Economy & Nation Exclusive
Budget 2012 fails to help realtors, customers

Budget 2012-13 has come as a disappointment to most people. Neither customers, nor real estate developers happy about the finance minister’s offerings

Jones Lang La Salle, a real estate broker, summed up the reaction of the realty sector as 'mixed', saying there is little to be excited about the Budget. "It is difficult to see the raising of the personal income tax exemption limit from Rs1.8 lakh to Rs2 lakh as anything more than tokenism. It is certainly not relevant for the aspiring Indian middle-class home buyer. The expected exemption limit of Rs3 lakh would have had some significance. That said, the 1% tax rebate for home loans of up to Rs.15 lakh on homes costing up to Rs. 25 lakh will prove beneficial for developers in this segment."

However, for a city like Mumbai where an average flats costs more than Rs1 crore, there is no relief for the buyer. Ganesh Vasudevan, business head of opines that the Budget has more negatives than positives for the customer. "Construction cost will go up because service tax has been increased from 10% to 12%. And in the end, it will be passed on to the customer. Though RBI hasn't hiked interest rates; there is not much enabler for home loans. It will affect buyers adversely."

Mr Chitnis sees allowing External Commercial Borrowing (ECB) for affordable housing is "an excellent move". "It will ensure better capital availability for developers of low-cost housing. This sector is typified by low margins, and it becomes attractive only if developers are enabled to produce greater volumes. Better capital availability will help in timely project execution, which will result in higher volumes."

However, there are others who sound sceptical on the point of relaxation of ECBs for affordable housing projects. "Developers can borrow money in the name of affordable housing projects, and then use that money to speculate and hold up prices," said a sector commentator.

Proceeds from the sale of a residential property are exempted from capital gains tax if they are invested in equity or equipment of an SME. Mr Chitnis says, "It definitely provides home owners with more reinvestment options. Previously, the only route for exemption was purchase of another property or tax saving bonds. At the same time, this move could also result in a lowering of sales volumes on the secondary sale market."

Pankaj Kapoor, MD, Liases Foras, says that this move may help investors who buy and sell properties. "It will help investors who have not been able to sell their assets. Also, it may reduce the black money component in such deals." He agreed that construction costs will go up, and said that it will be more problematic for those projects which have already commenced. However, considering the scenario overall, he says that the property market will remain sluggish for the next two to three years.


Economy & Nation Exclusive
Budget 2012: Cars, gold jewellery, AC to cost more while LED, mobile, tyres to become cheaper

Gold jewellery, cars, diamonds, pan masala, cigarettes, cement, air travel, phone bills, refrigerators, air conditioners, courier services set to become costlier while LED-LCD TVs, mobiles, solar lamps, natural gas, LNG, tyres, cycle, salt, match box and cinema tickets are going to cost less from April

In a mix of sops and imposts, the General Budget today proposed a marginal raise in income tax exemption limit of Rs20,000 but hiked service tax and standard excise duty by 2% across the board to net an additional Rs41,440 crore a year.

The Budget for 2012-13 presented by finance minister Pranab Mukherjee in the Lok Sabha, however, left corporate tax rate and peak customs duty unchanged while the import duty on gold bars and platinum and excise duty on cigarettes, bidis, pan masala and chewing tobacco were raised.

"The tax amendment proposals made by the Finance Minister on the Direct Tax side have been on expected lines – fairly predictable! To garner the 'aam admi' sympathy – the individual tax slabs have been marginally reduced whereas no major relief provided either to individual or corporate sector. The investment incentives are only for select industries … all in all ….an uninspiring Budget – or an opportunity lost? No major policy or proposal to spur or rejuvenate capital investment in India were heard," said Neeru Ahuja, Partner, Deloitte Haskins & Sells.

