Highlights of Pranab Mukherjee's budget for 2011-12

Tuesday, 01 March 2011, 07:37 IST
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New Delhi: Highlights of the budget for 2011-12 presented by Finance Minister Pranab Mukherjee in the Lok Sabha Monday: * Expenditure in 2011-12 estimated at 12,57,729 crore, an increase of 13.4 percent. * Tax receipts in 2010-11 at 932,440 crore, an increase of 24.9 percent; non-tax receipts at 125,435 crore. * Growth at 8.75 percent to 9.25 percent in 2011-12. Economy could have performed better in 2010-11. * Goods and Services Tax rollout on April 1, 2012; bill for this in parliament this year; GST will improve compliance; setting up strong IT network for implementation. * Setting up independent debt management office; public debt management bill to be introduced in parliament. * 343,000 crore of market borrowings in 2011-12. * Tax exemption limit raised from 160,000 to 180,000; for senior citizens, qualifying age reduced from 65 to 60 years. * Age for below poverty line old age pension scheme to be reduced from 65 to 60 years. * Gap between wholesale and retail prices not acceptable. * Direct tax reductions to result in revenue loss of 11,500 crore. * 164,415 crore for defence; more will be given if required. * Twenty-four percent increase in educational outlay; 21,000 crore for Sarva Shiksha Abhiyan. * 500 crore more for national skill development fund. * 54 crore each for AMU (Aligarh Muslim University) centres at Murshidabad and Mallapuram. * 58,000 crore for Bharat Nirman; increase of 10,000 crore. * Mahatma Gandhi National Rural Employment Guarantee Scheme wage rates linked to consumer price index; will rise from existing 100 per day. * Close to finalising food security bill. * Increased outlay on social sector schemes. * Infrastructure critical for development; 23 percent higher allocation in 2011-12. * 30,000 crore to be raised through tax-free bonds. * 100 crore equity fund for microfinance companies. * Food storage capacity to be augmented - 15 more mega food parks to be set up in 2011-12; of 30 sanctioned in previous fiscal, 15 set up. * Cold storage facilities to be recognised as infrastructure sector. * Comprehensive policy on further developing PPP (public-private-partnership) model. * Had option to rollback indirect tax rates to 2008 levels but will maintain standard rate of central excise duty at 10 percent. * Service tax to stay at 10 percent. * Revenue gain of 11,000 crore from increase in indirect taxes. * Five-fold strategy against black money; 13 new double taxation avoidance agreements; foreign tax division of CTBT strengthened; strength of Enforcement Directorate increased three-fold. * Expenditure has to be oriented towards production of goods and services. * Government committed to retaining 51 percent stake in public sector enterprises. * Current account deficit at 2009-10 levels. * Corruption a problem we have to fight collectively. * Development needs to be more inclusive. * Stronger fiscal consolidation needed. * Setting tone for newer, vibrant economy. * Economy has shown remarkable resilience to external and internal shocks; back to pre-crisis trajectory; set pace for double digit growth. * Total food inflation declined to less than 9 percent in January. * FIIs can invest $40 billion in corporate bonds. * FDI policy being liberalised. * Service tax payers with turnover of 60 lakh exempt from government audit. * Excise duty on hybrid car kits reduced. * Works of art exempt from customs when imported for exhibition in state-run institutions; this now extended to private institutions. * Farmers need access to affordable credit. * Moving to improve nutritional security. * Necessary to accelerate production of fodder. * Women's self-help development panel to be set up. * Mortgage risk guarantee fund to be created for economically weaker sections. * Housing loan limit for priority sector lending raised to 25 lakh. * Agriculture growth key to development: Green Revolution waiting to happen in eastern region. * Bills on insurance, pension funds, banking to be introduced in parliament. * Electronic filing of TDS returns at source stabilised; simplified forms to be introduced for small taxpayers. * Bill to be introduced to review Indian Stamp Act. * New coins carrying new rupee symbol to be issued. * Anganwadi workers salary raised from 1,500 to 3,000. * Seek Lord Indra's blessings for good monsoon.
Source: IANS