BUDGET 2011 HIGHLIGHTS...........
swapnil tambe
Hello Friends,
Some of the Highlights of the Budget 2011..........
Taxes (Income, Direct, Indirect, Service etc)
• Tax slab increased
to Rs 1.8 lakh from Rs 1.6 lakh - Give uniform relief of Rs.2000
• Senior citizen
concession extended to Rs 2.5 lakh
•
Senior citizens eligibility age reduced from 65 years to 60 year
•
New category for very senior citizens created for 80 years and above to get Rs
5 lakhs
• No new tax
exemption limit for women
• Service tax
unchanged at 10%
•
Minimum alternate tax raised from 18 per cent to 18.5 per cent of book profits
•
Net tax to Centre will be Rs 6,64,457 crore. Non-tax receipts pegged at Rs
1,25,435 crore
•
Direct Tax Code Bill likely to be passed by Parliament next financial year
after getting Standing Committee report.
• GST constitutional
amendment bill to be introduced
•
A new scheme to be introduced for refund of service tax on lines of drawback of
duties
• Insurance amendment
bill, LIC bill and Pension Development Authority Bill in current session
• Banking Laws
amendment Bill, SBI subsidiaries bill and BIFR bill also in current session (BIFR is going to closed/scrap now)
• Rs 6,000 cr to be
given to public sector banks to maintain capital-to-risk assets ratio norms
• Indian micro
finance equity with SIDBI to be formed at Rs 100 crore
• Proposal to
increase rural housing fund to Rs 3,000 crore.
• Raise housing loan limit from Rs 20 lakh
to Rs 25 lakh from priority sector lending
• Rs 100 cr for Ladakh and Rs 150 cr for Jammu for implementation of
projects identified by taskforce
• Rs 9 lakh
compensation for men of defence and Central paramilitary forces for permanent
disability and discharged from service
• Allocation to health sector raised by
20%
• Mahatma Gandhi
National Rural Employment Guarantee Scheme wage rates linked to consumer price
index
• MGNREGS will rise
from existing Rs 100 per day
• Rs 1.64 lakh crore
for defence; more will be given if required
• Rs 300 cr to be
provided as assistance to states for modernizing and stamps and registration
administration
• Budget estimates
for 2011-12 projects Rs 9,32,440 crore - an increase of 24 per cent
Investments/Disinvestments
• Discussions on to further liberalize FDI policy.
•
Government to keep up tempo of disinvestment process
•
Portfolio investment would be permitted in SEBI registered mutual funds from
foreign subscriptions
• FY12 disinvestment target at Rs 40000 crore
Economic Growth
• GDP rises by 8.2 per cent for the
December, 2010
• Economy expected to grow by 9% next year
• Services have grown
by 9.6%
• Public Debt
Management Agency Bill to be introduced next financial year
• Financial sector
reforms to move forward
• RBI to issue new
guidelines for banking sector
Expenditure/ deficit and revenue
• Fiscal deficit
brought down to 5.1%
• Total plan expenditure will go up 100 per cent
in nominal terms in the next year
• Revenue deficit
fixed at 2.3 per cent in revised estimates of 2010-11 and 1.8 per cent in
2011-12
• Investment-linked
deductions for fertilizers and developers of affordable housing.
• Central government
debt in proportion to GDP will be 44.2 per cent in 2011-12.
Agriculture
• Agriculture has grown by 5.4%
• Direct cash
transfer of cash subsidy as regards kerosene, LPG and fertilizers from March
2012 in view of large diversion.
• Rs 300 cr provided
to promote pulses cultivation in rain-fed areas, another Rs 300 cr to promote
farm product cultivation
• Credit flows to farmers raised from Rs
3.75 lakh crore to Rs 4.75 lakh crores
• Government proposes
to promote organic farming methods to enable farmers get best from their land.
• Existing interest
subvention scheme on short term farm loans at 7 % interest to continue
• Capital investment
in fertilizer production to be considered as infrastructure sub-sector
• Farmers to get 3%
rebate on loan if payment is regular
Social-Rural development schemes and proposals
•
Women self-help group development fund created.
•
development fund with a corpus of Rs 500 crore
•
Allocation under Rashtriya Krishi Vikas Yojana to be raised from Rs 6755 crore
in the current year to Rs 7860 crore
• 17% increase in social sector expenditure
•
Remuneration of anganwadi workers raised from Rs 1500 to Rs 3,000 per month.
•
Anganwadi helpers to get Rs 1,500 from Rs 750
•
Old age pension to persons of over the age of 80 raised from Rs 200 to Rs 500
Infrastructure and Education
• Infrastructure spending to be raised by
23%
• Tax free bonds of
Rs 30,000 cr to be issued for infrastructure development. This will cover Warehousing Corporation, NHAI, IRFC and HUDCO
• Rs 50 cr grant to
Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram
in Kerala
• Rs 100 crore
allocated for IIT Kharagpur
• 24% increase in
education sector allocation
• Extension of
investment on long-term infrastructure bonds by one more year
Excise/Custom duty and Import/Exports
• Proposal to
introduce self-assessment of customs duty wherein importers and exporters will
themselves assess payment of duty
• Standard rate of central exercise duty
maintained at 10%.
• Peak rate of
customs duty maintained at 10 per cent in view of the global economic
situation.
• No change in CENVAT
rates
• Nominal 1% central
excise duty on 130 items entering the tax net.
• Basic food and fuel
and precious stones, gold and silver jewellery will be exempted
Swapnil Tambe.