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

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  • 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.
  • ₹ 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
  • ₹ 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 upto ₹ 50,00, 000 crore; half of this is expected from private sector
  • Tax Free Bonds of ₹ 60,000 crore to be allowed for financial infrastructure projects
  • Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to ₹ 25,360 crore
  • Financial package of ₹ 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; ₹ 500 crore pilot schemes for geo-textiles in North-Eastern region
  • ₹ 5,000 crore India Opportunities Venture Fund to help small enterprises
  • Allocation to agriculture enhanced; RKVY gets ₹ 9,217 crore; BGREI gets ₹ 1,000 crore; ₹ 2242 crore project to improve dairy productivity; ₹ 500 crore for coastal aquaculture
  • Various other agricultural activities merged into 5 missions
  • Target for agricultural credit raised to ₹ 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
  • ₹ 200 crore for awards to incentivise agricultural research
  • Provisions under rural housing fund increased to ₹ 4,000 crore from ₹ 3,000 crore
  • Interest subvention of 1 percent on housing loans upto ₹ 15 lakh extended for one more year
  • AIBP allocation raised by 13 per cent to ₹ 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 ₹ 37,113 crore; Tribal Sub Plan by 17.6 per cent to ₹ 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 ₹ 15,850 crore
  • Rural drinking water and sanitation gets 27 per cent rise in allocation to ₹ 14,000 crore; PMGSY gets 20 per cent rise to ₹ 24,000 crore
  • Projects covering length of 8800 km to be awarded under NHDP against 7,300 km during 2011 − 12
  • RTE-SSA gets ₹ 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 ₹ 3915 crore
  • ₹ 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 ₹ 200 to ₹ 300 per month
  • Grant on death of primary breadwinner of a BPL family in the age group 18 − 64 years doubled to ₹ 20,000
  • Defence services get ₹ 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 ₹ 1,80, 000 to ₹ 2,00, 000; upper limit of 20 per cent tax slab raised from ₹ 8 lakh to ₹ 10 lakh
  • Interest from savings bank accounts deductible upto ₹ 10,000; deduction of upto ₹ 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 ₹ 60 lakh to ₹ 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 ₹ 41,440 crore due to taxation proposals
  • Total expenditure budgeted at ₹ 14,90, 925 crore; plan expenditure at ₹ 5,21, 025 crore-18 per cent higher than 2011 − 12 budget; non plan expenditure at ₹ 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

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