Here are the highlights of Kaushik Basu’s last economic survey as Chief Economic Adviser:
1. The rate of growth this fiscal is estimated to be 6.9 percent. Outlook for growth and stability is promising with real GDP growth expected to pick up to 7.6 percent in 2012-13 and 8.6 percent in 2013-14.
2. Industrial growth pegged at 4-5 percent is expected to improve as economic recovery resumes. Reuters
3. Agriculture and services sectors continue to perform well. A 2.5 percent growth in the agri sector has been forecast and even as the services sector grows by 9.4 percent, its share in GDP goes up to 59 percent.
4. Industrial growth pegged at 4-5 percent is expected to improve as economic recovery resumes.
5. Inflation on wholesale price index (WPI) was high but showed a clear slow down by the year-end; this is likely to spur investment activities leading to positive impact on growth.
6. WPI food inflation dropped from 20.2 percent in February 2010 to 1.6 percent in January 2012; calibrated steps initiated to rein-in inflation on top priority.
7. India remains among the fastest growing economies of the world. The country’s sovereign credit rating rose by a substantial 2.98 percent in 2007-12.
8. Fiscal consolidation is on track — savings and capital formation are expected to rise.
9. Exports grew at 40.5 percent in the first half of this fiscal and imports grew by 30.4 percent. Foreign trade performance to remain a key driver of growth. Forex reserves enhanced — covering nearly the entire external debt stock.
10. Central spending on social services goes up to 18.5 percent this fiscal from 13.4 percent in 2006-07.
11. MNREGA coverage increases to 5.49 crore households in 2010-11.
12. Sustainable development and climate change concerns on high priority.
Saturday, March 17, 2012
Friday, March 16, 2012
railway budget 2012 highlights
Rail Budget 2012 highlights presented by Dinesh Trivedi:-
1. Passenger fares to be hiked by 2 paise per km for suburban and ordinary second class travel; 3 paise per km for mail/ express second class; 5 paise per km for sleeper class; 10 paise per km for AC chair car/AC 3-tier and First Class; 15 paise per km for AC 2-tier and 30 paise per km for AC 1-tier.
2. Minimum fare and platform tickets to cost Rs 5.
3. 75 new Express trains to be introduced, along with 21 new passenger services, nine DEMU services and 8 MEMU services trains.
4. Route of 39 trains to be extended and frequency of 23 trains to be increased.
5. Railways to hire more than one lakh employees in 2012-13; 80,000 persons hired last year.
6. Indian Railways Stations Development Corp to be set up to re-develop stations and maintain them like airports.
7. To set up an independent Railway Safety Authority as a statutory body.
8. The open discharge toilets on trains to be replaced with green (bio) toilets.
9. All unmanned level crossings to be abolished in next five years; To target zero deaths due to rail accidents.
10. To provide rail connectivity to neighbouring countries, a new line from Agartala to Akura in Bangladesh to be set up.
11. Double-decker container trains to be introduced.
12. Steps to improve cleanliness and hygiene on trains and stations within six months. A special house keeping body to be set up to take care of both stations and trains.
13. New passenger services include escalators at major stations, alternative train accommodation for wait-listed passengers, laundry services, AC lounges, coin/currency operated ticket vending machines.
14. Two new members, one for marketing, and other for safety, to be inducted into Railway Board.
15. On board passenger displays indicating next halt station and expected arrival time to be introduced.
16. Introduction of regional cuisine; Book-a-meal scheme to provide meals through SMS or email.
17. Specially designed coaches for differently-abled persons to be provided in each Mail/Express trains.
18. Railway Tariff Regulatory Authority to be considered.
19. National High Speed Rail Authority to be set up; Pre-feasibility studies on six high speed corridors completed; study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in 2012-13.
20. Wellness programme for railway staff at work places.
21. Institution of ‘Rail Khel Ratna’ Award for 10 rail sportspersons every year.
22. A wagon factory at Sitapali, Odisha, rail coach factory at Palakkad, two additional new coach manufacturing units in Kutch (Gujarat) and Kolar (Karnataka); component factory at Shyamnagar (West Bengal); new coaching terminal at Naihati, the birth place of Bankim Chandra Chattopadhyay.
23. Freight loading of 1,025 MT targeted; 55 MT more than 2011—12; Passenger growth targeted at 5.4 per cent.
24. Passenger earnings to increase to Rs 36,200 crore.
25. Gross rail traffic targeted to increase by Rs 28,635 crore to Rs 1,32,552 crore in 2012—13.
Budget 2012-13
Highlights of Union Budget 2012-13:-
1. Income tax exemption limit raised to Rs.2 lakh to provide relief of Rs.2,000 for all assessees; 20 per cent tax on income over Rs.10 lakh, up from Rs.8 lakh.
