BUDGET-2011-12. HIGH LIGHTS

The budget 2011-12 was announced today 11 am by the Finance Minister Parnap Mukarji .The indian market witnessed huge volatality after 11.30 hering the flash news in media.The speculators took it up in no time and at the end during market closing the Nifty and Banknifty almost back to squre one ...!! in between the jerk in banknifty was shown 430 +points and Nifty was 170+points.Anyway lets see the budget highlights now.

• The Fiscal deficit was down from 5.5 to 5.1 and it was below the expectation levels.
• The income Tax slap is raised for male tax payer from 1.6 lak to 1.8 laks.
• The senior citzen age limit has reduce from 65 to 60.
• The priority home loan raised to 25 lakhs.
• The service tax for hotels above rs.1500/-

The FM also indicated the inflation can be controlled in 2012 and new tax for Goods&services will be introduced.

• The limit for investment in corporate bonds by foreign investors will be doubled to $40 billion, with the entire additional investment to be eligible only in bonds issued by infrastructure companies.
  •Education was in focus as well, with the finance minister saying a whopping 520 billion rupees has been set aside for the sector.
  •Stocks of iron ore companies fell as the finance minister said the iron ore export tax rate would be increased to 20%.
• Mr. Mukherjee said it is crucial to sustain agricultural production, a key political issue now with food inflation drawing protests across the country. The government will provide 3 billion rupees each to raise the output of coarse cereals, pulses and palm oil. "Maybe 3 will be my lucky number," Mr. Mukherjee said.
  •Other measures to help the agricultural sector include: A plan to set up 4 million tons of additional foodgrain storage space by March 2012, a 4.75 trillion rupees farm loans target for the fiscal year and setting aside 78.6 billion rupees for the country's farmer development program.
  •300 billion rupees of tax-free bonds will be issued to help fund infrastructure Development.
  •India will aim to raise 400 billion rupees by selling stakes in state-owned companies in the fiscal year, but the government will retain least 51% ownership and management control, as stated in the previous year's budget speech.
  •Mr. Mukherjee expects a net revenue loss of 115 billion rupees from changes in direct taxes, and a net revenue gain of 113 billion rupees from amendments to indirect taxes. The Direct Tax Code will be effective from April 1, 2012. The overall net tax revenue is likely to be 6.64 trillion rupees.