MrPranab Mukherjee has presented the budget keeping in mind the five focus area: Revival of domestic consumption

Achieve an enabling environment for revival of high growth Remove supply bottlenecks Intervene decisively to address malnutrition Expedite improvement in delivery systems and address black money 1. 41440 cr of tax collection. Highest by any FM till date. 2. Fiscal deficit to decrease to 5.1 % (by 8390 cr). Of GDP. Sharp slippage from last years 4.6% commitment. This year it is a realistic non ambitious projection. The high deficit does not leave the RBI to drop interest rates sharply. Hence Revival of private investment and finance backed consumption will suffer. 3. Central excise duty rate to increase from 10% to 12% ro.ling back the booster given to companies post Lehman crisis. To rasie 16910 cr from manufacturing firm. Automobile industry was also not spared excise duty on large passenger car and SUV was increased to 27%. Gold: excise duty from 2% to 4%. Mobile parts 10% to 2 %. Inflation to get a fresh kicker. 4. Service tax increased to 12%. The base was also increased. Additional 18660 cr to be fetched. 5. Income tax concession calculated at 4500 cr. Income bracket of 10 lakh will be the biggest beneficiary this year. Total taxable income if above 20 lakh then you need to pay Minimum alternate Tax. 6. Greater foreign participation in the Indian capital market encouraged. Securities transaction tax decreased by 20%. Foreign investors can access the Indian corporate bond market. Simplified IPO. 7. Disinvestment to be 30000cr from 40000cr projected last year. Last year achieved 13145 cr. Telecom licences to fetch 58,217 cr. 8. Subsidy for petroleum 43580 cr. It was decreased from 68481cr last year. But even that was not sufficient. No clear road map for reduction on petroleum products. GST to function from August 2012. So, the plan should be to have a fixed subsidy for diesel or deregulate it completely. Total subsidy to be 2% of GDP and to be decreased to 1.7% in three years. Nutrient based subsidy was give to phosphates and potassium. PM says we need to go slow on nutrient based subsidy as international price of urea is increasing. 9. GDP Ggowth rate at 7.6% projected. 10. Health checkups to cost less. A plan of 60000 cr from previous years 40000 cr allotted. Also includes health insurance. 11. 60000 cr for infrastructure. 8800 km of highway to be built by NHAI. 12. Agriculture at 20000 cr approx from 17000 cr. 200 cr for research. Difficult for bank to increase 1 lakh cr more from 4.75 lakh cr of agriculture credit. Their non performing assets may bloat. 13. Other facts: a. MPs only clapped for spending in the budget session. (Handloom clusters in Jharkhand and AP, PM Gram Sadak yojna by BJP, Eastern Green Revolution by BJD, Flood management project in Murshidabad, 100 cr to R N Agriculture University, Hyderbad) b. Innovative: Exemption of tax on sale of property if invested on SME is an interesting attempt. c. Central KYC depository aims to resolve duplication of efforts by investor. d. Yaswant Sinha: Gross neglect of defence services. Only increase by 13000 cr which will be subsumed by inflaton. Whereas other expert feel the raise was substantial. Further, the net capital expenditure increased by 48000 cr.(15000 cr to be given to IMF for maintain voting power.) e. Arun Jaitley: Budget has taken us to pre-1991 era: Higher taxes will make us unable to compete with imported goods. f. NREGA: 7000 cr less allocation. April to December 3011 only 32 days of employment was given instead of 100 days. Coalition curbed any major reformist step. Aviation industry to receive 49% FDI and Retail pushed under the carpet.