The Government of India’s Financial Statement (Union Budget) 2012-13

Submitted by:Bikram shaw Roll no:-11202247 Section:-‘D’ MBA-1

which help the industry to grow and service tax has been reduced and corporate tax remains unchanged. The budget is mainly emphasis on Infrustacture.6 percent of GDP mainly on account of higher subsidy burden. 5) Expansion of venture capital. capital market reform. Above Rs 10 lakh: 30%. According to Pranab this budget for growth and sustainability but some economist as well as some politician think that it is not a satisfactory budget for this year. There are signs of recovery in coal. Currently. 3) Tax free infra bonds: The finance minister has proposed to allow tax free bonds of Rs 60. which will not be subject to service tax. The revision in tax slabs will give some direct tax relief to individuals. it can be concluded that it is a pragmatic and tolerable budget for the year 2012-13. 5) Subsidies at 2% of GDP: Fiscal deficit overshot the projected 4. only 107 specified services are taxed. much higher than 4.9% this year. The global crisis has affected the India’s gross domestic product (GDP) which indirectly affect in Union 2011-13 budget of India. air travel.1 percent. 4) Increase in agricultural credit. Pranab mukherjee. which is double the Rs 30. even as eating out.1% of the GDP: Fiscal deficit for 2011-12 rose to 5. 3) Allocation of divestment proceeds. Direct tax payer get relief from exemption limit. cement and electricity sectors. From Rs 5 lakh to 10 lakh: 20%. 2) Growth projection at 7. buying luxury cars. Five best: 1) Negative list for services: The budget has introduced a negative list of services. fertiliser.000 crore to be issued by various government undertakings. So. The new tax slabs are as follows: Up to Rs 2 lakh: No tax. This will give a boost to the infrastructure sector that has been reeling under high interest rates and policy paralysis 4) Foreign borrowings for low-cost housing: External commercial borrowings permitted to low-cost housing sector. According to my point of view there are the five best and five worst announcements in this year’s budget. availing some professional services and investing in gold jewellery will become costlier. Five worst: 1) Fiscal deficit at 5.000 crore assigned in the year 2011-2012. External commercial borrowing of up to $1 billion permitted for airline sector.9 percent.Union budget 2012-13 of India is pragmatic and credible budget revealed by honourable finance minister Mr. Again there are given libertilisation in FDI in aviation sector. There is no roadmap for this ambitious target. Next year’s projection is 5.6 per cent promised last year.6%: Analysts said this is an ambitious target considering that the Indian economy is likely to grow by only 6. All the rest will be taxed. . From Rs 2 lakh to 5 lakh: 10%. Analysts had expected the deficit to be below 5%.000 from Rs 1. Pranab Mukherjee raised the exemption limit for income tax by just Rs 20. Reducing subsidies will help contain fiscal deficit. 80000 to Rs 2 lakh. 2) Raises exemption limit for income tax payment.

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