few sectors only

1. A critical analysis of the union budget

3. Key facts:
 GDP growth is 6.9 per cent in real terms in 2011-12.
 Fiscal deficit at 5.9 per cent of GDP in RE 2011-12.
 Y-O-Y Inflation rate has came down to 9.1%.
 Sectoral share: manufacturing 27%, service 59% and
agriculture and allied 14%
 food grains production for the year 2010-11 is 244.78 mn
tones.

5. BUDGET OVERVIEW:
Revenue: (in cr.)
Tax Receipt : 771071
Non Tax Receipt : 164614
Total revenue Receipt : 935685
Capital Receipt : 41650
(11650+30000)
Total receipt : 977335
Expenditure: (in cr.)
planned expenditure : 521025
non planed expenditure : 969900
total expenditure : 1490925
Fiscal deficit: (in cr.) : 513590 (5.1%)

6. BUDGET HIGHLITHES:
 Income tax exemption limit raised to Rs.2 lakh
 Defence to get Rs.1.93 lakh crore
 Excise duty and Service tax rate raised from 10 per
cent to 12 per cent.
 Number of proactive steps taken on black money .
 Allocation of Rs.14,000 crore for rural water supply
and sanitation.

7. Continued……………,
 Infrastructure sector is given with great importance.
 External commercial borrowing
 Hope to raise Rs.30,000 crore from disinvestments.
 agriculture and services continued to perform well.
 Rajiv Gandhi Equity Savings scheme is proposed.

8. INFRASTRICTURE:

9. Key Highlights:
 investment in infrastructure to Amount to 50
Sector go up
NHAI 10000
lakh crore
IRFC 10000
 Tax free bonds worth Rs.60000 crores is to
IIFCL 10000
be allowed.
HUDCO 5000
NATIONAL HOUSING BOARD 5000
 Initiatives to public private partnerships
SIDBI 5000
(PPP).
PORT 5000
 First Infrastructure Debt Fund with an initial
POWER SECTOR 10000
size of 8,000 crore launched

10. AGRICULTURE:

11. Key Highlights:
 agricultural credit increased in 2012-13 to Rs.
5,75,000 crore.
 interest subvention scheme for providing short
term crop loans to farmers at 7% interest P.A.
 Allocation of Rs. 10,000 crore to NABARD for
refinancing the Regional Rural Banks.
 Transforming KCC into smart cards
 Reduction in custom duty from 7.5% to 2.5% in
agriculture and related sectors.

12. Conclusion:
The Union Budget 2012-13 tries to give a more realistic
picture of India government’s fiscal position.
However, just like previous budget some questions still
remain on subsidies. Major subsidies for 2012-13 imply a
decline of 14% from 2011-12. All the major subsidies are
pegged to be lower compared to 2011-12 except food
subsidy. Even in food subsidy the rise is a marginal 3%
considering Food Security Act is to be implemented this
year. Hence, there could again be some issues on subsidy
front.

13. Thank You
"Mistakes are the portals of
Discovery."
- James Joyce
SHIVADEVA SWAMY SHISHIR ARYAL SANDEEP KUMAR S