Breaking News
Nagaland Post Logo
You are here:  Skip Navigation LinksHome » Show story
Union Budget 2011: Air travel, eating out become dearer
NEW DELHI, FEB 28 (AGENCIES):
:
Published on 28 Feb. 2011 11:50 PM IST
Print  Text Size
 

Finance minister Pranab Mukherjee presented Union Budget 2011 in Parliament today.
OVERVIEW: Budget estimates for 2011-12 projects Rs 9,32,440 crore- an increase of 24 percent. Expenditure in 2011-12 is estimated at Rs 12,57,729 crore, an increase of 13.4%. Revenue deficit fixed at 2.3% in revised estimates of 2010-11 and 1.8% in 2011-12. Tax reductions to result in revenue loss of Rs 11,500 crore.
INFLATION: Pranab opened his speech with reference to inflation saying that food inflation came down from 20.2% last year to 9.3% in January 2011 but it was still a matter of concern. “Government’s principle concern is high food prices... food prices were high for cereals, there was a spurt in prices of onions and milk,” he said.
AGRICULTURE: In what may be a big relief for farmers, the FM said credit flows to farmers will be raised from Rs 3.75 lakh crore to Rs 4.75 lakh crores and the allocation under Rashtriya Krishi Vikas Yojana will be raised from Rs 6755 crore in the current year to Rs 7860 crore. (Farm loans at 4%; credit target raised to Rs 4,75,000cr).
An additional Rs 300 cr will be provided to promote pulses cultivation in rain-fed areas and another Rs 300 cr to promote farm product cultivation. In joy for anganwadi workers, their remuneration is being raised from Rs 1500 to Rs 3,000 per month. Anganwadi helpers will get Rs 1,500 from Rs 750, Pranab said. (Social spending to be raised by 17% ). Old age pension to persons of over the age of 80 will be raised from Rs 200 to Rs 500.
HEALTH: 20 percent hike in health budget for 2011-2012.
INCOME TAX: No change in tax slabs has been proposed. The tax exemption limit for general category has been raised from Rs 1,60,000 to Rs 1,80,000. No change in tax exemption limit for women. For senior citizens, exemption age limit has been reduced from 65 to 60. Their tax exemption limit will be Rs 2,50,000. Apart from this, a new exemption bracket has been created for those above 80 years of age. Their tax exemption limit will be Rs 5,00,000. Surcharge for companies cut to 5 per cent, from 7.5 per cent. (Corporate Tax surcharge reduced to 5%). A new revised income tax return form ‘Sugam’ to be introduced for small tax papers.
DIRECT TAX: The FM announced that Direct Tax Code will be implemented from April, 2012 and the Goods and Services Tax Bill is to be introduced in Parliament this year.
SERVICE TAX: Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests. Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be 10% flat.
EXCISE & CUSTOMS DUTY: There is a proposal to introduce self-assessment of customs duty wherein importers and exporters will themselves assess payment of duty. There will be change in excise duty. The standard rate of central exercise duty will be maintained at 10%. A 1% central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted and there will be no change in CENVAT rates.
A new scheme is to be introduced for refund of service tax on the lines of drawback of duties, he announced. Also, capital investment in fertiliser production will be considered as infrastructure sub-sector, Pranab said. Tax-free bonds of Rs 30,000 cr will be issued for infrastructure development which will cover Warehousing Corporation, NHAI, IRFC and HUDCO.
EDUCATION: A Rs 50cr grant is being allocated to Aligarh Muslim University centres in Murshidabad in West Bengal and Malappuram in Kerala. Also, the government has decided to allot Rs 200 cr to IIT Kharagpur. (24% hike in allocation for education)
GROWTH: Predicting growth patterns over the next fiscal, Pranab said the overall economic growth in the current fiscal was expected at 8.6 %, agriculture growth at 5.4 %, industry at 8.1 % and services 9.3 %. In the next fiscal, economic growth was likely to be 9%, he said.
He said that corruption continued to be deterrent in the country’s development and had to be fought extensively. He said the government plans to create a Women Self Help Group development fund with a corpus of Rs 500 crore. There is also a proposal to increase rural housing fund to Rs 3,000 crore. He also announced benefits for Below Poverty Line families by allowing direct transfer of subsidies in kerosene and LPG for such individuals.
Also, NABARD capital base will be strengthened and Rs 10,000 cr will be provided to it as short term credit fund.
Pranab announced the formation of Indian micro finance equity with SIDBI at Rs 100 crore. Another Rs 6,000 cr will be given to public sector banks to maintain capital-to-risk assets ratio norms, he said.

 
Comments:(0) Login or Register to post your Comment
(Available for registered users only)
 
 
 
News:
Date:
 
More News