Competitive Exams: Current Affairs 2012: Highlights of Union Budget 2012 − 13

  • Budget identifies five objectives relating to growth recovery, private investment, supply bottlenecks, malnutrition and governance matters

  • GDP growth to be 7.6 per cent ( + 0.25 percent) during 2012 − 13

  • Amendment to the FRBM Act proposed as part of Finance Bill. New concepts of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” introduced

  • Central subsidies to be kept under 2 per cent of GDP; to be further brought down to 1.75 per cent of GDP over the next 3 years.

  • Proposed: Mobile based fertilizer management system; LPG transparency portal; scaling up and rolling out of Aadhar enabled payment for government schemes in at least 50 districts.

  • Rs. 30, 000 crore to be raised through disinvestment

  • Efforts to reach broadbased consensus on FDI in multi-brand retail

  • Rajiv Gandhi Equity Saving Scheme: To allow income tax deduction to retail investors on investing in equities

  • Rs. 15, 888 crore to be provided for capitalization of public sector banks and financial institutions

  • A central “Know Your Customer” depository to be developed

  • Swabhimaan: Remaining habitations to be covered; to be extended to more habitations; ultra small branches to be set up in Swabhimaan habitations

  • Investment in 12th Plan in infrastructure to go uptoRs. 50, 00, 000 crore; half of this is expected from private sector

  • Tax Free Bonds of Rs. 60, 000 crore to be allowed for financial infrastructure projects

  • Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to Rs. 25, 360 crore

  • Financial package of Rs. 3, 884 crore for waiver of loans to handloom weavers and their cooperative societies; mega handloom clusters in Andhra, Jharkhand; weaver service centres in Mizoram, Nagaland and Jharkhand; powerloom mega cluster in Maharashtra; Rs. 500 crore pilot schemes for geo-textiles in North-Eastern region

  • Rs. 5, 000 crore India Opportunities Venture Fund to help small enterprises

  • Allocation to agriculture enhanced; RKVY gets Rs. 9, 217 crore; BGREI gets Rs. 1, 000 crore; Rs. 2242 crore project to improve dairy productivity; Rs. 500 crore for coastal aquaculture

  • Various other agricultural activities merged into 5 missions

  • Target for agricultural credit raised to Rs. 5, 75, 000 crore

  • Interest subvention for short-term crop loans to farmers at 7 per cent interest continues; additional 3 per cent for prompt paying farmers

  • Rs. 200 crore for awards to incentivise agricultural research

  • Provisions under rural housing fund increased to Rs. 4, 000 crore from Rs. 3, 000 crore

  • Interest subvention of 1 percent on housing loans uptoRs. 15 lakh extended for one more year

  • AIBP allocation raised by 13 per cent to Rs. 14, 242 crore

  • National Mission on Food Processing to be started in cooperation with State Governments

  • Scheduled Caste Sub Plan allocation increases by 18 per cent to Rs. 37, 113 crore; Tribal Sub Plan by 17.6 per cent to Rs. 21, 710 crore

  • Multi-sectoralprogramme to address maternal and child malnutrition in 200 high burden districts

  • 58 per cent rise in allocation to ICDS, at Rs. 15, 850 crore

  • Rural drinking water and sanitation gets 27 per cent rise in allocation to Rs. 14, 000 crore; PMGSY gets 20 per cent rise to Rs. 24, 000 crore

  • Projects covering length of 8800 km to be awarded under NHDP against 7, 300 km during 2011 − 12

  • RTE-SSA gets Rs. 25, 555 crore allocation, showing an increase of 21 per cent; 6000 schools to be set up at block level as model schools in the 12th Plan; Credit Guarantee Fund to be set up for better flow of credit to students

  • National Urban Health Mission is being launched

  • 34 per cent increase in allocation to National Rural Livelihood Mission, to Rs. 3915 crore

  • Rs. 1000 crore allocated for National Skill Development Fund

  • Bharat Livelihood Foundation to be established to support livelihood interventions particularly in tribal areas

  • Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month

  • Grant on death of primary breadwinner of a BPL family in the age group 18 − 64 years doubled to Rs. 20, 000

  • Defence services get Rs. 193407 crore; any further requirement to be met

  • 4000 residential quarters to be constructed for Central Armed Police Forces

  • UID-Aadhar to get adequate funds for enrolment of 40 crore persons, in addition to the 20 crore persons already enrolled

  • White Paper on Black Money to be laid in the current session of Parliament

  • Tax proposals mark progress in the direction of movement towards DTC and GST

  • Income tax exemption limit raised from Rs. 1, 80, 000 to Rs. 2, 00, 000; upper limit of 20 per cent tax slab raised from Rs. 8 lakh to Rs. 10 lakh

  • Interest from savings bank accounts deductible upto Rs. 10, 000; deduction of upto Rs. 5, 000 for preventive health check-up

  • Senior citizens without business income exempt from advance tax

  • Investment linked deduction of capital expenditure enhanced for certain businesses; new sectors eligible for investment linked deduction

  • Turnover limit for compulsory tax audit for SMEs raised from Rs. 60 lakh to Rs. 1 crore

  • STT on cash delivery reduced by 25 per cent to 0.1%

  • General Anti Avoidance Rule being introduced to counter aggressive tax avoidance

  • A number of measures proposed to deter generation and use of unaccounted money

  • All services to attract service tax except those in the negative list

  • Central Excise and Service Tax being harmonized

  • Standard rate of excise duty raised from 10 per cent to 12 per cent; service tax rates raised from 10 per cent to 12 per cent; no change in peak customs duty of 10 per cent on non-agricultural goods

  • Relief in indirect taxes to sectors under stress; agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment get duty relief

  • Certain cigarettes and bidis attract higher excise duty; large cars attract higher customs duty

  • Excise imposed on unbranded jewellery also; measures to minimize impact on small artisans and goldsmiths; branded silver jewellery exempted from excise duty

  • Net gain of Rs. 41, 440 crore due to taxation proposals

  • Total expenditure budgeted at Rs. 14, 90, 925 crore; plan expenditure at Rs. 5, 21, 025 crore-18 per cent higher than 2011 − 12 budget; non plan expenditure at Rs. 9, 69, 900 crore

  • Fiscal deficit targeted at 5.1 per cent of GDP, as against 5.9 per cent in revised estimates for 2011 − 12

  • Central Government debt at 45.5 per cent of GDP as compared to Thirteenth Finance Commission target of 50.5 per cent

  • Medium-term Expenditure Framework Statement to be introduced; will set forth 3-year rolling target for expenditure indicators