NEW DELHI: India must make tough spending choices, finance minister P Chidambaram said on Thursday, even as he unveiled a bigger-than-expected outlay for the coming fiscal year in one of the most highly anticipated Indian budgets of recent years.
Following are highlights of the Budget:
FISCAL DEFICIT
Highlights of Buget 2012 (Click Here)
Source- The Times of India
Following are highlights of the Budget:
FISCAL DEFICIT
- Fiscal deficit seen at 5.2 point of GDP in 2012/13
- Fiscal deficit seen at 4.8 point of GDP in 2013/14
- Faced with huge fiscal deficit, India had no choice but to rationalise expenditure
- Gross market borrowing seen at 6.29 trillion rupees in 2013/14
- Net market borrowing seen at 4.84 trillion rupees in 2013/14
- Short-term borrowing seen at 198.44 billion rupees in 2013/14
- To buy back 500 billion rupees worth of bonds in 2013/14
- 2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees
- Petroleum subsidy seen at 650 billion rupees in 2013/14
- Revised petroleum subsidy for 2012/13 at 968.8 billion rupees
- Estimated 900 billion rupees spending on food subsidies in 2013/14
- Revised food subsidies at 850 billion rupees in 2012/13
- Revised 2012/13 fertiliser subsidy at 659.7 billion rupees
- India faces challenge of getting back to its potential growth rate of 8 point
- India must unhesitatingly embrace growth as highest goal
- Total budget expenditure seen at 16.65 trillion rupees in 2013/14
- India's 2013/14 plan expenditure seen at 5.55 trillion rupees
- Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 point of budget estimate
- Set aside 100 billion rupees towards spending on food subsidies in 2013/14
- Expect 133 billion rupees through direct tax proposals in 2013/14
- Expect 47 billion rupees through indirect tax proposals in 2013/14
- Target 558.14 billion rupees from stake sales in state-run firms in 2013/14
- India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit
- Food inflation is worrying, will take all steps to augment supply side
- Proposes surcharge of 10 point on rich taxpayers with annual income of more than 10 million rupees a year
- To increase surcharge to 10 point on domestic companies with annual income of more than 100 million rupees
- To continue 15 point tax concession on dividend received by India companies from foreign units for one more year
- Propose to impose withholding tax of 20 point on profit distribution to shareholders
- Amnesty on service tax non-compliance from 2007
- 10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment
- Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point
- Time to introduce commodities transaction tax (CTT)
- CTT on non-agriculture futures contracts at 0.01 point
- Plans to issue inflation-indexed bonds
- Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupees
- Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements
- Insurance, provident funds can trade directly in debt segments of stock exchanges
- FIIs can hedge forex exposure through exchange-traded derivatives
- Investor with less than 10 point stake in a company will be regarded as FII, more than 10 point stake as FDI (foreign direct investment)
- Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors
- To implement quickly recommendations of financial sector legislative reforms commission
- Proposes zero customs duty for electrical plants and machinery
- Proposes to move to revenue-sharing from profit-sharing policy in oil and gas sector
- To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing duty)
- To cut duty on exports of precious and semi-precious stones to 2 point from 10 point
- No duty on import of ships, vessels
- To provide 140 billion rupees capital infusion in state-run banks in 2013/14
- To allocate 2.03 trillion rupees to defence in 2013/14
- To allocate 801.94 billion rupees to rural development in 2013/14
- Plan to allocate 270.49 billion rupees for agriculture in 2013/14
- "Faced with a huge fiscal deficit, I have no choice but to rationalize expenditure. We took a dose of bitter medicine. It seems to be working."
Highlights of Buget 2012 (Click Here)
Source- The Times of India
