Pdf Finance Budget 2012 13 - Financial Business

The PDF document likely refers to the Union Budget of India for the fiscal year 2012-2013, presented by the then Finance Minister Pranab Mukherjee. This budget was formulated against a backdrop of slowing economic growth, rising inflation, and global uncertainty stemming from the Eurozone crisis.

A central focus of the 2012-13 budget was fiscal consolidation. The government aimed to reduce the fiscal deficit, primarily by controlling expenditure and increasing revenue. Measures proposed included rationalizing subsidies, particularly on petroleum products, and improving tax administration. However, achieving these targets proved challenging due to factors like lower-than-anticipated economic growth and persistent inflationary pressures.

The budget allocated significant resources to infrastructure development, recognizing its crucial role in driving economic growth. Investments were proposed in areas like roads, railways, and power. Public-Private Partnerships (PPPs) were encouraged to leverage private sector expertise and capital. The budget also focused on promoting agricultural growth through enhanced credit availability, improved irrigation facilities, and support for agricultural research. It aimed to improve food security and empower rural communities.

Addressing inflation, especially food inflation, was another priority. Measures included improving supply chain management, reducing wastage of agricultural produce, and strengthening the Public Distribution System (PDS). The budget also proposed steps to encourage domestic production of pulses and oilseeds to reduce reliance on imports.

Social sector schemes received continued attention. The budget allocated funds to programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Sarva Shiksha Abhiyan, and the National Rural Health Mission. These programs aimed to provide employment opportunities, improve access to education, and enhance healthcare services, particularly in rural areas. Furthermore, there was a focus on skill development initiatives to enhance the employability of the youth.

In terms of taxation, the budget proposed changes in both direct and indirect taxes. There were adjustments to income tax slabs and corporate tax rates. Service tax rates were also revised. The introduction of the Goods and Services Tax (GST) was still under consideration at that time, and the budget reiterated the government’s commitment to its implementation. The aim was to simplify the tax system, reduce tax evasion, and increase revenue collection.

The budget received mixed reactions. While some lauded the government’s efforts to address fiscal consolidation and promote infrastructure development, others criticized the lack of bold reforms and the slow pace of implementation. Concerns were raised about the impact of rising fuel prices on inflation and the burden on the common man. Overall, the 2012-13 budget aimed to strike a balance between promoting economic growth, controlling inflation, and addressing social sector needs, but faced challenges in achieving all its objectives given the prevailing economic conditions.