Highlights Of The Indian Union Budget 2012-2013

Indian Budget 2012-2013 Highlights

The Indian Budget for the financial year 2012-2013 was introduced yesterday, 17th March, 2012. Here are the main highlights that could be taken as summary of the budget that was introduced by Pranab Mukherjee.

Indian union budget 2012 2013 summary reforms main points cost increase cost decrease information details

Key points of the budget for financial year 2012-2013

1. The pension relating to Widow and disability is now raised from Rs 200 to Rs 300 per month.
2. The government wants to plan for White paper on Black Money during this year.
3. Senior citizens who do not own a business are exempted from advance tax.
4. The amount which can be deductible from interest earned from Savings bank account is upto Rs 10,000. The amount which can be deducted for preventive health check-up is set at Rs 5,000.
5. There is increase in the tax exemption for the citizens of India. Income tax limit has been raised from Rs 1,80,000 to Rs 2,00,000.
6. The upper limit for 20 percent tax liability has been raised from Rs  8 laks to Rs 10 lakh.
7. Deductions linked to investment for capital expenditure has been enhanced for certain businesses. New sectors for investment linked deductions have been identified.
8. The clause for compulsory tax audit has been raised from Rs 60 lakh to Rs 1 lakh of turnover.
9. The government has prepared a negative list. Only those services listed in negative list to be exempted from service tax. Rest all other services to attract service tax.
10. The Central Excise and Service Tax are being further enhanced by the government.
11. There has been reduction from 20 percent to 0.1 percent on STT on cash delivery.
12. The standard rate for excise duty has been raised to 12 percent from 10 percent.
13. The Service tax has been raised from 10 percent to 12 percent.
14. Large cars to attract more customs duty. Certain cigarettes and bidis are identified which would attract higher level of excise duty.
15. Now, excise has also been imposed on unbranded jewellery. Branded silver jewellery has been exempted from excise duty.
16.    This budget can be identified as a budget relating to private investment, growth recovery, malnutrition, supply bottlenecks and governance matters.
17.    It is projected that the GDP growth for the year 2012-13 would be 7.6 percent (+ 0.25 percent).
18.    New terms such as “Effective Revenue Deficit” and “Medium Term Expenditure Framework” are introduced as an amendment to the FRBM Act which is proposed to be a part of Finance Bill.
19.    It is estimated that the central subsidies is to be kept under the figure of 2 percent of GDP. It would further be brought down to a level of 1.75 percent  of GDP over the period of next 3 years.
20.    Retail investors would be given income tax deduction on investing in equities under the Rajiv Gandhi Equity Saving Scheme.
21.    For the capitalization of public sector banks, Retail investors would be given income tax deduction on investing in equities under the Rajiv Gandhi Equity Saving Scheme.
22.    For the capitalization of public sector banks and financial institutions, Rs 15,888 crore to be allocated.
23.    An amount of Rs 30,000 crore would be provided through the process of disinvestment.
24.    There is a proposal for LPG transparency portal, Mobile based fertilizer management system for government schemes in at least 50 districts which would be Aadhar enabled payment system.
25.    There is a consensus on FDI in multi-brand retail.
26.    There is a proposal to develop a central “Know Your Customer”.
27.    All the remaining habitations are to be covered under the Swabhimaan.
28.    The amount which was allocated to Road Transport and Highways Ministry was increased by 14 percent to Rs 25,360 crore.
29.    Rs 60,000 to be allowed for Tax Free Bonds for financial infrastructure projects.
30.    Under 12th plan, the investment in infrastructure to go upto Rs 50,000 crore. In this figure, the half of the amount is to be expected from private sector.
31.    Rs 3, 884 crore was allocated as a financial package for waiver of loans to handloom weavers and the co-operative societies related to it.
32.    Proposal to fund Rs 5,000 crore through India Opportunities Venture Fund which would help small enterprises.
33.    Total AIBP allocation to be raised by 13 percent to Rs 14,242 crore.
34.    Agricultural credit raised to Rs 5,75,000 crore.
35.    Rs 200 crore to be allocated for awards in the field of agricultural research.
36.    There would be a 58 percent rise in the total allocation of ICDS at Rs 15,850 crore.
37.    Rs 14,000 crore to be allocated for rural drinking water and sanitation with the rise of 27 percent in allocation.
38.    There is a provision to start National Mission on Food Processing.
39.    There is a plan to launch National Urban Health Mission.
40.    Rs 1,93,407 to be allocated to Defence services.
41.    UID-Aadhar would be allocated required funds to add 40 crore persons.

Know about the highlights of the Railway Budget 2012-2013.

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