Tuesday, March 1, 2011

Budget Highlights Feb 2011

Budget Highlights Feb 2011

  • Fiscal deficit pegged at 4.6% of GDP for 2011-12.
  • Fiscal deficit projected at 4.1% and 3.5% for 2012-13 and 2013-14, respectively.
  • Revenue deficit for 2011-12 pegged at 3.4%.
  • Revenue deficit for 2010-11 revised downwards to 3.4% from the budgeted estimate of 4.0%.
  • Net market borrowings for 2011-12 is budgeted at Rs. 3,430 billion, 2.3% over 2010-11.
  • Total expenditure for 2011-12 to increase by 3.4% over 2010-11.
  • 1.4% fall in capital expenditure, while 4.1% increase in revenue expenditure over 2010-11.
  • Personal income tax slabs changed:
  • Income upto Rs.1.8 lakhs – nil.
  • Income between Rs. 1.8 lakhs and Rs. 5 lakhs – 10%.
  • Income between Rs. 5 lakhs and Rs. 8 lakhs – 20%.
  • Income above Rs. 8 lakhs – 30%.
  • Incomes of senior citizens between 60 and 80 years of age, to be exempted upto Rs.2.5 lakhs and for those above 80 years, exemption applicable upto Rs. 5 lakhs.
  • Standard rate of excise duty on all non-petroleum products to be maintained at 10%.
  • Minimum Alternate Tax (MAT) rate to be increased from 18% to 18.5%
  • Rate of service tax retained at 10%, but coverage extended
  • Disinvestment receipts for 2011-12 estimated at Rs 40,000 cr.
  • Government to move towards direct transfer of cash subsidy for kerosene and fertilizers.
  • Foreign investors who meet Know Your Customers (KYC) norms to be allowed to invest in Indian equity mutual funds.
  • FII limit for investment in corporate bond with residual maturity of over five years issued by companies in infrastructure sector, is raised by US$ 20 billion to US$ 25 billion
  • Rs 6,000 cr allotted to public sector banks to maintain a Tier 1 CRAR of 8% during 2011-12
  • Direct Tax Code to be implemented by April 1, 2012
  • Allocation to infrastructure at Rs. 2,14,000 cr for 2011-12, 23.2% higher over previous year

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