Here are the main highlights of the Budget:



  •  Tax proposals for 2012-13 mark progress in the direction of movement towards DTC and GST.
  • DTC rates proposed to be introduced for personal income tax.
  •  Exemption limit for the general category of individual taxpayers proposed to be enhanced from Rs1,80,000 to Rs2,00,000 giving tax relief of Rs2,000.
  • Upper limit of 20% tax slab proposed to be raised from Rs8 lakh to Rs10 lakh.
  • Proposal to allow individual tax payers, a deduction of up to Rs10,000 for interest from savings bank accounts.
  •  Proposal to allow deduction of up to Rs5,000 for preventive health check up.
  • Senior citizens not having income from business proposed to be exempted from paymentof advance tax.
  •  To provide low cost funds to stressed infrastructure sectors, rate of withholding tax on interest payment on ECBs proposed to be reduced from 20% to 5% for three years for certain sectors.
  • ? Restriction on Venture Capital Funds to invest only in nine specified sectors proposed to be removed.
  •  Proposal to continue to allow repatriation of dividends from foreign subsidiaries of Indian companies at a lower tax rate of 15 per cent up to 31.3.2013.
  •  Investment link deduction of capital expenditure for certain businesses proposed to be provided at the enhanced rate of 150%.
  •  New sectors to be added for the purposes of investment linked deduction.
  •  Proposal to extend weighted deduction of 200% for R&D expenditure in an in-house facility for a further period of five years beyond March 31, 2012.
  • Proposal to provide weighted deduction of 150% on expenditure incurred for agri-extension services.
  • Proposal to extend the sunset date for setting up power sector undertakings by one year for claiming 100% deduction of profits for 10 years.
  •  Turnover limit for compulsory tax audit of account and presumptive taxation of SMEs to be raised from Rs60 lakh to Rs1 crore.
  • ? Exemption from capital gains tax on sale of residential property, if sale consideration is used for subscription in equity of a manufacturing SME for purchase of new plant and machinery.
  • Proposal to provide weighted deduction at 150 per cent of expenditure incurred on skill development in manufacturing sector.
  • Reduction in securities transaction tax by 20% on cash delivery transactions.
  •  Proposal to extend the levy of Alternate Minimum Tax to all persons, other than companies, claiming profit linked deductions.
  •  Proposal to introduce General Anti Avoidance Rule to counter aggressive tax avoidance scheme.
  • Measures proposed to deter the generation and use of unaccounted money.
  •  A net revenue loss of Rs4,500 crore estimated as a result of Direct Tax proposals.

Service Tax

  • Sevice tax confronts challenges of its share being below its potential, complexity in tax law, and need to bring it closer to Central Excise Law for eventual transition to GST.
  • Overwhelming response to the new concept of taxing services based on negative list.
  • Proposal to tax all services except those in the negative list comprising of 17 heads.
  • Exemption from service tax is proposed for some sectors.
  •  Service tax law to be shorter by nearly 40%.
  • Number of alignment made to harmonise Central Excise and Service Tax. A common simplified registration form and a common return comprising of one page are steps in this direction.
  •  Revision Application Authority and Settlement Commission being introduced in Service Tax for dispute resolution.
  • Utilization of input tax credit permitted in number of services to reduce cascading of taxes.
  •  Place of Supply Rules for determining the location of service to be put in public domain for stakeholders' comments.
  •  Study team to examine the possibility of common tax code for Central Excise and Service Tax.
  •  New scheme announced for simplification of refunds.
  •  Rules pertaining to point of taxation are being rationalised.
  •  To maintain a healthy fiscal situation proposal to raise service tax rate from 10 per cent to 12 per cent, with corresponding changes in rates for individual services.
  •  Proposals from service tax expected to yield additional revenue of  Rs18,660 crore.

Other proposals for Indirect Taxes

  •  Given the imperative for fiscal correction, standard rate of excise duty to be raised from 10 per cent to 12 per cent, merit rate from 5 per cent to 6 per cent and the lower merit rate from 1 per cent to 2 per cent with few exemptions.
  • Excise duty on large cars also proposed to be enhanced.
  •  No change proposed in the peak rate of customs duty of 10 per cent on non-agricultural goods.
  •  To stimulate investment relief proposals for specific sectors - especially those under stress.

