Some Important Highlights of the Indian Union Budget for the Year 2011-12

The following are some of the important Highlights of the Indian Union Budget for the year 2011-12, presented by the Indian Union Finance Minister Mr.Pranab Mukherjee on 28th February 2011 in the Parliament of India:-

Income Tax:-

  • Income Tax Exemption Limit has been raised from Rs 1.60 lakhs to Rs 1.80 lakhs.
  • Income Tax Exemption Limit for Senior Citizens has been increased from Rs 2.4 lakhs to Rs 2.5 lakhs and age bracket reduced from 65 years to 60 years.
  • Some categories of salaried people exempted from filing I-T returns.
  • Surcharge on companies to come down from 7.5 per cent to 5 per cent

Customs Duty/Excise:-

  • Customs duty on mobile phones has been reduced,
  • Excise duty on hybrid car kits will be reduced,
  • 10 per cent excise duty has been imposed on branded garments
  • Basic customs duty on silk decreased from 30 per cent to 5 per cent.
  • Excise on fossil fuels has been decreased from 7.5 per cent to 5 per cent.

Service Tax:-

  • Rate of Service tax will remain at -10%.
  • Service tax on Air-Conditioned Restaurants has been raised

Funds Provisions/Allocations/Grants:-

  • Rs 300 crores will be provided as assistance to States for Modernising and Stamps & Registration administration.
  • Allocation for Sarva Shiksha Abhiyan increased by 40 per cent to Rs 21,000 crore.
  • Under integrated action plan for Naxal-affected areas, 60 districts to get development grant of Rs 25 Crores to 30 Crores.
  • Rs 200 Crores for development of IIT Kharagpur.
  • Rs 8,000 Crores has been allocated for North – East Development and Rs 28,000 crored for Jammu & Kashmir.
  • International award of Rs 1 Crore has been instituted for promoting universal brotherhood in memory of “Rabindranath Tagore”
  • Rs 200 Crores for cleaning up lakes and rivers other than the Ganga.
  • Rs 58,000 Crores will be allocated for ‘Bharat Nirman Projects’
  • Rs.164,415 Crores will be allocated for ‘Defence’ and even more will be allocated if required

Social Welfare/Rural Development:-

  • Old age pension to persons of over the age of 80 years has been raised from Rs 200 to Rs 500.
  • Rs 9 lakh compensation to be given to men of Defence and Central paramilitary forces for permanent disability and discharged from service.
  • Aanganwadi workers’ pay has been raise from Rs 1500 to Rs 3000 per month.
  • Expenditure on social projects increased by 17 per cent.
  • Allocation to Education- Sector has been increased to Rs 57,057 Crores.
  • It has been proposes to raise Housing Loan Limit from Rs 20 lakhs to Rs 25 lakhs from Priority Sector Lending.
  • Low-Cost Housing Loans of Rs 15 lakhs will get 1% interest sop.
  • Rural housing funds allocation to be raised from Rs 2,000 Crores to Rs 3,000 Crores.
  • 24% Increase in Educational Outlay- And Rs.21,000 Crores will be allocated for “Sarva Shiksha Abhiyan”.
  • Rs.500 Crores- more will be allocated for National Skill Development Fund.
  • Rs 100 Crorers will be provided for Microfinance Companies.
  • Rs.54 Crores, each will be allocated for Aligarh Muslim University Centres at Murshidabad and Mallapuram.

Agriculture & Food:-

  • Food security bill to be introduced this year.
  • Farmers’ credit flow will be Rs 4.75 Lakhs- Crores.
  • Measures will be taken to increase the Storage Capacity of Food Grains by 150 lakhs Metric-Tonnes.
  • 15 new Mega Food -Parks will be created for better food distribution.
  • Banks will be asked to step up ‘ Farm-Ccredit and help ‘marginal farmers’.
  • Target for credit flow to farmers has been increased from Rs 375000 Crores to Rs 475000 Crores.

Textiles Industry:-

  • Rs 3,000 Crores will be provided to “NABARD” for helping 15,000 cooperatives and 3 lakhs ‘handloom- weavers’.

Targets:-
In the current year Growth in the following sectors are expected to be achieved:-

  • overall economy at 8.6 %,
  • agriculture at 5.4 %, industry at 8.1 % and
  • services 9.3%.

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