Highlights of Union Budget 2013-14

Union Budget 2013 Highlights

India must make tough spending choices, finance minister P Chidambaram said on 28 February, 2013, even as he unveiled a bigger-than-expected outlay for the coming fiscal year in one of the most highly anticipated Indian budgets of recent years.

Following are highlights of the Budget:

FISCAL DEFICIT
● Fiscal deficit seen at 5.2 point of GDP in 2012/13
● Fiscal deficit seen at 4.8 point of GDP in 2013/14
● Faced with huge fiscal deficit, India had no choice but to rationalize expenditure

BORROWING
● Gross market borrowing seen at 6.29 trillion rupees in 2013/14
● Net market borrowing seen at 4.84 trillion rupees in 2013/14
● Short-term borrowing seen at 198.44 billion rupees in 2013/14
● To buy back 500 billion rupees worth of bonds in 2013/14

SUBSIDIES
● 2013/14 major subsidies bill estimated at 2.48 trillion rupees from 1.82 trillion rupees
● Petroleum subsidy seen at 650 billion rupees in 2013/14
● Revised petroleum subsidy for 2012/13 at 968.8 billion rupees
● Estimated 900 billion rupees spending on food subsidies in 2013/14
● Revised food subsidies at 850 billion rupees in 2012/13
● Revised 2012/13 fertiliser subsidy at 659.7 billion rupees

GROWTH
● India faces challenge of getting back to its potential growth rate of 8 point
● India must unhesitatingly embrace growth as highest goal

SPENDING
● Total budget expenditure seen at 16.65 trillion rupees in 2013/14
● Non-plan expenditure estimated at about 11.1 trillion rupees in 2013/14
● India's 2013/14 plan expenditure seen at 5.55 trillion rupees
● Revised estimate for total expenditure is 14.3 trillion rupees in 2012/13, which is 96 point of budget estimate
● Set aside 100 billion rupees towards spending on food subsidies in 2013/14

REVENUE
● Expect 133 billion rupees through direct tax proposals in 2013/14
● Expect 47 billion rupees through indirect tax proposals in 2013/14
● Target 558.14 billion rupees from stake sales in state-run firms in 2013/14
● Expect revenue of 408.5 bln rupees from airwave surcharges, auction of telecom spectrum, licence fees in 2013/14

CURRENT ACCOUNT DEFICIT
● India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit

INFLATION
● Food inflation is worrying, will take all steps to augment supply side

TAX
● Proposes surcharge of 10 point on rich taxpayers with annual income of more than 10 million rupees a year
● To increase surcharge to 10 point on domestic companies with annual income of more than 100 million rupees
● For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 pct to 5 per cent.
● To continue 15 point tax concession on dividend received by India companies from foreign units for one more year
● Propose to impose withholding tax of 20 point on profit distribution to shareholders
● Amnesty on service tax non-compliance from 2007
● 10 billion rupees for first installment of balance of GST (Goods and Services Tax) payment
● Propose to reduce securities transaction tax on equity futures to 0.01 point from 0.017 point
● Time to introduce commodities transaction tax (CTT)
● CTT on non-agriculture futures contracts at 0.01 point

CORPORATE SECTOR AND MARKETS
● To issue inflation-indexed bonds
● Proposes capital allowance of 15 point to companies on investments of more than 1 billion rupees
● Foreign institutional investors (FIIs) can use investments in corporate, government bonds as collateral to meet margin requirements
● Insurance, provident funds can trade directly in debt segments of stock exchanges
● FIIs can hedge forex exposure through exchange-traded derivatives
● Investor with less than 10 point stake in a company will be regarded as FII, more than 10 point stake as FDI (foreign direct investment)
● Stock exchange regulator will simplify know-your-customer norms for foreign portfolio investors
● To implement quickly recommendations of financial sector legislative reforms commission
● To cut factory gate duty on trucks to 13 pct from 14 pct

POWER AND ENERGY SECTOR
● Zero customs duty for electrical plants and machinery
● Move to revenue-sharing from profit-sharing policy in oil and gas sector
● To equalise duties on steam and bituminous coal to 2 point customs duty and 2 point cvd (countervailing duty)

FOREIGN TRADE
● To cut duty on exports of precious and semi-precious stones to 2 point from 10 point
● No duty on import of ships, vessels

BANKING
● To provide 140 billion rupees capital infusion in state-run banks in 2013/14

DEFENCE
● To allocate 2.03 trillion rupees to defence in 2013/14

AGRICULTURE
● To allocate 801.94 billion rupees to rural development in 2013/14
● Plan to allocate 270.49 billion rupees for agriculture in 2013/14

Rail Budget 2013-14 Highlights

Railway Minister Pawan Kumar Bansal has announced the Union Railway Budget for 2013-14 in Parliament. Here are the highlights –
 

 ● No increase in passenger fares 

 ● Railways will absorb Rs. 850 crore on account of no hike in passenger fare

 ● Marginal increase in reservation charges, cancellation charges

 ● Supplementary charges for superfast trains and tatkal booking

 ● 26 new passenger trains to be launched

 ● 67 express trains to be launched 

 ● 9 Electric Multiple Unit (EMU) trains to be introduced

 ● 500-km new lines to be completed in 2013-14

 ● Concessional fare for sportspersons

 ● 5 per cent average increase in freight 

 ● Diesel price hike added Rs. 3,300 crore to fuel bill of Railways

 ● Railways hopes to end 2013-14 with a balance of Rs. 12,506 crore

 ● 5.2 per cent growth in passenger traffic expected in 2013-14

 ● Railways' freight loading traffic scaled down by 100 million tonnes from 1025 million tonnes because of economic slowdown

 ● Railways to set up a Debt Service Fund

 ● Rs. 3,000 crore loan from Finance Ministry re-paid with interest by Railways this financial year

 ● New coach manufacturing and maintenance facilities to be set up in various places including Rae Bareli, Bhilwara, Sonepat, Kalahandi, Kolar, Palakkad and Pratapgarh

 ● Five fellowships to be announced to motivate students

 ● Centralised training institute to be set up in Secunderabad

 ● Will provide better living conditions for Railway Protection Force (RPF) personnel

 ● Seek to fill 1.52 lakh vacancies in railways this year. 47,000 vacancies for weaker sections and physically challenged to be filled up soon

 ● Target of Rs. 4,000 crore for railway production units in 2014 

 ● Trying to connect Manipur through railways

 ● Investment of Rs. 3800 crore for port connectivity projects

 ● Target of Rs. 1000 crore each for Indian Railways Land Development Authority and Indian Railways Station Development authority

 ● Toll free 1800111321 number to address grievance. Introduced from February 2013

 ● Labs to test food provided in trains. ISO certification for all rail kitchens

 ● Advance fraud control will be used for ticket sale

 ● Induction of e-ticketing through mobile phones, SMS alerts to passengers 

 ● Next-generation e-ticketing system to improve end user experience. The system will support 7200 users per minute 

 ● Wheelchairs and escalators to be made to make stations and trains friendlier for the differently-abled.

 ● Rs. 100 crore to be spent to augment facilities at Delhi, New Delhi and Nizamuddin railway stations

 ● Special attention to stations in NCR.

 ● Free wi-fi facilities in select trains. 60 more 'adarsh' stations 

 ● Safety measures including new coaches with anti-climb features to be brought in

 ● More ladies specials in metros and a helpline number to be implemented

 ● Railways meets need of consumers while adhering to sound economic principles. Need to expand at a much faster growth rate

 ● I am committed to improving passenger amenities

 ● Resource crunch cannot be a reason for substandard services 

 ● Elimination of over 10,000 level crossings 

 ● 17 bridges sanctioned for rehabilitation

 ● Enhancement of the track capacity and the Train Protection Warning System (TPWS)

 ● Indigenously developed collision avoidance system to be put to trial

 ● Induction of self-propelled accident relief trains along with fast and reliable disaster management system

 ● Railway passengers deserve safe and comfortable travel. Safety is a mandate in running trains. There has been a significant reduction in accidents - .41 per million kms in 2003-04 to .13 in 2011- 12. We will strive to work towards a zero accident situation.

 ● Our targets need to be higher

 ● Mounting scarcity of resources, thin spread of funds continue to be a problem 

 ● The number of passenger trains has increased from 8000 in 2001 to over 12000 in 2012 - yet losses continue to mount. It is estimated to be Rs. 24,000 cr in 2012-13 

 ● Indian railways must remain financially viable

 ● Indian Railways plays an unparalleled growth in integrating the nation

Railway Budget 2013-14: New 67 Express, 26 Passenger Trains introduced

Union Rail Minister Pawan Kumar Bansal on 26 Feb., 2013 announced 106 new trains in Railway Budget 2013-14. Of the new trains 67 are Express, 26 passenger trains, 5 MEMUs and 8 DEMUs.

