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Highlights of Union Budget 2011-12

Highlights of Union Budget 2011-12

New Delhi, 28 February, 2011

Finance Minister Pranab Mukherjee presented the Union Budget 2010-11 in parliament on Monday.

Has he lived up to the expectations of the taxpayers?

Is it a populist Budget? Will it also help India to grow? To find out read on..
Highlights. . .

  • FY11 fiscal consolidation impressive, said the finance minister
  • Personal Income Tax exemption limit hiked from Rs 1,60,000 to Rs 180,000
  • For senior citizens, tax exemption limit increased to Rs 2,50,000
  • For senior citizens above 80, the tax exemption limit has been raised to Rs 500,000
  • Eligibility age for senior citizens is now 60 years against 65 years earlier
  • Exemption limit for women remains the same at Rs 2,40,000
  • 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
  • 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
  • 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
  • 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 cent 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 at Rs 40,000 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
  • Earmarked Rs 2,000 crore (Rs 20 billion) each for warehousing and manufacturing
  • More banking licenses to be given
  • To allocate Rs 6,000 crore (Rs 60 billion) for some PSU banks to help them maintain Tier-I capital at 8%
  • To prevent fraud in loan cases: The govt has set up Central electronic Registry
  • Rural housing fund increased by Rs 1,000 crore (Rs 10 billion) to Rs 3,000 crore (Rs 30 billion)
  • Rs 3,000 crore (Rs 30 billion) earmarked to National Bank for Agricultural and Rural Development for handloom weavers
  • Cap infusion of Rs 20,157 crore (Rs 201.57 billion) in PSU Banks
  • Self-help group fund to empower women
  • Task force working on oil subsidy plans
  • Rs 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 subscriptions
  • The domestic prod of edible oil only meet 50 per cent demand
  • Interest subvention of 1per cent extended from Rs 5 lakh crore (Rs 5 trillion) to Rs 20 lakh crore (Rs 20 trillion)
  • 1 per cent interest subvention on home loans up to Rs 15 lakhs (Rs 1.5 million)
  • Removal of bottlenecks in the transportation of essential food items
  • New companies bill to be introduced in this session
  • Earmarks Rs 2,000 crore (Rs 20 billion) each for warehousing and manufacturing
  • More banking licenses to be given
  • To allocate Rs 6,000 crore (Rs 60 billion) for some PSU banks to help them maintain Tier-I capital at 8%
  • To prevent fraud in loan cases: govt has set up Central Electronic Registry
  • Rural housing fund increased by Rs 1,000 crore (Rs 10 billion) to Rs 3,000 crore (Rs 30 billion)
  • Rs 3,000 crore earmarked to NABARD for handloom weavers
  • New companies bill to be introduced
  • Rs 100 crore (Rs 1 billion) equity fund for MFIs
  • To provide Rs 300 crore (Rs 3 billion) to improve production of pulses
  • Agricultural credit limit raised to Rs 475,000 crore (Rs 4,750 billion)
  • To provide Rs 300 crore to improve production of pulses
  • Allocation for farm development increased to Rs 7,860 crore (Rs 78.6 billion)
  • Rs 300 crore for the allocation of fodder
  • Subvention of 3per cent on farmers paying loans before time
  • Allocation for farm development increased to Rs 7,860 crore (Rs 78.6 billion)
  • Short term interest to farmers will continue to be at 7 per cent
  • New companies bill to be introduced
  • Rs 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 of Rs 30,000 crore (Rs 300 billion) to be introduced
  • Allocation for farm development raised to Rs 7,860 crore (Rs 78.6 billion)
  • Storage capacity has been fastracked
  • 15 mega food parks to be set up
  • Surcharge on corporate lowered to 5%