Managerial Economics - Fiscal Policy
Key Features Of Budget 2012-2013 - Fiscal Policy
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For Indian economy, recovery was interrupted this year due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan.
Key Features Of Budget
2012-2013
For Indian economy, recovery was interrupted this year due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. Growth moderated and fiscal balance deteriorated due to tight monetary policy and expanded outlays. Manufacturing sectors are under recovery period. The 12th five year plan is to be launched with the aim of “faster, sustainable and more inclusive growth”.
Budget Estimates 2012-13
The major estimates are:
1. Gross Tax Receipts estimated at `10,77,612 crore.
2. Net Tax to Centre estimated at `7,71,071 crore.
3. Non-tax Revenue Receipts estimated at `1,64,614 crore.
4. Non-debt Capital Receipts estimated at `41,650 crore.
Temporary arrangement to use disinvestment proceeds for capital expenditure in social sector schemes extended for one more year. Total expenditure for 2012-13 budgeted at 14,90,925 crores. Plan expenditure for 2012-13 at 5,21,025 crore is 18 per cent higher
than Budget Expenditure of 2011-12. This is higher than 15 per cent projected
in Approach to the Twelfth Plan. Non-plan expenditure estimated at 9,69,900
crore. 3,65,216 crore estimated to be transferred to States including direct
transfers to States and district level implementing agencies. Entire amount of
subsidy is given in cash and not as bonds in lieu of subsidies. Fiscal deficit
has reduced from 5.9 to 5.1 per cent of GDP in 2012-13. Net market borrowing
required to finance the deficit to be 4.79 lakh crore in 2012-13. Central
Government debt is 45.5 per cent of GDP in 2012-13 as compared to Thirteenth
Finance Commission target of 50.5 per cent. Effective Revenue Deficit to be 1.8
per cent of GDP in 2012-13.
For Indian economy, recovery was interrupted this year due to intensification of debt crises in Euro zone, political turmoil in Middle East, rise in crude oil price and earthquake in Japan. GDP is estimated to grow by 6.9 per cent in 2011-12, after having grown at 8.4 per cent in preceding two years. Growth moderated and fiscal balance deteriorated due to tight monetary policy and expanded outlays. Manufacturing sectors are under recovery period. The 12th five year plan is to be launched with the aim of “faster, sustainable and more inclusive growth”.
Budget Estimates 2012-13
The major estimates are:
1. Gross Tax Receipts estimated at `10,77,612 crore.
2. Net Tax to Centre estimated at `7,71,071 crore.
3. Non-tax Revenue Receipts estimated at `1,64,614 crore.
4. Non-debt Capital Receipts estimated at `41,650 crore.
Temporary arrangement to use disinvestment proceeds for capital expenditure in social sector schemes extended for one more year. Total expenditure for 2012-13 budgeted at 14,90,925 crores. Plan expenditure
Tags : Managerial Economics - Fiscal Policy
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