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A Present on
UNION BUDGET -2011 12
By Vishnu
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b u d g e t Budget is a master financial plan of the
government containing its programs &policies, estimated receipts & proposedexpenditure under different heads for a
specific period of time, usually one year.
In India, Budget is presented each year on the
last working day of February by the FinanceMinister of India in Parliament.
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HIGHLIGHTS
OF-BUDGET 2011 12
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FISCAL DEFICIT Net market borrowing for 2011-12 seen at Rs 3.43
trillion.
Revised gross market borrowing for 2010-11 at Rs
4.47 trillion.
Fiscal deficit seen at 5.1 percent of GDP in 2010-11
Fiscal deficit seen at 4.6 percent of GDP in 2011-12
Fiscal deficit seen at 3.5 percent of GDP in 2013-14
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Total expenditure in 2011-12 seen at 12.58trillion rupees
Plan expenditure seen at Rs 4.41 trillion in2011-12, up 18.3 percent
SPENDING
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REVENUE
Gross tax receipts seen at Rs 9.32 trillion in2011-12
Corporate tax receipts seen at Rs 3.6 trillion in
2011-12
Tax-to-GDP ratio seen at 10.4 percent in 2011-12; seen at 10.8 percent in 2012-13
Customs revenue seen at Rs 1.52 trillion in2011-12
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( )REVENUE cont Factory gate duties seen at Rs 1.64 trillion in
2011-12
Non-tax revenue seen at Rs 1.25 trillion in2011-12
Service tax receipts seen at Rs 82,000 crore in2011-12
Telecom fees, auction of broadband spectrumto raise Es 296.5 billion in 2011-12
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SUBSIDIES
Subsidy bill in 2011-12 seen at Rs 1.44 trillion
Food subsidy bill in 2011-12 seen at Rs 605.7billion
Revised food subsidy bill for 2010-11 at Rs606 billion
Fertiliser subsidy bill in 2011-12 seen at Rs500 billion
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( )SUBSIDIES cont Revised fertiliser subsidy bill for 2010-11 at Rs
550 billion
Petroleum subsidy bill in 2011-12 seen at Rs
236.4 billion
Revised petroleum subsidy bill in 2010-11 atRs 384 billion
State-run oil retailers to be provided with Rs200 billion cash subsidy in 2011-12
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GROWTH EXPECTATIONS Economy expected to grow at 9 percent in
2012, plus or minus 0.25 percent.
INFLATION EXPECTATIONS
Inflation seen at 5 percent in 2011-12
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TAXES
Standard rate of excise duty held at 10percent
Service tax rate held at 10 percent
Scope of service tax to be widened
Minimum alternate tax raised to 18.5 percentfrom 18 percent
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Iron ore export duty raised to 20 percent
Personal income tax exemption limit raised to Rs180,000
Surcharge on domestic companies raised to 5percent
DISINVESTMENT
Disinvestment in 2011-12 seen at Rs 400 billion
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POLICY REFORMS Foreign direct investment policy to be
liberalised further in 2011-12
Infrastructure debt funds to be created
Infrastructure growth to be boosted with tax-free bonds of Rs 300 billion
Raised foreign institutional investor limit in 5-year corporate bonds for investment ininfrastructure by $20 billion
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( )POLICY REFORMS cont Food security bill to be introduced this year
To permit Securities and Exchange Board ofIndia (SEBI) registered mutual funds toaccess subscriptions from foreigninvestments
Public debt bill to be introduced in parliament
soon
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SECTOR SPENDINGTo allocate more than Rs 1.64 trillion to
defence sector in 2011-12
Corpus of rural infrastructure development
fund raised to Rs 180 billion in 2011-12
To provide 201.5 billion rupees capital infusionin state-run banks in 2011-12
To allocate 520.5 billion rupees for theeducation sector * To raise health sectorallocation to 267.6 billion rupees
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AGRICULTURE
To focus on removal of supply bottlenecks inthe food sector in 2011-12
To raise target of credit flow to agriculturesector to Rs 4.75 trillion
Gives 3 percent interest subsidy to farmers in2011-12
Cold storage chains to be given infrastructurestatus
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( )AGRICULTURE cont Capitalisation of National Bank for Agriculture
and Rural Development (NABARD) of Rs 30billion in a phased manner
To provide 3 billion rupees for 60,000 hectaresunder palm oil plantation
Actively considering new fertiliser policy for
urea
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FINANCE MINISTER s SAY ON THE STATE OF THE ECONOMY
"Fiscal consolidation has been impressive. Thisyear has also seen significant progress inthose critical institutional reforms that willpave the way for double digit growth in the
near future.
"At times the biggest reforms are not the onesthat make headlines, but the ones
concerned with details of governance whichaffect the everyday life of aam aadmi(common man). In preparing this year'sbudget, I have been deeply conscious of thisfact."
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FINANCE MINISTER s SAY ON GOVERNANCE
"Certain events in the past few months mayhave created an impression of drift ingovernance and a gap in publicaccountability ... such an impression ismisplaced."
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