Union Budget 2012 Live Update

The Union Budget has just started – Aam Juntaa has lot of expectations from this Budget, especially the tax slabs. Lets see what our Finance Minister Mr. Pranab Mukherjee have in store for us.

We at Trak.in will be covering as it happens….Here it is:

11:10 am: Finance Minister Pranab Mukherjee begins his Union Budget 2012 speech in Parliament.

11:15 am: Pranab’da reiterates Economic Survey’s projection of India’s GDP growth for FY12 at 6.9% and 7.6% at FY13.

11:20 am: FM #Pranab Mukherjee quips that Average price of Crude in 2012 likely to exceed $115/barrel in his #Budget2012 speech. That certainly points towards hard times for Indian OMC firms.

11:25 am: Pranab Mukherjee announces to fully provide for Food Subsidy in Budget. Central Subsidies to be under 2% of GDP. This is a good step towards bringing such expenses to planning books.

11.30 am: FM says that GST to be operational by August 2012. It has been long delayed, it won’t be too bad if he feels that the political consensus could be reach as soon as that.

11.35 am: Finance Minsiter sets 2012-13 Disinvestment target at Rs.30,000 crore.  This govt has failed miserably in achieving its FY12 disinvestment targets. Finally, it scraped through with last minute ONGC auction.

11:40 am: Pranab Mukherjee proposes to Rs.15,888 crore for Bank Recapitalisation.  Didn’t it fail miserably in recapitalise SBI in FY12? Consequently, the country’s premier public sector bank got its standalone debt downgraded by rating agencies.

11.45am: FM has announced Income Tax deducation of 50% on Investment of up to Rs.50,000 in Savings Scheme named after Rajiv Gandhi.

11:47 am:  Govt will make Telecom towers eligible for viability gap funding. Irrigation and dam to be eligible for special funding. This is good news, but the big question is – how much of it will actually reach the ground level status?

11:50 am: FM has stated in his Budget 2012 speech that more tax-free infra bonds are on way & increase in investments in infra sector via PPP. Tax-free Infra bonds doubled to Rs.60,000 crore.

11:55 am: This is Big – Govt allowed FDI of upto 49% by Foreign Airlines. Ariline stocks listening? Weren;t they waiting for this since long?

 11:57 am: Pranab Mukherjee announces to make 8,800 km of highways in FY13; outlay raised. 7,300 km of road project awarded in FY12. That’s about road infrastructure.

12:00 noon: Finance Minsiter’s Budget 2012 speech says that govt will allow allow Rs 10,000 cr tax free bonds for power sector. Well, is that all for the long-ailing power sector?

12:05 pm: 6,000 schools have been proposed to be set up in 12th Year Plan in Budget 2012. Looking at the way donation mess has increased in this new era, this could prove little helpful.

12.:10pm: Market News: STT cut by 20% to 0.1% for delivery trades. This is good & long-awaited news for traders and investors, for sure.

12:15 pm: Another High Impact Announcement in Budget 2012 – Overall service taxes raised to 12 percent. Services account for 59 percent of the India’s GDP.

12:20 pm: Most awaited number: Fiscal deficit at 5.9% – way above 2011-12 budget estimate. Next year’s figure is pegged at 5.1 percent.

12:25 pm: What really interests you as an individual is tax-slabs and exemption limits, isn’t it? Let’s see what FM had in store for you this Budget season:

• ‘NO TAX’ for income below Rs.2 Lakh
• 10% for taxable income of Rs.2-5 Lakh
• 20% tax slab for income in the range of Rs.5-10 Lakh &
• 30% tax bracket for above Rs.10 lakh taxable income.

12:30 pm: Case Neutral – No change in Corporate taxes. Dear Industrialists, did you expect this status quo from the FM?

12.:35 pm: Excise Duty to be raised to 12% from 10% for FY13, says FM. Inflation !! Inflation !!… Are you listening?

12:40 pm: Dear FM, from where will source all this deficit gap from? Duty on Large cars raised by as much as 27% in Budget 2012.

12:45 pm: FM increases Customs duty on precious metals like Gold and Platinum products in Budget 2012.

12:50 pm: Rs.10000 crores allocated to NABARD to fund RRBs in Union Budget 2012 presented by the Finance Minsiter today.

12:55 pm: Mid-Day meal scheme allocated 11937 crore. Rural drinking water and satiation allocated 14000 crore.

01:00 pm: Interest subvention of additional 3% on loans upto Rs 3 lakhs to women-SHGs – effective rate of 4%.

01:05 pm: FM says, 14 crore AADHAR numbers generated, the scheme is ready for payments under MGNERGA, pension scheme. Well done, Mr Nilekani…!!