BUDGET 2012

  *Aim to borrow net INR4.79 trillion in the next fiscal year starting April to fund budget. This is higher than the net INR4.5 trillion median forecast in a Dow Jones Newswires poll of 14 economists, as well as this fiscal year's estimated INR4.4 trillion total borrowing. 

 

  *Government will look to keep fiscal deficit for the year starting April 1 at 5.1% of gross domestic product, compared with an estimated 5.9% this year. The initial target for this year was 4.6%. 

 

  *Current account deficit likely about 3.6% of GDP this fiscal year. 

 

  *Base rate of duty on factory gates raised to 12% from 10%. Proposal will make several goods expensive as standard rate of excise duty covers most articles produced in India. 

 

  *Service tax rate raised to 12% from 10%; while more businesses to be brought under service tax umbrella. Moves to add INR186.6 billion to government revenue. 

 

  *Seeks to raise INR300 billion ($6 billion) through stake sales in public companies in the next fiscal year, down from this year's target of INR400 billion and actual raising of INR140 billion. 

 

  *Gross domestic product growth likely 7.6% in next fiscal year starting April 1; up from 6.9% this fiscal year. 

 

  *Government to limit spending on subsidies below 2% of gross domestic product next fiscal year. Also, will try to reduce subsidy bill to below 1.7% of GDP over the following three years. 

 

  *Next fiscal year fuel subsidy to oil companies set at INR400 billion; this year's expected to be INR650 billion. 

 

  *Government to provide INR158.9 billion in capital for state-run banks next fiscal year through new financial holding company. 

 

  *Removes taxes on imports of coal and natural gas to help power producers reduce costs of imported fuel as domestic shortage hurts generation. 

 

  *Mukherjee gives a break to India's cash-strapped airlines such as Kingfisher and Jet Airways, proposing overseas borrowing of up to $1 billion for working capital needs. 

 

  *Allows electricity generation plants to go in for overseas commercial borrowing to refinance costly rupee-denominated debt. 

 

  *Seeks to inject more capital into infrastructure sector as part of plans to get total investments of INR50 trillion ($1 trillion) to shore up power generation, roads, ports and airports over next five years. 

 

  *State-run infrastructure development bodies to raise INR600 billion through tax-free infrastructure bonds, double the amount allowed this year. 

 

  *Duty on imports of standard gold items raised to 4% from 2%; branded silver jewelry exempt from excise tax. 

 

  *Securities transaction tax cut by 20% for stock market orders. 

 

  *Income tax exemption limit raised to INR200,000 from INR180,000.