Union Finance Minister Pranab Mukherjee on 16 March 2012, tabled the union budget in the parliament for the

financial year 2012-13. Mukharjee, who presented the fourth annual budget after he took over as the finance minister in 2008, seemed to focus on the recovery of the domestic economy. The budget 2012-13 aims at achieving the rapid growth for the economy which remained on a downward spiral all through the fiscal year 2011-12. Finance Minister in the budget paid due attention on developing the conditions for economic growth. The budget estimated the Indian economy to grow at 7.6% in the fiscal year 2012-13. Given below are the highlights of the budget 2012-13: Total expenditure in 2012-13 seen at 14.9 trillion rupees, up 29 percent Plan expenditure budgeted at 521.25 billion rupees in 2012-13, up 18 percent Economy expected to grow at 7.6 percent in 2012-13, plus or minus 0.25 percent Income-tax exemption limit raised to 2 lakh rupees from 180000 rupees Fiscal deficit seen at 5.1 percent of GDP in 2012-13 Plan expenditure budgeted at 521.25 billion rupees in 2012-13, up 18 percent Net market borrowing seen at 4.8 trillion rupees in 2012-13 Proposes to raise service tax rate to 12 percent from 10 percent Gross tax receipts seen at 10.8 trillion rupees in 2012-13 Non-tax revenue seen at 1.64 trillion rupees in 2012-13 Proposes to levy tax on all services except 17 items in the negative list from 2012-13 No change in corporate tax rates Allow external commercial borrowing of up to 1 billion dollar to raise working capital for airlines industry for 1 year To allow qualified foreign investors in Indian corporate debt markets To allow external commercial borrowing to part finance rupee debt in power projects Allocates 1.94 trillion rupees for defence in 2012-13, up from 1.64 trillion rupees in previous year To award contracts to build 8800 km of roads in 2012-13 15888 crore rupees to be provided for capitalization of public sector banks and financial institutions Investment in 12th Plan in infrastructure to go upto 5000000 crore rupees; half of this is expected from private sector Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to 25360 crore rupees 5000 crore rupees India Opportunities Venture Fund to help small enterprises Allocation to agriculture enhanced; RKVY gets 9217 crore rupees; BGREI gets 1000 crore rupees;.2242 crore rupees project to improve dairy productivity; 500 crore rupees for coastal aquaculture Target for agricultural credit raised to 575000 crore rupees 200 crore rupees for awards to incentivise agricultural research

 National Mission on Food Processing to be started in cooperation with State Governments Rural drinking water and sanitation gets 27 per cent rise in allocation to 14000 crore rupees; PMGSY gets 20 per cent rise to 24000 crore rupees Right To Education-Sarva Shiksha Abhiyan gets 25555 crore rupees allocation, showing an increase of 21 per cent; 6000 schools to be set up at block level as model schools in the 12th Plan; Credit Guarantee Fund to be set up for better flow of credit to students National Urban Health Mission is being launched 34 per cent increase in allocation to National Rural Livelihood Mission, to 3915 crore rupees 1000 crore rupees allocated for National Skill Development Fund Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month Grant on death of primary breadwinner of a BPL family in the age group 18-64 years doubled to 20000 rupees 4000 residential quarters to be constructed for Central Armed Police Forces Government doubles allocation for tax-free bonds to 600 billion rupees for financing infrastructure projects in 2012-13 Disinvestment target in 2012-13 of 300 billion rupees Expects country to become self-sufficient in urea production in five years Proposes to raise agricultural credit target in 2012-13 to 5.75 trillion rupees To keep 2012-13 subsidies under 2 percent of GDP Current account deficit seen at 3.6 percent of GDP in 2011-12