Express Trains

1. Ahmedabad – Jodhpur Express (Weekly) Via Samdari, Bhildi 

2. Ajni (Nagpur) – Lokmanya Tilak (T) Express (Weekly) Via Hingoli 

3. Amritsar – Lalkuan Express (Weekly) Via Chandigarh 

4. Bandra Terminus – Ramnagar Express (Weekly) Via Nagda, Mathura, Kanpur, Lucknow, Rampur

5. Bandra Terminus – Jaisalmer Express (Weekly) Via Marwar, Jodhpur 

6. Bandra Terminus – Hisar Express (Weekly) Via Ahmedabad, Palanpur, Marwar, Jodhpur, Degana 

7. Bandra Terminus – Haridwar Express (Weekly) Via Valsad 

8. Bangalore – Mangalore Express (Weekly) 

9. Bathinda – Jammu Tawi Express (Weekly) Via Patiala, Rajpura 

10. Bhubaneswar – Hazrat Nizamuddin Express (Weekly) Via Sambalpur 

11. Bikaner – Chennai AC Express (Weekly) Via Jaipur, Sawai Madhopur, Nagda, Bhopal, Nagpur 

12. Chandigarh –Amritsar Intercity Express (Daily) Via Sahibzada Ajitsingh Nagar (Mohali), Ludhiana 

13. Chennai – Karaikudi Express (Weekly) 

14. Chennai – Palani Express (Daily) Via Jolarpettai, Salem, Karur, Namakkal 

15. Chennai Egmore – Thanjavur Express (Daily) Via Villupuram, Mayiladuthurai 

16. Chennai – Nagarsol (For Sai Nagar Shirdi) Express (Weekly) Via Renigunta, Dhone, Kacheguda 

17. Chennai – Velankanni Link Express (Daily) Via Villupuram, Mayiladuthurai, Tiruvarur 

18. Coimbatore – Mannargudi Express (Daily) Via Tiruchchirappalli, Thanjavur, Nidamangalam 

19. Coimbatore – Rameswaram Express (Weekly) 

20. Delhi – Firozpur Intercity Express (Daily) Via Bathinda 

21. Delhi Sarai Rohilla – Sikar Express (Bi-weekly) after gauge conversion 

22. Delhi – Hoshiarpur Express (Weekly) 

23. Durg – Jaipur Express (Weekly) 

24. Gandhidham – Visakhapatnam Express (Weekly) Via Ahmedabad, Wardha, Ballarshah, Vijaywada 

25. Hazrat Nizamuddin – Mumbai AC Express (Weekly) via Bhopal, Khandwa, Bhusawal 

26. Howrah – Chennai AC Express (Bi-weekly) Via Bhadrak, Duvvada, Gudur 

27. Howrah – New Jalpaiguri AC Express (Weekly) Via Malda Town 

28. Hubli – Mumbai Express (Weekly) Via Miraj, Pune 

29. Indore – Chandigarh Express (Weekly) Via Dewas, Ujjain, Guna, Gwalior, Hazrat Nizamuddin 

30. Jabalpur – Yesvantpur Express (Weekly) Via Nagpur, Dharmavaram 

31. Jaipur – Lucknow Express (Tri-weekly) Via Bandikui, Mathura, Kanpur 

32. Jaipur-Alwar Express (Daily) 

33. Jodhpur –Jaipur Express (Daily) Via Phulera 

34. Jodhpur – Kamakhya (Guwahati) Express (Weekly) Via Degana, Ratangarh 

35. Kakinada – Mumbai Express (Bi-weekly) 

36. Kalka – Sai Nagar Shirdi Express (Bi-weekly) Via Hazrat Nizamuddin , Bhopal, Itarsi 

37. Kamakhya (Guwahati) – Anand VIhar Express (Weekly) Via Katihar, Sitapur Cantt, Moradabad 

38. Kamakhya (Guwahati) – Bangalore AC Express (Weekly) 

39. Kanpur – Anand Vihar Express (Weekly) Via Farrukhabad 

40. Katihar – Howrah Express (Weekly) Via Malda Town 

41. Katra – Kalka Express (Bi-weekly) Via Morinda 

42. Kolkata – Agra Express (Weekly) Via Amethi, Rae Bareli, Mathura 

43. Kolkata – Sitamarhi Express (Weekly) Via Jhajha, Barauni, Darbhanga 

44. Kota – Jammu Tawi Express (Weekly) Via Mathura, Palwal 

45. Kurnool Town – Secunderabad Express (Daily) 

46. Lokmanya Tilak (T) – Kochuveli Express (Weekly) 

47. Lucknow – Varanasi Express Via Rae-Bareli (6 Days a week) 

48. Madgaon – Mangalore Intercity Express (Daily) Via Udupi, Karwar 

49. Mangalore – Kacheguda Express (Weekly) Via Dhone, Gooty, Renigunta, Coimbatore 

50. Mau – Anand Vihar Express (Bi-weekly) 

51. Mumbai – Solapur Express (6 Days a week) Via Pune 

52. Nagercoil – Bangalore Express (Daily) Via Madurai, Tiruchchirappalli 

53. New Delhi – Katra AC Express (6 Days a week) 

54. Nizamabad – Lokmanya Tilak (T) Express (Weekly) 

55. Patna – Sasaram Intercity Express (Daily) Via Ara 

56. Patliputra (Patna) – Bangalore Express (Weekly) Via Chheoki 

57. Puducherry – Kanniyakumari Express (Weekly) Via Villupuram, Mayiladuthurai, Tiruchchirappalli 

58. Puri – Sai Nagar Shirdi Express (Weekly) Via Sambalpur, Titlagarh, Raipur, Nagpur, Bhusawal 

59. Puri –Ajmer Express (Weekly) Via Abu-Road 

60. Radhikapur – Anand Vihar Link Express (Daily) 

61. Rajendra Nagar Terminus (Patna)– New Tinsukia Express (Weekly) Via Katihar, Guwahati 

62. Tirupati – Puducherry Express (Weekly) 

63. Tirupati – Bhubaneswar Express (Weekly) Via Visakhapatnam 

64. Una / Nangaldam– Hazoor Saheb Nanded Express (Weekly) 

Via Anandpur Saheb, Morinda, Chandigarh, Ambala 

65. Visakhapatnam – Jodhpur Express (Weekly) Via Titlagarh, Raipur 

66. Visakhapatnam – Kollam Express (Weekly) 

67. Yesvantpur – Lucknow Express (Weekly) via Rae Bareli, Pratapgarh 

Passenger Trains

1. Bathinda – Dhuri Passenger (Daily) 

2. Bikaner-Ratangarh Passenger (Daily) 

3. Bhavnagar – Palitana Passenger (Daily) 

4. Bhavnagar – Surendranagar Passenger (Daily) 

5. Bareilly – Lalkuan Passenger (Daily) 

6. Chhapra –Thawe Passenger (Daily) 

7. Loharu – Sikar Passenger (Daily) after gauge conversion 

8. Madgaon – Ratnagiri Passenger (Daily) 

9. Marikuppam – Bangalore Passenger (Daily) 

10. Muzaffarpur – Sitamarhi Passenger (Daily) via Runnisaidpur 

11. Nadiad – Modasa Passenger (6 days a week) 

12. Nandyal – Kurnool Town passenger (Daily) 

13. New Amravati – Narkher Passenger (Daily) 

14. Punalur – Kollam Passenger (Daily) 

15. Purna – Parli Vaijnath Passenger (Daily) 

16. Palani-Tiruchendur Passenger (Daily) 

17. Ratangarh - Sardarsahar Passenger (Daily) after gauge conversion 

18. Samastipur- Banmankhi Passenger via Saharsa, Madhepura (Daily) after gauge conversion 

19. Shoranur – Kozhikode Passenger (Daily) 

20. Surendranagar – Dharangdhara Passenger (Daily) 

21. Suratgarh – Anupgarh Passenger (Daily) 

22. Somnath – Rajkot Passenger (Daily) 

23. Sitamarhi – Raxaul Passenger (Daily) 35 

24. Sriganganagar – Hanumangarh-Sadulpur Passenger (Daily) after gauge conversion 

25. Talguppa – Shimoga Town Passenger (Daily) 

26. Thrisur-Guruvayur Passenger (Daily) 

MEMU Services

1. Barabanki – Kanpur 

2. Chennai – Tirupati 

3. Delhi- Rohtak (Replacement of conventional service by MEMU) 

4. Lucknow – Hardoi 

5. Sealdah – Berhampore Court 

DEMU Services 

1. Bhatkal – Thokur 

2. Delhi – Kurukshetra Via Kaithal 

3. Katwa – Jangipur 

4. Lucknow – Sultanpur 

5. Lucknow – Pratapgarh Via Gauriganj 

6. Madgaon – Karwar 

7. Rohtak – Rewari 

8. Taran Taran – Goindwal Saheb 

Extension of Trains 

1. 19601/19602 Ajmer-New Jalpaiguri Express to Udaipur 

2. 15715/15716 Ajmer-Kishanganj Express to New Jalpaiguri 

3. 12403/12404 Allahabad – Mathura Express to Jaipur 

4. 17307/17308 Bagalkot-Yesvantpur Express to Mysore 

5. 18437/18438 Bhubaneswar – Bhawanipatna Express to Junagarh 

6. 18191/18192 Chhapra – Kanpur Anwarganj Express to Farrukhabad 

7. 16127/16128 Chennai-Madurai portion of Chennai-Guruvayur Express to Tuticorin 

8. 12231/12232 Chandigarh-Lucknow Express to Patna (2 days) 

