budget

India’s Fiscal Deficit comforted to 5.7% of GDP in the fiscal 2011-12
As per the estimates issued by CAG on May 31, 2012, the Fiscal Deficit (FD – the difference between the government’s
total receipts and expenditure) of India relieved to 5.7% of GDP, lower than 5.9% anticipated in the revised estimates
in the Budget 2012.
 Fiscal Deficit: Rs 5.09 trillion rupees.
 Tax revenue receipts: Rs 6.31 trillion (against the projected figure of Rs 6.42 trillion)
 Govt’s non-plan expenditure: went down at Rs 8.84 trillion.
 Govt’s plan expenditure: went down at Rs 8.84 trillion Rs 4.13 trillion.
 Revenue deficit: 4.3% of GDP.
Now, what the Govt is aims at for the fiscal 2012-13?
 The government is putting toil to cut short the widening Fiscal Deficit and targeting to bring it down to 5.1% in
the fiscal year 2012-13. For meeting this aim, the finance ministry is looking forward to cut the subsidy bill to
below 2% of GDP in the fiscal year 2012-13and 1.75% in the subsequent years.
Actually, the slow-down in the Economy is making it hard for the government to accomplish its fiscal deficit aim.








Advance Pricing Agreement Scheme gets clearance of FM
Finance ministry approved the Advance Pricing Agreement (APA) scheme, related to transfer pricing regulations.
The APA scheme, proposed in Budget 2012-13, is being considered as one of the major industry-friendly initiatives.
The finance ministry’s green signal to the provisions devised by the Central Board of Direct Taxes (CBDT) would assist
implementation of the APA scheme from July 1, 2012. CBDT will release notification of the scheme, after taking
approval of the law ministry
The scheme would cover the norms for coverage of cases under APA and also forms for accessing the facilities offered.
The applicant has to pay a fee of Rs 10 lakh for international transactions not exceeding Rs 100 crore, Rs 15 lakh for
transactions up to Rs 200 crore and Rs 20 lakh for transactions above Rs 200 crore
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
The Budget introduced new sections in the I-T Act to provide a framework for APA. It strengthened CBDT to enter into
an advance pricing agreement with any person undertaking an international transaction.
Advance Pricing Agreement
Advance Pricing Agreement is an agreement inked b/w a taxpayer and a taxing authority on an apt transfer pricing
methodology for a set of transactions over a fixed period of time in future. It offers better assurance on transfer pricing
methods and is friendly in providing certitude and unanimity of approach