Mar 19, 2012, 01.50 PM IST | Source: Moneycontrol.com

Budget 2012-13: Highlights, review, sector analysis by Maximus Securities

Maximus Securities has come out with its report on budget 2012- 13.

Maximus Securities has come out with its report on budget 2012- 13.

Highlights of Union Budget 2012-13

  • GDP growth target at 7.6% in FY12-13
  • Fiscal deficit projected at 5.1% of FY12-13 GDP
  • Revenue Deficit projected at 5.3 lakh crores in FY13
  • Net market borrowing seen at 4.7 lakh crore rupees in 2012-13
  • Agriculture growth target at 2.5% in FY13
  • Service growth target 9.4% in FY13
  • Current A/C deficit for FY11-12 is at 3.6% and expect smaller deficit for 2012-13
Following is the sectoral impact of Budget 2012-2013:

Policy Reforms:

  • Hope to achieve broad-based consensus to open multi-brand retail sector to foreign investors
  • Allow external commercial borrowing of up to $1 bn to raise working capital for airlines industry for 1 year
  • To allow qualified foreign investors in Indian corporate debt markets
  • To allow external commercial borrowing to part finance rupee debt in power projects
  • Proposes to remove sector-specific restriction on venture capital fund investments
Infrastructure:

  • Government doubles allocation for tax free bonds to Rs. 60,000 crores for financing infrastructure.
  • Tax free bonds of Rs.10, 000 crores for NHAI.
  • 8,800 km of road projects to be awarded for 2013 against 7,300 km in 2012
Agriculture/ Food Production:

  • Agriculture credit target raised to 5.75 lakh crores
  • Expects country to become self-sufficient in urea production in five years
Education Sector:

  • Proposed an increase in allocation by 21.7 % for Right to Education Sarva Shiksha Abhiyan to Rs 25,555 crores and by 29 per cent for Rashtriya Madhyamik Shiksha Abhiyan to Rs 3,124 crores.
  • To set up a Credit Guarantee Fund to ensure better flow of funds to students.
Housing Finance:

  • To allow ECB for lowcost affordable housing projects or house costing below Rs.25 lakh.
  • Interest Subvention of 1% of loan upto 15 lakhs

To read the full report click here

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