13 years ago
Finance Minister Pranab Mukherjee speaks to NDTV. Here are the highlights of what he said;
Economic and political situation tough
We had to tackle 2-year-long double digit inflation
Had to take hard decisions
Fuel price hike was unavoidable
Inevitable that petroleum prices may go up
Indirect tax increase may not go beyond 12%
Duty level should discourage smuggling
Improved investment climate, provided low cost borrowing
Review of interest rates in April
Rail Budget details don't come to me; Budget now property of the House
Can't take steps for compulsions of coalition politics
Economic and political situation tough
We had to tackle 2-year-long double digit inflation
Had to take hard decisions
Fuel price hike was unavoidable
Inevitable that petroleum prices may go up
Indirect tax increase may not go beyond 12%
Duty level should discourage smuggling
Improved investment climate, provided low cost borrowing
Review of interest rates in April
Rail Budget details don't come to me; Budget now property of the House
Can't take steps for compulsions of coalition politics
What's getting costlier:
Air Travel
Hotel accommodation
Pan Masala
Air Conditioners
Refrigerators
Cigarettes
Bicycles and parts
Large cars, MUVs, SUV's
Gold
What's getting cheaper:
Mobile phones
Probiotics and Iodine
Specific aviation parts
Specific Life saving drugs
Coal, LNG, Natural Gas
LED Lamps
Branded readymade garments
Soya Products
Salt
LCD, LED panels
Iron Ore
Branded silver jewellery
Air Travel
Hotel accommodation
Pan Masala
Air Conditioners
Refrigerators
Cigarettes
Bicycles and parts
Large cars, MUVs, SUV's
Gold
What's getting cheaper:
Mobile phones
Probiotics and Iodine
Specific aviation parts
Specific Life saving drugs
Coal, LNG, Natural Gas
LED Lamps
Branded readymade garments
Soya Products
Salt
LCD, LED panels
Iron Ore
Branded silver jewellery
PM on Union Budget:
When time comes, have to bite the bullet on subsidies
Budget aims at faster, equitable, inclusive growth
When time comes, have to bite the bullet on subsidies
Budget aims at faster, equitable, inclusive growth
CUSTOMS AND EXCISE DUTIES:
Excise duty hiked to 12% from 10%
Excise duty on large cars raised from 22% to 24%
LCD, LED panels exempted from customs duty
Customs duty on standard gold bar and coins exceeding 99.5 per cent purity, platinum and non-standard gold raised.
Gold jewellery not bearing brand name to be included in the one per cent levy on precious metal jewellery.
Standard excise duty rate raised from 10 per cent to 12 per cent.
Excise duty on handmade and semi-mechanised matches reduced from 10 to 6 per cent.
Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted.
Full exemption from basic customs duty for equipment for road and highway construction.
Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two years.
Import of equipment for fertilizer plants fully exempt from customs duty for three years.
No change in the peak rate customs duty.
Excise duty hiked to 12% from 10%
Excise duty on large cars raised from 22% to 24%
LCD, LED panels exempted from customs duty
Customs duty on standard gold bar and coins exceeding 99.5 per cent purity, platinum and non-standard gold raised.
Gold jewellery not bearing brand name to be included in the one per cent levy on precious metal jewellery.
Standard excise duty rate raised from 10 per cent to 12 per cent.
Excise duty on handmade and semi-mechanised matches reduced from 10 to 6 per cent.
Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted.
Full exemption from basic customs duty for equipment for road and highway construction.
Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two years.
Import of equipment for fertilizer plants fully exempt from customs duty for three years.
No change in the peak rate customs duty.
ON TAXATION:
Individual tax payer exemption limit to be raised to Rs 200,000 from Rs 180,000
Upper limit of 20% tax slab raised from 8 lakhs to 10 lakhs
Deduction of upto 10,000 on interest on Savings Bank Accounts
No change in corporate tax rates
Increased exemption will lead to a basic tax saving of Rs 22,000
No capital gains tax from sale of Property if money is invested in SME
Deduction of up to Rs.10,000 from interest from savings bank accounts.
Service tax raised from 10 per cent to 12 per cent
Withholding tax on power, airlines, road and bridges, ports and shipyard, fertilisers, dams and affordable houses lowered to 5 per cent from 20 per cent for 3 years.
