Additional 3 per cent interest subvention to farmers for promptly repaying their dues.

 

NEW DELHI: The Finance Minister Pranab Mukherjee in his Union Budget 2012-13 speech announced a change in Initial Public offering ( IPO) guidelines to increase participation in small towns. The FM also announced allowing qualified Forifn Institutional Investors (FII) into corporate bonds. A new scheme to boost savings and the launch of Rajiv Gandhi Equity Scheme was also announced. The Finance Minister expects the tax free bonds to raise Rs 60,000 crore in the next financial year as compared to the sanction for Rs 30,000 crore this year. ET comment: FM promises tax incentive for new investors as well as tries to broaden the reach of IPOs. These make sense when you consider that the share of household savings delpoyed in capital markets has come down sharply. But will Indians switch to capital markets without pension and insurance funds being allowed to freely invest in equities, and without sorting out issues like commissions for muitual fund agents. Plus, the big question, as the Survey had pointed out, how will Indians be dissuaded from buying gold?

Allocation for mid-day meals at schools: Rs. 11,937 crore Which is benifit for Rural area students 

*Kisan credit cards can be used at ATMs: Pranab

*Investment in agriculture up by 18%.

*Credit guarantee fund for education loans

*Govt targets Rs 30,000 crore from asset sales

*Govt doubles allocation for tax-free bonds to Rs 60,000 crore for financing infrastructure projects in 2012/13

*6,000 schools proposed to be set up in 12th year plan

*FM announces new equity savings scheme

6000 schools to be set up in the 12th year plan: FM

*Women SHG can avail additional 3% subvention for prompt repayment of loans

*Mahatma Gandhi rural employment scheme has been positive

*India's growth disappointing, but recovering: Pranab

1.Rs. 20,000 crore to be spent on rural infrastructure development, including Rs. 5,000 cr for creating warehousing facilities

2.Govt targets Rs 30,000 crore from asset sales

3.Govt doubles allocation for tax-free bonds to Rs 60,000 crore for financing infrastructure projects in 2012/13

 

THANKYOU ALL FOR UPDATION., BUT I WILL NOT UPDATE YOU.

 

History of Indian Budget

India's first Finance Minister Sir R.K. Shanmugham Chetty, presented the first Finance Budget of independent India on November 26, 1947. Since then, 28 different Union Finance Ministers have been presenting the budget year after year. Initially, major attention was paid towards the agriculture sector but as the economy evolved, the focus shifted from agriculture to other sectors like industrial, financial etc.

During the early the fifties, Indian budget highlights revolved around the public sector and public finance and hence, back then - taxation, inflation, public savings etc were much talked about topics. This trend continued till the finance budget 1985-86.

The change in the approach began with Mr. Manmohan Singh who served as the Union Finance Minister under the leadership of Mr. P.V. Narsimha Rao. Mr. Singh was instrumental in headstarting the new phase of economic liberalization. He reduced the control of Government over public sector units through disinvestment. The liberalization process which he started years back is still followed and is seen in interim budget and Indian budget announcements every year. This year also live union budget 2011 will be announced by Pranab Mukherjee.

Facts Bite

• First Finance Minister: Shanmugham Chetty
• Number of Finance Minister Since Independence: 28
• Maximum Number of Budgets Presented by: Morarji Desai
• Economic Liberalization Started by: Mr. Manmohan Singh ( Finance Minister 1991)
• Current Finance Minister: Mr. Pranab Mukherjee

--No new cases of polio last year: Pranab

-Economy to grow at 7.6% in 2012-13: FM

-Efforts on for consensus on 51% FDI in multi-brand retail

-Rs 1000 cr for National Skill Devpt Fund in FY13 

-Health schemes in urban areas to have higher allocation: Pranab

-A white paper for black money in current session of Parliament to be introduced -budget12

-To introduce new law for micro finance institutions

-Gross taxes estimated at 10.65% of GDP in FY13

 

 

* Rs. 1,93,407 crore provision made for defence services in 2012-13

* 50 mn tonnes of storage capacity being created

* 40 crore Aadhar enrollment in year beginning April 2012

Fiscal deficit at 5.9% in FY 12

1.Tax exemption limit raised to Rs. 2 lakhs

2. Net tax receipts of the Centre in 2011-12 stands at Rs. 7,71,071 crore

3.Income up to 2 lakhs - Nil

Rs. 2-5 lakhs -                    10 per cent
Rs. 5 lakhs -10 lakhs         20 per cent
Rs. 10 lakhs and above     30 per cent

Fiscal deficit for FY12 stand at 5.9%.