9. 12605/12606 Chennai-Tiruchchirappalli Express to Karaikudi 

10. 14007/14008 Delhi-Muzaffarpur Express to Raxaul after gauge conversion 

11. 14017/14018 Delhi-Muzaffarpur Express to Raxaul after gauge conversion 

12. 12577/12578 Darbhanga-Bangalore Express to Mysore 

13. 14731/14732 Delhi – Bathinda Express to Fazilka 

14. 14705/14706 Delhi Sarai Rohilla-Sadulpur Express to Sujangarh (Salasar Express) 

15. 15159/15160 Durg- Chhapra Express to Muzaffarpur and Gondia 

16. 12507/12508 Guwahati-Ernakulam Express to Thiruvananthapuram 

17. 17005/17006 Hyderabad-Darbhanga Express to Raxaul after gauge conversion 

18. 17011/17012 Hyderabad- Belampalli Express to Sirpur Kaghaznagar 

19. 16591/16592 Hubli-Bangalore Express to Mysore 

20. 12181/12182 Jabalpur-Jaipur Express to Ajmer 

21. 15097/15098 Jammu Tawi-Barauni Express to Bhagalpur 

22. 13117/13118 Kolkata – Berhampore Court Express to Lalgola 

23. 22981/22982 Kota-Hanumangarh Express to Shri Ganga Nagar 

24. 15609/15610 Lalgarh- Guwahati Express to New Tinsukia 

25. 12145/12146 Lokmanya Tilak (T)-Bhubaneswar Express to Puri 

26. 12545/12546 Lokmanya Tilak (T)-Darbhanga Express to Raxaul after gauge conversion 

27. 12449/12450 Madgaon-Hazrat Nizamuddin Express to Chandigarh 

28. 12653/12654 Mangalore – Tiruchchirappalli Express to Puducherry 

29. 29019/29020 Meerut-Nimach Link Express to Mandasor 30. 22107/22108 Mumbai CST-Latur Express to Hazoor Saheb Nanded 

31. 14003/14004 New Delhi -New Farakka Express to Malda Town 

32. 15723/15724 New Jalpaiguri-Darbhanga Express to Sitamarhi 

33. 18419/18420 Puri-Darbhanga Express to Jaynagar 

34. 19327/19328 Ratlam-Chittaurgarh Express to Udaipur 

35. 13133/13134 Sealdah – Varanasi Express (2 Days) to Delhi via Lucknow, Moradabad 

36. 14711/14712 Shri Ganga Nagar – Haridwar Express to Rishikesh 

37. 16535/16536 Solapur-Yesvantpur Express to Mysore 

38. 19251/19252 Somnath-Dwarka Express to Okha 

39. 12629/12630 Yesvantpur – Hazrat Nizamuddun Sampark 

Kranti Express 2 days to Chandigarh 

40. 59601/59602 Ajmer-Beawar Passenger to Marwar 

41. 56513/56514 Bangalore-Nagore Passenger to Karaikal 

42. 51183/51184 Bhusaval-Amravati Passenger to Narkher 

43. 57502/57503 Bodhan-Kamareddi Passenger to Mirzapalli 

44. 54632/54633 Dhuri-Hisar/ Hisar- Ludhiana Passenger to Sirsa 

45. 56700/56701Madurai-Kollam Passenger to Punalur 

46. 56709/56710 Madurai-Dindigul Passenger to Palani 

47. 56275/56276 Mysore-Shimoga Town Passenger to Talguppa 

48. 59297/59298 Porbander-Veraval Passenger to Somnath 

49. 66611/66612 Ernakulam-Thrisur MEMU to Palakkad 

50. 67277/67278 Falaknuma-Bhongir MEMU to Jangaon 

51. 66304/66305 Kollam-Nagarcoil MEMU to Kanniyakumari 

52. 63131/63132 Krishnanagar City-Berhampore Court MEMU to Ranaghat and to Cossimbazar 

53. 74021/74024 Delhi-Shamli DEMU to Saharanpur 

54. 76837/76838 Karaikudi-Manamadurai DEMU to Virudunagar after gauge conversion 

55. 79454/79445 Morbi-Wankaner DEMU to Rajkot 

56. 77676/77677 Miryalguda-Nadikudi DEMU to Piduguralla 

57. 79301/79302 Ratlam-Chittaurgarh DEMU to Bhilwara 38 

Increase in frequency 

The frequency of the following trains will be increased:

1. 12547/12548 Agra Fort –Ahmedabad Express 3 to 7 days 

2. 11453/11454 Ahmedabad-Nagpur Express 2 to 3 days 

3. 22615/22616 Coimbatore-Tirupati Express 3 to 4 days 

4. 14037/14038 Delhi-Pathankot Express 3 to 6 days 

5. 19409/19410 Gorakhpur – Ahmedabad Express 1 to 2 days 

6. 13465/13466 Howrah – Malda Town Express 6 to 7 days 

7. 12159/12160 Jabalpur – Amravati Express 3 to 7 days 

8. 11103/11104 Jhansi – Bandra (T) Express 1 to 2 days 

9. 19325/19326 Indore – Amritsar Express 1 to 2 days 

10. 12469/12470 Kanpur – Jammu Tawi Express 1 to 2 days 

11. 12217/12218 Kochuveli – Chandigarh Express 1 to 2 days 

12. 12687/12688 Madurai – Dehradun/Chandigarh Express 1 to 2 days 

13. 13409/13410 Malda Town – Jamalpur Express 6 to 7 days 

14. 17213/17214 Narsapur – Nagersol (Near Sainagar Shirdi) Express 2 to 7 days 

15. 12877/12878 Ranchi-New Delhi Garib Rath Express 2 to 3 days 

16. 18509/18510 Visakhapatnam – Hazoor Saheb Nanded Express 2 to 3 days 

17. 22819/22820 Visakhapatnam – Lokmanya Tilak (T) Express 2 to 7 days 

18. 18309/18310 Sambalpur-Hazoor Saheb Nanded Express 2 to 3 days 

19. 12751/12752 Secunderabad – Manuguru Express 3 to 7 days 

20. 12629/12630 Yesvantpur – Hazrat Nizamuddun Sampark Kranti Express 2 to 4 days 

21. 56221/56222/56525/56526 Bangalore – Tumkur Passenger 6 to 7 days 

22. 56321 Kanniyakumari-Tirunelveli Passenger 6 to 7 days 

23. 56325 Nagercoil – Kanniyakumari Passenger 6 to 7 days 

24. 56312 Tirunelveli - Nagercoil Passenger 6 to 7 days

 

Union Budget 2012-13 Summary

The Union Budget 2012-13 presented by the Finance Minister ShriPranab Mukherjee in LokSabha today identifies five objectives to be addressed effectively in the ensuing fiscal year.   They include focus on domestic demand driven growth recovery; create conditions for  rapid revival of high growth in private investment;  address  supply bottlenecks  in agriculture, energy and transport sectors  particularly in coal, power, national highways , railways and civil aviation; intervene decisively  to address the problem of malnutrition  especially in the 200 high-burden districts and  expedite coordinated implementation of decisions being taken to improve delivery systems , governance, and transparency;  and address the problem of black money and corruption in public life. 

ShriPranab Mukherjee said that India’s GDP growth in 2012-13 is expected to be 7.6 per cent +/-0.25 per cent.  He said that in 2011-12, India’s GDP is estimated to grow at 6.9 per cent after having grown at the rate of  8.4 per cent in each of the  two preceding years.  He said though the global crisis  had affected India, it still remains among  the front runners in economic growth.  Shri Mukherjee said the slowdown is primarily due to deceleration in industrial growth.  Stating that the headline inflation remained high for most part of the year, the Finance Minister expressed hope that it will moderate further in the next few months and remain stable thereafter.

            Shri Mukherjee laid emphasis on striking a balance between fiscal consolidation and strengthening macroeconomic fundamentals.  He announced introduction of amendments to the Fiscal Responsibility and Budget Management Act, 2003 (FRBM Act) as part of the Finance Bill 2012.  He said that concept of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” statement are two important features of Amendment to FRBM Act in the direction of expenditure reforms.  This statement shall set forth a three year rolling targets for expenditure indicators.

