Monday, February 28, 2011

Union Budget 2011-12 Part I


Union Budget 2011-12 Part I
    Highlights of Union Budget 2011-12 announced by Finance Minister Pranab Mukerjee is as follows:

  • The year was full of challenges for fiscal consilidation: FM
  • Economy set for double-digit growth in coming years
  • Growth in 2011 was broad based
  • Need to make development more inclusive
  • High growth trajectory is our aim
  • Food inflation is a big concern
  • To reconcile environment concerns, growth needs
  • Much needs to be done in rural India
  • Need to improve regulatory standards to fight corruption
  • Agriculture sector has shown significant rebound
  • Don't see resources as a constraint to growth
  • Corruption is a problem we have to fight collectively
  • Working on simplifying tax rules, trade and tariff norms
  • Must ensure that private investment is sustained
  • Agriculture growth at 5.4%, industry at 8.1% in 2010-11
  • Monetary policy is keeping food inflation in check
  • Seen shortcomings in food supply chains
  • Recovery in developed nations has taken roots
  • Average inflation to be lower next year, current account deficit to be better managed
  • Impression of drift in government is misplaced
  • Exports up 9.4% in 2010-11
  • Laying down fiscal consolidation map for next five years
  • DTC to be effective April 1, 2012
  • The economy has shown remarkable resilience
  • To introduce Public Debt Management Bill in 2012
  • States to cut down fiscal deficit to 3 percent of Gross State GDP by 2014
  • GST rounds with states making considerable progress
  • Availability of fertilizers has improved post new policy
  • Working on ensuring better delivery for urea, kerosene
  • Nutrient based fertilizer policy for urea under consideration
  • To move to direct cash subsidy for kerosene, fertilizer
  • National Fertilizers up 7%, Rashtriya Chemicals up 4.28%, Coromandel Intl up 4.55%
  • Retain divestment target of Rs 400 billion
  • Govt committed to retain 51 percent stake in PSUs
  • Nifty up by 70 points at 5,368, Sensex near 17,976, up by 275 points
  • Task force working on oil subsidy plans
  • FII limit in corporate bonds raised to USD 40 billion
  • FIIs allowed to invest in MFs; unlisted bonds with minimum lock in period of 3 yrs
  • Auto stocks down on profit-booking; Hero Honda down 4%
  • To bring legislative amendments for banking licenses this year
  • Plan to allow FII limit in infrastructure bonds to USD 25 bn
  • Pranab proposes to allocate Rs 60 bn for some PSU banks to help them maintain Tier-I capitalat 8%
  • To provide Rs 20 bn for warehousing facilities
  • To provide Rs 20 bn for manufacturing facilities
  • To bring legislative amendments for banking licenses this year
  • Interest subvention of 1% extended from Rs 5 lakh crore to Rs 20 lakh crore
  • To provide Rs 50 bn to SIDBI to meet priority lending targets
  • Textile Gainers: Spentex, BSL, Abishek industries, Gokuldas, IDFC
  • Reality Gainers: HDFC 2.75%, DLF 2%, Unitech 3.2%, LIC Housing Finance 3.8 %
  • Reality Gainers: HDFC 2.75 %, DLF 2 %, Unitech 3.2 %, Lic Housing Finance 3.8 %
  • To provide Rs 3 bn to improve production of pulses
  • Plan to introduce Companies Bill in current session
  • Rural housing fund corpus raised to Rs 30 bn vs Rs 20 bn
  • Aim to allocate Rs 1 bn to SIDBI for women
  • Fertilizers gain as FM says urea policy under consideration
  • To set up Mortgage Risk Guarantee fund for rural housing
  • Allocation for farm development increased to Rs 7860 cr
  • Edible Oil Gainers: KS Oil up 2.24%, Raj oil up 3.45%
  • To provide Rs 300 cr for implementing initiatives on vegetables
  • TCI to benefit from Govt support for warehousing
  • FIIs allowed to invest in 5-year unlisted bonds
  • To provide Rs 3 bn to improve oil seed plantations
  • PSU banks gains as FM proposes to allocate Rs 60 bn
  • BSE FMCG Index up 1.5% on budget announcements
  • To infuse Rs 30 bn in NABARD in phased manner
  • Rupee up on increase in FII corp bond limit
  • Banking gainers: Dewan housing up 4.88%, Federal Bank up 4.47%, IDBI Bank up 1.9%
  • Inflation remains principal concern, to fall next yr: FM
  • Cold storage projects classified as infrastructure sector
  • Rs 3 bn provided to promote pulses cultivation in rain-fed areas, another Rs 3 bn to promote farm product cultivation.

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