Union Budget : Highlights for 2011-12

FM sets disinvestment target of Rs40,000 crore, proposes new bank licences for private players this year and speeding up of pending bills 

New Delhi: A disinvestment target of Rs40,000 crore for 2011-12, bank licenses to new private sector players and speeding up of various pending financial sector bills were among the highlights of the proposals in the Union Budget for 2011-12, presented by finance minister Pranab Mukherjee in Parliament today. Following are some of the major announcements Mr Mukherjee made during his Budget speech, PTI reports

  •  Disinvestment target for next fiscal at Rs40,000 crore. Proceeds for this fiscal at Rs22,144 crore.
     
  •  RBI's final guidelines for new bank licences to private players by March-end.
     
  •  Financial sector reforms to move forward.
     
  •  Bills on insurance amendment, LIC and Pension Development Authority, Banking Laws Amendment, SBI subsidiaries and BIFR to be table during the current session of Parliament.
     
  •  Financial Sector Legislative Reforms Commission to be headed by former Supreme Court judge B Srikrishna; Commission to overhaul financial sector regulations; to complete work in 24 months.
     
  • New Companies Bill to be introduced in current session.
     
  •  Discussions ongoing to further liberalise FDI policy.
     
  •  Government to move towards direct transfer of cash subsidy as regards kerosene, LPG and fertilisers.
     
  •  Constitution Amendment Bill to introduce GST (Goods and Services Tax legislation) in this session; GST Bill this year.
  •  Direct Taxes Code Bill likely to be passed by Parliament in next financial year after getting report from the Standing Committee.

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Union Budget: Farm loans at 4%; credit target raised to Rs4,75,000 crore

Faced with high food inflation and the country's dependence on import of pulses and edible oil, the finance minister also announced various schemes for promoting production of vegetables, pulses, oilseeds, fodder and nutrition-rich crops

New Delhi: In a bonanza to the farming community, the government today announced loans at interest rate of 4%-3% less than market rate-for farmers who pay their dues in time and raised the credit target for farm sector by Rs1 lakh crore.

"The existing interest subvention scheme of providing short-term crop loans at 7% interest rate will continue during the 2011-12 fiscal," finance minister Pranab Mukherjee said in Budget proposals.

He also said the credit target for the agriculture sector has been increased by Rs1 lakh crore to Rs4,75,000 crore. Also, banks have been asked to focus on farm credit lending to small and marginal farmers, he added.

"In the last Budget, I had provided an additional 2% interest subvention to those farmers who repay their crop loan on time. In order to provide further incentive to these farmers, I propose to enhance the additional subvention to 3% in 2011-12. The effective rate of interest for such farmers would be 4%," he said.

Faced with high food inflation and the country's dependence on import of pulses and edible oil, the finance minister also announced various schemes for promoting production of vegetables, pulses, oilseeds, fodder and nutrition-rich crops like millets and maize.

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Union Budget: Low-cost home loans of Rs15 lakh to get 1% interest sop

In his Budget speech, the finance minister said he is liberalising the existing scheme of 1% interest subvention on housing loans up to Rs15 lakh, where the cost of house does not exceed Rs25 lakh

New Delhi: The government today said low-cost housing loans of Rs15 lakh will be eligible for 1% interest subsidy, which will help in increasing the demand for such housing, reports PTI.

In his Budget speech, finance minister Pranab Mukherjee said he is liberalising the existing scheme of 1% interest subvention on housing loans up to Rs15 lakh, where the cost of house does not exceed Rs25 lakh. The existing interest subsidy is on loans of Rs10 lakh where the cost of house is Rs20 lakh.

"To further stimulate the growth in housing sector, I am liberalising the existing scheme of interest subvention on 1% on housing loans by extending housing loan up to Rs15 lakh where the cost of the house does not exceed Rs25 lakh, from the present limit of Rs10 lakh and Rs20 lakh respectively," Mr Mukherjee said.

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COMMENTS

Pradip Gheewala

6 years ago

I had taken home loan of rs 12,00,000 from axis bank in september 2009 and my house cost was rs. 18,00,000 so may i eligible for 1% interest subsidy on this loan?

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