            The Finance Minister called for a need to have a close look at the growth of revenue expenditure, particularly, on subsidies.  He announced that from 2012-13  while subsidies related to food and for administering the Food Security Act will be fully provided for,  all other subsidies would be funded to the extent that they can be borne by the economy without any adverse implications.  He said that the Government will endeavor to restrict the expenditure on central subsidies under 2 per cent of GDP in 2012-13and over the next three years, it would be further brought down to 1.75 per cent of GDP.Shri Mukherjee said that based on recommendations of the Task Force headed by ShriNandanNilekani, a mobile-based Fertilizer Management System has been designed to provide end-to-end information on movement of fertilizers and subsidies which will be rolled out nation-wide during 2012.  He said that transfer of subsidy to the retailer and eventually to the farmers will be implemented in subsequent phases which will benefit 12 crore farmer families. 

            On the tax reforms, the Finance Minister said that the  Direct Taxes Code (DTC) Bill will be enacted at the earliest after expeditious examination of the report of the Parliamentary  Standing Committee.  He said drafting of  model  legislation for Centre and State Goods and Services Tax (GST) in concert with States is under progress.  He added that the GST network will be set up as a  National Information Utility and will become operational by August 2012.

            On the disinvestment policy, Shri Mukherjee said that the Central Public Sector Enterprises (CPSEs) are being given a level playing field vis-à-vis private sector with regard to practices like buy-backs and  listing at stock exchange.  Stating that while in 2011-12, the Government will raise about Rs.14,000crore  from disinvestment as against a target of  Rs.40,000 crore,  the Finance Minister proposed to raise  Rs.30,000 crore through disinvestment in  2012-13.  He said at least 51 per cent ownership and management of CPSEs will remain with the Government.

            Calling for strengthening investment environment, Shri Mukherjee said that efforts are on to arrive at a broad-based consensus in respect of decision to allow FDI in multi-brand retail up to 51 per cent.  He proposed to introduce a new scheme  called Rajiv Gandhi Equity Savings Scheme  to allow for income tax deduction of 50 per cent to new retail investors who invest up to  Rs.50,000 directly in equities and whose annual income is below Rs.10 lakh.  The scheme will have a lock-in period of 3 years.  Regarding capital markets, the Finance Minister  proposed to allow Qualified Foreign  Investors (QFIs) to access Indian Corporate Bond market.  He also  proposed simplifying  the process of Initial Public Offer  (IPO).

            ShriPranab Mukherjee said that the Government is committed to protect the financial health of  Public Sector Banks and Financial Institutions.    He proposed to provide Rs. 15,888 crore for capitalization of Public Sector Banks, Regional Rural Banks and other financial institutions  including NABARD.  He added that a Central Know Your Customer (KYC) depositary will be developed in 2012-13 to avoid multiplicity  of registration and data upkeep.

            The Finance Minister informed that out of 73,000 identified habitations that were to be covered under “Swabhimaan” campaign for providing banking facilities by March 2012, about 70,000 habitations have been covered while the rest are likely to be covered by March 31, 2012.    He added that as a next step Ultra Small Branches are being set up at these habitations.  In 2012-13, Swabhimaan campaign will be extended to more habitations. 

            Emphasizing on infrastructure and industrial development, Shri Mukherjee said that during the 12^th Plan, infrastructure investment will go up to Rs.50 lakh crorewith  half of this expected from private sector.  Stating  that in 2011-12 tax free bonds for Rs.30,000 crore were announced for financing infrastructure projects, he proposed to double it to raise Rs.60,000 crore in 2012-13.  The Minister proposed to allow External Commercial Borrowings (ECB) to part finance Rupee debt of existing power projects. 

            The Finance Minister ShriPranab Mukherjee announced a  target of covering  8,800 km. under NHDP next year and increase in allocation of the Road Transport and Highways Ministry  by   14 per cent to Rs.25,360 crore in 2012-13.  He proposed to permit ECB for working capital requirements of the Airline Industry for a period of one year, subject to a total ceiling  of US dollar  1 billion to address the immediate financial concerns of the Civil Aviation Sector.   He added that a proposal  to allow foreign airlines to participate up to  49 per cent in the equity  of an air transport undertaking is under active consideration.

            Expressing concern over shortage in housing sector, the Finance Minister proposed  various measures to address the shortage of housing for low income groups in major cities and towns including ECB for low cost housing projects and setting up of a Credit Guarantee Trust Fund. 

            Regarding textile sector, the Finance Minister announced setting up of two more mega clusters, one to cover Prakasam and Guntur districts in Andhra Pradesh and other for Godda and neighboring districts in Jharkhand in addition to 4 mega handloom clusters already operationalized.  He also proposed setting up of three Weavers Service Centres, one each in Mizoram, Nagaland and Jharkhand.  The Minister proposed  aRs. 500 crore pilot scheme in twelfth plan for promotion and application of Geo-textiles in the North East.   A powerloom Mega Cluster  will be set up in  Ichalkaranji in Maharashtra.

            The Finance Minister proposed to set up a Rs.5000 croreIndia  Opportunities Venture Fund with SIDBI to enhance availability of equity to Micro, Small and Medium Enterprises. 

            Stating that agriculture will continue to be a priority for Government,  Shri Mukherjee proposed  an increase  by 18 per cent to Rs. 20,208 crore in the total Plan Outlay for the Department of Agriculture and Cooperation in 2012-13.  He said that the outlay for RashtriyaKrishiVikasYojana (RKVY) is being increased to  Rs. 9217 crore in 2012-13. 

            Underlining importance of timely access to affordable credit for farmers, the Finance Minister proposed to raise the target for  agricultural credit to Rs.5,75,000 crore, which represents an increase of Rs. 1,00,000 crore over the target for the current year..   He said that a short term RRB Credit  Refinance Fund is being set up to enhance the capacity of Regional Rural Banks to disburse short term crop loans to the small and marginal farmers.  He added that Kisan Credit Card Scheme will be modified to make it a smart card which can be used at ATMs.

            The Financed Minister said that in order to have a better out reach of the food processing sector, a new centrally sponsored scheme titled National Mission on Food Processing will be started in cooperation with the States in 2012-13. 

            The Finance Minister proposed an increase of 18 per cent to  Rs.37,113crore for Scheduled Castes Sub Plan and  an increase of 17.6 per cent to Rs.21,710 crore for Tribal Sub Plan during 2012-13. 

            Regarding food security, Shri Mukherjee said that National Food Security Bill 2011 is before Parliamentary Standing Committee.   He said a multi-sectoralprogramme to address maternal and child malnutrition in selected 200 high burdened districts is being rolled out during 2012-13.  He further  said that an allocation of Rs.15,850 crore has been made for ICDS scheme which is an increase of 58% and Rs.11,937 crore for  National Programme of Mid-Day Meals in schools for the year 2012-13.  He added that an allocation of Rs.750 crore is proposed for Rajiv Gandhi Scheme for Empowerment of Adolescent Girls, SABLA. 

            The allocation for rural drinking water and sanitation is proposed to be increased by over 27 per cent to Rs. 14,000 crore and for PradhanMantri Road SadakYojana by 20 per cent to Rs. 24,000 crore in 2012-13.  He proposed to enhance the allocation under Rural Infrastructure Development Fund to  Rs. 20,000 crore with  Rs.5,000 crore exclusively earmarked for .creating warehousing facilities.

            The Finance Minister proposed an  increase in  allocation by 21.7 per cent  for Right to Education – SarvaShikshaAbhiyan to Rs.25,555 crore and by 29 per cent  for RashtriyaMadhyamikShikshaAbhiyan to Rs. 3,124 crore,   He proposed to set up a Credit Guarantee Fund to ensure better flow of funds to students.

            Regarding health sector  he proposed an increase in allocation for NRHM to Rs.20,822 crore in 2012-13.  He also said that National Urban Health Mission is being launched.

            The Finance Minister said that Mahatma Gandhi National Rural Employment Guarantee Scheme has had a positive impact.  He proposed an allocation of Rs.3915 crore for National Rural Livelihood Mission (NRLM) which represents an increase  of 34 per cent. He proposed to provide Rs.200 crore to enlarge the corpus to Rs.300 crore of the Women’s SHG’s Development Fund.  He said the fund will also support the objectives of  Aajeevika i.e.  NRLM and will empower  women  SHGs to access bank credit. He also proposed to establish a Bharat Livelihoods Foundation of India through Aajeevika which will support and scale up civil society initiatives and interventions particularly in the tribal regions covering around 170 districts.

            Allocation under National Social Assistance Programme (NSAP) is proposed to be raised by 37 per cent to Rs. 8447 crore.  Under the Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme for BPL beneficiaries, the monthly pension amount per person is being raised from Rs. 200 to Rs.300.

