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.
