Monday, February 28, 2011

Highlights of Budget 2011-12

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  • Critical institutional reforms set pace for double-digit growth
  • Scaled up flow of resources infuses dynamism in rural economy
  • GDP estimated to have grown at 8.6% in 2010-11
  • Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year
  • Indian economy expected to grow at 9%  in 2011-12.
  • Five-fold strategy to deal with black money.   Group of Ministers to suggest ways for tackling corruption
  • Public Debt Management Agency of India Bill to come up next financial year
  • Direct Tax Code (DTC) to be effective from April 01, 2012
  • Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted
  • Rs. 40,000 crore to be raised through disinvestment in 2011-12
  • FDI policy to be liberalized further
  • SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement
  • FII limit for investment in corporate bonds in infrastructure sector raised
  • Additional banking license to private sector players proposed
  • Rs. 6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks
  • Rs. 500 crore to be provided to regional rural banks to maintain 9% CRAR
  • India Microfinance Equity Fund of Rs. 100 crore to be created by SIDBI
  • Rs. 500 crore Women SHG Development Fund to be created
  • Micro Small and Medium Enterprises  MSME gets boost as Rs. 5000 crore provided to SIDBI  and Rs. 3000 crore to NABARD
  • Existing housing loan limit enhanced to Rs. 25 lakh for dwelling units
  • Provision under Rural housing Fund enhanced to Rs. 3000 crore
  • Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs. 7860 crore
  • Allocation of Rs. 300 crore to promote 60000 pulses villages in rainfed areas
  • Rs. 300 crore vegetable initiative to achieve competitive prices
  • Rs. 300 crore to promote higher production of nutri-cereals
  • Rs. 300 crore to promote animal based protein
  • Rs. 300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages
  • Credit flow to farmers raised from Rs. 3,75,000 crore to Rs. 4,75,000 crore
  • Rs. 10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12
  • 15 more mega food parks during 2011-12
  • National food security bill to be introduced this year
  • Capital investment in storage capacity to be eligible for viability gap funding
  • 23.3% increase in allocation for infrastructure
  • Tax-free bonds of Rs. 30,000 crore proposed by government undertakings
  • Environmental concerns relating to infrastructure projects to  be considered  by Group of Ministers
  • National Mission for Hybrid and Electric Vehicles to be launched
  • 7 Mega clusters for leather products to be set up
  • Allocation for social sector increased by 17% amounting to 36.4% of total plan allocation
  • Bharat Nirman allocation increased by Rs. 10,000 crore
  • Rural broadband connectivity to all 2.5 lakh panchayats in three years.
  • Bill to amend Indian Stamp Act to introduce.   Rs. 300 crore scheme for modernization stamp and registration administration
  • Significant increase in remuneration of Angawadi workers  and helpers
  • Allocation for education increased by24%.  Rs. 21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%
  • 1500 institute of higher learning to be  connected by March 2012 with Knowledge Knowledge Network.
  • National Innovation Council set up.   Additional Rs. 500 crore for National Skill Development Fund
  • Plan allocation for health stepped up by20%
  • Indira Gandhi National Old Age Pension Scheme liberalized further
  • Rs. 200 crore for Green India Mission
  • Rs. 200 crore for cleaning of rivers
  • Rs. 8000 crore provided for development needs of J&K
  • 10 lakhs Aadhaar(UID)  numbers to be generated everyday from 1st October
  • Fiscal deficit kept at 4.6% of GDP for 2011-12
  • Income Tax exemption limit for general category in individual tax payers enhanced from Rs. 1,60,000 to Rs. 1,80,000
  • Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get Rs. 5,00,000 IT exemption
  • Surcharge on corporate lowered to 5%
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