With an assurance that there were clear signs of an economic recovery in India, Finance Minister Pranab Mukherjee Friday started presenting what was his seventh federal budget, with a promise to cut subsidies, push investment and recast the entire tax regime.
In his speech in Lok Sabha that started promptly at 11 a.m., the finance minister said the growth of the Indian economy, estimated at 6.9 percent during the current fiscal year was disappointing but that the road ahead appeared reassuring.
At the same time, Mukherjee also said the Indian economy was at the cusp of a revival, as agriculture and services have continued to grow at a decent pace. It was industrial performance that was acting as a drag.
Highlights of the budget for 2012-13 presented by Finance Minister Pranab Mukherjee in the Lok Sabha Friday:
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and serivces continued to perform well; economy is now turning around; recovery in core sectors.
* Allocation of Rs.200 crore for research on climate change.
* Irrigation and water resource company to be operationalised.
* National mission on food processing to be started in cooperation with state governments.
* Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
* Allocation of Rs.14,000 crore for rural water supply and sanitation.
* Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
* Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
* Completion of highway projects 44 percent higher than in previous fiscal.
* External commercial borrowing of up to $1 billion permitted for airline sector.
* External commercial borrowing permitted to low-cost housing sector.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India’s inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India’s inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India’s inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
* Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
* Completion of highway projects 44 percent higher than in previous fiscal.
* External commercial borrowing of up to $1 billion permitted for airline sector.
* External commercial borrowing permitted to low-cost housing sector.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India’s inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
—Agencies