New Delhi: Finance Minister Pranab Mukherjee, while presenting the Union Budget on Friday, stressed on the need of speedy reforms and said that the Goods and Service Tax (GST) will be implemented from August.
"The Economy is now turning around, manufacturing appears to be on revival. We have to accelerate the pace of reforms," said the Finance Minister.
The disinvestment target of PSUs stake has been set at Rs 30,000 crore in 2012-13, down from last year's target of Rs 40,000 crore, which could not be achieved.
IPO equity offer above Rs 10 crore will have to be made electronically in capital market reforms.
Mukherjee also said that the efforts were no to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per cent.
However, he didn't mention the time frame for implementation of the Direct Tax Code (DTC) and said that the DTC Bill to be enacted at the earliest.
To tackle the financial trouble in the aviation sector, external commercial borrowings to the extent of $1 billion to be allowed for next year. Proposal to allow foreign airlines to participate directly or indirectly in India has also been considered actively.
In a big bonanza for the banking sector, Rs 15,800 crore would be provided for capitalisation of public sector and regional rural banks and NABARD.
Infrastructure investment in 12th Plan would go up to Rs 50 lakh crore, half of which to come from the private sector.
"The Government to double tax free bonds for infrastructure financing to Rs 60,000 crore in next financia year," said Mukherjee.
The Finance Minister also announced an Income Tax deduction of 50 pc on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.
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