Agriculture and Related Sectors

  • Basic customs duty reduced for certain agricultural equipment and their parts;
  •  Full exemption from basic customs duty for import of equipment for expansion or setting up of fertiliser projects upto March 31, 2015.


  •  Proposal for full exemption from basic customs duty and a concessional CVD of 1 per cent to steam coal till 31st March, 2014.
  •  Full exemption from basic duty provided to certain fuels for power generation.


  •  Full exemption from basic customs duty to coal mining project imports.
  •  Basic custom duty proposed to be reduced for machinery and instruments needed for surveying and prospecting for minerals.


  •  Basic custom duty proposed to be reduced for equipments required for installation of train protection and warning system and upgradation of track structure for high speed trains.


  • Full exemption from import duty on certain categories of specified equipment needed for road construction, tunnel boring machines and parts of their assembly.

Civil Aviation

  •  Tax concessions proposed for parts of aircraft and testing equipment for third- party maintenance, repair and overhaul of civilian aircraft.


  •  Relief proposed to be extended to sectors such as steel, textiles, branded ready-made garments, low-cost medical devices, labour-intensive sectors producing items of mass consumption and matches produced by semi-mechanised units.

Health and Nutrition

  •  Proposal to extend concessional basic customs duty of 5 per cent with full exemption from excise duty/CVD to 6 specified life saving drugs/vaccines.
  • Basic customs duty and excise duty reduced on Soya products to address protein deficiency among women and children.
  •  Basic customs duty and excise duty reduced on Iodine.
  • Basic customs duty reduced on Probiotics.


  • Concessions and exemptions proposed for encouraging the consumption of energy-saving devices, plant and equipment needed for solar thermal projects.
  • Concession from basic customs duty and special CVD being extended to certain items imported for manufacture for hybrid or electric vehicle and battery packs for such vehicles.
  •  Proposal to increase basic customs duty on imports of gold and other precious metals.

Additional resource mobilisation

  • Proposals to increase excise duty on 'demerit' goods such as certain cigarettes, hand-rolled bidis, pan masala, gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco.
  • Cess on crude petroleum oil produced in India revised to Rs4,500 per metric tonne.
  • Basic customs duty proposed to be enhanced for certain categories of completely built units of large cars/MUVs/SUVs.

Rationalization measures

  •  Excise duty rationalised for packaged cement, whether manufactured by mini-cement plants or others.
  •  Levy of excise duty of 1 per cent on branded precious metal jewellery to be extended to include unbranded jewellery. Operations simplified and measures taken to minimise impact on small artisans and goldsmiths.
  •  Branded Silver jewellery exempted from excise duty.
  •  Chassis for building of commercial vehicle bodies to be charged excise duty at an ad  valorem rate instead of mixed rate.
  •  Import of foreign-going vessels to be exempted from CVD of 5 per cent retrospectively.
  •  Duty-free allowances increased for eligible passengers and for children of upto 10 years.
  •  Proposals relating to Customs and Central excise to result in net revenue gain of Rs27,280 crore.
  •  Indirect taxes estimated to result in net revenue gain of Rs45,940 crore.
  •  Net gain of Rs41,440 crore in the Budget due to various taxation proposals.


  •  For Indian economy, recovery was interrupted this year due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan.
  •  GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years.
  •  India however remains front runner in economic growth in any cross-country comparison.
  •  Monetary and fiscal policy response for better part of past 2 years aimed at taming domestic inflationary pressure.
  •  Growth moderated and fiscal balance deteriorated due to tight monetary policy and expanded outlays.
  •  Indicators suggest that economy is turning around as core sectors and manufacturing show signs of recovery.
  •  At this juncture, it is necessary to take hard decision to improve macroeconomic environment and strengthen domestic growth drivers.
  •  Twelfth Five Year Plan to be launched with the aim of "faster, sustainable and more inclusive growth". Five objectives identified to be addressed effectively in ensuing fiscal year.
  •  If India can build on its economic strength, it can be a source of stability for world economy and a safe destination for restless global capital.


