Highlights of Union Budget 2012-13

ECONOMY OUTLOOK• GDP growth rate was pegged at 7.6% in 2012-13

• Disinvestment target of Rs 30000 Cr.

• Aim to keep subsidies under 2% of GDP in 2012-13. Over next 3 year, to be further

brought down to 1.75 per cent of GDP.

FINANCIAL STATEMENT: BUDGET ESTIMATES • Fiscal deficit targeted at 5.1% of GDP in 2012-13, down from 5.9% in 2011-12

• Central Government debt at 45.5% of GDP

• Total expenditure budgeted at Rs. 14,90,925 Cr. including Rs. 5,21,025 Cr. of Plan

Expenditure and Rs. 9,69,900 Cr. in Non-Plan Expenditure

• Gross Tax Receipts estimated at Rs. 10,77,612 Cr., 19.5% higher than revised

estimates for 2011-12.

FINANCIAL STATEMENT: BUDGET ESTIMATES • Net tax to Centre estimated at Rs. 7,71,071 Cr.

• Non-Tax Revenue Receipts estimated at Rs. 1,64,614 Cr.

• Non-debt Capital Receipts at Rs. 41,650 Cr.

• Net market borrowing required to finance the deficit at Rs 4.79 lakh Cr.

• Income tax exemption limit rose from Rs. 1,80,000 to Rs. 2,00,000

• 10% for income between Rs. 2-5 lakh

• 20% for income between Rs. 5-10 lakh

• 30% for income above Rs. 10 lakh

• Savings bank account interest up to Rs. 10,000 exempted from tax.

REDUCED TAX BURDEN

• Securities Transaction Tax on cash delivery cut 25% to 0.1 per cent

• New Rajiv Gandhi Equity Saving Scheme to allow income tax deduction to retail

investors in stocks

• Qualified Foreign Investors to get access to corporate bond market

FINANCIAL MARKETS

BANK CAPITALIZATION• Rs. 15,888 Cr. for capitalization of public sector

banks and financial institutions

AVIATION• External borrowings to the extent of USD one

billion for aviation companies

INFRASTRUCTURE • Investment target of Rs 50 lakh Cr. in 12th Plan

• Tax free bonds of Rs. 60,000 Cr. for finance of

infrastructure projects

HIGHER COST OF GOODS AND SERVICES•No change in corporate tax rate

•Excise duty hiked

•Service tax rate up from 10% to 12%

•No change in peak customs duty of 10% on non-agri goods.

COSTIER•Large cars

•Imported bicycles

•Cigarettes, bidis

•Imported jewellery

CHEAPER •Branded silver jewellery

Budget Simplified

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