Emphasizing the need to take hard decisions, Mukherjee said that his endeavour will be to restrict the subsidies to under 2 per cent of GDP in 2012-13. He however said the government will fully meet the subsidies for food security. The recommendations of the task force for direct transfer subsidies is being implemented in subsequent phases which will benefit 12 crore farmers families. He announced that Kisan Credit Card will be modified to make it smart card to use it in ATMs .

He said the interest subvention scheme for providing cheaper loan to farmers at 7 per cent interest will continue in the next year. The Agriculture credit proposed to be increased to a whooping 5 lakh 75 thousand crore rupees, an increase of one lakh crore rupees. NABARD to get 10 thousand crore rupees for short term crop loans to small and marginal farmers.

To bring green revolution to Eastern India allocation for Rashriya Krishi Vikas Yojna to be increased to one thousand crore rupees from 400 crores.

To promote housing for low income groups in major cities and towns the budget proposes to allow external commercial borrowing besides increasing Rural Housing fund to 4000 crore rupees from 3000 crores. The interest subvention of one per cent of housing loan upto 15 lakhs to continue.

India opportunities venture fund will be set up for availability of equity for micro small and medium enterprises. External commercial borrowing will also be allowed for infrastructure sectors like power and coal. Tax free bonds for infrastructure projects will be doubled to 60 thousand crore rupees.

A new scheme – Rajiv Gandhi Equity Savings Scheme allowing income tax reduction of 50 per cent will be introduced to help new retail investors.