2. Prime focus
To reduce the fiscal deficit.
To achieve growth.
To maintain inflation at tolerable level.
3. Overview of the Economy
GDP growth at 6.9%.
Growth in agriculture at 2.5%.
Growth in industrial activity at 4.5%.
Rate of both savings and investment slowed.
4. Source of Revenue
Direct tax
Customs Duties
Union excise duties
Service tax
Gross Tax Receipt in budget is estimated
Rs.10,77,612 crores.
6. Defense
Defense budget has been given a huge jump from Rs.163000
crore to Rs. 193408 crore.
Capital expenditure will be Rs. 80000 crore.
Defense budget remains at 1.9% of GDP.
7. Healthcare & research
Got 96% hike in budgetary allocation with 30 crore out of
department’s total.
Allocation of Rs. 660 crore for developing tools for prevention
and management of epidemics as against Rs.588.26 crore.
Research on matters related to epidemics, natural calamites
and development tools.
National Urban Health Mission Launched.
8. Education sector
18% hike in the budgetary allocation.
Rs.61427 crore has been allocated.
Of which 29% & 22% are allocated to Rashtriya Madhyamik
Shikhsha Abhiyan (RMSA) and Sarv Shiksha Abhiyan (SSA).
9. Subsidies
Endeavour to keep central subsidies under 2%
Mobile based fertilizer management system.
Petroleum products transparency portals.
Food Security Bill.
10. Cross border
An increase in the 23% of external affairs which Got
Rs.9,661.97 crore.
An increase of Rs.1825.97 crore in ministry of external affairs
including assistance to:-
I. Latin America countries from Rs.0.50 to Rs.15 crore.
II. Bangladesh from Rs.8 to Rs.30 crore
III. Bhutan from Rs.2030 to Rs.2638 crore.
IV. Nepal from Rs.150 to Rs.270 crore.
11. Balance of payment
Huge imports of gold cause strain on the BOP and effect
exchange rate.
India’s gold and silver import during past 11 months stood at
$54.5 billion.
FM has proposed to increase basic custom duty Gold.
12. Foreign Institutional
Investor
Allowed to participate in Bond Market.
Household to save more into financial products.
13. Goods & Services Tax
GST to be applicable by august 2012.
It will benefit for Indian E-commerce as supply chain
management become cost effective.