Indian Budget - 2011

FOR IMMEDIATE RELEASE
Karol Bagh, Delhi, India, Republic of (Free-Press-Release.com) March 2, 2011 -- The Budget for 2011-12 is widely seen as cautious approach of the Finance Minister, Dr. Pranab Mukherjee towards balancing this critical phase of Indian economy. We are facing complex issues relating to soaring inflation, high growth rate, employment problems, rising oil prices, increasing deficit on current and capital account, corruption, black money, internal law and order disturbances and many more. In these circumstances our Finance Minister can definitely be excused for remaining in hibernation and playing safe in his position.

We wish financial establishment gets more proactive towards the needs of the time and react muscularly keeping in mind the aspirations of the public. In view of the media generated publicity about wastages and misappropriations of public money by some selected class of individuals the whole governance has been put on public trial. In these circumstances Regulatory Bodies are required to get into action swiftly and clear the misgivings otherwise help the government to discipline the perpetrators.

However, if the government feels that, the regulatory mechanism and policing can not be the solution to the problems like black money and foreign bank accounts etc. than it should audaciously look for alternative means and measures in the larger interest of the nation without being conscientious of opposition party’s political criticism. Finance Minister should realise that, enormous Indian wealth is lying in other countries which he can attract discreetly and not by any kind of intimidation or coercion. In the interest of infrastructure development the government can come out with some scheme which permits this money to return back to India and strictly get invested in sector like education, health, roads, housing etc. A very simple scheme can do wonders to the entire nation and make our finance minister’s name and congress leadership immortal in the fiscal and financial history of India.

KEY FEATURES OF FINANCE MINISTER’S BUDGET 2011-2012

Overview of the Economy
Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in2010-11 in real terms. Economy has shown remarkable resilience. Continued high food prices have been principal concern this year. Exports have grown by 29.4 per cent, while imports have recorded a growth of 17.6 per cent during April to January 2010-11 over the corresponding period last year. Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12.

Tax Reforms

Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012. GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.

Expenditure Reform
Committee has been set up by Planning Commission to suggest government expenditure ( capital, revenue, plan and non plan) reforms.

Subsidies
Government actively considering extension of the Nutrient Based Subsidy regime to cover urea. Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers.

PSU’s

Rs. 40,000 crore to be raised through disinvestment in 2011-12. Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.

Investment Environment
Government to further liberalise the FDI policy. SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirements for equity schemes. To enhance flow of funds to infrastructure sector, the FII limit for investment in corporate bonds issued in infrastructure sector being raised.

Banking and Micro Finance

Additional banking licences will be issued to private sector players. Rs. 6,000 crore will be provided to public sector banks for maintaining minimum of Tier I CRAR of 8 per cent. Rs. 500 crore will be provided to Regional Rural Banks for maintaining CRAR of at least 9 per cent as on March 31, 2012. India Microfinance Equity Fund of Rs. 100 crore to be created with SIDBI. New authority will vouch interest of small borrowers. Women’s SHG’s Development Fund to be created with a corpus of Rs. 500 crore. Target of providing banking facilities to all 73,000 habitations having a population of over 2,000 to be completed during 2011-2012.

Micro Small and Medium Enterprises
Rs. 5,000 crore will be provided to SIDBI for refinancing incremental lending by banks to these enterprises. Rs. 3,000 crore will be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress. Public sector banks to achieve a target of 15 per cent as outstanding loans to minority communities under priority sector lending at the earliest..................

Please click here to read further: http://www.tjaindia.com/articles/budget-2011.htm

budget 2011     Budget at a glance     Budget Estimates     Budget in Numeric Format     Central Exice     custom     economy     F M     finance     government     Pranab Mukherjee     regulation     S Tax     Tax Proposals