NEW SAVINGS SCHEME FOR TAX BENEFIT!

The finance minister said that a new equity-linked savings scheme, named after former prime minister Rajiv Gandhi, will offer income tax deduction of up to 50 per cent for those who invest Rs 50,000 in the stock market. However, only those whose annual income is less than Rs 10 lakh will be eligible for the tax deduction.

In a  bid to increase India's literacy rate the FM proposes to set up 6,000 schools in 12th Five-Year Plan.  Rs 25,555 cr will be allotted for Right to Education in FY13. The FM also cuts interest rates on loans to women self help groupsThe government is considering issuing Resident i cards to all individuals above the age of 18 years to help in e governance procedure. Allocation toward UID will be at Rs 14,232 crore in FY13.

AGRICULTURE

The plan outlay for agriculture has been raised by 18% to Rs 20,208 crore in FY13. Irrigation and dams will be eligible for special funding, says the Finance Minister

The bank index extended gains to more than 2 percent after Pranab Mukherjee said the government will provide nearly Rs 160 billion capital infusion in state-run banks in fiscal year 2013 that starts in April.

The FM proposes  Rs 12,040cr for backward area projects and  Rs 14,000cr for rural drinking water and sanitation in FY13.


Retail stocks rise as the finance minister commits to multi-brand FDI in his budget speech. Shopper's Stop up 3.3%, Pantaloon up 1.5%, Trent rises 1.8%.

Market now slipping off day's highs as no major announcement on subsidy cuts

FM promises tax incentive for new investors. A good move, considering that the share of household savings invested into the stock markets has declined. However, it remains to be seen if this works for the markets. Markets seem to be happy: The Sens*x is at 17,796.19 points, up +120.34 (0.68%), while the NSE Nifty is at 5,423.10  points, up +42.60 (0.79%).

 AVIATION SOPS

The finance minister said that the move to allow foreign airlines to participate direct or indirectly in India being considered actively. The plan to allow foreign airlines to invest up to 49% in domestic airlines is being considered actively too. External commercial borrowings to the extent of $1 billion to be allowed for aviation sector for next year. Aviation sector stocks however remain limp, showing hardly any movement.

Micro-finance Institution Regulation Bill, National Housing Bank Regulation Bill, Bank Regulation Bill and Public Debt Management Bill likely to be passed this session. The finance minister also proposes to recapitalise banks -- rural, urban and argiculture-related banks -- to the extent of Rs 15,000 crores.

11:35 pm: Sens*x at 17858, up 182 points,

Good news for investors: Changes in IPO norms will also be introduced which will increase participation in small towns

The finance minister seeks to bring down subsidies to a level of 1.7% of the GDP over the next three years. He also plans to roll out a computerised scheme for transfer of fertilizer subsidy.

The finance minister assured the Lok Sabha that he plans to implement the Direct Taxes Code "at the earliest". Speaking about the Goods and Services Tax, he said that GST would be operational by August 2012.

The Finance Minister has allotted  Rs 15,888 cr for capitalisation of PSUs.

RETAIL SOPS

Pranab announces sops for new retail investors under the Rajiv Gandhi Equity Scheme. The  Rajiv Gandhi Equity Scheme that is to be introduced will have lock-in period of 3 years - details of which the FM says would be announced in due course.

An Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi has been proposed. Efforts are being made to arrive at broadbased consensus with state governments on allowing FDI in multi-brand retail up to 51 per cent, says FM.


The finance minister seems to have begun on a note that might get the hopes of the industry up a bit. He spoke about reforms, driving up growth, fighting corruption and the menace of black money. He also mentions the need to follow a roadmap that would help the nation arrive at the various checkpoints on time and in a planned manner.So will be bite the bullet and push through the reforms? Let's listen further...

