Benefiting the "common man", FM Pranab Mukherjee has announced an increased exemption limit from 1.6 lakhs to 1.8 lakhs. All tax-payers in the category will see their taxes lowered by Rs 2,000. Senior citizens exemption age has also been lowered to 60 from 65. New category of very senior citizens has been introduced in which people over the age of 80 will have exemption limit of Rs 5 lakh.
Presenting the Union Budget 2011, the Finance Minister announced a whooping sum of more than 1.64 trillion (1.54 lakh crore rupees) for defense budget. This will mark an increase of more than 4 per cent from the 2010-11. as defense budget. Also Rs 9 lakh compensation to be given to men of defence and Central paramilitary forces for permanent disability and discharged from service.
Pranab Mukherjee announced 1% Excise duty on 130 new items. These items exclude food products, clothes, fuel, precious stones, gold and silver jewellery. Besides this, the base rate on excise duty has also been raised to to 5%.
FM has increased the Housing loan limit to Rs 25 lakh for priority sector lending. 1 per cent interest on subvention on home loans up to Rs 15 lakhs has also been announced.
The Finance Minister announced the average inflation to be lower next year. He suggested methods to solve the problem of gap between the corporate and the governance.
Travelling by air has just become costlier as FM announced to increase Service tax on air travel by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be 10 per cent flat.
The Union Budget 2011 assured boosts for infrastructure and PSU banks. Rs. 6,000 srores have been allocated to maintain capital-to-risk asset ratio norms. Also a cap infusion of Rs 20,157 crores in PSU banks has been announced for in FY12 .
The contradicted disinvestment strategy of INdian government is alll set to roll once again. FM announced that the government targets to raise Rs. 40,000 crores through disinvestment in current FY. If the target is reached, it will boost the primary markets, while shoring up government finances.
Education has emerged as one of the prime focuses in Union Budget 2011. Finance Minister has allocated Rs 52,057 crore to the education sector for FY 2011-12. Rs 21,000 crore to be allocated to Sarva Shiksha Abhiyan.
The economic statistics presented by Mr. Pranab Mukherjee in Union Budget 2011 are pointing at a buoyant Indian economy. Real GDP growth: 8.6 per cent. Agriculture: 5.4 per cent. Industry: 8.1 per cent. Services: 9.2 per cent Exports up 29.4 per cent (Apr-Jan). Imports up 17.6 per cent (Apr-Jan). However, the composition of the current account deficit remains a concern.
Mukherjee said that the speed of financial reforms will be geared up with introduction of important bills in thi ssession itself. Insurance Amendment Bill, LIC Bill, Pension Development Authority Bill, Banking Laws amendment Bill and SBI subsidiaries Bill are to name a few.
The Economic Survey for the current year 2011-12 clearly gives a picture of definite growth of the country's economy that is growing at 8.6 % .The agricultural sector also showed a growth of 5.4 % , the industrial output registered a growth of 8.6 % and further the manufacturing sector also showed a climbing rate of 9.1 % . The Export sector reported a growth of 29.5% for April to December 2010 and the Import sector reported a growth of 19 % in the same time .The Green Survey of Agriculture :
The Economic survey 2011-12 advised to go for another Green Revolution that will be a definite help to tackle food prices. It is also expected that there is going to be introduction of the latest technology and diverting higher investment for agricultural sector .Capital growth through various mediums
The economic survey 2011-12 suggests the Indian government to build close ties with G-20 countries to increase the inflow of foreign capital , it will give more emphasis to capital market by introducing new regulation.Unemployment and education finds solution
The Economic Survey for 2011-12 gives a solution to tackle unemployment ,various new financial schemes will be introduced and monitored to give maximum benefit . And to see to it all children of India get education the survey suggests that education system should get help by private participation.