Union Budget 2011-12 highlights

For record, I am giving below the main highlights of the budget presented by Pranab Mukherjee on 28th Feb 2011:

• Direct Tax Code (DTC) to be effective from April 01, 2012.
• Five-fold strategy to deal with black money. Group of Ministers to suggest ways for tackling corruption.
• Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizers.
• Additional banking license to private sector players proposed.
• Rs.6000 crore to be provided for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks.
• Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR.
• Rs.40,000 crore to be raised through disinvestment.
• FDI policy to be liberalized further.
• SEBI registered mutual funds permitted to accept subscription from foreign investors.
• FII limit for investment in corporate bonds in infrastructure sector raised.
• India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI.
• Rs. 500 crore Women SHG Development Fund to be created.
• MSME get boost as Rs. 5000 crore provided to SIDBI and Rs.3000 crore to NABARD.
• Interest subvention for housing loans up to Rs 15 lakh, for houses up to Rs.25 lakh.
• Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore
• Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas.
• Rs. 300 crore vegetable initiative to achieve competitive prices.
• Rs.300 crore to promote higher production of nutri-cereals.
• Rs.300 crore to promote animal based protein supplements.
• Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in 25000 villages.
• Credit flow target to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore.
• Crop loans to get interest subvention of 3% from 2% at present.
• National food security bill to be introduced this year.
• Capital investment in storage capacity to be eligible for viability gap funding.
• 23.3% increase in allocation for infrastructure.
• Tax-free bonds of Rs.30,000 crore proposed by government undertakings.
• Environmental concerns relating to infrastructure projects to be considered by Group of Ministers.
• National Mission for Hybrid and Electric Vehicles to be launched.
• 7 Mega clusters for leather products to be set up.
• Allocation for social sector increased by 17% .
• Bharat Nirman allocation raised by Rs.10,000 crore.
• Rural broadband connectivity to all 2.5 lakh panchayats in three years.
• Increase in remuneration of Angawadi workers and helpers.
• Allocation for education increased by24%. Rs.21,000 crore allocated for Sarv Shikshya Abhiyan registering an increase of 40%.
• 1500 institutes of higher learning to be connected with Knowledge Knowledge Network.
• National Innovation Council set up. Additional Rs.500 crore for National Skill Development Fund.
• Plan allocation for health stepped up by20%.
• Indira Gandhi National Old Age Pension Scheme liberalized further.
• Rs.200 crore for Green India Mission.
• Rs.200 crore for cleaning of rivers.
• Rs.8000 crore provided for development needs of J&K.
• 10 lakhs Aadhaar (UID) numbers to be generated everyday from 1st October.
• Fiscal deficit targeted at 4.6% of GDP.
• Income Tax exemption limit for general category individual tax payers enhanced from Rs.1,60,000 to Rs.1,80,000.
• Qualifying age for senior citizens lowered to 60; senior citizen above 80 years to pay no income tax for income up to Rs.5,00,000.
• Surcharge on corporates lowered to 5%