§ 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
§ 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 croreprovided
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.7860crore
§ 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
§ Rs.300 crore to promote animal based protein
§ Rs.300 crore Accelerated Fodder Development Programme to benefit farmers in
25000 villages
§ Credit flow to farmers raised from Rs.3,75,000 crore to Rs.4,75,000 crore
§ Rs.10,000 crore for NABARD’s Short Term Rural Credit Fund for 2011-12
§ 15 more mega food parks during 2011-12
§ National food security bill to be introduced this year
§ Capital investment in storage capacity to be eligible for viability gap funding
§ 23.3% increase in allocation for infrastructure
§ Tax-free bonds of Rs.30,000 crore proposed by government undertakings
§ Environmental concerns relating to infrastructure projects to be considered by
Of ministers
§ National Mission
§ 7 Mega clusters for leather products to be set up
§ Allocation for social sector increased by 17% amounting to 36.4% of total plan
allocation
§ Bharat Nirman allocation increased by Rs.10,000 crore
§ Rural broadband connectivity to all 2.5 lakh panchayats in three years.
§ Bill to amend Indian Stamp Act to introduce. Rs.300 crore scheme for
modernization stamp and registration administration
§ Significant increase in remuneration of Angawadi workers and helpers
§ Allocation for education increased by24%. Rs.21,000 crore allocated
forSarv Shikshya Abhiyan registering an increase of 40%
§ 1500 institute of higher learning to be connected by March 2012
with Knowledge Network.
§ National Innovation Council set up. Additional Rs.500 crore for National Skill
Devlopment Fund
§ Plan allocation for health stepped up by20%
§ Indira Gandhi National Old Age Pension Scheme liberalized further
§ Rs.200 crore for Green India Mission
§ Rs.200 crore for cleaning of rivers
§ Rs.8000 crore provided for development needs of J&K
§ 10 lakhs Aadhaar(UID) numbers to be generated everyday from 1stOctober
§ Fiscal deficit kept at 4.6% of GDP for 2011-12
§ Income Tax exemption limit for general category in individual tax payers enhanced
from Rs.1,60,000 to Rs.1,80,000
§ Qualifying age for senior citizens lowered to 60; senior citizen above 80 year to get
Rs.5,00,000 IT exemption
§ Surcharge on corporate lowered to 5%
HIGHLIGHTS OF UNION BUDGET 2011-12 FOR BANKING SECTOR
- Government to infuse 6000crore in Andhra Bank, Dena Bank, Oriental Bank of Commerce, Bank of Baroda & Union Bank of
- More Equity issues by PSUs (Public Sector Unit) on the way as the government aims to raise Rs.40,000 Crore
- Interest subsidy of 1% extended to Home loans up to Rs.15 Lakh & Property Worth up to Rs.25 Lakh
- The government & Small Industries Development Bank of India (SIDBI) to float Rs.100 Crore fund to capitalize Small Micro Finance Institutions (MFI)
- Banks told to lend more to Minority Community Borrowers at the target of 6% of total PSU Bank loans
- Banks will have to lend Rs.1 Lakh Crore more to Farmers, where the total loans to touch Rs.4.75 Lakh Crore
- New company will guarantee Home Loans taken by Poor Borrowers
Reserve Bank of India (RBI) to sell stakes in National Bank for Agriculture and Rural - Development (NABARD), National Housing Bank (NHB) to Government for Rs.1,430 Crore & Rs.450 Crore