2. Deduction of up to Rs.10,000 from interest from savings bank accounts.
3. Defence to get Rs.1.93 lakh crore during 2012-13.
4. Service tax rate raised from 10 per cent to 12 per cent to bring in Rs.18,660 crore.
5. Number of proactive steps taken on black money (stashed away abroad); information has started flowing in, prosecution to be initiated; White Paper in current session.
6. No change in corporate taxes but measures to enable them better access funds.
7. Withholding tax on external commercial borrowings reduced from 20 per cent to five per cent for power, airlines, roads, bridges, affordable houses and fertiliser sectors.
8. National Skill Development Fund allocated Rs.1,000 crore.
9. Four thousand residential quarters to be constructed for paramilitary forces with an allocation of Rs.1,185 crore.
10. National Population Register to be completed in two years.
11. Excise duty raised from 10 to 12 per cent.
12. Cinema industry exempted from service tax.
13. Branded silver jewellery fully exempt from excise duty.
14. Customs duty on warning systems/track upgrade equipment for railways reduced from 10 per cent to 7.5 per cent.
15. Import duty on equipment for iron ore mining reduced from 7.5 to 2.5 per cent.
16. Allocation of Rs.200 crore for research on climate change.
17. Irrigation and water resource company to be operationalised.
18. National mission on food processing to be started in cooperation with state governments.
19. Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
20. Allocation of Rs.14,000 crore for rural water supply and sanitation.
21. Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
22. Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
23. Completion of highway projects 44 per cent higher than in previous fiscal.
24. External commercial borrowing of up to $1 billion permitted for airline sector.
25. External commercial borrowings permitted to low-cost housing sector.
26. From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
27. Hope to raise Rs.30,000 crore from disinvestments.
28. New equity savings scheme to provide for income tax deduction of 50 per cent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
29. Corporate market reforms to be initiated.
30. Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
31. Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
32. India's inflation structural, driven largely by agricultural constraints.
33. Current account deficit 3.6 per cent in 2011-12; this put pressure on exchange rate.
34. Growth in 2012-13 estimated at 7.6 per cent; expect inflation to be lower.
35. Better monitoring of expenditure on government schemes.
36. Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
37. GDP growth in 2011-12 estimated at 6.9 per cent; had to battle double digit inflation for two years.
38. Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
39. Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
1. Income tax exemption limit raised to Rs.2 lakh to provide relief of Rs.2,000 for all assessees; 20 per cent tax on income over Rs.10 lakh, up from Rs.8 lakh.
2. Deduction of up to Rs.10,000 from interest from savings bank accounts.
3. Defence to get Rs.1.93 lakh crore during 2012-13.
4. Service tax rate raised from 10 per cent to 12 per cent to bring in Rs.18,660 crore.
5. Number of proactive steps taken on black money (stashed away abroad); information has started flowing in, prosecution to be initiated; White Paper in current session.
6. No change in corporate taxes but measures to enable them better access funds.
7. Withholding tax on external commercial borrowings reduced from 20 per cent to five per cent for power, airlines, roads, bridges, affordable houses and fertiliser sectors.
8. National Skill Development Fund allocated Rs.1,000 crore.
9. Four thousand residential quarters to be constructed for paramilitary forces with an allocation of Rs.1,185 crore.
10. National Population Register to be completed in two years.
11. Excise duty raised from 10 to 12 per cent.
12. Cinema industry exempted from service tax.
13. Branded silver jewellery fully exempt from excise duty.
14. Customs duty on warning systems/track upgrade equipment for railways reduced from 10 per cent to 7.5 per cent.
15. Import duty on equipment for iron ore mining reduced from 7.5 to 2.5 per cent.
16. Allocation of Rs.200 crore for research on climate change.
17. Irrigation and water resource company to be operationalised.
18. National mission on food processing to be started in cooperation with state governments.
19. Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
20. Allocation of Rs.14,000 crore for rural water supply and sanitation.
21. Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
22. Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
23. Completion of highway projects 44 per cent higher than in previous fiscal.
24. External commercial borrowing of up to $1 billion permitted for airline sector.
25. External commercial borrowings permitted to low-cost housing sector.
26. From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
27. Hope to raise Rs.30,000 crore from disinvestments.
28. New equity savings scheme to provide for income tax deduction of 50 per cent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
29. Corporate market reforms to be initiated.
30. Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
31. Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
32. India's inflation structural, driven largely by agricultural constraints.
33. Current account deficit 3.6 per cent in 2011-12; this put pressure on exchange rate.
34. Growth in 2012-13 estimated at 7.6 per cent; expect inflation to be lower.
35. Better monitoring of expenditure on government schemes.
36. Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
37. GDP growth in 2011-12 estimated at 6.9 per cent; had to battle double digit inflation for two years.
38. Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
39. Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
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