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Salient Points Of Pranab's Budget

New Delhi, Feb 28: Following are the salient points of Finance Minister Pranab Mukherjee's Budget Speech in Parliament today:  -Strong growth in private services sector  - Fiscal Deficit at 4.8 pc, Growth  8.6 per cent
PTI February 28, 2011 12:38 IST
PTI
New Delhi, Feb 28: Following are the salient points of Finance Minister Pranab Mukherjee's Budget Speech in Parliament today:
 
-Strong growth in private services sector
 
- Fiscal Deficit at 4.8 pc, Growth  8.6 per cent
 
- Industry is regaining its momentum
 
- Growth in 2010-11 is broadbased

Total food inflation down from 20.2 per cent last year to 9.3

per cent in Jan; still a matter of concern

-Govt has to reconcile ecological concerns with development

aspirations,

-Corruption is a problem, we have to fight it collectively

-I seek the blessings of Lord Indra for a good monsoon and also pray to Goddess Lakshmi for better growth
 
- Direct Tax Code to come into effect from April 1, 2012
 
- For GST rollout, government to introduce Constitution Amendment Bill in current Budget session

-Banking and Insurance sector reforms bills to be brought in this session
 
- FII investments limit in corporate bonds hiked to $ 40 billion
 
- Nandan Nilekani led Task Force report on direct transfer of kerosene and fertilizer subisdy expected in June thi syear, system will be in place by March, 2012

-GDP rises by 8.2 per cent for the December, 2010, quarter as

against 7.3 per cent in the corresponding period of the previous year.

-Portfolio investment would be permitted in SEBI registered mutual funds from foreign subscriptions

-Public Debt Management Agency Bill to be introduced next financial year,

-Current account deficit and average inflation in 2011-12 likely to be less than current year,


Sensex up around 140 points. L&T shares rise more than 3 pct

I see Budget 2011-12 as transition towards more transparent and result-oriented economic management

Pranab Mukherjee: economy to grow at 9 pct, plus or minus 0.25 pct in 2012
Economy regained pre-crisis growth momentum: FM

Average inflation and current account deficit to be lower and better managed next year: FM
Expect inflation and CAD to be lower in 2011-2012: FM

Pranab: Stronger fiscal consolidation reached

Corruption is a problem, we have to fight it collectively, say Finance Minister Pranab Mukherjee in his Budget speech.

Pranab: I seek Lord Indra's blessings so that we get good monsoon

This year's budget is a transition to a more transparent system

Reaching the end of a remarkable fiscal year

Have been deeply conscious about improving governance

Indian economy back to pre-crisis growth trajectory

FM seeks Goddess Laxmi's blessings for increase in nation's wealth
Expect average inflation to be lower next year

Govt has to reconcile ecological concerns with development aspirations,

Budget 2011-12 as transition towards more transparent and result-oriented economic management

Exports have grown at 29.4%

Govt is engaging in solving gaps in recent corporate governance

Corruption is a problem that we have to fight

Do not forsee resources being a major constrain in medium-term

Total food inflation down from 20.2 per cent last year to 9.3 per cent in Jan; still a matter of concern

Main concern is food inflation

Budget is a transition towards transparent economy

Fiscal consolidation has been impressive

Have to ensure more stable macro economic environment

Resources not major constraint in medium term

Still much to be done in rural India

Agriculture supply needs to ease

GDP rises by 8.2 per cent for the December, 2010, quarter as against 7.3 per cent in the corresponding period of the previous year

 Could have performed better, development needs to be more inclusive

-Budget proposes to raise housing loan limit from Rs 20 lakh to

Rs 25 lakh from priority sector lending:

-Proposal to increase rural housing fund to Rs 3,000 crore.

-Indian micro finance equity with SIDBI to be formed at Rs 100 crore,

-Rs 6,000 cr to be given to public sector banks to maintain capital-to-risk assets ratio norms

-Banking Laws amendment Bill, SBI subsidiaries bill and BIFR

bill also in current session:

-Financial sector reforms to move forward; Insurance amendment

bill, LIC bill and Pension Development Authority Bill in

current session

-Government plans to create a Women Self Help Group

development fund with a corpus of Rs 500 crore

-Allocation under Rashtriya Krishi Vikas Yojana to be raised

from Rs 6755 crore in the current year to Rs 7860 crore:

-Rs 300 cr provided to promote pulses cultivation in

rain-fed areas, another Rs 300 cr to promote farm product cultivation

-PSUs allowed to raise Rs 30,000 crore through infrastructure bonds

- Indian Railway Finance Corp to raise Rs 10,000 cr, NHAI Rs 10,000 cr, Hudco Rs 5,000 cr and Ports Rs 5,000 cr through bonds
 

-Proposal to introduce self-assessment of customs duty

wherein importers and exporters will themselves assess payment

of duty.

-Capital investment in fertiliser production to be

considered as infrastructure sub-sector,

-A new scheme to be introduced for refund of service tax on

lines of drawback of duties

-Capital investment in fertiliser production to be

considered as infrastructure sub-sector

-Tax free bonds of Rs 30,000 cr to be issued for

infrastructure development. This will cover Warehousing

Corporation, NHAI, IRFC and HUDCO,

-NABARD capital base to be strengthened; Rs 10,000 cr

to be provided to it as short term credit fund.

-Existing interest subvention scheme on short term farm

loans at 7 % interest to continue: FM

-Credit flows to farmers raised from Rs 3.75 lakh crore

to Rs 4.75 lakh crores,

-Old age pension to persons of over the age of 80

raised from Rs 200 to Rs 500,

-Rs 50 cr grant to Aligarh Muslim University centres in

Murshidabad in West Bengal and Malappuram in Kerala

-Remuneration of anganwadi workers raised from Rs 1500

to Rs 3,000 per month. Helpers to get Rs 1,500 from Rs 750,

-Budget allocation of Rs 100 cr for Ladakh and Rs 150 cr for

Jammu for implementation of projects identified by taskforce:

-Rs nine lakh compensation to be given to men of defence and

-Central paramilitary forces for permanent disability and

discharged from service

-Rs 300 cr to be provided as assistance to states for

modernising and stamps and registration administration:

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

-Net tax to Centre will be Rs 6,64,457 crore.

Non-tax receipts pegged at Rs 1,25,435 crore, Fiscal deficit brought down from 5.5 per cent to 5.1 per

cent in 2010-11. In 2011-12, it will be 4.6 per cent, says Mukherjee.

Revenue deficit fixed at 2.3 per cent in revised estimates of 2010-11 and 1.8 per cent in 2011-12, says FM.

Total plan expenditure will go up 100 per cent in nominal terms in the next year, says FM