Union Budget 2012: Highlights

IBNLive.com
Mar 16, 2012 at 01:14pm IST

New Delhi: Budget 2012, presented by Finance Minister Pranab Mukherjee, identifies five objectives relating to growth recovery, private investment, supply bottlenecks, malnutrition and governance matters.

Following are the highlights of Budget 2012:

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

Union Budget 2012: Highlights

Budget 2012 identifies five objectives including growth recovery, private investment and malnutrition.

· 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. 193407 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 upto 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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