  •  GDP growth estimated at 6.9 per cent in real terms in 2011-12. Slowdown in comparison to preceding two years is primarily due to deceleration in industrial growth.
  •  Headline inflation expected to moderate further in next few months and remain stable thereafter.
  •  Steps taken to bridge gaps in distribution, storage and marketing systems have helped in more effective management of inflation.
  •  Developments in India's external trade in the first half of current year have been encouraging. Diversification in export and import market achieved.
  •  Current account deficit at 3.6 per cent of GDP for 2011-12 and reduced net capital inflow in the 2nd and 3rd quarters put pressure on exchange rate.
  •  India's GDP growth in 2012-13 expected to be 7.6 per cent +/- 0.25 per cent.
  • Deterioration in fiscal balance in 2011-12 due to slippages in direct tax revenue and  increased subsidies.


  •  Introduction of amendments to the FRBM Act as part of Finance Bill, 2012.
  • Concept of "Effective Revenue Deficit" and "Medium Term Expenditure Framework" statement are two important features of amendment to FRBM Act in the direction of expenditure reforms.
  •  Effective Revenue Deficit is the difference between revenue deficit and grants for creation of capital assets. This will help in reducing consumptive component of revenue deficit and create space for increased capital spending.
  •  "Medium-term Expenditure Framework" statement will set forth a three-year rolling target for expenditure indicators.
  •  Recommendations of the Expert Committees to streamline and reduce the number of centrally sponsored schemes and to address plan and non-plan classification to be kept in view while implementing Twelfth Plan.
  •  Central Plan Scheme Monitoring System to be expanded for better tracking and utilisation of funds.


  •  Some subsidies, while being inevitable, may become undesirable if they compromise the macroeconomic fundamentals of economy.
  •  Subsidies related to administering the Food Security Act will be fully provided for.
  •  Endeavour to keep central subsidies under 2 per cent of GDP in 2012-13. Over next 3 year, to be further brought down to 1.75 per cent of GDP.
  •  Based on recommendation of task force headed by Shri Nandan Nilekani, a mobile-based Fertilizer Management System has been designed to provide end-to-end information on movement of fertilisers and subsidies. Nation-wide roll out during 2012.
  •  All three public sector Oil Marketing Companies have launched LPG transparencyportals to improve customer service and reduce leakage.
  •  Endeavour to scale up and roll out Aadhaar enabled payments for various government schemes in atleast 50 districts within next 6 months.


  •  DTC Bill to be enacted at the earliest after expeditious examination of the report of the Parliamentary Standing Committee.
  •  Drafting of model legislation for the Centre and State GST in concert with States is under progress.
  •  GST network to be set up as a National Information Utility and to become operational by August 2012.


  •  Government has further evolved its approach to divestment of Central Public Sector Enterprises by allowing them a level playing field vis-à-vis the private sector in respect of practices like buy backs and listing at stock exchanges.
  •  For 2012-13, Rs30,000 crore to be raised through disinvestment. At least 51% ownership and management control to remain with Government.


Foreign Direct Investment

  • Efforts to arrive at a broadbased consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail up to 51%.

Advance Pricing Agreement

  •  Provision regarding implementation of Advance Pricing Agreement to be introduced in Finance Bill, 2012.

Financial Sector

  •  Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50% to new retail investors, who invest up to Rs50,000 directly in equities and whose annual income is below Rs10 lakh to be introduced. The scheme will have a lock-in period of 3 years.

Capital Market

  •  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.

