Union Budget 2011-12: Highlights

Union Finance minister of India, Pranab Mukherjee, presented the budget in the Parliament on 28 February 2011. The highlights of the budget are as following:

• The total expenditure proposed for 2011-12 is Rs 1257729 crore. Plan expenditure will be Rs 441547 crore, an increase of 18 per cent and non-Plan expenditure will be Rs 816182 crore, an increase of 10.9 per cent over Budget estimates of 2010-11.
• Indian Economy expected to grow at 9% in 2011-12.
• GDP growth is pegged at 8.6 percent, agriculture 5.4 percent, industry 8.1 percent and services 9.6 percent in the current fiscal.
• Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year
• Defence expenditure for the 2011-12 has been pegged at Rs 164415, an increase of Rs 17071 crore over the last financial year 2010-11. This includes a capital expenditure of Rs 69199 crore.
• Allocation under Rashtirya Krishi Vikas Yojna (RKVY) increased to Rs.7860 crore
• The gross tax receipts are estimated to grow by 24.9 percent to 932440 crore rupees.
• The fiscal deficit is estimated at 412817 crore rupees which is 4.6 per cent of the GDP.
• Direct Tax Code (DTC)  which will replace the Income Tax Act, to be effective from 1 April 2012
• Bharat Nirman scheme was allocated Rs. 58,000 crore, which increased by 10000 crore rupees from the financial year 2010-11. Bharat Nirman scheme includes Pradhan Mantri Gram Sadak Yojana (PMGSY), accelerated irrigation benefit programme, Rajiv Gandhi Grameen Vidyutikaran Yojana, Indira Awas Yojana, National Rural Drinking Water Programme and Rural Telephony.
• Govt proposes to give 13 thousand crore to NABARD for helping cooperative sectors.
• Income Tax exemption limit for individuals raised from one lakh 60 thousand to one lakh 80 thousand rupees.
• Allocation for Sarva Shiksha Abhiyan increased by 40 % to 21 thousand crore rupees
• Plan allocation for education hiked by 24% and health by 20%.
• Eligibility for old age pension scheme reduced from 65years to 60.
• Allocation for infrastructure increased by 23.3% to 214000 crore rupees.
• Credit to farmers to be increased to 475000 crore rupees.
• Rashtriya swasthya bima yojna extended to mahatma gandhi nrega workers and bidi workers
• Credit flow to the farmers to be raised from three lakh seventy five thousand crore rupees to four lakh seventy thousand crore rupees
• The Union Budget for 2011-12 has proposed increase in the Income Tax Exemption Limit by 20000 rupees and lowering of qualifying age for tax relief for senior citizens from 65 to 60.
• Credit to farmers to be increased to 475000 crore rupees.
• Government to borrow 3.43 lakh crore rupees from the market.
• Exemption Limit for income tax by 20000 rupees to RS. 180000 rupees
• Rs. 300 crore expenditure to promote 60000 pulses villages in rain fed areas for increasing crop productivity and strengthening market linkages.
• The allocation for social sector has been increased by 17% to 160887 crore rupees which amounts to 36.4% of the total plan allocation.
• Remuneration for Anganwadi workers have been increased to 3000 rupees per month from 1500 rupees per month while the Anganwadi helpers will get 1500 rupees per month.  This will be effective from 1st April 2011 benefiting about 22 lakh Anganwadi workers and helpers. 
• Interest subvention of 1 per cent on housing loans will now be available for loans upto Rs. 15 lakh where the cost of house does not exceed Rs. 25 lakh.
• Government plans to set up a five hundred crore rupees women self help groups development fund
• Banking regulation act to be amended.
• Old age pension for BPL people proposed to be increased from two hundred to five hundred rupees
• Banking facilities extended to 50 thousand more villages in the next financial year.