Union Budget 2012-13

The Union Budget for 2012-13 has been announced by Mr Pranab Mukherjee, the Union Finance Minister, in Parliament on March 16, 2012.

Highlights of Union Budget 2012-13
Overview of the Economy

GDP is estimated to grow by 6.9 per cent in 2011-12
Indian economy is expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12
Developments in India's external trade in the first half of current year have been encouraging. Diversification in export and import market achieved
Investment Environment

Efforts to arrive at a broadbased consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail upto 51 per cent
Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50 per cent to new retail investors, who invest upto Rs 50,000 (US$ 995.39) directly in equities and whose annual income is below Rs 1,000,000 (US$ 19,892) to be introduced. The scheme will have a lock-in period of 3 years
Various steps proposed to be taken for deepening the reforms in the Capital markets, including simplifying process of IPOs, allowing QFIs to access Indian Bond Market etc.
To protect the financial health of Public Sector Banks and Financial Institutions, Rs 15,888 crore (US$ 3.15 billion) proposed to be provided for capitalisation. Possibility of creating a financial holding company to raise resources to meet the capital requirements of PSU Banks under examination
A central "Know Your Customer" depository to be developed in 2012-13 to avoid multiplicity of registration and data upkeep
Agriculture

Plan Outlay for Department of Agriculture and Co-operation increased by 18 per cent
Outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased to Rs 9,217 crore (US$ 1.83 billion) in 2012-13
Education

6,000 schools proposed to be set up at block level as model schools in Twelfth Plan
Rs 3,124 crore (US$ 622 million) provided for Rashtriya Madhyamik Shiksha Abhiyan (RMSA) representing an increase of 29 per cent over BE 2011-12
To ensure better flow of credit to students, a Credit Guarantee Fund proposed to be set up
Health

Allocation for NRHM proposed to be increased from Rs 18,115 crore (US$ 3.61 billion) in 2011-12 to Rs 20,822 crore (US$ 4.15 billion) in 2012-13
National Urban Health Mission is being launched
Housing Sector

Various proposals to address the shortage of housing for low income groups in major cities and towns including allowing ECB for low cost housing projects and setting up of a credit guarantee trust fund etc
Infrastructure and Industry

During Twelfth Plan period, investment in infrastructure to go up to Rs 5,000,000 crore (US$ 996.02 billion) with half of this, expected from private sector
More sectors added as eligible sectors for Viability Gap Funding under the scheme "Support to PPP in infrastructure"
Government has approved guidelines for establishing joint venture companies by defence PSUs in PPP mode
First Infrastructure Debt Fund with an initial size of Rs 8,000 crore (US$ 1.59 billion) launched earlier this month
National Manufacturing Policy

National Manufacturing Policy announced with the objective of raising, within a decade, the share of manufacturing in GDP to 25 per cent and creating of 100 million jobs
Skill Development

Projects approved by National Skill Development Corporation expected to train 62 million persons at the end of 10 years
Rs 1,000 crore (US$ 199.02 million) allocated for National Skill Development Fund in 2012-13
Budget Estimates

Gross Tax Receipts estimated at Rs 1,077,612 crore (US$ 214.66 billion)
Net Tax to Centre estimated at Rs 771,071 crore (US$ 153.60 billion)
Non-tax Revenue Receipts estimated at Rs 1,64,614 crore (US$ 32.79 billion)