Budget 2011 Live – Highlights

February 28, 2011 · Author: · Category: market 

Excerpts from Pranab Mukherjee’s Speech Live – Continuous Update.

Indian economy at pre-crisis growth trajectory. Food Inflation still remains a concern. FY11 Fiscal consolidation impressive. Service Sector continues to grow in double digit. Stronger fiscal consolidation needed. Need to ensure sustained private investment.

FM says corruption is a problem; must fight it collectively. Need to improve the supply of agriculture to meet demand. Current account deficit poses some concern. Economic growth seen at 8.75%-9.25% in FY12. GST rollout preparation in final stages, will be tabled in the current session. Sees FY11 industrial growth at 8.1% and services growth at 9.6%.

FIIs allowed to invest in MF schemes. Divestment target at Rs 40,000 crore. FIIs investment in corporate bonds hiked to $40 billion. Infra sector FII cap for bonds with 5 year residual maturity. To bring bill to enable RBI to give more private baking licenses. To create 100 crore equity fund for microfinance companies.

Upped priority home loan limit to Rs 25 lakh from Rs 20 lakh. 1% Upped priority home loan limit to Rs 25 lakh from Rs 20 lakh. To give infra status to cold storage chains. Propose to introduce tax free bonds of Rs 30,000 crore for infra. To set up national mission for hybrid, electric vehicles.

Education sector allocated Rs 52,057 cr in FY12. Allocation for farm development hiked to Rs 7860 crore. To set up institution for tracking black money. Allocated Rs 58,000 crore for social schemes ( Bharat Nirman).

To roll out e-stamping in all states in three years. Special Economic Zone will attract Min Alternative Tax.

Decrease in Fiscal Deficit announcement to 4.6% of GDP helps SENSEX Rise 100 Points in 8 seconds 🙂

Rollout of DTC effective April 1, 2012.
General Category of Income Tax Exemption increased to Rs 180,000 from Rs 160,000.
Senior Citizens now at Age of 60 for Tax Purposes. Exemption Limit increased to Rs 250,000.

Service Tax maintained at 10%. New Services brought under the umbrella are – Hotel Accommodation Over Rs 1000, A/C Restaurants servicing Liquor, Hospitals with 25 and more beds with A/C, Diagnostic Test Centers, Air Travel – Rs 50 Domestic & Rs 250 on International, Some Legal Services rendered to Companies.

To keep the standard rate for Excise Duty at 10%. 1% excise duty on 130 new items. Cut customs duty on yarn to 5% from 7.5%.

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