Disinvestment

The FY13 divestment target is pegged at a whooping Rs 30,000 crore, Pranab proposes. The government's stake in PSUs where sell-off is decided would not be less than 51%.

Rate hikes hit growth

The Reserve Bank's hawkish stance has hit India's consumption and growth. The Finance Minister, however, promises lower inflation number and expects to narrow the fiscal deficit gap. The economy has been steadily turning around and manufacturing appears to be on revival, he adds.

India stands tall amidst crisis

Performance this year was disappointing but as compared to peers India was better. Middle East crisis, debt worries in EU have intensified.

The FM says he will focus on five broad issues:

1. Focus on domestic investments and driving up growth

2. Stress on rapid revival in private sector investment.

3. Emphasis on removing supply die bottlenecks in sectors like agriculture, energy, etc.

4. Make timely intervention to address the scrourge of malnutrition in certain disctricts of the country.

5. Expedite coordinated efforts to improve governance, transperancy and address the problem of black money.

At 1110 hrs, the Sens*x is up 82 points at 17,758.28, a gain of 0.47%. The NSE Nifty is up 31 points at 5,401.55, a gain of 0.39%.  The market is keeping its fingers crossed.

 "We have to improve the supply side management of the economy. Mere words are not enough and we need to take some action," says Pranab
Pranab Mukherjee has started presenting the his seventh budget amid a lot of din in Parliament.

This year has been one a year of recovery interupted, Pranab says. Despite global recession, Indian economy has been growing at an impressive pace, says the finance minister.  However he agrees that the global economic crisis has affected India.

Finance Minister Pranab Mukherjee has already arrived in Parliament and is ready to present his Budget. Of course, he stopped over at the Rashtrapati Bhavan to meet President Pratibha Patil

Meanwhile, the stock market is waiting with bated breath for the FM’s budget proposals. The Sens*x at 10.48 am is at 17,745.59 points, up +69.74 (0.39%), while the NSE Nifty is at 5,409.10 points, up +28.60 (0.53%). So what can the FM do?  Will he give a push to the reforms process? Or will he make this one a populist budget given the trouble that the UPA-2 finds itself in today?

TAX RATES TO GO UP?

News reports suggest that the finance minister could increase the income tax exemptions available to the common man, but others speculate that the tax rates could even be hiked.

For those of you who are wondering what this Budget is all about and how it's important to you. Click here

Even as the General Budget is to be presented in just a couple of minutes, the drama over the Railway Budget continues. Also, the DMK MPs too are absent and are not attending Parliament. Apparently, they are readying for the by-polls.

 

The Budget will be presented against a backdrop of slowing economic growth and a soaring fiscal deficit. GDP growth for fiscal year 2011-12 is expected to be at a mere 6.8 per cent, the lowest in three years.

No Change in Corporate Tax

*Managed to meet 99% of total 11th Plan Outlay

*Markets reacting negatively to Budget speech: Sens*x up only 15 points; Losses in RIL, Tata Motors.

*Budget 2012: Fiscal balance has deteriorated

*FY12 fiscal deficit at 5.9%

*Govt is serious in tackling the menace of the black money. Special cells to be set up to track black money, says Pranab.

*Subsidy of 1% on loans up to Rs 15 lakh: Pranab

*Exemption limit for direct taxes increased to Rs 2lakh from Rs 1.8 lakh in FY13

*GST network rollout from Aug 2012 positive for retail sector

*Income above Rs 10 lakh to be taxed at 30%

*No change in corporate tax

1.Exemption from interest from savings bank account up to Rs. 10,000

2.No change in corporate tax rate

-Senior citizens to be exempt from advance tax payments

_Health insurance deduction upto Rs 5000 for preventive health checkup

New tax slabs

upto 2 lac : NIl ; 2-5 lac : 10%; 5-10 lac : 20%; above 10 lac : 30%

-Remove cascading effect of dividend distribution tax

-Withholding tax on ECBs for some sectors cut to 5% from 20%

-Remove cascading effect of dividend distribution tax

-STT cut from 0.125% to 0.1%

-Direct tax proposals to cause net revenue loss of Rs 4,500 cr