HIGHLIGHTS OF UNION BUDGET 2011-12

HIGHLIGHTS OF UNION BUDGET 2011-12

· I-T exemption limit raised to Rs 1.80 lakh from Rs 1.60 lakh .

· Exemption for senior citizens raised to Rs 2.5 lakh

· Tax under women slab unchanged.

· Tax exemption raised to Rs 5 lakh for senior citizens of 80 years.

· To increase service tax on air travel

· Excise and customs duty proposals to result in the net gain of Rs 7,300 crore.

· Export duty rates on iron ore unified and kept at 20% ad valorem.

· Basic customs duty on agricultural machinery reduced to 4.5% from 5%

· Basic customs duty on raw silk reduced from 30 to 5 per cent

· Excise and customs duty proposals to result in the net gain of Rs 7,300 crore

· Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.

· Peak rate of customs duty maintained at 10% in view of the global economic situation.

· Customs duty exemptions for hybrid auto parts.

· Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.

· Standard rate of central exercise duty maintained at 10%.

· Central government debt in proportion to GDP will be 44.2% in 2011-12.

· 20% export duty on all grades of iron ore.

· Basic customs duty reduced on certain textile products

· No change in service tax rate of 10%.

· No change in central excise duty.

· Plan to levy 1% on 130 consumer items.

· Revenue deficit fixed at 2.3 per cent in revised estimates of 2010—11 and 1.8 per cent in 2011—12,

· Total plan expenditure will go up 100 per cent in nominal terms in the next year

· 15% tax on dividend for Indian cos from foreign unit.

· Direct Tax proposals result in expenditure of Rs 11,500 cr.

· To reduce surcharge on domestic companies to 5% from 7.5%

· MAT rate hiked to 18.5% from 18%.

· MAT on developers in SEZs to be levied.

· Fiscal deficit revised to 5.1% from 5.5% for FY'11

· Total expenditure raised by 13.4% at Rs 12.57 lakh cr over budget estimates

· Gross tax receipts estimated at 9.32 lakh cr for FY 2011-12

· Bill to amend India Stamp Act soon.

· Budget allocation of Rs 100 cr for Ladakh and Rs 150 cr for Jammu for implementation of projects identified by taskforce

· Old age pension to persons of over the age of 80 raised from Rs 200 to Rs 500

· Health allocation up by 20% to R 27,600 cr.

· Rs 9- lakh ex-gratia for defence personnel for 100% disability fighting Left-wing extremism.

· To set up 15 more mega food parks.

· Remuneration of anganwadi workers raised from Rs 1,500 to Rs 3,000 per month. Helpers to get Rs 1,500 from Rs 750

· Tax free bonds of Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.

· Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6,755 crore in the current year to Rs 7,860 crore.

· Rs 50 cr grant to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala.

· Rs 200 cr for environmental remediation programme.

· Age for pension eligibility reduced from 65 years to 60 years under Indira Gandhi Yojana scheme

· To move insurance, pension and banking bills in Parliament

· Rs 500-cr for National Development Fund.

· Rs 400-cr as one-time grant for IIT-Kharagpur.

· Move to set up State Innovation Councils underway.

· Allocation to education sector raised to Rs 52,000 cr

· Scholarship scheme for SC/ST students in classes iX, X.

· Increase in allocation to higher education

· Increase in remuneration for Anganwadi workers from Rs 1,500 to Rs 3,000 per month.

· Plan 17% increase in social sector spending.

· To introduce Food Security Bill

· Tax free bonds of Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and Hudco.

· Fertiliser industry to be included under infrastructure category.

· New companies bill to be introduced.

· GoM to be set up to deal with corruption

· Five-fold strategy to deal with black money.

· Mega cluster for leather products to be introduced.

· Existing interest subvention scheme on short term farm loans at 7 % interest to continue.

· Self-assessment in customs to be introduced.

· Credit flows to farmers raised from Rs 3.75 lakh crore to Rs 4.75 lakh crore.

· Constitution Amendment Bill for introduction of GST in this session.

· Goods and Services Tax Bill this year.

· Direct Taxes Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.

· Public Debt Management Agency Bill in the next fiscal.

· Indian mutual funds to get direct access to foreign markets; FIIs to be allowed to invest in MFs.

· To liberalise FDI policy further.

· To extend infra tax breaks to fertiliser sector.

· To set up microfinance equity fund.

· Government to move towards direct cash transfer of cash subsidy as regards kerosene, LPG and fertilisers from March 2012 for BPL in view of large diversion.

· 3% interest subvention to farmers who repay in time.

· Nabard capital base to be increased by infusing Rs 10,000 cr

· Rural housing fund increased to Rs 3,000 cr

· Banks asked to step up lending to agriculture.

· Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6,755 crore in the current year to Rs 7,860 crore.

· Budget proposes to raise housing loan limit from Rs 20 lakh to Rs 25 lakh for priority sector lending.

· Allocation for farm development hiked to Rs 7,860 cr.

· Rs 300 cr proposed to promote production of cereals.

· Indian micro-finance equity with SIDBI to be formed at Rs 100 crore.

· Rs 6,000 cr to be given to public sector banks to maintain capital-to-risk assets ratio norms

· RBI to bring in new guidelines for banking licences.

· Aiming Fiscal deficit of 3% by fiscal 2014

· Central electronic registry to reduce fraud cases.

· FII investment limit for infra corporate bonds hiked to $40 billion.

· Discussions on to further liberalise FDI policy.

· Preparation of GST rollout in final stages.

· Microfinance equity fund of Rs 100 cr proposed.

· Govt committed to hold 51% in PSUs.

· Rs 3,000 cr to Nabard for handloom societies.

· Women self-help group development fund to be set up.

· Direct transfer of subsidy for kerosene.

· Goods and Services Tax Bill to be introduced in Parliament this year.

· Direct Tax Code Bill likely to be passed by Parliament next financial year after getting Standing Committee report.

· Disinvestment target at Rs 40,000 cr.

· Direct Tax Code from April 2012.

· SEBI-registered MFs to be allowed direct access to foreign funds.

· Expect RBI to moderate inflation.

· Public Debt Management Agency Bill to be introduced next financial year.

· Current account deficit and average inflation in 2011-12 likely to be less than current year.

· FDI policy review done in Sept 2010.

· Economic growth in 2011-12 likely to be 9 per cent.

· Admits large-scale diversion of kerosene.

· Introduction of DTC will be a watershed moment.

· Debt managment bill to be introduced.

· Constitutional Amendment Bill on GST to be introduced.

· Expect agri sector to grow at 5.4% in 2011.

· Growth in 2010-11 broad-based.

· Economy resilient to shocks.

· RBI measures will further moderate inflation.

· GDP estimated growth at 8.6% in real terms.

· New dynamism in rural economy.

· Core inflation in check.

· Current account deficit is at 2009-10 levels, and is a matter of concern.

· Huge difference in wholesale and retail prices not acceptable.

· Total food inflation down from 20.2 per cent last year to 9.3 per cent in Jan

· Revival in private investment should be sustainable.

· Service growing in double digits.

· Need to reconcile legitimate environmental concerns with developmental needs.

· Food Inflation has declined by half, but still a matter of concern.