Union Budget 2012: Highlights
Posted on: 01:14 PM IST Mar 16, 2012
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· 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