Maximus Securities has come out with its report on budget 2012- 13.
Highlights of Union Budget 2012-13
Following is the sectoral impact of Budget 2012-2013:
- 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
- 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
Agriculture/ Food Production:
- 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 credit target raised to 5.75 lakh crores
- Expects country to become self-sufficient in urea production in five years
- 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.
- 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