|Union Budget 2012: Proposals & recommendations at a glance|
1. The GDP growth for FY13 is anticipated at 7.60% +/- 0.25% (i.e. 7.35% to 7.85%) whereas the projected GDP growth for FY12 is 6.90%.
2. The debt crisis in Eurozone intensified in Y12.
3. Y12 was a year of recovery and hence necessary to take hard decisions now.
4. Y12 reality turned different from anticipation.
5. The farm and service sector continue to perform well.
6. The economy is now showing signs of turnaround.
7. The fiscal rate and policy proposed is aimed at taming inflation.
8. Identified 5 areas of focus in FY13.
9. The fiscal balance deteriorated in FY12.
10. Expect inflation to decline further.
11. Expect farm sector to grow at 2.50%.
12. Expect the current account deficit to fall.
13. The average crude price in FY12 seen at @115.
14. Plans to introduce amendments to FRBM Act, to put it back to track.
15. Plans to keep FY13 subsidy under 2% of GDP and to bring it to 1.70% of the GDP in 3 years time.
16. Propose direct transfer of subsidy to retailers and farmers.
17. To examine parliamentary panel report on DTC – thus not having any clear idea on the effective implementation date yet.
18. The structure of the GST network has been approved by the state finance ministers – paving way for its likely implementation by Aug 2012.
19. The proposed divestment in FY13 pegged at INR 30,000 crores.
20. A deduction of INR 50,000 introduced under the Income tax act for investment in equity shares for retail investors having income below INR 10 lakhs. These investments to have a lock-in period of 3 years.
21. Allow QFIs to access corporate bond market.
22. Advance pricing agreements as proposed in the DTC to be included in this finance bill.
23. Ten percent of all IPOs above INR 10 crores to be via electronic mode only.
24. To introduce new law for microfinance companies.
25. Allocation of INR 15,888 crores for re-capitalisation of PSUs.
26. Proposes a central KYC depository.
27. Intimates that 81 out of 82 RRBs have already migrated to core banking solutions.
28. Extend the RRB capitalization scheme by another 2 years.
29. To increase investment in infrastructure projects through enhanced PPP model.
30. Proposes irrigation projects to be eligible for viability gap funding.
31. The tax free bonds doubled to INR 60,000 crores.
32. Allocation of INR 10,000 crores tax free bonds each to NHAI, IRFC, power sector etc.
33. To allow ECB borrowings to part finance power projects.
34. Road projects of 8,800 kms to be awarded in FY13, up from 7,300 kms awarded in FY12.
35. Government to be permitted direct import of ATF.
36. Permit ECBs for working capital needs of the aviation industry upto USD 1 billion.
37. The proposal of FDI of upto 49% in aviation sector under active consideration – meaning no progress in this regard so far.
38. Allow ECBs for low cost affordable housing projects.
39. Outlay for agriculture increased from INR 17,123 crores to INR 20,208 crores for FY13.
40. Setting up a venture capital fund by SIDBI with allotment of INR 5,000 crores to aid MSMEs.
41. Government to set up a company to finance small and minor irrigation projects.
42. Allocation of INR 10,000 crores to NABARD to refinance RRBs.
43. Allocation of INR 15,850 crores for ICDS scheme for FY13 up from INR 10,000 crores in FY12.
44. Allocation of INR 11,937 crores for midday meal scheme.
45. Allocation of INR 14,000 crores for rural drinking water and sanitation projects.
46. Proposal to set up 5,000 schools in the 12th five year plan.
47. Alloction of INR 18,000 crores for RIDF out of which INR 5,000 crores for warehousing.
48. Allocation of INR 20,820 crores for NRHM, increased as compared to last year.
49. To allow two way fungibility of IDRS.
50. Enhanced allocation for various agricultural universities including INR 1,000 crores for the Kerala Agricultural University .
51. Loan subsidy proposed for home loans upto INR 15 lakhs.
52. Allocation of INR 14,232 crores for UID scheme – plans to achieve 40 crores enrolment by the end of this year.
53. The gross tax receipts is estimated to be INR 10,77,612 crores, which is 15.60% higher than that of last year. The same is around 10.60% of the GDP.
54. The total expenditure for the year 12-13 is estimated to be INR 14,90,925 cror5es out of which INR 5,21,025 crores would be for planned expenditure (18% increase) and INR 9,69,900 crores for non-planned expenditure (8.70% increase).
55. The direct tax collections in FY 12 were short by INR 32,000 crores as compared to the budget.
56. The non tax revenue receipt is estimated to be INR 1.64 lakh crores for FY 13.
57. The fiscal deficit for FY13 is estimated to be INR 5.13 lakh crores, being 5.10% of the GDP, reduced from 5.90% of the GDP in FY12.
58. The total revenue deficit is estimated to be INR 1,85,752 crores, being 1.80% of the GDP.
CA Sanjay Thampy
ACA, Grad.CWA, CS, DBM
For Kerala IT News
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