            The Finance Minister announced a provision of Rs.1,93,407crore for Defence Services including Rs.79,579 crore for capital expenditure.  He said the allocation is based on present needs and any further requirement would be met.

           

Addressing Governance related issues, Shri Mukherjee said adequate funds are proposed to be allocated to complete enrolments of another 40 crore persons under UID Mission. Outlining the steps taken by the Government to address the issue of black money, the Minister proposed to lay a White Paper  on Black Money in the  current session of Parliament.

In the Budget Estimates for 2012-13, the Gross Tax Receipts are estimated at Rs.10, 77,612 crore which is an increase of 15.6 per cent over the Budget Estimates and 19.5 per cent over the revised estimates for 2011-12.  After devolution to States, the net tax to the Centre in 2012-13 is estimated at Rs. 7,71,071crore.  The Non Tax Revenue Receipts are estimated at Rs.1,64,614crore and Non-debt Capital Receipts  at Rs.41,650 crore.  The total expenditure for 2012-13 is budgeted  at Rs.14,90,925 crore.  Of this Rs.5,21,025crore is the Plan Expenditure while Rs.9,69,900 crore is budgeted as Non Plan Expenditure.

            The tax proposals are guided by the need to move towards the Direct Tax Code(DTC) in the case of direct taxes and Goods & Services Tax (GST) in the case of indirect taxes.

            Individual income upto Rs.2 lakh will be  free from income tax; income upto Rs.1.8 lakh was exempt in 2011-12.  Income above  Rs.5 lakh and upto Rs.10 lakh now carries tax at the rate of 20 per cent; the 20% tax slab was from Rs.5 lakh to Rs.8 lakh in 2011-12.  A deduction of upto Rs.10,000 is now available for interest from savings bank accounts. Within the existing limit for deduction allowed for health insurance, a deduction of upto  Rs.5000 is being allowed for preventive health check-up.  Senior citizens not having income from business will now not need to pay advance tax.

            While no changes have been made in corporate taxes, the budget proposes a number of measures  to promote investment in specific sectors.  In order to provide low cost funds  to some stressed infrastructure sectors, withholding tax on interest payments on external borrowings (ECBs) is being reduced from 20 percent to 5 per cent for 3 years.  These sectors are - power, airlines, roads and bridges, ports and shipyards, affordable housing, fertilizer, and dam.

            Investment linked deduction of capital expenditure in some businesses is proposed to be provided at 150 per cent as against the current rate of 100 per cent.  These sectors include cold chain facility, warehouses  forstoring food-grains, hospitals, fertilizers and affordable housing.   Bee keeping, container  freight and warehousing  for storage of sugar will now also be eligible for investment linked deduction.  

The budget also proposes weighted deduction for R&D expenditure, agri-extension services and expenditure on skill development in the manufacturing sector.

            For small and medium enterprises (SMEs) the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation is proposed to be raised from Rs. 60 lakh to Rs. 1 crore. In order to augment funds for SMEs,  sale of residential property will be exempt from capital  gains tax, if the proceeds are used for purchase of plant and machinery, etc. 

            A General Anti-Avoidance Rule (GAAR) is being introduced in order to counter aggressive tax avoidance. Securities transaction tax (STT) is being reduced by 20 per cent on cash delivery transactions, from 0.125% to 0.1%.  Alternative Minimum Tax is proposed to be levied from all persons, other than companies, claiming profit linked deductions.

            The Finance Minister has  proposed a series of measures to deter the generation and use of unaccounted money. In the case of assets held abroad, compulsory reporting is being introduced and assessment upto 16 years will now be allowed to be re-opened.  Tax will be collected at source on trading in coal, lignite and iron ore; purchase of bullion or jewellery above Rs. 2 lakh in cash; and transfer of immovable property (other than agricultural land) above a specified threshold.  Unexplained money, credits, investments, expenditures etc. will be taxed at the highest rate of 30 per cent irrespective of the slab of income.

            The Finance Minister has made an effort to widen the service tax base, strengthen its enforcement and bring it as close as possible to the central excise. A common simplified registration form and a common return are being introduced for central excise and service tax.

            All services will now attract service tax, except those in the negative list.  The negative list  has 17 heads and includes  specified services provided by the government or local authorities, and services in the fields of education, renting of residential dwellings, entertainment and amusement,   public transportation, agriculture and animal husbandry.  A number of other services including health care, and services provided by charities, independent journalist, sport persons, performing artists in folk and classical arts, etc are exempt from service tax.  Film industry also gets tax exemption on copyrights relating to recording of cinematographic films.

Service tax rate is being increased from 10 per cent to 12 per cent, with consequential change in rates for services that have individual tax rates. The standard rate of excise duty for non-petroleum goods is also being raised from 10 per cent to 12 per cent. No change is proposed in peak rate of customs duty of 10 per cent on non-agricultural goods.

The Budget offers relief to different sectors of economy, especially those under stress.  Import of equipment for fertilizer projects are being fully exempted from basic customs duty of 5 per cent for 3 years.  Basic customs duty is also being lowered for a number of equipment used in agriculture and related areas.  

In the realm of infrastructure, customs relief is being given to power, coal and railways sectors.  While steam coal gets full customs duty exemption for 2 years (with the concessional counter-veiling duty of 1 per cent), natural gas, LNG and certain uranium fuel get full duty exemption this year.  Different levels of duty concessions are being provided to help mining, railways, roads, civil aviation, manufacturing, health and nutrition and environment.  So as to help modernization of the textile industry, a number of equipment are being fully exempted from basic customs duty, and lower customs duty is being proposed for some other items used by the textile industry. 

Customs duty is being raised for gold bars and coins of certain categories, platinum and gold ore.  Customs duty  is to be imposed on coloured gem stones.  Excise duty on certain categories of cigarettes and bidis, pan masala and chewing tobacco is being increased.  Customs duty is being increased  on completely built large cars/ SUVs/ MUVs of value exceeding $40,000. 

Silver jewellery will now be fully exempt from excise duty. Unbranded  precious metal jewellery will attract excise duty on the lines of branded jewellery. Operations are being simplified and measures taken to minimize impact of this provision on small artisans and goldsmiths.

While direct tax proposals in the Budget will result in a net revenue loss of Rs.4,500crore, indirect taxes will result in a net revenue gain of Rs.45,940 crore.  Thus, the tax proposals will lead to a net gain of Rs.41,440crore. 

Union Budget 2012-13 Highlights

·         Budget identifies five objectives relating to  growth recovery, private investment, supply bottlenecks, malnutrition and governance matters

·         GDP growth to be 7.6 per cent (+ 0.25 percent) during 2012-13

·         Amendment to the FRBM Act proposed  as part of Finance Bill.  New concepts of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” introduced

·         Central subsidies to be kept under 2 per cent of GDP; to be further brought down to 1.75 per cent of GDP over the next 3 years.

·         Proposed: Mobile based fertilizer management system; LPG transparency portal; scaling up and rolling out of Aadhar enabled payment for government schemes in at least 50 districts.

·         Rs. 30,000 crore to be raised through disinvestment

·         Efforts to reach broadbased consensus on FDI in multi-brand retail

·         Rajiv Gandhi Equity Saving Scheme: to allow income tax deduction to retail investors on  investing in equities

·         Rs. 15,888 crore to be provided for capitalization of public sector banks and financial  institutions

·         A central  “Know Your Customer” depository to be developed

·         Swabhimaan: remaining habitations to be covered; to be extended to more habitations; ultra small branches to be set up in Swabhimaan habitations

·         Investment in 12^th Plan in infrastructure to go uptoRs. 50,00,000 crore; half of this is expected from private sector

·         Tax Free Bonds of Rs. 60,000 crore to be allowed for financial infrastructure projects

·         Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to Rs. 25,360 crore

·         Financial package of Rs. 3,884 crore for waiver of loans to handloom weavers and their cooperative societies; mega handloom clusters in Andhra, Jharkhand; weaver service centres in Mizoram, Nagaland and Jharkhand ; powerloom mega cluster in Maharashtra; Rs. 500 crore pilot schemes for geo-textiles in North-Eastern region

·         Rs. 5,000 crore India Opportunities Venture Fund to help small enterprises

·         Allocation to agriculture enhanced; RKVY gets Rs. 9,217 crore; BGREI gets Rs. 1,000 crore; Rs.2242 crore project to improve dairy productivity; Rs. 500 crore for coastal aquaculture

·         Various other agricultural activities merged into 5 missions

·         Target for agricultural credit raised to Rs. 5,75,000 crore

·         Interest subvention for short-term crop loans to farmers at 7 per cent interest continues; additional 3 per cent for prompt paying farmers

·         Rs. 200 crore for awards to incentivise agricultural research

·         Provisions under rural housing fund increased to Rs. 4,000 crore from Rs. 3,000 crore

·         Interest subvention of 1 percent on housing loans uptoRs. 15 lakh extended for one more year

