New Delhi: Finance Minister Pranab Mukherjee's Budget failed to send out a strong message about the reform process while coming out with a subsidy management plan and announced a new income tax structure. Experts labelled the it as an '80s style' Budget. Mukherjee began by admitting that the global crisis had affected the Indian economy. However, he said that a major turnaround might be expected soon.
Budget 2012: How it happened:
- GDP to grow by 6.9 per cent in 2011-12.
- Global crisis led to poor GDP growth
- Inflation levels to moderate in 3 months
- Need to accelerate pace of reforms
- Economy now turning around, manufacturing appears to be on revival.
- 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.
- Economy is now turning around, manufacturing appears to be on revival, says FM.
- 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.
- FY13 mid-day meal scheme outlay at Rs 11,937 cr
- Rs 14,000 cr for rural drinking water, sanitation
- Rs 12,040 cr for backward area projects~Propose to set up 6,000 schools.
- National Mission on Food Processing to be started in 2012-13.
- Government to create PDS through Adhaar platform by December 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 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.
- GDP to grow by 7.6 per cent in 2012-13; plus, minus 0.25 per cent.
- Government 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.
- GST to be operational by August.
- Food security subsidy to be fully provided.
- Direct cash subsidy for LPG, Kerosene
- Pilot project for direct transfer of subsidiary for kerosene has been initiated in Alwar, Rajasthan.
- Direct Tax Code (DTC) Bill to be enacted at the earliest.
- 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.
- 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.
- Government to double tax free bonds for infrastructure financing to Rs 60,000 crore in next FY
- 8,800-km of highways to be developed under National Highway Development Project in 2012-13.
- External commercial borrowings to the extent of USD 1 billion to be allowed for aviation sector for next year.
- 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.
- 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.
- Government to provide Rs 10,000 crore to NABARD for refinancing regional rural banks.
- Additional 3 per cent interest subvention to farmers for promptly repaying their dues.
- Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from pvt sector.
- Rs 3,915 crore to be spent on National Rural Livelihood Mission.
- Rs 193,407 crore provision made for defence services in 2012-13.
- 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.
- Net tax receipts of the Centre in 2011-12 stands at Rs 7,71,071 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.
- Total debt of the Centre will be 45 per cent of GDP.
- Revenue deficit for 2012-13 projected at Rs 1,85,752 crore.
- Individual tax payer exemption limit to be raised to Rs 200,000 from Rs 180,000.
- Upper limit raised from Rs 8 lakh to Rs 10 lakh for 20 per cent bracket.
- 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.
- Interest income of up to 10 per cent to be exempted from tax.
- No change in corporate tax rate.
- 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.
- Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup.
- Capital gains tax on residential property exempted if sale proceeds used for SMEs.
- Securities Transaction Tax (STT) reduced from 0.125 per cent to 0.1 per cent.
- Introduction of compulsory reporting of assets held abroad.
- 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.
- Service tax to yield additional revenue of Rs 18,650 crore.
- Standard excise duty rate raised from 10 per cent to 12 per cent.
- Cars to attract ad valorem rate of 27 per cent.
- No change in the peak rate customs duty.
- Import of equipment for fertilizer plants fully exempt from customs duty for three years.
- Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two 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.
- Import of equipment for fertilizer plants fully exempt from customs duty for three years.
- Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two 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.
- Withholding tax on power, airlines, road and bridges, ports and shipyard, fertilisers, dams and affordable houses lowered to 5 pc from 20 pc for 3 years.
- Customs duty on bicycles and parts increased.
- Excise duty on all processed food brought down to merit rate of 6 per cent.
- Installation of solar plants exempted from CVD.
- Customs duty on standard gold bar and coins exceeding 99.5 per cent purity, platinum and non-standard gold raised.
- Oil cess on domestic crude raised to Rs 4,500 per ton from Rs 2,500 per ton.
- 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.
- Customs and central excise proposals to net a revenue of Rs 27,280 crore.
- 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.
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