2011_Budget - GDP growth should reach 8.75 to 9.25 pc in FY12

2011 Budget speech Pranab Mukherjee Minister of Finance said the India economy will grow by 8.75 to 9.25 percent during the 2011-12 financial. Fiscal consolidation and reform are central themes of the speech, told FM that the Reserve Bank of India (RBI) move further ease inflation in the months to come.

He said the Indian economy has regained its momentum of growth before the crisis, but there is a need for adjusting the composition of demand and supply.

We must ensure, with recovery of private consumption to private investment and sustained growth is the pre-crisis earlier Mukherjee said. Highlights of the Union budget 2011:
Net market borrowings for 2011-12 in view of Rs 3,43,000 crore
revised gross market borrowing for 2010-11 at Rs 4.47, 000 crore

FISCAL DEFICIT

* Fiscal deficit seen at 5.1 percent of GDP in 2010-11
* Fiscal deficit seen at 4.6 percent of GDP in 2011-12
* Fiscal deficit seen at 3.5 percent of GDP in 2013-14

SPENDING
* Total expenditure in 2011-12 seen at 12,58,000 crore rupees
* Plan expenditure seen at Rs 4,41,000 crore in 2011-12, up 18.3 percent

REVENUE

* Gross tax receipts seen at Rs 9,32,000 crore in 2011-12
* Corporate tax receipts seen at Rs 3,60,000 crore in 2011-12
* Tax-to-GDP ratio seen at 10.4 percent in 2011-12; seen at 10.8 percent in 2012-13
* Customs revenue seen at Rs 1,52,000 crore in 2011-12
* Factory gate duties seen at Rs 1,64, 000 crore in 2011-12
* Non-tax revenue seen at Rs 1,25,000 crore in 2011-12
* Service tax receipts seen at Rs 82,000 crore in 2011-12

SUBSIDIES

* Subsidy bill in 2011-12 seen at Rs 1,44,000 crore
* Food subsidy bill in 2011-12 seen at Rs 60,570 crore
* Revised food subsidy bill for 2010-11 at Rs 60,600 crore
* Fertilizer subsidy bill in 2011-12 seen at Rs 50,000 crore
* Revised fertilizer subsidy bill for 2010-11 at Rs 55,000 crore
* Petroleum subsidy bill in 2011-12 seen at Rs 23,640 crore
* Revised petroleum subsidy bill in 2010-11 at Rs 38,400 cr
* State-run oil retailers to be provided with Rs 20,000 crore cash subsidy in 2011-12

GROWTH, INFLATION EXPECTATIONS

* Inflation seen at 5 percent in 2011-12
* Economy expected to grow at 9 percent in 2012, plus or minus 0.25 percent

TAXES
* Standard rate of excise duty held at 10 percent
* Service tax rate held at 10 percent
* Scope of service tax to be widened
* Minimum alternate tax raised to 18.5 percent from 18 percent
* Iron ore export duty raised to 20 percent
* Personal income tax exemption limit raised to Rs 1.8 lakh
* Surcharge on domestic companies raised to 5 percent

DISINVESTMENT

* Disinvestment in 2011-12 seen at Rs 40,000 cr