·         AIBP allocation raised by 13 per cent to Rs. 14,242 crore

·         National Mission on Food Processing to be started in cooperation with State Governments

·         Scheduled Caste Sub Plan allocation increases by 18 per cent to Rs. 37,113 crore; Tribal Sub Plan by 17.6 per cent to Rs. 21,710 crore

·         Multi-sectoralprogramme to address maternal and child malnutrition in 200 high burden districts

·         58 per cent rise in allocation to ICDS, at Rs. 15,850 crore

·         Rural drinking water and sanitation gets 27 per cent rise in allocation to Rs. 14,000 crore; PMGSY gets 20 per cent rise to Rs. 24,000 crore

·         Projects covering length of 8800 km to be awarded under NHDP against 7,300 km during 2011-12

·         RTE-SSA gets Rs. 25,555 crore allocation, showing an increase of 21 per cent; 6000 schools to be set up at block level as model schools in the 12^th Plan; Credit Guarantee Fund to be set up for better flow of credit to students

·         National Urban Health Mission is being launched

·         34 per cent increase in allocation to National Rural Livelihood Mission, to Rs. 3915 crore

·         Rs. 1000 crore allocated for National Skill Development Fund

·         Bharat Livelihood Foundation to be established to support livelihood interventions particularly in  tribal areas

·         Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month

·         Grant on death of primary breadwinner of a BPL family in the age group 18-64 years doubled to Rs. 20,000

·         Defence services get Rs. 193407 crore; any further requirement to be met

·         4000 residential quarters to be constructed for Central Armed Police Forces

·         UID-Aadhar to get adequate funds for enrolment of 40 crore persons, in addition to the 20 crore persons already enrolled

·         White Paper on Black Money to be laid in the current session of Parliament

·         Tax proposals mark progress in the direction of movement towards DTC and GST

·         Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh

·         Interest from savings bank accounts deductible upto Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up

·         Senior citizens without business income exempt from advance tax

·         Investment linked deduction of capital expenditure enhanced for certain businesses; new sectors eligible for investment linked deduction

·         Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore

·         STT on cash delivery reduced by 20 per cent to 0.1%

·         General Anti Avoidance Rule being introduced to counter aggressive tax avoidance

·         A number of measures proposed to deter generation and use of unaccounted money

·         All services to attract service tax except those in the negative list

·         Central Excise and Service Tax being harmonized

·         Standard rate of excise duty raised from 10 per cent to 12 per cent; service tax rates raised from 10 per cent to 12 per cent; no change in peak customs duty of 10 per cent on non-agricultural goods

·         Relief in indirect taxes to sectors under stress; agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment get duty relief

·         Certain cigarettes and bidis attract higher excise duty; large cars attract higher customs duty

·         Excise imposed on unbranded jewellery also; measures to minimize impact on small artisans  and goldsmiths; branded silver jewellery exempted from excise duty

·         Net gain of Rs.41,440 crore due to taxation proposals

·         Total expenditure budgeted at Rs. 14,90,925 crore; plan expenditure at Rs. 5,21,025 crore – 18 per cent higher than 2011-12 budget; non plan expenditure at Rs. 9,69,900 crore

·         Fiscal deficit targeted at 5.1 per cent of GDP, as against 5.9 per cent in revised estimates for 2011-12

·         Central Government debt at 45.5 per cent of GDP as compared to Thirteenth Finance Commission target of 50.5 per cent

·         Medium-term Expenditure Framework Statement to be  introduced; will set forth 3-year rolling target for expenditure indicators

Rajiv Gandhi Equity Savings Scheme Launched

A new scheme called Rajiv Gandhi Equity Savings scheme is proposed in the Union Budget 2012-13 to encourage flow of saving in financial instruments and improve the depths of domestic capital market.

The Union Finance Minister ShriPranab Mukherjee in his Budget speech in LokSabha today said that the scheme allows for income tax deduction of 50 per cent to new retail investors, who invest up to Rs 50,000 directly in equities and whose annual income is below Rs 10 lakhs. The scheme will have lock-in period of three years. The details will be announced in due course.

Budget Aims at Creating Enabling Atmosphere for All Sections

Presenting the Union Budget 2012-13 in the LokSabha , the Union Finance Minister ShriPranab Mukherjee has proposed to increase the duty-free baggage allowance for eligible passengers of Indian origin from Rs.25,000 to Rs. 35,000 and for children upto 10 years from Rs.12,000 to Rs.15,000. The baggage allowance was last revised in 2004.

The Finance Minister Shri Mukherjee said in his Budget Speech that the current year was a challenge for Indian economy but India has thrived under such challenges and will continue to do so. He said that the aim of his budget is to create an enabling atmosphere for corporates, farmers, entrepreneurs and workers to take initiatives for robust growth. He further said that the budget also aims to ensure that the benefits of growth reach all sections of population.

Health and Nutrition Gets Major Boost in the Budget 2012-13

The Union Finance Minister ShriPranab Mukherjee, while presenting the Union Budget for 2012-13, has proposed to extend concessional basic customs duty of 5 per cent with full exemption from excise duty/ CVD to six specified life-saving drugs/ vaccines in this year’s budget. He proposed to reduce basic customs duty on soya protein concentrate and isolated soya protein to 10 per cent from the present 30 per cent or 15 per cent respectively. Basic customs duty and excise duty reduced on iodine from 6 per cent to 2.5 per cent. On probiotics, the basic customs duty is now 5 per cent reduced from 10 per cent.

ECB for Working Capital Allowed in Civil Aviation

Presenting the General Budget 2012-13 in LokSabhatoday, the Union Finance Minister,  Pranab Mukherjee proposed permission of External Commercial Borrowings (ECB) for working capital requirement of the airline industry for one year subject to total ceiling of US $ 1 billion. The Finance Minister said that this was to address the immediate financing concerns of the Civil Aviation sector, which is facing financial crisis.

In order to reduce the cost of Aviation Turbine Fuel (ATF), which largely contributes to the high operating cost of the civil aviation sector, the Finance Minister stated that the Government has permitted direct import of ATF by Indian Carriers, as actual users.

Shri Mukherjee informed that a proposal to allow 49% equity participation by foreign airlines engaged in operation of scheduled in non-scheduled air transport services is under active consideration of the Government.

Highlights of Railway Budget 2012-13

Union Railway Minister Dinesh Trivedi presented the Railway Budget in Parliament on 14 March, 2012.

The highlights of Railway Budget 2012

- Passenger fares increased marginally. The increase will be by 2 paise per km for suburban and ordinary second class; 3 paise per km for mail/express second class; 5 paise per km for sleeper class; 10 paise per km for AC Chair Car, AC 3 tier and First Class; 15 paise per km for AC 2 tier and 30 paise per km for AC I.

- Minimum fare and platform tickets to cost Rs 5.

- 50 per cent concession in fare in AC-2, AC-3, Chair Car & Sleeper classes to patients suffering from 'Aplastic Anaemia' and 'Sickle Cell Anaemia'.

- Extending the facility of travel by Rajdhani and Shatabdi trains to Arjuna Awardees.

- Travel distance under 'Izzat Scheme' to increase from 100 kms to 150 kms.

- SMS on passenger mobile phone in case of e-ticket to be accepted as proof of valid reservation.

- Introduction of satellite based real time train information system (SIMRAN) to provide train running information to passengers through SMS, internet, etc.

- On board passenger displays indicating next halt station and expected arrival time to be introduced.

- Installation of 321 escalators at important stations of which 50 will be commissioned in 2012-13.

- Introduction of regional cuisine at affordable rates; launching of Book-a-meal scheme to provide multiple choice of meals through SMS or email.

- Introduction of coin/currency operated ticket vending machines.

- Upgradation of 929 stations as Adarsh Stations including 84 stations proposed in 2012-13; 490 stations have been completed so far.

- Specially designed coaches for differently-abled persons to be provided in each Mail/Express trains.

- Introduction of Rail Bandhu on-board magazines on Rajdhanis, Shatabdis and Duronto trains.

- Setting up of AC Executive lounges at important stations

- 75 new Express trains to be introduced.

- 21 new passenger services, 9 DEMU services and 8 MEMU services to be introduced.

- Run of 39 trains to be extended.

- Frequency of 23 trains to be increased.

- 75 additional services to run in Mumbai suburban; 44 new suburban services to be introduced in Kolkata area, 50 new services to be introduced in Kolkata Metro; 18 additional services in Chennai area.

- 725 km new lines, 700 km doubling, 800 km gauge conversion and 1,100 km electrification targeted in 2012-13.

- Rs 6,872 cr provided for new lines, Rs 3,393 cr for doubling, Rs 1,950 cr for gauge conversation, Rs 828 cr for electrification

- Highest ever plan outlay of Rs 60,100 cr

- Rae Bareli coach factory manufactured 10 coaches in 2011-12; phase-II of the factory would be commissioned in 2012-13.

