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SOCIAL SECTOR
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Plan to spend Rs 1.6 lakh crore on social projects, up 17 percent
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11th
plan expenditure up 100% in nominal terms
–
India Microfinance Equity Fund of Rs 100 crores to support small
MFIs
–
NABARD to be given funds for cooperatives financing handloom sector
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To provide Rs 5,000 cr to SIDBI to meet priority lending targets
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To allocate Rs 100 cr to SIDBI for women
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NREGI wage rates indexed to CPI
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Aanganwadi workers honorarium increased to Rs 3000 from Rs 1500.
Helpers salary also doubled up from 750 to 1500.
–
Close to finalising food security bill this year
–
Education allocation increased to Rs 52,057 cr, increase of 24
percent
–
Old age pension age-limit to go down from 65 to 60, for people above
80 Rs 200 to Rs 500/-.
–
Banks to cover 20,000 villages for opening accounts in FY12
–
Rs
500 crore more for national skill development fund
–
To
distribute 1 million UID cards per day shortly
AGRICULTURE SECTOR
–
Agriculture sector has shown significant rebound Growth 5.4%
–
Allocation for farm development raised to Rs 7,860 cr
–
3% (increased from 2%) Interest subvention to farmers who pay loans
in time
–
Cold storage projects classified as infrastructure sector
–
Rs 300 cr provided to promote pulses cultivation in rain-fed areas,
another Rs 300 cr to promote farm product cultivation
–
Farm credit flow raised to Rs 4.75 lakh crore
–
To classify capex of fertiliser sector into infrastructure
INDUSTRIAL & FINANCIAL SECTOR
–
Industrial Growth 8.1%
–
Exports up 9.4%
–
Economy to grow at 9 percent, plus or minus 0.25 percent in 2012
–
To permit SEBI registered mutual funds to access foreign funds
directly
–
FIIs allowed to invest in Mutual Funds; unlisted bonds with minimum
lock in period of 3 yrs
–
To provide Rs 2000 crore for warehousing facilities (to benefit TCI)
and an (equal amount for manufacturing facilities
–
Interest subvention limit raised to housing upto Rs 25 lakh from Rs
20 lakhs
–
FIIs allowed to invest in 5-year unlisted bonds
–
To allow Rs 30K crore tax free bonds for railways, NHAI
–
Special incentives for hybrid vehicle makers if manufacturing done
in India
FISCAL
–
Fiscal deficit down at 5.1% from 5.4%. Revenue deficit for FY11 seen
at 3.4%. Fiscal deficit seen at 4.1% in FY 13, 3.5% in FY 14
–
Current account deficit poses concerns
–
Gross
Tax Receipts at Rs 9.32 lakh crore, up 25%
–
Growth rate of services sector expected at 9.3%
–
Total
expenditure estimates up 13.4%
–
Exports have grown at 29.4%
–
India
expected to grow at 9 pct in FY 12
–
States to cut down fiscal deficit to 3 percent of Gross State GDP by
2014
–
Govt
to keep up tempo of disinvestment process
–
Retain divestment target of Rs 40,000 crore for FY12
–
Govt committed to retain 51 percent stake in PSUs
–
New
series of coins with new rupee symbol to be introduced
REFORMS
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To introduce public debt management bill next fiscal
–
DTC to be effective April 1, 2012
–
Direct cash transfer for kerosene, fertiliser & LPG subsidy by April
2012
–
Govt. considering Malegam report
–
Plan to introduce Companies Bill in current session
–
Self-assessment in customs for exporters & importers
–
Have set up dedicated cell on transfer policy monitoring
–
Special Component plans to be specifically earmarked in the budget
–
Allocation to Department of Justice increased 3 fold to Rs 3000 cr
–
GST Bill to be introduced in parliament this year
–
New
bank licence guidelines this year
TAXATION
–
Tax limit raised from Rs 1,60,000 to Rs 1,80,000. Special sops for
Snr citizen.
–
A new scheme to be introduced for refund of service tax on lines of
drawback of duties
–
New category of very senior citizens for those above 80 years
introduced, exemption limit Rs 5 lakh. Senior citizens exempt up to
Rs 2.5 lakh
–
Sugam – new tax return for small businesses
–
MAT rate hiked to 18.5% from 18%. Special Economic Zones to come
under MAT
–
Reduce surcharge of 7.5 percent for domestic companies to 5 percent
–
Tax sops of Rs 20,000 on Infra Bonds extended for one year
–
Service tax retained at 10%.
–
Central excise duty rate unchanged at 10%
–
Service tax on hotel accommodation above Rs 1500 per day
–
AC
restaurants serving liquor under service tax net
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AC hospitals with more than 25 beds under service tax
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Legal representation for businesses under service tax
–
Domestic travel to pay Rs 50 service tax, Rs 250 on international
travel
–
Service Tax to add another 4000 cr revenue gains
–
Service tax net extended to include health check-ups
–
Low
withholding tax of 5% for notified infra funds
–
To
impose mandatory levy of 10 pct on branded garments
–
Base
rate on excise duty raised to 5% from 4%
–
Direct Tax proposals net loss estimated at Rs 11,500 crore
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Foreign unit dividend tax rate cut to 15% for Indian companies
–
Surcharge on domestic companies reduced to 5 % from 7.5%
–
No
new tax exemption limits for women
–
MAT
rate hiked from 18% to 18.5%
–
Relaxation in e-filing norms for small tax payers
The above highlights are
based on Budget speech and may need to be amended after reading the
fine print in the Finance Bills. |