UNION BUDGET 2011-12

Sonu kumar

Mba 2nd

Union Budget '11-'12

What a Budget is:

“A Budget tells us what we can't afford, But it doesn't keep us from

buying it.”


Budget for a

common man


PM word’s about budget 11-12

Prime Minister Manmohan Singh said the Budget was aimed at consolidation of fiscal deficit and moderation of taxes and will meet challenges of the economic growth of the country.


What Pranab offers…to aam aadmi.

WHAT GETTING EXPENSIVE

1. Bicycles: 1% excise duty levied2. Tea & Coffee: 1% excise duty

levied3. Cakes and sugar-based confectionery: additional excise duty


4. CDs, VCDs and DVDs: 1% excise duty levied

5. Stationery items: Drawing instruments, pencils, sharpeners, etc all have excise duty levied on them

6. Pressure cookers: Excise duty increased to 5% from 4%


`

7. Biscuits: Excise duty hiked by 1%

8. Noodles: Excise duty hiked by 1%

9.Water filters and other purifying equipment


10.Branded jewellery (includes branded gold, silver and precious metals jewellery)

11.Air Fares likely to increase by 10% minimum due to increase in customs duty.

12.Cars (due to increase in excise duty on non-petroleum products)


13. Motorcycles (due to increase in excise duty on non-petroleum products)

14. Scooters (due to increase in excise duty on non-petroleum products)

15. Air-conditioners (due to increase in excise duty on non-petroleum products)

16. Washing machines

17. Refrigerators19. Gold prices likely

to soar due to hike in the customs duty on gold imports (from Rs 200 per 10 grams to Rs 300 per 10 grams)



What Pranab offers…to aam aadmi.

PRICESWHAT’S GETTING CHEAPER

1. Homeopathic medicines2. Pistachios and other dry

fruits3. Diapers and sanitary

napkins4. Solar lamps & lanterns5. Agarbattis (incense

sticks)6. Silk


7. Green technologies: Concessional excise duty of 10%. LED lights will have excise duty of 5% and exemption on counter veiling duty.

8. Price of cable services - likely to be reduced due to reduction in import duty rates for equipment used for cable transmission


9. Prices of dal come down with the setting up of thousands of pulses and oil seed villages in farming areas which have plentiful rains.


Agriculture

Agriculture

Finance Minister also announced various schemes for promoting production of vegetables, pulses, oilseeds, fodder and nutrition-rich crops like millets and maize.

FM raised the target for loan disbursal To the farmers from 375,000cr to 475,000cr in 2011-12.



Capitalisation of National Bank for

Agriculture and Rural Development

(NABARD) of 30 billion rupees in a

phased manner


To provide 3 billion rupees for 60,000 hectares under palm oil plantation

Actively considering new fertiliser policy for urea

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.


Gives 3 percent interest subsidy to farmers in 2011-12

Cold storage chains to be given infrastructure status

Agriculture growth key to development: Green Revolution waiting to happen in eastern region.


Infrastructure

Finance minister Pranab Mukherjee, proposed an allocation of Rs.2,14,000 crore for infrastructure sector, which is 23.3% higher than

current year

http://timesofindia.indiatimes.com/topic/Pranab-Mukherjee




Infrastructure development in

railways, ports, housing and

highways development, it has

been proposed to allow tax-free bonds

of Rs.30,000 crore to be issued by

various government undertakings in the year 2011-12


Indian Railway Finance Corporation Rs.10,000 crore; National Highway Authority of India Rs.10,000 crore; HUDCO Rs.5000 crore and Ports Rs.5000 crore.


Rs.58,000 crore for Bharat Nirman; increase of Rs.10,000 crore.

finance minister also proposed to raise the corpus of rural infrastructrure development fund from Rs 16,000 crore to Rs 18,000 crore.


Education

Education allocation has been proposed to be raised by 24% over last year to Rs 52,057 crore, of which Rs 21,000 crore will be towards the Sarva Shiksha Abhiyan, a 40% increase over last year


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

Rs.10 crore each was allocated for setting up the Kolkata and Allahabad centres of the Wardha-based Mahatma Gandhi Antarrashtriya Hindi Vishwavidyalaya

The Indian Institute of Technology, Kharagpur will get Rs.200 crore as a one-time grant.



The minister also sanctioned Rs.20 crore to the Indian Institute of Management, Kolkata for setting up a financial research and training laboratory and Rs.200 crore for the Maulana Azad Education Foundation.

The Delhi School of Economics and Madras School of Economics have also been allotted Rs.10 crore each


HEALTH


Health

FM propose to hike the health budget in 2011-12 by 20 percent to Rs.26,760 crore.

Increase in service tax, there is also bound to be an increase in cost of diagnostic tests and doctors’ service


Medical bills are expected to go up by 5 -10% in drugs and medical equipments. Homeopathy medications cost too would go up.


The Rashtriya Swashthya Bima Yojana has emerged as an effective instrument for providing a basic health cover to poor and marginal workers. It is now being extended to MGNREGA beneficiaries, beedi workers and others.


Hospitals with more than 25 beds, or those with air conditioning, will now be charging more for their services


Security and Justice

Finance Minister Pranab Mukherjee hiked the country's defence budget by almost 12 percent to Rs 1.64 lakh crores for fiscal 2011-12

Rs 69,199 crore has been set aside for buying weapon systems and platforms


FM give the revenue expenditure of Rs 95,216 crore for meeting day-to-day expenses of the military.


Defence personnel, who have suffered 100 percent disability during the course of their government service, will henceforth get a one-time compensation of Rs 9 lakh on par with paramilitary personnel fighting Maoists


TAX PROPOSALS

No tax on the female earning up to the income of 1.9 lakh.

Proposed to reduce the qualifying age for senior citizen, from 65 years to 60 years and enhance the exemption limit from `240000 to `250000


Proposed to create a new category of Very Senior Citizens (80 years and above), who will be eligible for a higher exemption limit of `500000


Direct Taxes

• Income upto Rs 1.8 LakhNil

• Rs 1.8 Lakh to Rs. 5 Lakh10.3%

• Rs 5 Lakh to Rs 8 Lakh20.6%• Income above 8 Lakh30.9%

TAX SLAB


Budget Estimation

Budget estimates for 2011-12 projects Rs 9,32,440 crore - an increase of 24 per cent.

Expenditure in 2011-12 is estimated at Rs 12,57,729 crore, an increase of 13.4%.

Revenue deficit fixed at 2.3% in revised estimates of 2010-11 and 1.8% in 2011-12.

Tax reductions to result in revenue loss of Rs 11,500 crore

UNION BUDGET 2011-12

Economy & Finance

Transcript of UNION BUDGET 2011-12