India Budget 2012-2013 Highlights(Live Updates)

Customs duty reduced from 7.5% to 2.5% for iron ore equipment Government hikes defence spending to Rs 1,93,007 crore LCD and LED panels exempted from custom duty 12% excise duty imposed on branded retail garments School education exempt from service tax Automated shuttle looms exempted from customs duty Mobile phone parts exempted from basic customs duty Proposes to remove sector-specific restriction on venture capital fund investments To allow external commercial borrowing to part finance rupee debt in power projects Cuts customs duty on rail equipment to 7.5% from 10% Customs duty on some gold and platinum products increased Import of aircraft parts exempt from basic customs duty Customs duty on refined gold doubled Direct Tax Code implementation deferred: Pranab Service tax up from 10% to 12% Rs 18660 crores will result from service tax rise Standard excise duty hiked to 12% Common tax code for service tax and excise FY 13 net market borrowing at Rs 4.8 lakh crores Some infra construction services exempt from service tax To raise duty on large cars to 27% No change in peak customs duty Fiscal deficit target set at 5.1% of GDP in Budget 2012-13 10 year yield at 8.40% Full exemption on customs duty on coal LNG out of customs duty Govt sees expenditure rising 29% in 2012/13 India achieved success in external trade: Pranab Mukherjee 5% customs duty exempted on equipment for fertilizer plants Thermal power companies exempted from customs duty for 2 years Efforts on for consensus on 51% FDI in multi-brand retail FM announces new equity savings scheme Rs 14000 crore for rural drinking and sanitation in FY 13 NRHM allocation hiked to 20820 crores Rural development fund of 20000 crores Govt aims to trim subsidy burden Allocated Rs 25,555 cr for Right to Education in FY13; cuts interest rates on loans to women self help groups Defence outlay at Rs 1.95 lakh crore To introduce new law for micro finance institutions Agri credit target for FY13 at Rs 5.75 lakh cr, up Rs 1 lakh cr Budget 2012: Fiscal balance has deteriorated Coal India advised to sign FSA with power plants Gross tax at 10.6% of GDP Gross tax receipts at 10.77 lakh crore Tables a white paper on black money issue Fiscal deficit at 5.9% in FY 12 Non plan expenditure at Rs 9.7 lakh crore Exemption up to Rs 2 lakh for individuals No change in corporate tax rates Income Tax at 10% for Rs 2-5 lakh Income Tax at 30% for income of over Rs 10 lakh Income Tax at 20% for Rs 5 lakh to Rs 10 lakh FM announces intention of tabling white paper on black money Income Tax Slabs: Up to 2 lakh rupees – NIL; Rs 2– 5 lakh – 10%; Rs 5–10 lakh – 20%; Above Rs 10 lakh – 30%; No change in corporate tax rates Sensex trading 180 points higher led by gains in ICICI Bank, HDFC Bank and ITC BSE realty index gains 2%, BSE banking index up 2% and BSE power index rose 1.8% Top Sensex losers: RIL (down 0.8%), Hero MotoCorp (down 0.6%) and Tata Motors (down 0.6%) Shares of BHEL trading 3.6% higher at Rs 293.85, top Sensex gainer 12th plan infra investment at Rs 50 lakh crore Propose Central KYC depository Extend RRB capitalisation for 2 years Rs 15890 crores for recapitalization of PSU banks To allow qualified FII into domestic corporate bonds DTC to be implemented at the earliest Double infra debt amount to Rs 60,000 crore Oil and gas pipelines to be eligible for viable gap funding To allow ECB to fund part finance power rupee debt Share of manufacturing in GDP will be increased To become self sufficient in urea production in next 5 years To allow ECB funding to finance working capital needs of airlines Rs 10000 crore of tax fee bonds for power sector FDI in aviation is under active consideration To allow ECB funding to finance working capital needs of airlines for 1 year Change in IPO guidleines to promote small town participation Plan outlay raised 18% to Rs 20,208 cr for agriculture To make 8,800 km of highways in FY13; outlay raised Will allow external commercial borrowing for power, housing road construction companies Fuel supply constraints have hit power supplies nationally Telecom towers made eligible for viability gap funding Irrigation, dams to be eligible for special funding GDP expected to grow at 6.9% 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 Auto stocks down on profit-booking Tight monetary policy hit consumption and growth Need to improve supply side in economy FY 12 was a year of recovery interrupted, says FM Numerous economic indicators suggest economy is turning around Needs to improve supply side management of economy Manufacturing sector appears to be on a revival path To focus on domestic demand, raise private investment To enhance supply side; cut infra bottlenecks To address black money, corruption in public life Current account defict to be at 3.6% Expect current account defict to decrease next year India has achieved to diversify export and import markets High crude oil prices hit growth, averaged $115/bbl in 2011-12 Fiscal deficit rose due to subsidy FRBM implementation back on track Decided to fully provide for food subsidy in the budget Central subsidies to be under 2% of GDP Economy to grow at 7.6% in 2012/13 To roll out computerized scheme for fertilizer subsidy transfer Inflation & current account deficit to come down next year Focus on removing infrastructure bottlenecks Changes in IPO norms to increase participation in small towns To introduce new Rajiv Gandhi equity scheme Government to include advance pricing in Finance Bill 2012 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 Twitter Delicious Digg Facebook Stumbleupon RSS About the Author I`m SENTHAMARAIKANNAN Author Of Senthamaraikannanclub and i interested in Blogs and socialnetworking I wrote so many blogs in my name since 2007.Follow me On Twitter, Like us On Facebook, Join us on Google +