Legislative Reforms

  •  Official amendment to "The Pension Fund Regulatory and Development Authority Bill, 2011", "The Banking Laws (Amendment) Bill, 2011" and "The Insurance Law (Amendment) Bill, 2008" to be moved in this session.
  •  Various Bills proposed to be moved in the Budget session of the Parliament to take forward the process of financial sector legislative reforms. Capitalisation of Banks and Financial Holding Company
  •  To protect the financial health of Public Sector Banks and Financial Institutions,Rs15,888 crore 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.

Priority Sector Lending

  •  Revised guidelines on priority sector lending to be issued after stakeholder consultation.

Financial Inclusion

  •  Out of 73,000 identified habitations that were to be covered under "Swabhimaan" campaign by March, 2012, about 70,000 habitations have been covered. Rest likely to be covered by March 31, 2012.
  •  As a next step, Ultra Small Branches are being set up at these habitations.
  •  In 2012-13, "Swabhimaan" campaign to be extended to more habitations.

Regional Rural Banks

  •  Out of 82 RRBs in India, 81 have successfully migrated to Core Banking Solutions and have also joined the National Electronic Fund Transfer system.
  •  Proposal to extend the scheme of capitalisation of weak RRBs by another 2 years to enable States to contribute their share.


  • During Twelfth Plan period, investment in infrastructure to go up to Rs50 lakh crore 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 Rs8,000 crore launched earlier this month.
  •  Tax free bonds of Rs60,000 crore to be allowed for financing infrastructure projects in 2012-13.
  •  A harmonised master list of infrastructure sector approved by the Government.
  •  IIFCL has put in place a structure for credit enhancement and take-out finance for easing access of credit to infrastructure projects.

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 10 crore jobs.

Power and Coal

  • Coal India Limited advised to sign fuel supply agreements with power plants, having long-term PPAs with DISCOMs and getting commissioned on or before March 31, 2015.
  •  External Commercial Borrowings (ECB) to be allowed to part finance Rupee debt of existing power projects.

Transport: Roads and Civil Aviation

  •  Target of covering a length of 8,800 kilometre under NHDP next year.
  •  Allocation of the Road Transport and Highways Ministry enhanced by 14% to Rs25,360 crore.
  •  ECB proposed to be allowed for capital expenditure on the maintenance and operations of toll systems for roads and highways, if they are part of original project.
  •  Direct import of Aviation Turbine Fuel permitted for Indian Carriers as actual users.
  •  ECB to be permitted for working capital requirement of airline industry for a period of one year, subject to a total ceiling of US$1 billion.
  •  Proposal to allow foreign airlines to participate upto 49% cent in the equity of an air transport undertaking under active consideration of the government.

Delhi Mumbai Industrial Corridor

  •  In September 2011 central assistance of Rs18,500 crore spread over 5 years approved. $ 4.5 billion as Japanese participation in the project.

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.


  •  Government has taken steps to finalise pricing and investment policies for urea to reduce India's import dependence in urea.


  •  Government has announced a financial package of Rs3,884 crore for waiver of loans of handloom weavers and their cooperative societies.
  •  Two more mega handloom clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and another for Godda and neighbouring districts in Jharkhand to be set up.
  •  Three Weaver's Service Centres one each in Mizoram, Nagaland and Jharkhand to be set up for providing technical support to poor handloom weavers.
  •  Rs500 crore pilot scheme announced for promotion and application of Geo-textiles in the North Eastern Region.
  •  A powerloom mega cluster to be set up in Ichalkaranji in Maharashtra with a budget allocation of Rs70 crore.

Micro, Small and Medium Enterprises

  •  Rs5,000 crore India Opportunities Venture Fund to be set up with SIDBI.
  •  To enable greater access to finance by Small and Medium Enterprises (SME), two SME exchanges launched in Mumbai recently.
  •  Policy requiring Ministries and CPSEs to make a minimum of 20 per cent of their annual purchases from MSEs approved. Of this, 4 per cent earmarked for procurement from MSEs owned by SC/ST entrepreneurs.


