Union Budget 2011-2012 highlights

Union Finance Minister Pranab Mukherjee on Monday presented the Union Budget 2011-2012 in the Lok Sabha.

Some of the highlights of the Union Budget are:-

.         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 per cent in 2010-11

·         Exports grown by 9.6 per cent, imports by 17.6 per cent in April-January 2010-11 over corresponding period last year

·         Indian economy expected to grow at 9 per cent  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 per cent in public sector banks

·         Rs 500 crore to be provided to regional rural banks to maintain 9 per cent 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 per cent 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 per cent amounting to 36.4 per cent 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 per cent.  Rs 21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40 per cent

·         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 per cent

·         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 per cent 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 corporates lowered to 5 per cent