New Delhi, Mar 16 (IANS): Finance Minister Pranab Mukherjee Friday said the growth of the Indian economy estimated at 6.9 percent during this fiscal year was "disappointing" as he started presenting what was his seventh federal budget in the Lok Sabha.
"The global crisis has affected us. India's gross domestic product (GDP) is expected to grow at 6.9 percent in 2011-12, after having grown at 8.4 percent in each of the two preceding years," the finance minister said.
"Though we have been able to limit the adverse impact of the slowdown in our economy, this year's performance has been disappointing. But it is also a fact that in any cross-country comparison, India still remains among the front-runners in economic growth."
At the same time, Mukherjee also said that the Indian economy was at the cusp of a revival, as agriculture and services had continued to grow at a decent pace. It was industrial performance that was acting as a drag.
"While we do not have the aggregate figures for the last quarter of 2011-12, numerous indicators pertaining to this period suggest that the economy is now turning around. There are signs of recovery in coal, fertiliser, cement and electricity sectors."
Mukherjee said as India enters the 12th Five Year Plan, beginning April 1, the focus of his government would be on five key areas:
- Frame policies that trigger domestic demand recovery
- Ensure rapid rise in private investment
- Remove bottlenecks in agriculture, energy, transport, coal, power and national highways
- Address malnutrition
- Find ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption
Highlights of the budget for 2012-13 presented by Finance Minister Pranab Mukherjee in the Lok Sabha Friday:
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and serivces continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India's inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India's inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
* Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
* Completion of highway projects 44 percent higher than in previous fiscal.
* External commercial borrowing of up to $1 billion permitted for airline sector.
* External commercial borrowing permitted to low-cost housing sector.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India's inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Allocation of Rs.200 crore for research on climate change.
* Irrigation and water resource company to be operationalised.
* National mission on food processing to be started in cooperation with state governments.
* Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
* Allocation of Rs.14,000 crore for rural water supply and sanitation.
* Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
* Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
* Completion of highway projects 44 percent higher than in previous fiscal.
* External commercial borrowing of up to $1 billion permitted for airline sector.
* External commercial borrowing permitted to low-cost housing sector.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India's inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Defence to get Rs.1.93 lakh crore during 2012-13.
* National Skill Development Fund allocated Rs.1,000 crore.
* Four thousand residential quarters to be constructed for paramilitary forces with an allocation of Rs.1,185 crore.
* National Population Register to be completed in two years.
* Number of proactive steps taken on black money (stashed away abroad); information has started flowing in, prosecution to be initiated; White Paper in current session.
* Allocation of Rs.200 crore for research on climate change.
* Irrigation and water resource company to be operationalised.
* National mission on food processing to be started in cooperation with state governments.
* Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
* Allocation of Rs.14,000 crore for rural water supply and sanitation.
* Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
* Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
* Completion of highway projects 44 percent higher than in previous fiscal.
* External commercial borrowing of up to $1 billion permitted for airline sector.
* External commercial borrowing permitted to low-cost housing sector.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India's inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.
* Income tax exemption limit raised to Rs.2 lakh to provide relief of relief of Rs.2,000 for assessees in this catergory; 20 percent tax on income over Rs.10 lakh, up from Rs.8 lakh.
* Deduction of up to Rs.10,000 from interest from savings bank accounts.
* No change in corporate taxes but measures to enable them better access funds
* Witholding tax on external commercial borrowings reduced from 20 percent to five percent for power, airlines, roads, bridges, affordable houses and fertiliser sectors.
* Defence to get Rs.1.93 lakh crore during 2012-13.
* National Skill Development Fund allocated Rs.1,000 crore.
* Four thousand residential quarters to be constructed for paramilitary forces with an allocation of Rs.1,185 crore.
* National Population Register to be completed in two years.
* Number of proactive steps taken on black money (stashed away abroad); information has started flowing in, prosecution to be initiated; White Paper in current session.
* Allocation of Rs.200 crore for research on climate change.
* Irrigation and water resource company to be operationalised.
* National mission on food processing to be started in cooperation with state governments.
* Integrated Child Development Scheme to be strengthened and restructured with allocation of Rs.15,850 crore.
* Allocation of Rs.14,000 crore for rural water supply and sanitation.
* Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in 2012-13.
* Infrastructure will require Rs.50 lakh crore in 12th Plan, half of this from the private sector.
* Completion of highway projects 44 percent higher than in previous fiscal.
* External commercial borrowing of up to $1 billion permitted for airline sector.
* External commercial borrowing permitted to low-cost housing sector.
* From 2012-13, full subsidies for providing food security; in other sectors to the extent the economy can bear this.
* Hope to raise Rs.30,000 crore from disinvestments.
* New equity savings scheme to provide for income tax deduction of 50 percent for those who invest Rs.50,000 in equity and whose annual income is less than Rs.10 lakh.
* Corporate market reforms to be initiated.
* Bills on micro-finance institutions, national land bank and public debt management among those to be introduced in 2012-13.
* Addressing malnutrition, black money and corruption in public life among five priorities in year ahead.
* India's inflation structural, driven largely by agricultural constraints.
* Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
* Growth in 2012-13 estimated at 7.6 percent; expect inflation to be lower.
* Better monitoring of expenditure on government schemes.
* Fiscal 2011-12 year of recovery interrupted; reality turned out to be different.
* GDP growth in 2011-12 estimated at 6.9 percent; had to battle double digit inflation for two years.
* Good news: agriculture and services continued to perform well; economy is now turning around; recovery in core sectors.
* Now at juncture where it is necessary to take hard decisions; have to accelerate pace of reforms.