  •  Plan Outlay for Department of Agriculture and Co-operation increased by 18%.
  •  Outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased to Rs9,217 crore in 2012-13.
  •  Initiative of Bringing Green Revolution to Eastern India (BGREI) has resulted in increased production and productivity of paddy. Allocation for the scheme increased to Rs1,000 crore in 2012-13 from Rs400 crore in 2011-12.
  •  Rs300 crore to Vidarbha Intensified Irrigation Development Programme under RKVY.
  • Remaining activities to be merged into following missions in Twelfth Plan:
  •  National Food Security Mission
  •  National Mission on Sustainable Agriculture including Micro Irrigation
  •  National Mission on Oilseeds and Oil Palm
  •  National Mission on Agricultural Extension and Technology
  •  National Horticultural Mission

National Mission for Protein Supplement

  •  Rs2,242 crore project launched with World Bank assistance to improve productivity in the dairy sector. Rs500 crore provided to broaden scope of production of fish to coastal  aquaculture.

Agriculture Credit

  •  Target for agricultural credit raised by Rs1,00,000 crore to Rs5,75,000 crore in 2012-13.
  •  Interest subvention scheme for providing short term crop loans to farmers at 7% interest per annum to be continued in 2012-13. Additional subvention of 3% available for prompt paying farmers.
  •  Short term RRB credit refinance fund being set up to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers.
  •  Kisan Credit Card (KCC) Scheme to be modified to make KCC a smart card which could be used at ATMs.

Agricultural Research

  •  A sum of Rs200 crore set aside for incentivising research with rewards.


  •  Structural changes in Accelerated Irrigation Benefit Programme (AIBP) being made to maximise flow of benefit from investments in irrigation projects.
  •  Allocation for AIBP in 2012-13 stepped up by 13% to Rs14,242 crore.
  •  Irrigation and Water Resource Finance Company being operationalised to mobilise large resources to fund irrigation projects.
  • A flood management project approved by Ganga Flood Control Commission at a cost of Rs439 crore for Kandi sub-division of Murshidabad District.

National Mission on Food Processing

  •  A new centrally sponsored scheme titled "National Mission on Food Processing" to be started in 2012-13 in co-operation with State Governments.
  •  Steps taken to create additional food grain storage capacity in the country.

Scheduled Castes and Tribal Sub Plans

  • Allocation for Scheduled Castes Sub Plan at  Rs37,113 crore in BE 2012-13 represents an increase of 18% over BE 2011-12.
  •  Allocation for Tribal Sub Plan at Rs21,710 crore in BE 2012-13 represents an increase of 17.6 per cent.

Food Security

  •  National Food Security Bill, 2011 is before Parliamentary Standing Committee.
  •  A national information utility for computerisation of PDS is being created. To become operational by December, 2012.

Multi-sectoral Nutrition Augmentation Programme

  •  A multi-sectoral programme to address maternal and child malnutrition in selected 200 high burden districts is being rolled out during 2012-13.
  • Allocation of Rs15,850 crore made for Integrated Child Development Service (ICDS) scheme, representing an increase of 58% over BE 2011-12.
  •  Rs11,937 crore allocated for National Programme of Mid Day Meals in schools.
  •  An allocation of Rs750 crore proposed for Rajiv Gandhi Scheme for Empowerment of Adolescent Girls, SABLA.

Rural Development and Panchayati Raj

  •  Budgetary allocation for rural drinking water and sanitation increased from Rs11,000 crore to Rs14,000 crore representing an increase of over 27%.
  •  Allocation for PMGSY increased by 20% to Rs24,000 crore to improve connectivity.
  •  Major initiative proposed to strengthen Panchayats through Rajiv Gandhi Panchayat Sashaktikaran Abhiyan.
  •  Backward Regions Grant Fund scheme to continue in twelfth plan with enhanced allocation of Rs12,040 crore in 12-13, representing an increase of 22% over the BE2011-12.

Rural Infrastructure Development Fund (RIDF)

  •  Allocation under RIDF enhanced to Rs20,000 crore. Rs5,000 crore earmarked exclusively for creating warehousing facilities.


