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The much awaited union budget 2011-12 from the Finance Minister Mr. Pranav
Mukherjee has been presented in the parliament on 28th Feb 2011. The
expectations from the different segment of the society have been met little by the
budget up to some extent. Before presenting the budget the minister has mentioned
the growth rate for the last year was 8.6%. The budget proposals of the blend of
populations and economics, DTC promises stable tax structure, moderate taxes and
fewer exemptions. It is also projected that growth rate for 2011-12 is 9% powered
by service and manufacturing sector. The following are some of the highlights of
the union budget:

1.‘ Minor increases threshold income tax limit from 1.6 to 1.8 lakhs for male
against the expectation of Rs. 2 Lakh was disappointing for the salary class.
There was no change in the limit for the women assesses. But significant
change for super senior citizens of thrashold limits Rs. 5 Lakhs.
2.‘ The divestment target of PSUs for FY 12 is 40000 Crore through IPOs and
FPOs. But the target of last year was not met.
3.‘ Foreign FIIs are allowed to increase in the corporate bonds from 25 billion
to 40 billion dollars.

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4.‘ ·o impact of allowing FIIs in the purchasing registered mutual funds in
India.
5.‘ Budget did not deliver big bang reforms in insurance, multi brand retail, oil
price regulation, subsidies, etc. which the people were much awaiting.
6.‘ Big jolt of MAT fro IT companies on developers of Special Economic
Zones. The rate of MAT marginally increased from 18 to 18.5%.
7.‘ The service tax base has been widened to cover more services in the service
tax net. But the rate is left untouched.
8.‘ The consumer is to spend more for treatment in private hospital.
9.‘ ·o efforts to bring back billion dollars stashed away in tax heavens on
which the finance minister did not capitalized the opportunity.
10.‘Lower Tax on foreign Dividend from 30% to 15% on dividend to be
received by the Indian companies from foreign subsidiaries to bring back
more cash from overseas arms and joint ventures.
11.‘·o increase in the excise duty is boost for manufacturing sector which is
feeling the pressure of rising commodity prices.
12.‘Surcharge on corporate tax has been reduced from 10% to 7.5% giving
marginal relief India I·C.
13.‘Basic custom duty has been reduced from 5% to 2.5% on specified
agriculture machines and components are boost of the sector. Farm credit
target raised to 4.45 lakh crore and interest discount increased to 3%.
14.‘Banded govt. medicines, packed foods to cost more for the consumers.
15.‘The fiscal deficit will fall to 4.6% on FY 12 from 5.1%, the revue deficit
will dip to 1.8%.
16.‘The overall social sector spending goes up 17%, education and the health
care get 24 and 20% more.
17.‘Budget is a good balancing growth and the prudence.
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All in all it is a conservative muted, big reform less and no damage budget from
the UPA Govt. ·either disappointing nor fulfilling the expectations of the society
in full. The opposition is also reacted saying a ritual performed.

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In the post-budget analysis we see strong criticism from all quarters in all the
debates and discussions. Except from the party in power, which presented the
budget, nobody else finds the budget µpeople friendly.¶

Finance minister Pranab Mukherjee presented the Union budget for 2011-12 on
Monday in the Parliament. The budget session, which lasted for nearly two hours,
witnessed some noisy scenes from the opposition parties who made some hue and
cry when the minister stated measures to curb corruption and check black money.

1.‘ This time the budget primarily focused on the rural sector and instead of
allocating more funds in various schemes, the main thrust was on to check
the losses that have been doing more harm to the government coffers in the
name of subsidies. Thus, the government has decided to give the benefit of
subsidies in cash direct to the consumers after the UID cards are being made
and distributed in the bank accounts of the beneficiaries (BPL families).
2.‘ The minister¶s decision to give subsidies on LPG, kerosene and diesel direct
to the poor families would also help in checking the menace of adulteration
and black marketing of these commodities as they would be made available
to all at the market price. So in the longer run with the help of technology,
the government will be able to check the theft of these items and it will save
millions in times to come.

 
3.‘ Then there was some relief for the Aganbadi workers who will gain
monetarily. The minister has increased the monthly allowance from Rs.
1500 to 3,000 and for the assistant worker from Rs. 750 to 1500. This will
benefit lakhs of Aganbadi workers who have been giving their services in far
off villages.
4.‘ As far as the expectations of salaried class people were concerned, the hike
in the exemption limit in the Income Tax from the present 1,60,000 to
1,80,000 looked quite insignificant as all were expecting it to be around
2,00,000. However, the lowering of age limit for senior citizens from 65 to
60 and tax exemption limit to 2,50,000 an increase in 10,000 here, was
welcomed by all.
5.‘ The government also received appreciation for making a separate category
for senior citizens above the age of 80, that they will be free from Income
Tax upto 5,00,000. This will give many a reason to smile as they are the one
who need the most to meet out medical expenses.
6.‘ Home loans too have been made cheaper and the package of 3,000 crores to
weavers is going to benefit a large number of people associated with this
age-old business. The minister has also laid emphasis on more FII
investments in the areas of infrastructure and this is a good indication for the
Indian economy.
7.‘ The ministry has allocated budgetary support for speeding up the
construction of Metro Rail in Mumbai, Chennai, Bengaluru and Hyderabad.
Due emphasis has been given in the budget for clean and green energy
which will witness arrival of hybrid technology in the Indian market. More
of Low floor C·G buses to be inducted and subsequently solar lanterns and
solar technology also got a boost in the minister¶s address.

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 8.‘ The minister has projected a GDP growth of 9 per cent and with the
introduction of scholarship to the students belonging to SC/ST in classes
IXth and Xth, the pre-matric scholarships offered by the UPA government in
this budget is also being looked upon as a µpolitical strategy¶ to attract votes
from the SC/ST community which is right now under the umbrella of the
BSP.
9.‘ Pranab Mukherjee also announced a new award in the name of late Rabindra
·ath Tagore which would be of Rs 1 crore for promoting universal
brotherhood. It will be not out of place to mention here that just three days
back when Mamata Banerjee presented her rail budget, she announced trains
in the name of Gurudev Tagore in order to commemorate his 150th birth
anniversary this year and so when Mamata can announce a new train then
how Dada can be left far behind knowing the state of West Bengal will be
going for polls soon. So he also tried to grab the attention of Bengal voters
by initiating an award after Gurudev¶s name.

The budget was okay with nothing special to cheer about and reforms are a long
process which will take years to shape-up the economy like a developed nation.
The process is on and we are moving on the right track of economic reforms.

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