Budget 2012-13

Budget estimates 2012 for GDP growth rate is 7.6%. In 2011-12 year GDP growth rate has loss by 5.1%.While seeing Budget three things are more important. They are deficit, revenue and expenditure. Now we explaining 2012 budget broadly on these three things.

Deficit:

Fiscal deficit

Now the budget projects a revised fiscal deficit estimates at 5.9 % of GDP: a slippage of the magnitude of Rs 1,092 billion vis-a-vis the budgeted FY2012 estimates. It decline of Rs 83 billion from the revised estimates FY2012 estimates.

Current account deficit-

The current account deficit as a proportion of GDP for 2011-12 is likely to be around 3.6 per cent.

Trade deficit-

      During April-January 2011-12, exports grew by 23 per cent to reach US Dollar 243 billion, while imports at US Dollar 391 billion recorded a growth of over 29 per cent.

    Revenue-

Direct taxes

Exemption limit for the general category of individual taxpayers proposed to be enhanced from Rs 1, 80,000 to Rs 2, 00,000 giving tax relief of Minimum Rs 2,000.

 Upper limit of 20 per cent tax slab proposed to be raised from Rs 8 lakh to Rs 10 lakh. Proposal to allow individual tax payers, a deduction of up to Rs 10,000 for interest from savings bank accounts. 

 Indirect taxes

Service tax rate raise from 10 per cent to 12 per cent, and it expected to yield additional revenue of Rs 18,660 Crore.

rate of excise duty to be raised from 10 per cent to 12 exemptions.

Disinvestment-

      In 2011-12, as against a target of ` 40,000 crore, the Government will raise about ` 14,000 crore from disinvestment.

 EXPENDITURE

Defense-

      The Defense Budget has been substantially hiked by more than 17 per cent to Rs. 1,93,407 crore from last year’s Rs. 1,64,415 crore.

Subsidies-

     The Government has decided that from 2012-13 subsidies related to food and for administering the Food Security Act will be fully provided for.The expenditure on Central subsidies is restricted to under 2 per cent of GDP in 2012-13. The oil subsidy, which is given to state-run oil marketing firms, such as Indian Oil Corp, BPCL and HPCL, for selling diesel, domestic LPG to households and kerosene through the PDS system, below cost, is estimated lower at Rs 43,580 crore in FY'13, compared to Rs 68,481 crore in this fiscal.

      Subsidy on petroleum products has been reduced by Rs 24,900 crore.

Salaries-

    No major development in the section of salaries in budget.