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Rediff.com  » Business » Budget 2012: Live from the Lok Sabha

Budget 2012: Live from the Lok Sabha

Last updated on: March 16, 2012 13:13 IST
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 While presenting the Budget for 2012-13, the Finance Minister Pranab Mukherjee will have to do a balancing act, by raising taxes on some items such as cars, consumer goods and cement to raise revenue and give incentives to boost business confidence.

Stating that it expects a strong Budget from the FM, industry body, CII said the aviation and retail sectors may get FDI.

'The Budget for 2012-13 has been formulated against the background of railways' responsibilities in meeting the demands of the 12th Plan' PMO tweets.

The Finance Minister said:

  • Performance this year was disappointing but as compared to peers India was better
  • Middle East crisis, debt worries in EU have intensified
  • Global crisis hit Indian growth
  • Tight monetary policy hit consumption and growth
  • International crude oil prices may cross $ 115 per barrel. This will impact the Fuel Subsidy Bill
  • Food and fertiliser subsidy largest expenditure.
  • Fiscal deficit rose due to subsidy.
  • Decided to fully provide for food subsidy in the budget
  • FRBM implementation back on track
  • Aadhar-enabled payment of select government schemes in 50 districts
  • Rs 30,000 cr divestment target in FY 13
  • To bring down subsidy to 1.7 % of GDP in the next 3 years
  • To roll out computerized scheme for fertilizer subsidy transfer
  • The Nandan Nilekani panel recommendation on direct transfer of subsidy accepted: FM
  • FY13 subsidy to be under 2% of GDP
  • Find ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption
  • Remove bottlenecks in agriculture, energy, transport, coal, power and national highways
  • Ensure rapid rise in private investment
  • Frame policies that trigger domestic demand recovery
  • Direct cash subsity to LPG, Kerosene
  • Efforts to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per cent
  • Direct transfer of subsidy for kerosene initiated
  • Direct Tax Code (DTC) Bill to be enacted at the earliest
  • GST to be operational by August 2012
  • To introduce Rajiv Gandhi Equity Scheme for retail investors
  • Tax incentive for new investors, These make sense when you consider that the share of household savings delpoyed in capital markets has come down sharply.
  • Changes in IPO norms to increase participation in small towns
  • Plan outlay for agriculture raised by 18% to Rs 20208 crore in FY 13
  • Rs 300 crore for intensified irrigation program
  • Retail stocks rally as Budget commits to multi-brand FDI
  • Telecom towers made eligible for viability gap funding
  • Agriculture credit target raised to Rs 5.75 lakh crore in FY13
  • Agriculture allocation increased to Rs 5,75,000 crore.
  • To allocate Rs 10,000 cr for NABARD to refinance RRBs.
  • To allocate Rs 10,000 crore for NABARD for refinancing RRBs
  • Government to set up Rs 5,000 crore venture fund for MSME sector
  • To allow ECB borrowing to part-finance power projects.
  • Agriculture credit target to be raised by Rs 1,00,000 crore to Rs 5,75,000 crore.
  • Kisan credit cards can now be used for ATM machines.
  • Change in IPO guidleines to promote small town participation
  • Will allow external commercial borrowing for power, housing road construction companies
  • To make 8,800 km of highways in FY13; outlay raised
  • Plan outlay raised 18% to Rs 20,208 cr for agriculture
  • Irrigation, dams to be eligible for special funding
  • Telecom towers made eligible for viability gap funding
  • Fuel supply constraints have hit power supplies nationally
  • Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
  • Advance Pricing Agreements in DTC to be in Finance Bill
  • Corporate market reforms to be initiated.
  • Allocation for national highways up 14 per cent. 8,800 km of highways to be developed under National Highway Development Project in 2012-13.
  • Encourage small and medium artisans. Powerloom mega clusters to be set up.
  • Foreign loans for low-cost housing projects.
  • Foreign loan cap raised for airlines.
  • To allow ECB funding to finance working capital needs of airlines for 1 year
  • External commercial borrowings to the extent of $ 1 billion to be allowed for aviation sector for next year.
  • Addressing malnutrition, black money and corruption in public life among five priorities in the year ahead.
  • Budget to provide Rs 15,888 crore for recapitalisation of PSU banks, regional rural banks.
  • Government examining new ways of providing subsidies for LPG, kerosene.
  • Tax exemption on individual share investment below Rs 10 lakh.
  • Govt to create Financial Holding company to meet financial needs of PSU banks.
  • Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.
  • 3-year lock-in period exemption under Rajiv Gandhi scheme.
  • Increase in investments in infrastructure through PPP.
  • Coal India advised to sign FSA with power plants
  • Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from private sector.
  • To allow qualified FII into domestic corporate bonds
  • Rs 15890 crore for recapitalisation of PSU banks
  • Extend RRB capitalisation for 2 years
  • Propose Central KYC depository
  • Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two years.
  • Automated shuttle looms exempted from customs duty.
  • Full exemption on imported equipments for road construction projects.
  • Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted.
  • Full exemption from basic customs duty for equipment for road and highway construction.