ON TAX SLABS:
Income up to Rs 2 lakh - NIL
Income between Rs 2 lakh to Rs 5 lakh - 10%
Rs 5-10 lakh - 20%
Above Rs 10 lakh - 30 lakh
Individual tax payer exemption limit to be raised to Rs 200,000 from Rs 180,000
Upper limit of 20% tax slab raised from 8 lakhs to 10 lakhs
Deduction of upto 10,000 on interest on Savings Bank Accounts
No change in corporate tax rates
Increased exemption will lead to a basic tax saving of Rs 22,000
No capital gains tax from sale of Property if money is invested in SME
Deduction of up to Rs.10,000 from interest from savings bank accounts.
Service tax raised from 10 per cent to 12 per cent
Withholding tax on power, airlines, road and bridges, ports and shipyard, fertilisers, dams and affordable houses lowered to 5 per cent from 20 per cent for 3 years.
ON TAX SLABS:
Income up to Rs 2 lakh - NIL
Income between Rs 2 lakh to Rs 5 lakh - 10%
Rs 5-10 lakh - 20%
Above Rs 10 lakh - 30 lakh
White Paper on black money to be tabled in current session
Fiscal deficit at 5.9% at revised estimates for FY 12
FY13 - Fiscal deficit estimated to be 5.1 %
FY13 - Fiscal deficit estimated to be 5.1 %
40 crore Aadhar enrollment in year beginning April 2012
Non-plan expenditure for FY13 budgeted at Rs 9.69 lakh crore - the increase is mainly due to spend on subsidies
Interest subvention of 7 pc to women self groups for loans up to Rs 3 lakh, additional 3 pc for those making timely repayment.
Rs 193,407 crore provision made for defence services in 2012-13
Rs 20,000 cr to be spent on rural infrastructure development, including Rs 5,000 cr for creating warehousing facilities.
One per cent loan subsidy on loans upto 15 lakh
Computerisation of PDS for effective implementation of food security bill; operational by Dec 2012
Allocation for rural drinking water, sanitation: Rs14,000 crore
Infrastructure investment in the12th Plan to go up to Rs 50 lakh crore; half of it to come from private sector, PPP model
Allocation for mid-day meals at schools: Rs11,937 crore
Swabhiman campaign for Eastern states
Target for agriculture credit increased to Rs 5,75,000 crore
Aviation FDI: 49% for Foreign Airlines under active consideration.
External commercial borrowings to the extent of USD one billion to be allowed for aviation sector for next year.
External commercial borrowings to the extent of USD one billion to be allowed for aviation sector for next year.
Debt waiver package of Rs 3884 cr for weavers announced
Govt to double tax free bonds for infrastructure financing to Rs 60,000 crore in next FY
8,800-km of highways to be developed under National Highway Development Project in 2012-13
Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from pvt sector
Rs 15,888 cr to be provided for capitalisation of public sector and regional rural banks and NABARD.
Tax free bond limit enhanced to 60,000 to benefit individual taxpayers
First infrastructure debt fund worth Rs 8000 cr established
IPO equity offer above Rs 10 crore will have to be made electronically in capital market reforms.
Rs 15,888 crore for public sector bank recapitalisation
Reforms in capital market: Simplifying IPOs, reach small investors in small towns
New scheme to encourage savings: Rajiv Gandhi equity scheme with IT deduction of 50% and a limit of Rs 50,000 rupees. Lock in period of 3 yrs.
Encourage rapid private investment
Efforts on for consensus with states on FDI in multi-brand retail
Allow qualified foreign investors to access India's bond market
Allow qualified foreign investors to access India's bond market
Direct Tax Code (DTC) Bill to be enacted at the earliest
Pilot project for direct transfer of subsidiary for kerosene has been initiated in Alwar, Rajasthan.
PAN identity for direct, indirect taxes to check tax evasion
Divestment target for next yr - 30,000 cr; 51% control will remain with government
Hoping to raise Rs 14,000 cr through disinvestment in FY12
Hoping to raise Rs 14,000 cr through disinvestment in FY12
Expedite decisions to improve delivery systems to address problems of black money and corruption:
Subsidy for food security will be fully provided for
Restrict expenditure on central subsides to under 2% of GDP in FY 2013
Expect GDP growth next year to be at 7.5 %
Development in external trade encouraging - exports grew by 23%, imports grew by 29%; India has successfully achieved diversification of import and export markets
Trade from Asia, including ASEAN increased from 33.3% to 57.3%
Trade from Asia, including ASEAN increased from 33.3% to 57.3%
Inflation remained high for most part of the year; Expect headline inflation to moderate further in next few months
Slowdown attributed to weak industrial growth
We have to accelerate pace of reforms and improve supply-side management of the economy
India's GDP growth at 6.9% in 2012-13 after a growth of 8.4 % in the past 2 years.
