ECONOMIC (Opinion): Union Budget 2012-13 Highlights

 

Union Budget 2012-13 Highlights: 

[1.] Roll out computerized scheme for fertilizer subsidy transfer; 

[2.] Central subsidies to be under 2% of GDP and will bring down it to 1.7% of GDP in the next 3 year;

[3.] Budget identifies five objectives relating to growth recovery, private investment, supply bottlenecks, malnutrition and governance matters;

[4.] GDP growth to be 7.6 per cent (+ 0.25 percent) during 2012-13;

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

[6.] 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;

[7.] Rs. 30,000 crore to be raised through disinvestment;

[8.] Efforts to reach broadbased consensus on FDI in multi-brand retail;

[9.] Rajiv Gandhi Equity Saving Scheme: to allow income tax deduction to retail investors on investing in equities;

[10.] Rs. 15,888 crore to be provided for capitalization of public sector banks and financial institutions;

[11.] A central “Know Your Customer” depository to be developed;

[12.] Swabhimaan: remaining habitations to be covered; to be extended to more habitations; ultra small branches to be set up in Swabhimaan habitations;

[13.] 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;

[14.] Rs. 5,000 crore India Opportunities Venture Fund to help small enterprises;

[15.] CPSEs are being given a level-playing field vis-à-vis the private sector with regard to practices like buy-backs and listing at stock exchange. The treasury management options for CPSEs have also been enhanced, resulting in improvement in the returns on public assets, support for transparent environment for the divestment process, besides unlocking the value and resources for all stakeholders; 

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

[17.] Interest subvention of 1 percent on housing loans upto Rs. 15 lakh extended for one more year;

[18.] National Mission on Food Processing to be started in cooperation with State Governments;

[19.] Multi-sectoral programme to address maternal and child malnutrition in 200 high burden districts;

[20.] 58 per cent rise in allocation to ICDS, at Rs. 15,850 crore;

[21.] Rural drinking water and sanitation gets 27 per cent rise in allocation to Rs. 14,000 crore;

[22.] RTE-SSA gets Rs. 25,555 crore allocation, showing an increase of 21 per cent; Credit Guarantee Fund to be set up for better flow of credit to students; 

[23.] National Urban Health Mission is being launched;

[24.] UID-Aadhar to get adequate funds for enrolment of 40 crore persons, in addition to the 20 crore persons already enrolled;

[25.] Bharat Livelihood Foundation to be established to support livelihood interventions particularly in tribal areas;

[26.] White Paper on Black Money to be laid in the current session of Parliament;

[27.] Tax proposals mark progress in the direction of movement towards DTC and GST;

[28.] 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;

[29.] Senior citizens without business income exempt from advance tax;

[30.] A General Anti-Avoidance Rule (GAAR) is being introduced in order to counter aggressive tax avoidance. Securities transaction tax (STT) is being reduced by 20 per cent on cash delivery transactions, from 0.125% to 0.1%.  Alternative Minimum Tax is proposed to be levied from all persons, other than companies, claiming profit linked deductions;

[31.] 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;

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

[33.] Certain cigarettes and bidis attract higher excise duty; 

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

[35.] Net gain of Rs.41,440 crore due to taxation proposals; 

[36.] 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; 

[37.] An allocation of Rs.1000 crore to National Skill Development Fund (NSDF) has been proposed. It have approved 26 new projects, thereby doubling the number of projects sanctioned since 2009 to 52. At the end of 10 years, these projects are expected to train 6.2 crore persons and augment vocational training capacity by 1.25 crore per year in the private sector; 

[38.] Regarding capital markets, the Finance Minister  proposed to allow Qualified Foreign  Investors (QFIs) to access Indian Corporate Bond market.  He also  proposed simplifying  the process of Initial Public Offer  (IPO); 

 [39.] Kisan Credit Card Scheme will be modified to make it a smart card which can be used at ATMs.