Highlights of the Union Budget 2012-13

Finance Minister Pranab Mukherjee presented the Union Budget for 2012-13 on Friday. Here are the highlights of the Budget. a! payer e!e"ption #i"it to be raised to $s 200%000 fro" $s 1&0%000. 'nco"e a! at 10( for $s 2-) #akh

*o change in corporate ta! rates +ars to attract ad ,a#ore" rate of 2- per cent +usto"s duty on i"port of parts of aircraft% tyres and testing e.uip"ent fu##y e!e"pted /ithho#ding ta! on po0er% air#ines% road and bridges% ports and shipyard% ferti#isers% da"s and affordab#e houses #o0ered to ) pc fro" 20 pc for 3 years Fu## e!e"ption fro" basic custo"s duty for e.uip"ent for road and high0ay construction. '"port of e.uip"ent for ferti#i1er p#ants fu##y e!e"pt fro" custo"s duty for three years. 2tandard e!cise duty rate raised fro" 10 per cent to 12 per cent. 2er,ice ta! to yie#d additiona# re,enue of $s 1&%3)0 crore. 4## ser,ices e!cept 1- in the negati,e #ist to be brought under ser,ice ta! net. $s 153%60- crore pro,ision "ade for defence ser,ices in 2012-13. $s 3%51) crore to be spent on *ationa# $ura# 7i,e#ihood Mission. $s 1000 crore to be pro,ided for *ationa# 2ki## 8e,e#op"ent +orporation in 2012-13 'nterest sub,ention of - pc to 0o"en se#f groups for #oans up to $s 3 #akh% additiona# 3 pc for those "aking ti"e#y repay"ent. $s 20%&22 crore ear"arked for *ationa# $ura# 9ea#th Mission against $s 1&%11) crore this year $s 20%000 cr to be spent on rura# infrastructure de,e#op"ent% inc#uding $s )%000 cr for creating 0arehousing faci#ities. 4gricu#ture credit target to be raised by $s 100%000 cr to $s )%-)%000 cr% says FM 4dditiona# 3 per cent interest sub,ention to far"ers for pro"pt#y repaying their dues

$s 1)%&)0 cr to be a##ocated to 'ntegrated +hi#d 8e,e#op"ent 2che"e in 2012-13 as against $s 10%000 cr this fisca#. 4##ocation for rura# drinking 0ater and sanitation sche"e increased fro" $s 11%000 cr in F: 12 to $s 16%000 cr in 2012-13. *ationa# Back0ard $egion ;rant sche"e out#ay raised by 22 per cent to $s 12%060 crore ;o,ern"ent to set up $s )000 crore ,enture fund for M2M< sector. 'ndia 0i## beco"e se#f-sufficient in urea production in fi,e years% says FM <!terna# co""ercia# borro0ings to the e!tent of U28 one bi##ion to be a##o0ed for a,iation sector for ne!t year. 'nfrastructure in,est"ent in 12th P#an to go up to $s )0 #akh crore= ha#f of it to co"e fro" p,t sector> FM ;o,t to doub#e ta! free bonds for infrastructure financing to $s 30%000 crore in ne!t F:> Pranab &%&00-k" of high0ays to be de,e#oped under *ationa# 9igh0ay 8e,e#op"ent Project in 2012-13> FM. $s 1)%&&& cr to be pro,ided for capita#isation of pub#ic sector and regiona# rura# banks and *4B4$8 Microfin institution regu#ation bi##% nat# housing bank regu#ation bi##% reg bank regu#ation bi## and pub#ic debt "anage"ent bi## this session. $s 1)%&&& cr to be pro,ided for capita#isation of pub#ic sector and regiona# rura# banks and *4B4$8. $s 10000 crore of ta! fee bonds for po0er sector o a##o0 <+B funding to finance 0orking capita# needs of air#ines o beco"e se#f sufficient in urea production in ne!t ) years 2hare of "anufacturing in ;8P 0i## be increased o a##o0 <+B to fund part finance po0er rupee debt ?i# and gas pipe#ines to be e#igib#e for ,iab#e gap funding

'nf#ation @ current account deficit to co"e do0n ne!t year Focus on re"o,ing infrastructure bott#enecks 'P? e.uity offer abo,e $s 10 crore 0i## ha,e to be "ade e#ectronica##y in capita# "arket refor"s. ;o,ern"ent to raise $s 30%000 crore in 2012-13 fro" disin,est"ent of stake in P2Us. 'nco"e a! deduction of )0 per cent on in,est"ents of up to $s )0%000 in sa,ings sche"e na"ed after $aji, ;andhi. <fforts to arri,e at broadbased consensus 0ith state go,ern"ents on a##o0ing F8' in "u#tibrand retai# up to )1 per cent% says FM <nsure rapid rise in pri,ate in,est"ent Fra"e po#icies that trigger do"estic de"and reco,ery 'ndiaAs ;8P to gro0 by -.3 per cent in 2012-13= p#us% "inus 0.2) per cent 'ndiaAs ;8P to gro0 by 3.5 per cent in 2011-12 <cono"y is no0 turning around% "anufacturing appears to be on re,i,a# 9ead#ine inf#ation to "oderate further in ne!t fe0 "onths /e ha,e to e!pedite decisions to i"pro,e de#i,ery syste"s 9a,e to acce#erate the pace of refor"s *u"erous econo"ic indicators suggest econo"y is turning around ;o,t to fu##y pro,ide for food subsidy and food security act in 2012-13. Pi#ot project for direct transfer of subsidiary for kerosene has been initiated in 4#0ar% $ajasthan. o i"p#e"ent 8 + at the ear#iest o bring do0n subsidy to 1.- ( of ;8P in the ne!t 3 years o ro## out co"puteri1ed sche"e for ferti#i1er subsidy transfer

2ignificant s#o0do0n in gro0th o,er the #ast t0o years o address b#ack "oney% corruption in pub#ic #ife o enhance supp#y side= cut infra bott#enecks o focus on do"estic de"and% raise pri,ate in,est"ent Manufacturing sector appears to be on a re,i,a# path *eeds to i"pro,e supp#y side "anage"ent of econo"y Fisca# deficit rose due to subsidy 9igh crude oi# prices hit gro0th% a,eraged B11)Cbb# in 2011-12