Union Budget 2011

A disinvestment target of Rs. 40,000 crore for 2011-12, bank licenses to new private sector players and speeding up of various pending financial sector bills were some of the highlights of Budget proposals presented by Finance Minister Pranab Mukherjee today.
Following are the highlights of the Union Budget: 



INCOME/TAX RATE
(General Tax Payers)
1. Up to Rs. 1,80,000: NIL
Rs. 1,80,001 to Rs. 5,00,000: 10 per cent
Rs. 5,00,001 to Rs. 8,00,000: 20 per cent
Above Rs. 8,00,000: 30 per cent
2. For Women
Up to Rs. 1,90,000: NIL
Rs. 1,90,001 to Rs. 5,00,000: 10 per cent
Rs. 5,00,001 to Rs. 8,00,000: 20 per cent
Above Rs. 8,00,000: 30 per cent
3. For Senior Citizens of 60 years But less than 80 years
Up to Rs. 2,50,000: NIL
Rs. 2,50,001 to Rs. 5,00,000: 10 per cent
Rs. 5,00,001 to Rs. 8,00,000: 20 per cent
Above Rs. 8,00,000: 30 per cent
4. Very Senior Citizens of 80 Years and Above
Up to Rs. 5,00,000: NIL
Rs. 5,00,001 to Rs. 8,00,000: 20 per cent
Above Rs. 8,00,000: 30 per cent

BORROWING
* Gross market borrowing for 2011-12 seen at Rs. 4.17 trillion
* 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
* Fiscal deficit seen at 5.1 per cent of GDP in 2010-11
* Fiscal deficit seen at 4.6 per cent of GDP in 2011-12
* Fiscal deficit seen at 3.5 per cent of GDP in 2013-14
SPENDING
* Total expenditure in 2011-12 seen at Rs. 12.58 trillion
* Plan expenditure seen at Rs. 4.41 trillion in 2011-12, up 18.3 per cent
REVENUE
* Gross tax receipts seen at Rs. 9.32 trillion in 2011-12
* Corporate tax receipts seen at Rs. 3.6 trillion in 2011-12
* Tax-to-GDP ratio seen at 10.4 per cent in 2011-12; seen at 10.8 per cent in 2012-13
* Customs revenue seen at Rs. 1.52 trillion in 2011-12
* Factory gate duties seen at Rs. 1.64 trillion in 2011-12
* Non-tax revenue seen at Rs. 1.25 trillion in 2011-12
* Service tax receipts seen at Rs. 820 billion in 2011-12
* Revenue gain from indirect tax proposals seen at Rs. 113 billion in 2011-12
* Service tax proposals to result in net revenue gain of Rs. 40 billion in 2011-12
GROWTH, INFLATION EXPECTATIONS
* Inflation seen at 5 per cent in 2011-12
* Economy expected to grow at 9 per cent in 2012, plus or minus 0.25 per cent
TAXES
* Standard rate of excise duty held at 10 per cent
* Service tax rate kept at 10 per cent
* To widen scope of service tax
* To raise minimum alternate tax to 18.5 per cent from 18 per cent
* Iron ore export duty raised to 20 per cent
* Personal income tax exemption limit raised to Rs. 180,000
* To reduce surcharge on domestic companies to 5 per cent
SUBSIDIES
* Subsidy bill in 2011-12 seen at Rs. 1.44 trillion
* Food subsidy bill in 2011-12 seen at Rs. 605.7 billion
* Revised food subsidy bill for 2010-11 at Rs. 606 billion
* Fertiliser subsidy bill in 2011-12 seen at Rs. 500 billion
* 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 at Rs. 384 billion 

DISINVESTMENT
* Disinvestment in 2011-12 seen at Rs. 400 billion
POLICY REFORMS
* Foreign direct investment policy to be liberalised further in 2011-12
* To create infrastructure debt funds
* To boost infrastructure growth with tax-free bonds of Rs. 300 billion
* Raised foreign institutional investor limit in 5-year corporate bonds for investment in infrastructure by $20 billion
* Food security bill to be introduced this year
* To permit Securities and Exchange Board of India (SEBI) registered mutual funds to access subscriptions from foreign investments
* Public debt bill to be introduced in parliament soon
SECTOR SPENDING
* To 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 Rs. 201.5 billion capital infusion in state-run banks in 2011-12
* To allocate Rs. 520.5 billion for the education sector
* To raise health sector allocation to Rs. 267.6 billion
AGRICULTURE
* To focus on removal of supply bottlenecks in the food sector in 2011-12
* To raise target of credit flow to agriculture sector to Rs. 4.75 trillion
* Gives 3 per cent interest subsidy to farmers in 2011-12
* Cold storage chains to be given infrastructure status
* Capitalisation of National Bank for Agriculture and Rural Development (NABARD) of Rs. 30 billion in a phased manner
* To provide Rs. 3 billion for 60,000 hectares under palm oil plantation
* Actively considering new fertiliser policy for urea
FINANCE MINISTER ON THE STATE OF THE ECONOMY
* Fiscal consolidation has been impressive. This year has also seen significant progress in those critical institutional reforms that will pave the way for double digit growth in the near future.
* At times the biggest reforms are not the ones that make headlines, but the ones concerned with details of governance which affect the everyday life of aam aadmi (common man). In preparing this year's budget, I have been deeply conscious of this fact.
* Food inflation remains a concern
* Current account deficit situation poses some concern
* Must ensure that private investment is sustained
* The economy has shown remarkable resilience.
FINANCE MINISTER ON GOVERNANCE
* Certain events in the past few months may have created an impression of drift in governance and a gap in public accountability... such an impression is misplaced.
* Corruption is a problem, must fight it collectively