Union Budget 2012-2013

All geared up to present Union Budget for seventh time now, the Finance Minister and Congress veteran Pranab Mukherjee will be reading the financial document today when the whole country is facing problems like fiscal deficit, rising prices, slowed down economic growth as well as political instability.

With the whole country watching the Finance Minister, he has already begun reading out the Budget 2012-2013 in Lok Sabha. Mukherjee while presenting the 2012 Budget said that the country still remains among the front runners as far as economic growth is concerned.

Budget 2012-13

Budget 2012-13

Pranab Mukherjee is indeed presenting the Budget during the challenge to revive the financial growth that has slowed down in past six quarters or so. So, what are the main features that the nation requires to watch out for as the Budget starts to get unveiled? The main focus areas might be get high growth, revival of the domestic consumption, addressing malnutrition, removing the supply bottleneck and improving the delivery systems as well as address the problem of black money.

Through keeping rates of interest untouched, the RBI is also looking forward to some cue from Mukherjee when it comes to fiscal consolidation. India surely needs tight and strict fiscal policy to let Reserve Bank of India cut the interest rates and boost growth. The Finance Minister might bring back the excise duty to the before 2008 crisis level for consumer goods, cigarettes and cement.

People are hoping that the minister will also talk about decontrolling of the tax reforms and fuel rates. It is expected that some of the important budget highlights will be as follows:

  • Monetary policy geared towards inflation
  • GDP to be growing in 2011-12 by 6.9 percent
  • Poor growth because of industrial slowdown
  • Requirement to improve the micro-financial development
  • Turning around of the economy
  • Agriculture and services performing well

The experts have called on Mukherjee to act in the country’s interest. The railway minister, Dinesh Trivedi is on verge of losing job for raising the train fares, a move that hailed on the universal level and so now his very own party wants the minister to be axed.