Highlights of Union Budget 2011-12

FY11 fiscal consolidation impressive, said the finance minister.
Personal Income Tax exemption limit hiked from1,60,000 to180,000.
For senior citizens, tax exemption limit increased to2,50,000.
For senior citizens above 80, the tax exemption limit has been raised to500,000.
Eligibility age for senior citizens is now 60 years against 65 years earlier
Exemption limit for women remains the same at2,40,000.
Servics sector continues to grow in double digits.
We are reaching the end of a remarkable financial year, he said.
Reaching the end of a remarkable fiscal era, said Mukherjee.
Black money: Task force will be formed to deal with black money.
Govt will start campaign against illicit funds.
GoM has been formed to tackle corruption
Money laundering cases to be dealt effectively, assured Mukherjee
Gross domestic product rose by 8.2 per cent for the December, 2010, quarter as against 7.3 per cent in the corresponding period of the previous year.
Taxes, tariff procudures will be simplified, said Mukherjee.
To reconcile environment concerns, growth needs, Budget will set the tone for a vibrant Indian economy.
The finance minister stressed on the need to ensure balanced demand and supply.
Next Budget will be more transparent, he said.
- The finance minister stressed on the need to improve agricultural demand.
- Food inflation at 20.2 per cent in February, he said.
- Development of external sector has been encouraging, said the finance minister while presenting the Budget.
- Cutting bureaucratic delays, improving response times is a prority, he said.
- Direct Taxes Code will moderate rates and ensure better compliance.
- Current account deficit poses a concern.
- 13th Finance Commission has worked out fiscal consolidation roadmap.
- Agriculture growth at 5.4 per cent, industry at 8.1 per cent in 2010-11.
- Expect the average inflation to be down next year, said the finance minister.
- The high gap between wholesale and retail prices is unacceptable.
- Work is underway for states' goods and services tax, stated the finance minister.
- Pilot portal to be set up before the roll out of GST in the country, announced Mukherjee.
- Significant progess on the GST network has been made.
Government's princple concern is high food prices; food prices were high for cereals, there was a spurt in prices of onions and milk, said Mukherjee.
I see Budget 2011-12 as transition towards more transparent and result-oriented economic management, said the finance minister.
In current year, overall economic growth is expected at 8.6 per cent, agriculture growth at 5.4 per cent, industry at 8.1 per cnet and services 9.3 per cent, said the finance minister.
The economy has shown remarkable resilience, Mukherjee said.
To introduce Public Debt Management Bill in 2012.
States to cut down fiscal deficit to 3 percent of Gross State GDP by 2014.
Goods and services tax rounds with states making considerable progress.
Availability of fertilisers has improved post new policy.
Working on ensuring better delivery for urea, kerosene.
Nutrient based fertiliser policy for urea under consideration.
FIIs allowed to invest in MF schemes.
FII limit in corporate bonds has been raised by $20 billion.
FY12 Divestment target at40,000 crore (Rs 400 billion).
FDI regulations consolidated into one comprehensive document.
States to cut down fiscal deficit to 3 per cent of Gross State GDP by 2014.
Cash subsidy for urea, kerosene.
Mulling nutrient based subsidy policy for urea.
LPG, kerosene and fertilisers will be transferred directly to BPL beneficiaries.
New companies bill to be introduced in this session.
Earmarked2,000 crore (Rs 20 billion) each for warehousing and manufacturing.
More banking licenses to be given.
To allocate6,000 crore (Rs 60 billion) for some PSU banks to help them maintain Tier-I capital at 8 per cent.
To prevent fraud in loan cases: The govt has set up Central electronic Registry.
Rural housing fund increased by1,000 crore (Rs 10 billion) to3,000 crore (Rs 30 billion).
3,000 crore (Rs 30 billion) earmarked to National Bank for Agricultural and Rural Development for handloom weavers.
Cap infusion of20,157 crore (Rs 201.57 billion) in PSU Banks.
Self-help group fund to empower women.
Task force working on oil subsidy plans.
600 crore (6 billion) to public sector banks to maintain mandatory cash reserve ratio.
Liberalisation of FDI policy.
Govt commited to retain 51 per cent holding in PSUs.
Portfolio investment would be permitted in Sebi registered mutual funds from foreign subscriptttions: Mukherjee.
Liberalisation of foreign direct investment policy.
Govt committed to retaining 51 per cent holding in PSUs.
The domestic prod of edible oil only meet 50 per cent demand.
Interest subvention of 1per cent extended from5 lakh crore (Rs 5 trillion) to20 lakh crore (Rs 20 trillion).
1 per cent interest subvention on home loans up to15 lakhs (Rs 1.5 million).
Removal of bottlenecks in the transportation of essential food items.
New companies bill to be introduced in this session.
Earmarks2,000 crore (Rs 20 billion) each for warehousing and manufacturing.
More banking licenses to be given.
To allocate6,000 crore (Rs 60 billion) for some PSU banks to help them maintain Tier-I capital at 8 per cent.
To prevent fraud in loan cases: govt has set up Central Electronic Registry.
Rural housing fund increased by1,000 crore (Rs 10 billion) to3,000 crore (Rs 30 billion).
3,000 crore earmarked to NABARD for handloom weavers.
New companies bill to be introduced.
100 crore (Rs 1 billion) equity fund for MFIs.
To provide300 crore (Rs 3 billion) to improve production of pulses.
Agricultural credit limit raised to475,000 crore (Rs 4,750 billion).
To provide300 crore to improve production of pulses.
Allocation for farm development increased to7,860 crore (Rs 78.6 billion).
300 crore for the allocation of fodder.
Subvention of 3per cent on farmers paying loans before time.
Allocation for farm development increased to7,860 crore (Rs 78.6 billion)
Short term interest to farmers will continue to be at 7 per cent.
New companies bill to be introduced.
100 crore (Rs 1 billion) equity fund for MFIs.
Financial sector reforms to move forward; Insurance amendment bill, LIC bill and Pension Development Authority Bill to be presented in the current session, said the finance minister.
Boost to infra development: Tax free bonds of30,000 crore (Rs 300 billion) to be introduced.
Allocation for farm development raised to7,860 crore (Rs 78.6 billion).
Storage capacity has been fastracked.

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GDP rises by 8.2 per cent for the December 2010, quarter as against 7.3 per cent in the corresponding period of the previous year

Expect average inflation to be lower next year

Have to ensure more stable macro economic environment

Budget is a transition towards transparent economy

Do not forsee resources being a major constrain in medium-term Total food inflation down from 20.2 per cent last year to 9.3 per cent in Jan; still a matter of concern

Indian economy back to pre-crisis growth trajectory

Government has to reconcile ecological concerns with development aspirations.

Exports have grown at 29.4 per cent

Government is engaging in solving gaps in recent corporate governance

Stronger fiscal consolidation reached

Economy regained pre-crisis growth momentum

Average inflation and current account deficit to be lower and better managed next yearxpect inflation and CAD to be lower in 2011-2012

Economy to grow at 9 per cent, plus or minus 0.25 pct in 2012

GDP in FY11 estimated to have grown at 8.6 per cent in real terms

Overall economic growth expected at 8.6 per cent, agriculture growth at 5.4 per cent, industry at 8.1 per cent and services 9.3 per cent

High current account deficit a cause of concernurrent account deficit and average inflation in 2011-12 likely to be less than current yearublic Debt Management Agency Bill to be introduced next financial year.

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