Finance Minister Pranab Mukherjee presents his seventh Union Budget in Parliament in the backdrop of challenging macroeconomic and political environment.
Highlights are as follows:
Highlights are as follows:
- Tight monetary policy hit consumption and growth
- Global crisis hit Indian growth
- Middle East crisis, debt worries in EU have intensified
- Eurozone debt crisis got worse this year.
- Introduce amendments to FRBM act
- Propose to cut subsidy at 2% of GDP
- FY12 GDP growth estimated at 6.9%
- Food subsidy to be fully provided
- FY13 GDP growth expected at 7.85%
- GDP expected to grow at 7.6% in FY13
- Oil subsidy spending likely to rise
- FY12 average crude price seen at $115
- Inflation will moderate in coming months
- Agri sector expected to grow at 2.5%
- Inflation & current account deficit to come down next year
- Focus on removing infrastructure bottlenecks
- Changes in IPO norms to increase participation in small towns
- 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 highway
- Ensure rapid rise in private investment
- Frame policies that trigger domestic demand recovery
- To implement Direct Tax Code at the earliest
- Focus on removing infrastructure bottlenecks
- Efforts continue to arrive at consensus for 51% in retail FDI
- To continue to hold 51% stake in state owned companies
- Rs 30,000 cr divestment target in FY 13
- Direct transfer of subsidy for kerosene initiated
- To implement DTC at the earliest
- To bring down subsidy to 1.7 % of GDP in the next 3 years
- Central subsidies to be under 2% of GDP
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