India's finance minister Pranab Mukherjee on Friday presented the 2012-13 Budget in the parliament.
He forecast the economy to expand 7.6 percent in the financial year 2012-13. For 2011-12, growth is estimated at 6.9 percent.
The fiscal deficit is projected to be 5.9 percent of GDP for the financial year 2011-12, compared to the previous target of 4.6 percent. Then, it is expected to narrow to 5.1 percent of GDP in fiscal 2012-13.
Mukherjee forecast the current account deficit to be 3.6 percent of GDP in 2011/12. He expects deficit to fall in the coming financial year.
He targets to keep subsidies during the fiscal 2012-13 below 2 percent of GDP. He plans to infuse INR158.9 billion into state banks in the fiscal 2012-13. At the same time, the government lowered its target for disinvestment its stake to INR 300 billion.
The minister raised income tax exemption for individuals moderately to INR 200,000 from INR 180,000. There will be no change in corporate tax. The government raised the service tax to 12 percent from 10 percent, while reduced the securities transaction tax by 20 percent.
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