  • For 2012-13, Rs25,555 crore provided for RTE-SSA representing an increase of 21.7% over 2011-12.
  •  6,000 schools proposed to be set up at block level as model schools in Twelfth Plan.
  •  Rs3,124 crore provided for Rashtriya Madhyamik Shiksha Abhiyan (RMSA) representing an increase of 29% over BE 2011-12.
  •  To ensure better flow of credit to students, a Credit Guarantee Fund proposed to be set up.


  •  No new case of polio reported in last one year.
  •  Existing vaccine units to be modernised and new integrated vaccine unit to be set up in Chennai.
  •  Scope of 'Accredited Social Health Activist' - 'ASHA' is being enlarged. This will also enhance their remuneration.
  •  Allocation for NRHM proposed to be increased from Rs18,115 crore in 2011-12 to Rs20,822 crore in 2012-13.
  •  National Urban Health Mission is being launched.
  •  Pradhan Mantri Swasthya Suraksha Yojana being expanded to cover up-gradation of 7 more Government medical colleges.


  •  MGNREGS has had a positive impact on livelihood security.
  •  Need to bring about greater synergy between MGNREGA and agriculture and allied rural livelihoods.
  •  Allocation of Rs3915 crore made for National Rural Livelihood Mission representing an increase of 34%.
  •  To ease access to bank credit, corpus for 'Women's SHG's Development Fund' enlarged.
  •  Proposal to establish Bharat Livelihoods Foundation of India through Aajeevika scheme.
  •  Allocation for Prime Minister's Employment Generation Programme increased by 23%ent to Rs1,276 crore in 2012-13.

Skill Development

  •  Projects approved by National Skill Development Corporation expected to train 6.2 crore persons at the end of 10 years.
  •  Rs1,000 crore allocated for National Skill Development Fund in 2012-13.
  •  To improve the flow of institutional credit for skill development, a separate Credit Guarantee Fund to be set up.
  •  "Himayat" scheme introduced in J&K to provide skill training to 1 lakh youth in next 5 years. Entire cost to be borne by Centre.


  •  Allocation under NSAP raised by 37% to Rs8,447 crore in 2012-13.
  •  In the ongoing Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme for BPL beneficiaries, pension amount to be raised from Rs200 to Rs300 per month.
  •  Lump sum grant on the death of primary breadwinner of a BPL family, in the age group 18-64 years, doubled to Rs20,000.
  •  To enhance access under SWAVALAMBAN scheme, LIC appointed as an Aggregator and all Public Sector Banks appointed as Points of Presence (PoP) and Aggregators.
  •  Special grant provided to various universities and academic instiutions.


  •  A provision of Rs1,93,407 crore made for Defence services including Rs79,579 crore for capital expenditure. Any further requirement to be met.
  •  Rs1,185 crore proposed to be allocated for construction of nearly 4,000 residential quarters for Central Armed Police Forces.
  •  Rs3,280 crore proposed to be allocated for construction of office building of Central Armed Police Forces.
  •  Scheme to create National Population Register likely to be completed within next 2 years.


  • Enrolment of 20 crore persons completed under UID mission. Adequate funds to be allocated to complete enrolment of another 40 crore persons.

Black Money

  •  Proposal to lay a White Paper on Black Money in current session of Parliament.

Public Procurement Legislation

  •  Bill regarding Public Procurement Legislation to be introduced in the Budget Session of the Parliament.
  •  Legislative measures for strengthening anti-corruption framework are at various stages of enactment.


