax payer exemption limit to be raised to Rs 200,000 from Rs 180,000.

Capital gains tax on residential property exempted if sale proceeds used for SMEs.

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Customs duty on bicycles and parts increased

Customs duty on standard gold bar and coins exceeding 99.5 per cent purity,platinum and non-standard gold raised

Import duty on large cars,MUVs,SUVs enhanced

Gold jewellery not bearing brand name to be included in the one per cent levy on precious metal jewellery

Branded silver jewellery fully exempted from excise duty

Baggage allowance for people of Indian origin increased from Rs 25,000 to Rs 35,000 and for children from Rs 12,000 to Rs 15,000

Customs and central excise proposals to net a revenue of Rs 27,280 crore

Installation of solar plants exempted from CVD.

Oil cess on domestic crude raised to Rs 4,500 per ton from Rs 2,500 per ton.

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Standard excise duty rate raised from 10 per cent to 12 per cent.

Service tax to yield additional revenue of Rs 18,650 crore.

No change in the peak rate customs duty.

Full exemption from basic customs duty on natural gas,LNG,uranium for generation of electricity for two years.

Import of equipment for fertilizer plants fully exempt from customs duty for three years

Full exemption from basic customs duty for equipment for road and highway construction

Customs duty on import of parts of aircraft,tyres and testing equipment fully exempted.

Excise duty on handmade and semi-mechanised matches reduced from 10 to 6 per cent

Introduction of compulsory reporting of assets held abroad.

Securities Transaction Tax (STT) reduced from 0.125 per cent to 0.1 per cent.

Withholding tax on power,airlines,road and brides,ports and shipyard,fertilisers,dams and affordable houses lowered to 5 pc from 20 pc for 3 years.

No change in corporate tax rate.

The Budget also exempts up to Rs 10,000 of interest income from tax.

No IT for income up to Rs 2,00,000; 10 pc on income between Rs 2-5 lakh; 20 pc on income between Rs 5-10 lakh and 30 pc on income above Rs 10 lakh.

Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup

Direct taxes proposals to result in net revenue loss of Rs 4,500 crore.

All services except 17 in the negative list to be brought under service tax net.

Copyright relating to cinematography in film industry exempted from service tax

Team to study common tax code for service tax and central excise to be set up

No change in the peak rate customs duty

Service tax to yield additional revenue of Rs 18,650 crore.

Standard excise duty rate raised from 10 per cent to 12 per cent.

Determined to bring down fiscal deficit to 5.1 per cent of GDP next fiscal

Total debt of the Centre will be 45 per cent of GDP

Revenue deficit for 2012-13 projected at Rs 1,85,752 crore.

Non-plan expenditure Rs 9,69,900 crore in 2012-13; 8.7 per cent higher than current year

Direct tax collection fell short by Rs 32,000 crore in current fiscal.

Fiscal deficit at 5.9 per cent of GDP in revised estimates for 2011-12

Determined to bring down fiscal deficit to 5.1 per cent of GDP next fiscal.

Urban health schemes get higher allocation

Govt will present White paper on black money

40 crore Aadhar enrollment in year beginning April 2012.

White Paper on black money to be tabled in current session of Parliament.

Information on blackmoney stashed abroad has started flowing in; prosecution to be executed in some cases: FM.

Net tax receipts of the Centre in 2011-12 stands at Rs 7,71,071 crore.

In the middle of his speech Pranab says,”The life of a finance minsiter is not easy. When everything goes well all enjoy,but when things go wrong he is called upon to do something. I must be cruel to be kind.”

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 1000 crore to be provided for National Skill Development Corporation in 2012-13.

Rs 3,915 crore to be spent on National Rural Livelihood Mission.

Rs 193,407 crore provision made for defence services in 2012-13.

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National Backward Region Grant scheme outlay raised by 22 per cent to Rs 12,040 crore

Rs 20,000 cr to be spent on rural infrastructure development,including Rs 5,000 cr for creating warehousing facilities.

Rs 20,822 crore earmarked for National Rural Health Mission against Rs 18,115 crore this year

Govt to create PDS through Adhaar platform by Dec to realise objectives of Food Security Bill

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 Mission on Food Processing to be started in 2012-13.

Govt to allow use of Kisan credit cards in ATMs

FM says computerisation of the Public distribution system will be done

Additional 3 per cent interest subvention to farmers for promptly repaying their dues.

Investment in agriculture will be hiked,says FM

Government to provide Rs 10,000 crore to NABARD for refinancing regional rural banks

Farmers will continue to get interest subsidy

Government to set up Rs 5000 crore venture fund for MSME sector.

Agriculture credit target to be raised by Rs 100,000 cr to Rs 5,75,000 cr,says FM

Govt to double tax free bonds for infrastructure financing to Rs 60,000 crore in next FY

Proposal to allow foreign airlines to participate direct or indirectly in India being considered actively.

India will become self-sufficient in urea production in five years,says FM

Microfin institution regulation bill,natl housing bank regulation bill,reg bank regulation bill and public debt management bill this session

Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi which will be introduced

MARKET REACTION: Sensex at 17830.33,up 154.48 pts. Nifty at 5427.8,up 47.30.

IPO equity offer above Rs 10 crore will have to be made electronically in capital market reforms.

Rs 15,888 cr to be provided for capitalisation of public sector and regional rural banks and NABARD.

Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from pvt sector

Qualified institutional placement (QIPs) will be allowed to access Indian markets

Government to raise Rs 30,000 crore in 2012-13 from disinvestment of stake in PSUs

Efforts to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per

cent,says FM.

FM expects current account deficit to be 3.6%

The rate of reforms needs to be accelerated

While subsidy have hit fiscal consolidation,FM says will keep FY13 subsidy at under 2% of GDP

Direct Tax Code (DTC) Bill to be enacted at the earliest,says FM,but indicated its deferment.

Govt to fully provide for food subsidy and food security act in 2012-13.

Food Security Act will be fully provided for and subsidy to be 2 per cent of GDP for next two years

Pilot project for direct transfer of subsidiary for kerosene has been initiated in Alwar,Rajasthan

Economy is now turning around,manufacturing appears to be reviving

Have to accelerate the pace of reforms

We have to expedite decisions to improve delivery systems to address problems of black money and corruption

Headline inflation to moderate further in next few months and remain stable thereafter.

Expect average inflation to be lower next year; expect current account deficit to be lower next year

Amendments to FRBM Act part of the budget

FM says expectations are for economic growth rate of 7.6% next year

For the new fiscal FM has listed 5 objectives

Macro-economic policies must be improved

RBI’s monetary policy which has been tight has impacted both growth and consumption

However,the economy is showing signs of turnaround: FM

FM says Indian economy’s growth rate (GDP) will be 6.9%.

Inflation has been in double digits and that has been a huge problem to surmount

Global crisis hit India,but India weathered the storm and posted a fine recovery.

Agriculture and services sectors are performing however,manufacturing is a little slow

Mukherjee presents General Budget 2012-13 in Lok Sabha amid uproar by Opposition.

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