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

Maximus Securities has come out with its report on 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

• 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

• 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

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