Finance minister Pranab Mukherjee has preferred to keep it safe with no surprises in the budget this afternoon. The tax exemption limit has been hiked from 1.80 lakh to Rs 2 lakh which is much below expectations.
The tax slabs have been revised with 10% between Rs 2-5 lakh, 20% for up to Rs 10 lakh and 30% for above Rs10 lakh. Rs 10,000 from savings bank can be used for tax deduction facility. Pranab projects GDP growth of 6.9% in FY 2013 with growth and financial consolidation being high priorities. He wants to push for FDI consensus, finance and infrastructure reforms.
He plans to have an aviation package for the beleaguered industry, a Rs 30,000 cr disinvestment plan, a subsidy on home loans up to Rs 15 lakh and a direct subsidy for the poor and the farmers. Defence outlay is raised to 1.95 lakh crore which is a substantial hike, NRHM to get a higher plan outlay of Rs 20820cr and a white paper on black money this session.