For the Indian economy, this (FY12) was a year of recovery interrupted, Finance Minister Pranab Mukherjee said while announcing the Union Budget for 2012-13.
"When one year ago, I rose to present the Budget, the challenges were many, but there was a sense that the world economy was on the mend," Mukherjee said.
"The Budget (in 2011) was presented in the first glimmer of hope. But reality turned out to be different," he said.
The sovereign debt crisis in the Eurozone intensified, political turmoil in Middle East injected widespread uncertainty, crude oil prices rose, an earthquake struck Japan and the overall gloom refused to lift, Mukherjee said. India is now at a juncture when it is necessary to take hard decisions, the FM said.
"We have to improve our macroeconomic environment and strengthen domestic growth drivers to sustain high growth in the medium term. We have to accelerate the pace of reforms and improve supply side management of the economy," he said.
The following are some of the key highlights of the Union Budget 2012-13.
- No room for complacency or excuses for poor GDP growth in FY12
- Slowdown in FY12 can be attributed to weakness in industrial sector: FM
- FM: For Indian economy, it was a year of recovery interrupted
- FM: We will be misled if we ignore the realities of the world
- FM says India will have to accelerate economic reforms
- Need to address the problem of Black Money: FM
- Just words not enough, India needs credible road map for growth: FM
- Manufacturing appears to be at the cusp of a revival: FM
- Headline inflation to moderate in next few months: FM
- We have to accelerate pace of reforms and improve supply-side management: FM
- Agriculture and serivces continued to perform well: FM
- Indian economy is now turning around: FM
- Recovery is also seen in core sectors: FM
- Development in external trade encouraging: FM
- Exports grew by 23%, imports grew by 29%: FM
- Expect current account deficit to decrease next year: FM
- India’s GDP is estimated to grow at 6.9% in FY12: FM
- Current account deficit to be at 3.6% of GDP in FY12: FM
- Central subsidies to be kept under 2% of GDP in FY13: FM
- Need to raise tax-GDP ratio for fiscal consolidation: FM
- Decided to fully provide for food subsidy in the budget: FM
- FM targets Rs. 300bn through PSU divestment in FY13
- Efforts on to arrive at consensus with states over FDI in retail: FM
- FM targets GDP growth at 7.6% in FY13
- GST to be operational by August 2012: FM
- FM aims to lower subsidy spend to 1.7% of GDP over next 3 years
- Now at a juncture where we have to take tough decisions to boost growth: FM
- Pilot project for direct transfer of subsidiary for kerosene initiated in Alwar, Rajasthan: FM
- To implement DTC at the earliest: FM
- Food Security Act will be fully provided for: FM
- Govt will continue to hold 51% stake in state owned companies: FM
- To introduce Rajiv Gandhi equity scheme for retail investors: FM
- PAN identity for direct, indirect taxes to check tax evasion: FM
- Budget to provide Rs. 158.88bn for recapitalisation of PSU banks, RRBs: FM
- Govt to include advance pricing in Finance Bill 2012: FM
- To roll out computerized scheme for fertilizer subsidy transfer: FM
- I-T deduction of 50% on investments of up to Rs. 50,000 in savings scheme named after Rajiv Gandhi
- ECB funding for working capital needs of airline
- FDI in aviation under active consideration
- Infrastructure tax-free bond limit enhanced to Rs. 600bn: FM
- Civil aviation cos can borrow up to US$1bn via ECBs for working capital requirements
- 8,800 km national highways to be developed by NHDP: FM
- IPO equity offer above Rs. 100mn to be made electronically: FM
- First infrastructure debt fund worth Rs. 80bn established: FM
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