Debesh Bhowmik
Finance Minister Pranab Mukherjee has just completed his speech on Indian Annual Budget 2012.I am showing my immediate reaction on the budget.
*The budget has emphasized on the Indian capital market to a new degree on bond, securities, shares, equities and mutual funds.
*It has given more focus on the infrastructure investment by both PPP model and private investment.It is decided to issue infrastructure debt bond.
*It has shown greater attention on Handloom and textiles.
*In the financial market,it has emphasized on Public Sector Banks paying greater attention on priority sector lending and micro financing.
*In agriculture,food security,Climate change ,irrigation,Diary sector,refinancing in RRBs,short term crop loan were shown high interest.
* For Backward Region Development , a fund is created for tribal development and backward districts.
* RTE and RMSA will be funded more this year along with a setting up of Credit Guarantee Fund for poor students.
*Rural health mission and urban health mission are allocated more funds.
*For employment generation,Mahatma Gandhi Rural Employment Guarantee Program,PMGSJ, NRLM,Self helpGroup of Women facility,National Skill Development Fund with Social Assistance Programme have been placed more activisation
*Subsidies are serious problem in Indian Economy.FM tries to under-role it which accounts 2% of GDP.
*Disinvestment will go up to 30000 crore Rupees.
*FD will be 5.1% in this fiscal year which will go up to 7.6% in next fiscal year.
* FDI is accounted to 49% in Airlines and will be functioning in the retail trade also.
* The tax collection will rise up to 15%,on the contrary expenditure will go up by 18%,so does the deficit.
*Personal income Tax slab will be shift from 1.8Lakh to 2.0Lakh and so 10% income tax will be levied on 2.0-5.0 lakh,20% will be levied on the slab 5.0-10.0 lakh and 30% above 10.0Lakh respectively.
*The corporate tax will remain the same.
* Excise and service tax will hike by 12%
* No tax will be imposed on interest income of 10000/
* No advance tax submission in case of senior citizens.
***Price hike will follow on the articles: Sigarette , wine,gutkha,coffee,restaurant bill,consumer durables, Precious metals like,gold,silver,platinum,diamond,luxury goods,big car,coal, cement, TV,LCD,fare of flights,film,phonebill,bicycle,sugar,salt,germents,automobiles,match, a few fertilizers,etc.
*** The budget commits to submit white paper on the black money.
**The budget signs no positive sign on industrial development in the new dimension.
** It has committed 6.9% GDP growth rate.
** It will keep up high GDP growth rate ,low inflation and FD.