  • AC, fridge and most urban services to cost more.
  • Titanium dioxide customs duty cut to 7.5% from 10%.
  • Govt may table white paper on black money
  • Tax exemption of up to Rs 5,000 for health insurance for annual preventive health checkup.
  • No change in peak custom duty.
  • Rs 1000 cr for National Skill Development Fund in FY13.
  • Gross taxes estimated at 10.6 per cent of GDP.
  • Pranab proposes to bring white paper on black money in the current Parliament session.
  • Gross taxes estimated at 10.6% of GDP.
  • Exemption of customs duty of 5% on equipment for fertiliser plants.
  • Service tax rates hiked from 10 per cent to 12 per cent.
  • Introduction of compulsory reporting of assets held abroad.
  • Securities Transaction Tax (STT) reduced from 0.125 per cent to 0.1 per cent.
  • Withholding tax on external commercial borrowings reduced from 20 percent to five percent for power, airlines, roads, bridges, affordable houses and fertiliser sectors.
  • Government services, public transport exempted from service tax.
  • Common 1-page return for excise and service tax.
  • Propose common tax code for service tax and excise
  • Govt services, public transport exempt from service tax.
  • Service tax net widened; to include most sectors
  • Negative list to include pre-school and high school education, entertainment services.
  • Sale of residential property exempted from capital gains if invested in equity or equipment of an SME.
  • All services to be taxed except those in negative list.
  • No advance tax for senior citizens.
  • Health insurance deduction upto Rs 5000 for preventive health checkup.
  • FY13 market borrowing at Rs 4.79 lakh cr.
  • The new tax rates:
          From Rs 2 lakh to Rs 5 lakh at 10%,
          Rs 5 lakh to Rs 10 lakh at 20%,
          And beyond Rs 10 lakh at 30%.
  • No change in corporate tax rates.
  • Information on black money stashed abroad has started flowing in, prosecution to be executed in some cases, says Pranab.
  • 40 crore Aadhar enrollment in year beginning April 2012.
  • Net tax receipts of the Centre in 2011-12 stands at Rs 7,71,071 crore.
  • Exemption up to Rs 2 lakh for individuals
  • Rs 193,407 crore provision made for defence services in 2012-13.
  • To allot Rs 24,000 crore for rural road plan in FY13.
  • Rs 3,915 crore to be spent on National Rural Livelihood Mission.
  • Maternal and child nutrition scheme to be launched in 200 districts.
  • Agri credit target for FY13 at Rs 5.75 lakh cr, up Rs 1 lakh cr
  • To introduce new law for micro finance institutions
  • Defence outlay at Rs 1.95 lakh crore
  • Allocated Rs 25,555 cr for Right to Education in FY13; cuts interest rates on loans to women self help groups
  • Govt aims to trim subsidy burden
  • Efforts on for consensus on 51% FDI in multi-brand retail
  • 7 medical colleges to be upgraded to All India Institutes.
  • Rs 200 crore for Research Rewards for agricultural researchers for breakthroughs.
  • Mahatma Gandhi rural employment scheme has been positive.
  • ECB for Rupee-debt of power co positive for all power cos
  • Interest subvention of 7 per cent to women self groups for loans up to Rs 3 lakh, additional 3 per cent for those making timely repayment.
  • Allocated Rs 25,555 cr for Right to Education in FY13; cuts interest rates on loans to women self help groups
  • FY13 National Social Assistance Scheme outlay at Rs 8447 crore
  • Rs 1,000 crore to be provided for National Skill Development Corporation in 2012-13
  • Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
  • Allocation of Rs.200 crore for research on climate change.
  • Rs 20,822 crore earmarked for National Rural Health Mission against Rs 18,115 crore this year.
  • Rs 20,000 crore to be spent on rural infrastructure development, including Rs 5,000 crore for creating warehousing facilities.
  • National Backward Region Grant scheme outlay raised by 22 per cent to Rs 12,040 crore.
  • Rural development fund of 20000 crores
  • NRHM allocation hiked to 20820 crores
  • Customs duty on refined gold doubled; will cost more.
  • Gold to be more expensive.
  • Cigarettes, gold, diamonds, imported cycles to cost more.
  • ustoms duty on bicycles and parts increased.
  • Most luxury items, eating out, air travel, leisure activities to cost more.
  • Exemption of customs duty of 5% on equipment for fertiliser plants.
  • Service tax rates hiked from 10 per cent to 12 per cent.
  • Introduction of compulsory reporting of assets held abroad.
  • Standard excise duty rate raised from 10 per cent to 12 per cent.
  • Import of aircraft parts exempt from basic customs duty.
  • Service tax to yield additional revenue of Rs 18,650 crore.
  • Excise duty on large cars raised from 22 per cent to 24 per cent.
  • Solar power lamps, LED bulbs to become cheaper.
  • Duty on CFLs reduced.
  • Excise duty on handmade and semi-mechanised matches reduced from 10 to 6 per cent.
  • Bicycles to get expensive, duty raised to 30% from 10%.
  • Iodised salt, match-boxes, soya products to become cheaper.
  • Customs duty on standard gold raised from 2% to 4%.
  • Service tax to yield additional revenue of Rs 18,650 crore.
  • Excise duty on large cars raised from 22 per cent to 24 per cent.
  • Most luxury items, eating out, air travel, leisure activities to cost more.
  • Exemption of customs duty of 5% on equipment for fertiliser plants.
  • Import of equipment for fertilizer plants fully exempted from customs duty for three years.
  • Standard excise duty rate raised from 10 per cent to 12 per cent.
  • Import of aircraft parts exempt from basic customs duty.

 

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