Union Budget 2011-12 Highlights

Union Budget 2011-12 Highlights

Union Budget 2011-12 Highlights:
· Critical institutional reforms set pace for double-digit growth
· Scaled up flow of resources infuses dynamism in rural economy
· GDP estimated to have grown at 8.6% in 2010-11
· Exports grown by 9.6%, imports by 17.6% in April-January 2010-11 over corresponding period last year
· Indian economy expected to grow at 9% in 2011-12.
· Five-fold strategy to deal with black money. Group of Ministers to suggest ways for tackling corruption
· Public Debt Management Agency of India Bill to come up next financial year
· Direct Tax Code (DTC) to be effective from April 01, 2012
· Phased move towards direct transfer cash subsidy to BPL people for better delivery of kerosene, LPG and fertilizer mooted
· Rs.40,000 crore to be raised through disinvestment in 2011-12
· FDI policy to be liberalized further
· SEBI registered mutual funds permitted to accept subscription from foreign investors who meet KYC requirement
· FII limit for investment in corporate bonds in infrastructure sector raised
· Additional banking license to private sector players proposed
· Rs.6000 crore to be provided in 2011-12 for maintaining minimum Tier I Capital to Risk Weighted Asset Ratio (CRAR) of 8% in public sector banks
· Rs.500 crore to be provided to regional rural banks to maintain 9% CRAR
· India Microfinance Equity Fund of Rs.100 crore to be created by SIDBI
· Rs. 500 crore Women SHG Development Fund to be created
· Micro Small and Medium Enterprises MSME gets boost as Rs. 5000 crore provided to SIDBI and Rs.3000 crore to NABARD
· Existing housing loan limit enhanced to Rs.25 lakh for dwelling units
· Provision under Rural housing Fund enhanced to Rs.3000 crore
· Allocation under Rashtirya Krishi Vikas yojna (RKVY) increased to Rs.7860 crore
· Allocation of Rs.300 crore to promote 60000 pulses villages in rainfed areas
· Rs. 300 crore vegetable initiative to achieve competitive prices
· Rs.300 crore to promote higher production of nutri-cereals