Highlights of Pranab Mukherjee’s budget for 2011-12

NEW DELHI - Highlights of the budget for 2011-12 presented by Finance Minister Pranab Mukherjee in the Lok Sabha Monday:

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

* Tax receipts in 2010-11 at Rs.932,440 crore, an increase of 24.9 percent; non-tax receipts at Rs.125,435 crore.

* Growth at 8.75 percent to 9.25 percent in 2011-12. Economy could have performed better in 2010-11.

* Goods and Services Tax rollout on April 1, 2012; bill for this in parliament this year; GST will improve compliance; setting up strong IT network for implementation.

* Setting up independent debt management office; public debt management bill to be introduced in parliament.

* Rs.343,000 crore of market borrowings in 2011-12.

* Tax exemption limit raised from Rs.160,000 to Rs.180,000; for senior citizens, qualifying age reduced from 65 to 60 years.

* Age for below poverty line old age pension scheme to be reduced from 65 to 60 years.

* Gap between wholesale and retail prices not acceptable.

* Direct tax reductions to result in revenue loss of Rs.11,500 crore.

* Rs.164,415 crore for defence; more will be given if required.

* Twenty-four percent increase in educational outlay; Rs.21,000 crore for Sarva Shiksha Abhiyan.

* Rs.500 crore more for national skill development fund.

* Rs.54 crore each for AMU (Aligarh Muslim University) centres at Murshidabad and Mallapuram.

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

* Mahatma Gandhi National Rural Employment Guarantee Scheme wage rates linked to consumer price index; will rise from existing Rs.100 per day.

* Close to finalising food security bill.

* Increased outlay on social sector schemes.

* Infrastructure critical for development; 23 percent higher allocation in 2011-12.

* Rs.30,000 crore to be raised through tax-free bonds.

* Rs.100 crore equity fund for microfinance companies.

* 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.

* Cold storage facilities to be recognised as infrastructure sector.

* Comprehensive policy on further developing PPP (public-private-partnership) model.

* Had option to rollback indirect tax rates to 2008 levels but will maintain standard rate of central excise duty at 10 percent.

* Service tax to stay at 10 percent.

* Revenue gain of Rs.11,000 crore from increase in indirect taxes.

* Five-fold strategy against black money; 13 new double taxation avoidance agreements; foreign tax division of CTBT strengthened; strength of Enforcement Directorate increased three-fold.

* Expenditure has to be oriented towards production of goods and services.

* Government committed to retaining 51 percent stake in public sector enterprises.

* Current account deficit at 2009-10 levels.

* Corruption a problem we have to fight collectively.

* Development needs to be more inclusive.

* Stronger fiscal consolidation needed.

* Setting tone for newer, vibrant economy.

* Economy has shown remarkable resilience to external and internal shocks; back to pre-crisis trajectory; set pace for double digit growth.

* Total food inflation declined to less than 9 percent in January.

* FIIs can invest $40 billion in corporate bonds.

* FDI policy being liberalised.

* Service tax payers with turnover of Rs.60 lakh exempt from government audit.

* Excise duty on hybrid car kits reduced.

* Works of art exempt from customs when imported for exhibition in state-run institutions; this now extended to private institutions.

* Farmers need access to affordable credit.

* Moving to improve nutritional security.

* Necessary to accelerate production of fodder.

* Women’s self-help development panel to be set up.

* Mortgage risk guarantee fund to be created for economically weaker sections.

* Housing loan limit for priority sector lending raised to Rs.25 lakh.

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

* Bills on insurance, pension funds, banking to be introduced in parliament.

* Electronic filing of TDS returns at source stabilised; simplified forms to be introduced for small taxpayers.

* Bill to be introduced to review Indian Stamp Act.

* New coins carrying new rupee symbol to be issued.

* Anganwadi workers salary raised from Rs.1,500 to Rs.3,000.

* Seek Lord Indra’s blessings for good monsoon.

–Indo-Asian New Service