BUDGET 2012-13 HIGHLIGHTS

KEY HIGHLIGHTS GENERAL BUDGET 2012-13

Economy

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

ü  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.

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

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

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

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

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

ü  Financial package of Rs. 3,884 crore for waiver of loans to handloom weavers and their cooperative societies

 ü   Attracting foreign funds: Efforts on to allow FDI in multi-brand retail and permitting foreign airlines invest in domestic players; External borrowings to the extent of USD one billion for aviation companies; Qualified Foreign Investors to get access to corporate bond market.

Taxes

ü  Income tax exemption limit raised from Rs. 1,80,000 to Rs. 2,00,000.

ü   10 per cent tax for 2-5 lakh income

ü   20 per cent for 5-10 lakh

ü   30 per cent beyond Rs. 10 lakh

ü   Savings bank account interest up to Rs. 10,000 exempted from tax.

ü   No change in corporate tax rate, but standard rate of excise duty

ü   service tax rates, raised from 10 per cent to 12 per cent

ü   Securities Transaction Tax on cash delivery reduced by 25 per cent to 0.1 per cent;

ü   A new Rajiv Gandhi Equity Saving Scheme to allow income tax deduction to retail investors in stocks.

Agriculture

ü  Agricultural credit raised to Rs. 5,75,000 crore

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

ü   Rs. 200 crore for awards to incentivise agricultural research

Rural sector

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

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

ü  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

Defence

ü  Defence services get Rs. 193407 crore; any further requirement to be met

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

Financial Highlights

Fiscal deficit targeted at 5.1 per cent of GDP in 2012-13(0.8% reduction from Last year)

 Central Government debt at 45.5 percent of GDP.

Estimated Receipts In Crores
Gross Tax Receipts	10,77,612.00
Net tax to the Centre	7,71,071.00
Non-Tax Revenue Receipts	1,64,614.00
Non-debt Capital Receipts	41,650.00

Estimated Expenditure In Crores
Plan Expenditure	5,21,025.00
non-plan expenditure	9,69,900.00
Total expenditure(INR)	14,90,925.00