Union Budget 2011-12 Highlights

28-2-2011

Contents

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 1^st 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%