For Indian economy, it was a year of recovery interrupted
We have been able to meet impact of slowdown.
Finance Minister Pranab Mukherjee presents Budget 2012
Pranab Mukherjee set to present Union Budget 2012 shortly.
Bharti Airtel Wishlist:
- Tax structure needs to be simplified
- Need push for investments in Telecom
- Lending norms need to be eased
- Expect reduction in fiscal deficit
Adi Godrej's Wishlist: Tax revenues should rise. Growth Incentives, GST roadmap needed. "Not the time to raise excise duty. Centre needs to take a stand on GST, as it is good for states and centre", he adds.
The BSE Sensex opened in the green ahead of the announcement of the Union Budget. At 0921 hours, the Sensex traded nearly 80 points higher at 17,755 while the Nifty gained over 25 points to take out the 5,400 mark.
Finance Minister Pranab Mukherjee reaches Parliament.
Advent advisory: Expect budget to be positive
Cabinet meeting at 10:15 am today, Finance Minister to brief the Cabinet on budget.
Finance Minister Pranab Mukherjee meets President Pratibha Patil.
Cabinet meet at 10 am in Parliament before the Budget.
DMK Leader and Union Minister of State for Finance SS Palanimanickam will not be with Pranab Mukherjee during the presentation of the Union Budget. For the first time he will be missing the budget presentation as a MoS for Finance. Palanimanickam is away in Sankarankoil in Tamilnadu with DMK Chief M Karunanidhi, campaigning for bye-poll at Sankarankoil constituency.
The Budget would set the ball rolling for initiatives in the 12th Five-Year Plan period (2012-17).
Union Budget comes against the backdrop of slowing economic growth projected to be 6.9 per cent in the current fiscal.
Some more industry expectations:
- The finance ministry may extend tax holiday to 10 years for oil producers and refiners, from 7 years currently.
- Expect government to remove 5 percent import duty on LNG and natural gas.
- IT industry is lobbying for an extension of tax holiday, especially for small and medium firms to cope with pricing pressures and lower margins.
- The IT industry has also asked for reviving tax exemption for units in special economic zones.
- Hospitals and healthcare companies expect extension of tax holiday in Tier-II and III towns to 10 years from 5 years.
- The finance ministry may announce incentives to encourage higher spending on drugs research and development. The government is also likely to raise healthcare spending.
- Import duty on thermal coal may be scrapped to give a boost to power companies.
Following are the industry expectations on the budget for the fiscal year 2012/13 that begins on April 1.
- Retailers are expecting the government to announce a roadmap to open up the supermarket sector to foreign giants such as Wal-Mart and Carrefour, which would help in tie-ups and boost capital inflows.
- Automakers are bracing for a possible tax of up to 80,000 rupees on diesel cars to partially help fuel retailers for selling fuel at below cost. Analysts say if levied, the tax could result in the cost of a diesel car increasing by up to 20 per cent.
- The government is likely to raise the exemption limit on investment in long-term tax-free bonds for infrastructure projects.
- Banks expect a government package for loans given to state electricity boards that are in the red and unable to repay.
- Banks also expect tax breaks on long-term deposits to help address asset-liability mismatch.
- The government may roll back stimulus provided during the 2008/09 crisis, by raising excise duty on non-petroleum products such as cement, consumer goods and cigarettes to 12 percent from 10 percent. Companies are lobbying against it.
- Government may impose 15-25 percent customs duty on select import items, including power equipment to boost local industry.
10 stocks to watch before Mukherjee's speech: Mahindra & Mahindra, ITC, State Bank of India, Larsen & Toubro, Infosys, DLF, India Cements, Hindalco, HPCL, BPCL and IOC, Infrastructure stocks.
Markets have low expectations from this year's Budget and analysts say if the finance minister is able to deliver even on one front - fiscal discipline- the Street would be happy.
