INDIA BUSINESS UPDATE--BUDGET 2011: Pranab Mukherjee Unveils A Pragmatic Budget; Sensex Up 122 Pts; India Inc Happy, Opposition Parties Disappointed

Monday, Feb 28, 2011 BUDGET 2011-12 Click here for India Business Update Mobile Version PRANAB UNVEILS A PRAGMATIC BUDGET The Union Budget for 2011-12 presented by Finance Minister Pranab Mukherjee on Monday is widely seen as taxpayer-and market-friendly. While it provides tax relief to individual taxpayers and corporate assessees, it has also sought to avoid any across-the-board increases in excise and service taxes -- as was widely expected following suggestions from the Prime Minister's Economic Advisory Council. read more BUDGET 2011-12 LEAD STORIES SENSEX TRIMS GAINS AS BUDGET EUPHORIA RECEDES Investors cheered the Budget pushing up the Sensex nearly 600 points before profit-booking erased gains. Sensex ended 122 points higher at 17,823.40. read more INDIA INC WELCOMES BUDGET The industry termed the budget as positive and growth-oriented and was pleasantly surprised with the unchanged excise rate in major sectors. read more BUDGET VERY DISAPPOINTING & DIRECTIONLESS: OPPOSITION Opposition parties came down heavily on General Budget 2011-12 dismissing the exercise as "very disappointing and directionless". read more BUDGET 2011-12 TOP STORIES • Fiscal deficit for FY11 at 5.1%; FY12 seen at 4.6% • Corporate tax surcharge reduced to 5% • 18.5% MAT on SEZ developers, units • Excise duty retained at 10%, more items to be taxed • Service tax stays at 10%; more services added • FIIs allowed to invest in mutual funds • FII limit for invst in corporate bonds hiked to $40 bn • Budget targets farms, social spending • UMPPs get duty exemption boost • RBI to issue norms for new banking licences by Mar'11 • FY12 disinvestment target set at Rs 40,000 cr • Foreign unit dividend tax rate cut to 15% for Indian cos • I-T exemption limit for individuals now Rs 1.8 lakh • No filing of tax returns if salary is only income • FM plans 5-fold strategy against black money • Fuel prices may rise as FM fails to reduce duty • 20% ad valorem to make iron ore dearer • Import duty on petcoke, gypsum halved • Nutrient-based fertiliser subsidy policy on anvil • Picture Post: What's cheaper/costlier after this Budget more stories BUDGET 2011-12 TOP VIDEOS Pranab Mukherjee, Finance Minister In His First Interview Post Budget With Network 18's Raghav Bahl Budget 2011-2012: Pranab Mukherjee's Speech Budget Silent On Economic Reforms: Yashwant Sinha, Former Finance Minister Not A Direction Setter For Market: Madhu Kela, Chief Investment Strategist, Reliance Capital Fiscal Deficit Target Big Issue: R Seshasayee, MD, Ashok Leyland Budget Well Conceived: C Rangarajan, Chairman, PM's Economic Advisory Council Budget 2011 Is Not A Populist Budget: Vallabh Bhanshali, Chairman, ENAM Securities Allowing FIIs To Invest In MFs A Dramatic Move: Ramesh Damani, Member, NSE Tax Reduction In FII Funding To Help Infra Sector: YM Deosthalee, CFO, L&T See No Negativity In Budget: Venu Srinivasan, CMD, TVS Motors AT A GLANCE BSE 17823.4 +122.49 NSE 5333.25 +29.7 TURNOVER Rs. 206,181 cr BSE CASH Rs. 3,854 cr NSE CASH Rs. 16,387 cr NSE F&O Rs. 185,939 cr BULLION GOLD 20965 +4 SILVER 49835 -266 CRUDE WTI 97.46 -0.42 BRENT 5076.57 -7.64 FOREX $ / Re 45.26 +0.01 £ / Re 73.425 +0.8 € / Re 62.631 +0.61 BUDGET 2011-12 HIGHLIGHTS IN KEY SECTORS INFRASTRUCTURE Targeted Spending Of Rs 2.14 Lakh Crore To Allow Rs 30,000 Cr Tax Free Bonds Tax Sops Of Rs 20,000 On Infra Bonds Extended By A Year Infra Debt Funds To Promote Foreign Investment Hike In FII Investment Limit By Additional $20 Bn In Infrastructure-Related Sectors AGRICULTURE Farm Loans At 4% Rs 2,200 Cr To Boost Agri Output Urea To Be Included In Nutrient-Based Subsidy Scheme Fertiliser Subsidy For All Farmers Direct Subsidy To Farmers Below Poverty Line Will Be Given Once UID Is Introduced By March 2012 National Food Security Bill To Be Introduced Credit Target Increased By Rs 1 Lakh Cr To Rs 4,75,000 Cr Rs 10,000 Cr For NABARD's Short Term Rural Credit Fund Cold Storage Chains To Be Given Infrastructure Status EDUCATION Allocation Of Rs 52,057 Cr, An Increase Of 24% Additional Rs 500 Cr To The National Skill Development Fund Sarva Shiksha Abhiyaan Allocation Up 40% At Rs 21,000 Cr BUDGET 2011-12 EXPERT VIEWS "At times the biggest reforms are not the ones that make headlines, but the ones concerned with details of governance which affect the everyday life of the common man." Pranab Mukherjee Finance Minister "Budget is positive for the equity and bond market. A 4.6% fiscal deficit is looking like a very good number. The auto sector was expecting a hike in excise, which has been kept unchanged at the existing levels. Budget has positively surprised us, it has done better than normal expectation." Uday Kotak Executive Vice Chairman & MD, Kotak Mahindra Bank "It's a nominal Budget with no direction. This is a directionless Budget in which no efforts have been made to raise additional resources and taxing rich people. No attempts have been made to increase employment in the Budget. It is a thoughtless exercise." Gurudas Dasgupta CPI Leader WATCH OUT Exclusive Interview with FM Amidst hopes of fixings the 3 'D's: fiscal deficit, current account deficit and government deficit, Finance Minister Pranab Mukherjee announced the Union Budget 2011-12 on Monday. In an exclusive interview with Raghav Bahl, Pranab Mukherjee admits that he "could have done better with the budget". Tune into CNBC-TV18 for this exclusive Interview. SHOW TIMINGS Tonight at 11 pm