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For the Indian economy, this was a year of recovery interrupted. the challenges were many,

but there

was a sense that the world economy was on the mendThe global crisis has affected us. Indias

Gross

Domestic Product (GDP) is estimated to grow by 6.9 per cent in 2011-12, after

having grown at the rate of 8.4 per cent in each of the two preceding years. Twelfth Five YearPlan which

aims at faster, sustainable and more inclusive growth.

Focus on domestic demand driven growth recovery; Create conditions for rapid revival of high growth in private

investment;

Address supply bottlenecks in agriculture, energy and transport

sectors, particularly in coal, power, national highways, railways

and civil aviation;

Intervene decisively to address the problem of malnutrition

especially in the 200 high-burden districts; and Expedite coordinated implementation of decisions being taken

to improve delivery systems, governance, and transparency; and

address the problem of black money and corruption in public

life. The current account deficit as a proportion of GDP for 2011-12 is likely

to be around 3.6 per cent. This, along with reduced net capital inflows in the

second and third quarters, put pressure on the exchange rate.

proposals on Direct Taxes are estimated to result in a net revenue

loss of`4500 crore for the year. Proposals relating to Indirect Taxes are estimated

to result in a net revenue gain of`45,940 crore, leaving a net gain of`41,440

crore in the Budget.

proposals relating to Customs and Central excise are estimated to

result in a net revenue gain of` 27,280 crore for a full year.

For SMEs, the turnover limit for compulsory tax audit of accounts as

well as for presumptive taxation is proposed to be raised from `60 lakh to

` 1 crore.

Investment linked deduction of capital expenditure incurred in the

following businesses is proposed to be provided at the enhanced rate of 150 per

cent, as against the current rate of 100 per cent.

The Right to Education (RTE) Act is being implemented with effect from

April 1, 2010 This is an increase of 21.7 per cent over

2011-12.

In the Twelfth Plan, 6,000 schools have been proposed to be set up at

block level as model schools to benchmark excellence. Of these, 2500 will be

set up under Public Private Partnership

79. Farmers need timely access to affordable credit. I propose to raise the

target for agricultural credit in 2012-13 to`

5,75,000 crore. This represents anincrease of` 1,00,000 crore over the target for the current year.

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71. In order to enhance availability of equity to MSME sector, I propose to

set up a ` 5,000 crore India Opportunities Venture Fund with SIDBI.