  •  Gross Tax Receipts estimated at Rs10,77,612 crore.
  • Net Tax to Centre estimated at Rs7,71,071 crore.
  •  Non-tax Revenue Receipts estimated at Rs1,64,614 crore.
  •  Non-debt Capital Receipts estimated at Rs41,650 crore.
  •  Temporary arrangement to use disinvestment proceeds for capital expenditure in social sector schemes extended for one more year.
  •  Total expenditure for 2012-13 budgeted at Rs14,90,925 crore.
  •  Plan expenditure for 2012-13 at Rs5,21,025 crore is 18 per cent higher than BE 2011-12.  This is higher than 15 per cent projected in Approach to the Twelfth Plan.
  • 99 per cent of the total plan outlay met in the Eleventh Plan.
  •  Non-plan expenditure estimated at Rs9,69,900 crore.
  •  Rs3,65,216 crore estimated to be transferred to States including direct transfers to States and district level implementing agencies.
  •  Entire amount of subsidy is given in cash and not as bonds in lieu of subsidies.
  •  Fiscal deficit at 5.9 per cent of GDP in RE 2011-12.
  •  Fiscal deficit at 5.1 per cent of GDP in BE 2012-13.
  •  Net market borrowing required to finance the deficit to be Rs4.79 lakh crore in 2012-13.
  •  Central Government debt at 45.5 per cent of GDP in 2012-13 as compared to Thirteenth Finance Commission target of 50.5 per cent.
  •  Effective Revenue Deficit to be 1.8 per cent of GDP in 2012-13.



Yebhi Coupons

5 years ago

Whats your view on Gold price,
it will increase or decrease. what should people do buy or sell?

Justin P

6 years ago

Nothing much in this budget for aam adami. Looking forward for next year budget.

kanak vora

6 years ago

not good and not worse
there is nothing for small scale mfg.and traders

Budget effect: Maruti, Honda, M&M to hike prices

"In the short-term, there will be an impact on the demand for the vehicles. However, if the interest rates favourably come down, we may see revival of demand in the auto industry in future," M&M president (Automotive and Farm Equipment Sector) Pawan Goenka said

New Delhi: With an increase in the excise duty on all products in the Budget for 2012-13, car makers like Maruti Suzuki, Mahindra & Mahindra and Honda Siel Cars India will hike prices of their vehicles by up to Rs70,000, reports PTI.

"We are going to raise the prices of all our products and will pass on the entire additional excise duty. Currently we are working on the exact amount of the hike," Maruti Suzuki India managing executive officer (marketing and sales) Mayank Pareek told PTI.

Home-grown auto major Mahindra & Mahindra (M&M) also said it will increase the prices of its entire range of products.

"Given the current economic scenario and the revenue deficit of the country, the hike in excise duty was fully anticipated. Although the industry will not cheer about this, but we have to live with it," Mahindra & Mahindra president (Automotive and Farm Equipment Sector) Pawan Goenka said.

The industry will pass on the entire burden of excise duty to customers, he added.

"The input costs have also gone up in recent times.

Considering this, we will raise the prices of our vehicles by 2%-3%, translating into an increase of Rs6,000 to Rs30,000," Mr Goenka said, adding the exact amount will be fixed in due course of time.

The company will also increase the prices of its tractors by up to Rs5,000 to Rs6,000, he added.

"In the short-term, there will be an impact on the demand for the vehicles. However, if the interest rates favourably come down, we may see revival of demand in the auto industry in future," Mr Goenka said.

Honda Siel Cars India senior vice president (sales and marketing) Jnaneswar Sen said prices of all locally produced cars will be raised.
"We will pass on the entire burden to customers. We are currently evaluating the quantum of increase. In case of small car Brio, it will be around Rs7,000, while the same will be Rs60,000 to Rs70,000 for the luxury sedan Accord," Mr Sen said.

General Motors India vice president P Balendran too said the company will increase the prices of its all vehicles.

"We have not finalised the quantum of increase yet. We are going to pass on the entire hike. This is not a good step for the industry. It will further impact the sales," he added.

Finance minister Pranab Mukherjee today announced raising of excise duty to 12% from 10% at present.

Excise duties for petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres have been increased to 24% from 22% and a fixed duty of Rs15,000.

Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27%, instead of the earlier 22% and a fixed duty of Rs15,000.


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