Highlights of Budget 2011

Financials
Expenditures

2011
Revenue Rs 12.58 Trillion

Important Sectors of Economy

Agriculture
Agricultural credit made easier to farmers & credit flow increased to Rs 4.75 trillion.
Capital base of NABARD strengthened by

Rs 3000 cr. & Rs 10000 cr. to short term credit.

Cont..
Interest subvention enhanced from 2% to 3%

for short term loan for farmers. In 2010 11 NBS was implemented with exception to urea. Hence in 2011 12 NBS was extended with consideration to urea. Positive impact.

Infrastructure
Allocation of Rs 2.14 Cr. which constitutes 48.5% of total planned expenditure. Tax free bonds of Rs 30,000 cr., to be issued by government undertaking. Total disbursements for IIFCL was hiked to Rs 25000 cr. from Rs20000 cr. Hence marginal increase to rural infrastructure

Education
Allocation of Rs 520.5 billion.
Rs 21000 cr. for Sarva Shiksha Abhiyan.

Health
Allocated Rs 267.6 billion against Rs

22300 cr.
Scope of Rashtriya Swasthya Bima Yojna

increased.

Information Technology
Minimum Alternate Tax (MAT) rate of 18.5%

for units operating in Special Economic Zones (SEZ). IT companies migrated to SEZ as under STPI scheme, the 10 year tax break was extended till 2012.

Automotive
Positive impact. Deduction of excise and custom duty on hybrid

and electric Vehicles to encourage their manufacturing and sales. Reduction in custom duty of raw steel benefited car makers and auto component suppliers.

Tax Proposals
Personal Income tax exemption limit raised to

Rs 180000 from Rs 160000. Senior citizens qualifying age reduced to 60 yrs from 65 yrs and exemption limit of Rs 250000. Citizens over 80 yrs have exemption limit of Rs 500000. MAT was raised to 18.5% from 18%. Service tax rate kept at 10%.

Thank You