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Borrowing

1. Net market borrowing required to finance the deficit to be 4.79 lakh crore in 2012- 2013, up from 3.43 trillion rupees in 2011-12. 2. Gross market borrowing for 2012-13 seen at 5.70 trillion rupees

Policy Reforms
1. Efforts to arrive at a broad based consensus in consultation with the State Governments in respect of decision to allow FDI in multi-brand retail upto 51 per cent.FDI policy being liberalized. 2. Provision regarding implementation of Advance Pricing Agreement to be introduced in Finance Bill, 2012Food security bill to be introduced this year 3. Rajiv Gandhi Equity Saving Scheme to allow for income tax deduction of 50 per cent to new retail investors, who invest upto 50,000 directly in equities and whose annual income is below 10 lakh to be introduced. The scheme will have a lock-in period of 3 years. 4. Official amendment to The Pension Fund Regulatory and Development Authority Bill, 2011, The Banking Laws (Amendment) Bill, 2011 and The Insurance Law (Amendment) Bill, 2008 to be introduced. 5. Setting up independent debt management office; Public debt bill to be introduced in parliament soon to protect the financial health of Public Sector Banks and Financial Institutions 15,888 crore proposed to be provided for capitalization. 6. A central Know Your Customer depository to be developed in 2012-13 7. During Twelfth Plan period, investment in infrastructure to go up to 50 lakh crore with half of this, expected from private sector.

Sector Spending
1. To allocate more than 1.93 trillion rupees to defense sector in 2012-13 2. Corpus of rural infrastructure development fund raised to 200 billion rupees in 2012-13 3. For 2012-13, 25,555 crore provided for RTE-SSA (Sarva Shiksha Abhiyan) representing an increase of 21.7 per cent over 2011-12. 4. Allocation for NRHM (Health) proposed to be increased from 18,115 crore in 2011-12 to 20,822 crore in 2012-13. 5. Mahatma Gandhi National Rural Employment Guarantee Scheme wage rates linked to consumer price index; will rise from existing Rs.100 per day. 6. Increased outlay on social sector schemes.

7. Infrastructure critical for development; 23 percent higher allocation in 2011-12.

Agriculture
1) Plan Outlay for Department of Agriculture and Co-operation increased by 18 percent. 2) Outlay for Rashtriya Krishi Vikas Yojana (RKVY) increased to `9,217 crore in 2012-13. 3) Initiative of Bringing Green Revolution to Eastern India (BGREI) has resulted in increased production and productivity of paddy. Allocation for the scheme increased to `1,000 crore in 2012-13 from `400 crore in 2011-12. 4) 300 crore to Vidarbha Intensified Irrigation Development Programme under RKVY. 5) Remaining activities to be merged into following missions in Twelfth Plan: National Food Security Mission National Mission on Sustainable Agriculture including Micro Irrigation National Mission on Oilseeds and Oil Palm National Mission on Agricultural Extension and Technology National Horticultural Mission 6) Target for agricultural credit raised by 1,00,000 crore to 5,75,000 crore in 2012-13. 7) A sum of 200 crore set aside for incentivising research with rewards.

There has been very good number of policies which will foster growth in many sectors like Banking, Infrastructure, Agriculture etc. But considering the present global scenario some short run fiscal adjustments are required which will keep the growth story of Indian economy intact. Furthermore, government need to make some expenditure adjustments, such as cutting or overhauling poorly designed subsidies, and at least improving the efficiency of government expenditures. Government also need to take some steps that can be taken to enhance revenues while simultaneously cutting distortions in the tax system, including improving the efficiency of tax collection.

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