2011-12 Union Budget highlights

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 year8217;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 accountability8230; such an impression is misplaced.

Corruption is a problem,must fight it collectively