- A wagon factory to be set up at Sitapali (Ganjam District of Odisha)

- A rail coach factory with the support of Government of Kerala to be set up at Palakkad; two additional new manufacturing units for coaches to be established in the Kutch area in Gujarat and at Kolar in Karnataka with active participation of the State Governments.

- Setting up of a factory at Shyamnagar in West Bengal to manufacture next generation technology propulsion system for use in high power electric locomotives.

- Creating Missions as recommended by Pitroda Committee to implement the modernization programme.

- Setting up of Railway Tariff Regulatory Authority to be considered.

- New Board Members for Safety/Research and PPP/Marketing to be inducted.

- Rail-Road Grade Separation Corporation to be set up to eliminate level crossings.

- Indian Railway Station Development Corporation to be set up to redevelop stations through PPP mode.

- Logistics Corporation to be set up for development & management of existing railway goods sheds and multi-modal logistics parks.

- National High Speed Rail Authority to be set-up.

- Pre-feasibility studies on six high speed corridors already completed; study on Delhi-Jaipur-Ajmer-Jodhpur to be taken up in 2012-13.

- Introduction of a ‘Green Train’ to run through the pristine forests of North Bengal.

- Setting up of 200 remote railway stations as ‘green energy stations’ powered entirely by solar energy.

- Providing solar lighting system at 1,000 manned level crossing gates.

- 2,500 coaches to be equipped with bio toilets.

- Setting up of 72 MW capacity windmill plants in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and West Bengal.

- Installation of Integrated Security System at all 202 identified stations to be completed in 2012-13.

- Escorting of trains by RPF/GRP extended to 3,500 trains.

- Integration of RPF helpline with the All India Passenger Helpline.

- Setting up of a Railway Safety Authority as a statutory regulatory body as recommended by Kakodkar Committee

- Three 'Safety Villages' to be set up at Bengaluru, Kharagpur and Lucknow for skill development for disaster management.

- Over one lakh persons to be recruited in 2012-13 – backlog of SC/ST/OBC and other categories to be wiped off.

- Introduction of a wellness programme for railway staff at their work places.

- Ensuring proper rest for skilled and technical staff including the running crew.

- Institution of 'Rail Khel Ratna' Award for 10 rail sports-persons every year.

- New coaching terminal at Naihati, the birth place of Rishi Bankim Chandra Chattopadhyay commemorating him on 175th Birth Anniversary.

- Project to connect Agartala with Akhaura in Bangladesh to be taken up in 2012-13.

- Freight loading of 1,025 MT targeted; 55 MT more than 2011-12

- Passenger growth targeted at 5.4 per cent.

List of New Trains Introduced in Rail Budget 2012-13

As part of the Rail Budget 2012-13, Union Railway Minister Dinesh Trivedi announced 75 new express trains, 21 new Passenger Services, 9 DEMU and 8 MEMU services.

Moreover run of 39 trains will be extended, besides an increase in frequency of 23 trains.

List of New Express Trains
1. Kamakhya-Lokmanya Tilak (T) AC Express (Weekly) via Katihar, Mughalsarai, Itarsi
2. Secunderabad-Shalimar AC Express (Weekly) via Vijayawada
3. Bandra (T)-Bhuj AC Express (Tri-Weekly)
4. Delhi Sarai Rohilla-Udhampur AC Express (Tri-Weekly) via Ambala, Jalandhar
5. Coimbatore-Bikaner AC Express (Weekly) via,Roha,Vasai Road,Ahmedabad,Jodhpur
6. Kakinada-Secunderabad AC Express (Tri-weekly)
7. Yesvantpur-Kochuveli AC Express ( Weekly)
8. Chennai-Bangalore AC Double-decker Express (Daily)
9. Habibganj-Indore AC Double-decker Express (Daily)
10. Howrah-New Jalpaiguri Shatabdi Express (6 days a week) via Malda Town
11. Kamakhya-Tezpur Intercity Express (Daily)
12. Tiruchchirappalli-Tirunelveli Intercity Express (Daily) via Madurai,Virudunagar
13. Jabalpur-Singrauli Intercity Express (Daily) via New Katni Jn.
14. Bidar-Secunderabad Intercity Express (6 days a week)
15. Kanpur-Allahabad Intercity Express (Daily)
16. Chhapra-Manduadih Intercity Express (Daily) via Phephna, Rasra, Mau, Aunrihar
17. Ranchi-Dumka Intercity Express (Daily) via Deoghar
18. Barbil-Chakradharpur Intercity Express (Daily) via Dongoaposi, Jhinkpani
19. Secunderabad-Belampalli Intercity Express(Daily) via Kazipet
20. New Jalpaiguri – New Cooch Behar Intercity Express (5 days a week)
21. Ahmedabad-Ajmer Intercity Express (Daily)
22. Dadar (T)- Tirunelveli Express (Weekly) via Roha, Coimbatore,Erode
23. Visakhapatnam-Chennai Express (Weekly)
24. Visakhapatnam-Sai Nagar Shirdi Express (Weekly) via Vijayawada,Manmad
25. Indore-Yesvantpur Express (Weekly) via Itarsi,Narkher,Amravati,Akola,Kacheguda
26. Ajmer-Haridwar Express (Tri-weekly) via Delhi
27. Amravati-Pune Express (Bi-weekly) via Akola, Purna and Latur
28. Kacheguda-Madurai Express (Weekly) via Dharmavaram,Pakala,Jolarpettai
29. Bikaner-Puri Express (Weekly) via Jaipur,Kota,Katni Murwara, Jharsuguda, Sambalpur
30. Secunderabad-Darbhanga Express (Bi-weekly) via Ballarshah, Jharsuguda, Rourkela, Ranchi, Jhajha
31. Bilaspur-Patna Express (Weekly) via Asansol, Jhajha
32. Howrah-Raxual Express (Bi-weekly) via Asansol, Jhajha, Barauni
33. Bhubaneswar-Bhawanipatna Link Express (Daily) via Vizianagaram
34. Puri-Yesvantpur Garib Rath Express (Weekly) via Visakhapatnam, Guntur
35. Sai Nagar Shirdi-Pandharpur Express (Tri-weekly) via Kurduwadi
36. Bhubaneswar-Tirupati Express (Weekly) via Visakhapatnam,Gudur
37. Visakhapatnam-Lokmanya Tilak(T) Express (Weekly) via Titlagarh,Raipur
38. Howrah-Lalkuan Express (Weekly) via Mughalsarai,Varanasi,Lucknow
39. Kolkata-Jaynagar Express (Weekly) via Asansol,Jhajha,Barauni
40. Dibrugarh-Kolkata Express (Weekly)
41. Firozpur-Sriganganagar Express (Daily) via Fazilka,Abohar
42. Jaipur-Secunderabad Express (Weekly) via Nagda, Bhopal, Narkher, Amravati, Akola
43. Okha-Jaipur Express (Weekly) via Palanpur,Ajmer
44. Adilabad-Hazur Sahib Nanded Express (Daily) via Mudkhed
45. Shalimar-Chennai Express (Weekly)
46. Mysore-Sai Nagar Shirdi Express (Weekly) via Bangalore,Dharmavaram,Bellary
47. Valsad-Jodhpur Express (Weekly) via Palanpur,Marwar
48. Porbander-Secunderabad Express (Weekly) via Viramgam,Vasai Road
49. Bandra (T)-Delhi Sarai Rohilla Express (Weekly) via Palanpur, Phulera
50. Hapa-Madgaon Express (Weekly) via Vasai Road,Roha
51. Bikaner-Bandra (T) Express (Weekly) via Jodhpur,Marwar,Ahmedabad
52. Ahmedabad-Gorakhpur Express (Weekly) via Palanpur,Jaipur,Mathura,Farrukhabad, Kanpur
53. Durg-Jagdalpur Express (Tri-Weekly) via Titlagarh
54. Mannargudi – Tirupati Express (Tri-Weekly) viaThiruvarur,Villupuram,Katpadi
55. Gandhidham-Bandra (T) Express (Weekly) via Morbi
56. Kota-Hanumangarh Express (Daily) via Jaipur,Degana,Bikaner
57. Jhansi-Mumbai Express (Weekly) via Gwalior, Maksi, Nagda
58. Secunderabad-Nagpur Express (Triweekly) via Kazipet
59. Kanpur-Amritsar Express (Weekly) via Farrukhabad, Bareilly
60. Chappra-Lucknow Express (Tri-Weekly) via Masrakh,Thawe,Padrauna
61. Karimnagar-Tirupati Express (Weekly) via Pedapalli
62. Anandvihar-Haldia Express(Weekly) via Mughalsarai, Gomoh, Purulia
63. Barrackpore-Azamgarh Express (Weekly) via Jhajha, Ballia, Mau
64. Indore-Rewa Express ( Tri-weekly) via Bina
65. Running of independent train between Jabalpur-Hazrat Nizamuddin by delinking from 12405/12406 Bhusawal- Hazrat Nizamuddin and 12409/12410 Raigarh-Nizamuddin Gondwana Express
66. Darbhanga-Ajmer Express (Weekly) via Raxaul, Sitapur, Bareilly, Kasganj, Mathura
67. Solapur-Yesvantpur Express (Tri-weekly) via Gulbarga
68. Chennai-Puri Express (Weekly)
69. Hyderabad-Ajmer Express (Weekly)via Manmad, Itarsi, Ratlam
70. Asansol-Chennai Express (Weekly) via Purulia, Sambalpur,Vizianagaram
71. Shalimar-Bhuj Express (Weekly) via Bilaspur, Katni, Bhopal
72. Amritsar- Hazur Sahib Nanded Express (Weekly)
73. Santragachi-Ajmer Express (Weekly) via Kharagpur, Chandil, Barkakana, Katni, Kota
74. Malda Town-Surat Express ( Weekly) via Rampur Hat, Asansol, Nagpur
75. Dwarka-Somnath Express (Daily)

