Union Budget 2012-13 Highlights: Union Budget of India 2012-13

Union Budget for the year 2012-13 has presented by Finance minister Pranab Mujherjee on March 16,2012  for the coming financial year. While presenting the 2012-13 budget, Pranab Mujherjee said the growth of the Indian economy, estimated at 6.9 per cent during this fiscal year, was “disappointing”. At the same time, Finance Minister also said that the Indian economy was at the cusp of a revival, as agriculture and services had continued to grow at a decent pace. It was industrial performance that was acting as a drag.

Union Budget 2012-13 Highlights:

Policy Reforms:

  • To allow qualified foreign investors in Indian corporate debt markets
  • To allow external commercial borrowing to part finance rupee debt in power projects
  • Allow external commercial borrowing of up to $1 bln to raise working capital for airlines industry for 1 year

Infrastructural Spending:

  • To award contracts to build 8,800 km of roads in 2012/13
  • Govt to provide 600 billion rupees in tax free bonds for financing infrastructure projects in 2012/13

Growth and Inflation Expectation:

  • Expect headline inflation to moderate in next few months and remain stable thereafter
  • Economy expected to grow at 7.6 percent in 2012/13, plus or minus 0.25 percent
  • Economy expected to grow at 6.9 percent in 2011/12
  • Signs of economy turning around in March quarter


  • Expects country to become self-sufficient in urea production in five years
  • Proposes to raise agricultural credit target in 2012/13 to 5.75 trillion rupees


  • Disinvestment target in 2012-13 of 300 billion rupees


  •  To keep 2012-13 subsidies under 2 per cent of GDP

Current Account:

  •  Current account deficit seen at 3.6 per cent of GDP in 2011-12

Sector Spending:

  • Allocates 1.94 trillion rupees for defence in 2012/13, up from 1.64 trillion rupees in previous year

Fiscal Deficit:

  • Fiscal deficit seen at 5 . 9 percent of GDP in 2011-12
  • Fiscal deficit seen at 5 . 1 percent of GDP in 2012-13


  • Total expenditure in 2012 / 13 seen at 14 . 9 trillion rupees
  • Plan expenditure budgeted at 521.25 billion rupees in 2012/13, up 18 percent


  • Gross tax receipts seen at 10 . 8 trillion rupees in 2012-13
  • Non-tax revenue seen at 1 . 64 trillion rupees in 2012-13

One thought on “Union Budget 2012-13 Highlights: Union Budget of India 2012-13

  1. due to rising prices tax exemption limit is not sufficient.How it is possible to save money. Even a person is unable to suvive in insufficient amounts.At least basic needs should be fulfilled.

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