Passenger Trains
1. Koderma-Nawadih Passenger (6 Days)
2. Sriganganagar-Suratgarh Passenger (Daily)
3. Yerraguntla-Nosam/Nanganapalli Passenger (Daily)
4. Villupuram-Katpadi Passenger (Daily)
5. Gunupur-Palasa (Via Parlakhemundi) Passenger (Daily)
6. Ajmer-Pushkar Passenger (5 Days)
7. Kota-Jhalawar City Passenger (Daily)
8. Bareilly-Kasganj Passenger (Daily)
9. Anandnagar-Barahani Passenger (Daily)
10. Rangiya-Tezpur Passenger (Daily)
11. Mysore-Shravan Belgola (Daily)
12. Jodhpur-Bilara Passenger (Daily)
13. Villupuram-Mayiladuthurai Passenger (Daily)
14. Rohtak-Panipat Passenger (Daily)
15. Miraj-Kurudwadi Passenger (Daily)
16. Phulera-Rewari Passenger (Daily)
17. Mysore-Chamarajanagar Passenger (Daily)
18. Gorakhpur-Siwan Passenger (Daily) via Kaptanganj,Thawe
19. Running of independent Passenger trains between Rewa-Bilaspur & Rewa-Chirmiri by delinking from 51751/51752 Rewa-Bilaspur Passenger &51753/51754 Rewa-Chirmiri Passenger
20. Mysore-Birur Passenger via Arsikere (Daily)
21. Jhansi-Tikamgarh Passenger via Lalitpur

MEMU
1. Dahod-Anand
2. Anand-Gandhinagar
3. Bina-Bhopal MEMU service in lieu of conventional services.
4. Palakkad -Coimbatore-Erode
5. Ernakulam – Thrissur
6. Adra-Asansol
7. Adra-Bishnupur via Bankura
8. Sealdah-Lalgola

DEMU
1. Baripada-Bangriposi (Daily)
2. Masagram-Matnashibpur (Daily)
3. Mannargudi-Trichy-Manamadurai (Daily)
4. Hoshiarpur-Firozpur (Daily)
5. Siliguri-Changrabandha (Daily)
6. Pratapnagar- Chota Udepur (Daily)
7. New Jalpaiguri–Bamanhat DEMU service in lieu of conventional services.
8. Delhi Sarai Rohilla – Farukhnagar (6 days a week)
9. Katwa – Azimganj (Daily)

Extension of Trains
1. 12037/12038 New Delhi-Ludhiana Shatabdi Express on 2 days to Moga
2. 12537/12538 Manduadih-Bapudham Motihari Express to Muzaffarpur
3. 19051/19052 Valsad-Sonpur Express to Muzaffarpur
4. 18417/18418 Bhubaneswar-Jharsuguda Rajya Rani Express to Rourkela
5. 12945/12946 Surat-Varanasi Express to Chhapra
6. 13237/13238/13239/13240 Patna-Mathura Express to Kota
7. 15013/15014 Kathgodam-Delhi Sarai Rohilla Express to Jodhpur
8. 12991/12992 Udaipur-Ajmer Express to Jaipur
9. 16779/16780 Madurai-Tirupati Express to Rameswaram
10. 22609/22610 Palakkad-Mangalore Express to Coimbatore
11. 16227/16228 Bangalore-Shimoga Express to Talguppa
12. 19781/19782/19771/19772 Jaipur-Amritsar Express to Ajmer
13. 18005/18006 Howrah-Koraput Express to Jagdalpur
14. 18207/18208 Durg-Jaipur Express to Ajmer
15. 13155/13156 Kolkata-Darbhanga Express to Sitamarhi
16. 19605/19606 Kolkata-Ajmer Express to Ahmedabad (via Abu Road)
17. 12687/12688 Dehradun-Chennai Express to Madurai (via Erode)
18. 11017/11018 Dadar-Yesvantpur Express to Puducherry (3 days) via Jolarpettai-Katpadi-Villupuram & to Tirunelveli (3 days) via Dharmapuri-Erode
19. 14553/14554 Delhi-Una Himachal Express to Amb Andaura
20. 12941/12942 Ahmedabad - Asansol Express to Bhavnagar
21. 16649/16650 Mangalore-Thiruvananthapuram Express to Nagercoil
22. 53139/53140 Kolkata-Chittaranjan Passenger to Deoghar
23. 58207/58208 Raipur-Kesinga Passenger to Bhawanipatna
24. 54033/54032 Delhi-Jind Passenger to Narwana
25. 51973/51974 Mathura-Bandikui Passenger to Jaipur
26. 55713/55714 New Jalpaiguri-Bongaigaon Passenger to Tezpur
27. 54043/54044 Jind-Sirsa Passenger to Hisar
28. 54809/54810 Rewari-Degana Passenger to Jodhpur
29. 57502/57503 Bodhan-Nizamabad Passenger to Kamareddi
30. 56011/56012 Arakkonam-Nandalur Passenger to Cuddapah
31. 59117/59122 Pratapnagar-Bodeli Passenger to Chota Udepur
32. 56714/56711 Tiruchchirapalli-Nagore Passenger to Karaikal
33. 54581/54582 Nangal Dam-Una Himachal Passenger to Amb Andaura
34. 66532 Bangalore – Bangarapet Passenger to Marikuppam
35. 66533 Bangarpet –Krishnarajapuram Passenger to Marikuppam.
36. 66602/66603 Coimbatore-Erode MEMU to Salem
37. 78816/78815 Dallirajhara-Durg DEMU to Raipur
38. 74001/74002 Delhi-Muzaffarnagar DEMU to Saharanpur
39. 76818/76813 Velankanni-Nagore DEMU to Karaikal
40. 13243/13244 Patna-Dehri On Son Express to Bhabua Road

Increase in Frequency
1. 15903/15904 Dibrugarh-Chandigarh Express 1 to 2 days
2. 12731/12732 Secunderabad-Tirupati Express 2 to 4 days
3. 12069/12070 Raigarh-Gondia Janshatabdi Express 4 to 6 days
4. 17003/17004 Hyderabad-Kolhapur Express 2 to 7 days
5. 22451/22452 Chandigarh-Bandra(T) Express 1 to 2 days
6. 16779/16780 Madurai-Tirupati Express 2 to 3 days
7. 12685/12686 Chennai-Mangalore Express 6 to 7 days
8. 16535/16536 Yesvantpur-Solapur Express 3 to 7 days
9. 12187/12188 Jabalpur-Mumbai (CST) Express 2 to 3 days
10. 14009/14010/14019/14020 Chhindwara-Delhi Sarai Rohilla Express 4 to 7 days
11. 16315/16316 Bangalore-Kochuveli Express 3 days to daily
12. 12641/12642 Nizamuddin Kanniyakumari Express 1 to 2 days
13. 22603/22604 Kharagpur-Villupuram Express from 1 to 2 days
14. 12453/12454 New Delhi-Ranchi Rajdhani Express from 1 to 2 days.
15. 12457/12458 Delhi Sarai Rohilla-Bikaner Superfast Express from 3 to 7 days.
16. 56231/56232 Mysore-Bangalore Passenger 6 to 7 days
17. 56237/56238 Mysore-Bangalore Passenger 6 to 7 days
18. 56223/56224 Bangalore-Arsikere Passenger 6 to 7 days
19. 56523/56524 Bangalore-Hindupur Passenger 6 to 7 days
20. 75705/75706 New Jalpaiguri-Aluabari-Siliguri DEMU from 6 to 7 days.
21. 75707/75708 Radhikapur-New Jalpaiguri DEMU from 6 to 7 days.
22. 75709/75710 Balurghat-New Jalpaiguri DEMU from 6 to 7 days.
23. 12485/12486 Shri Ganganagar-Hazur Sahib Nanded Express from 1 to 3 days.