India’s Budget is on its way in parliament.
Let us read what finance minister has to say:
India’s Finance minister ,Mr.Pranb.Mukerjee said:
I see the Budget for 2011-12 as a transition towards a more transparent and result oriented economic management system in India. We are taking majorsteps in simplifying and placing the administrative procedures concerningtaxation, trade and tariffs and social transfers on electronic interface, free of discretion and bureaucratic delays. This will set the tone for a newer, vibrant and more efficient economy.
The Gross Domestic Product (GDP) of India is estimated to have grown at 8.6 per cent in 2010-11 in real terms. In 2010-11 agriculture is estimated to have grown at 5.4 per cent, industry at 8.1 per cent and services at 9.6 per cent.
Best Steps Taken In Visionwiz’s View:
The Government has been in the process of setting-up an independent Debt Management Office in the Finance Ministry. As a next step, I propose to introduce the Public Debt Management Agency of India Bill in the next financial year.
A task force headed by Shri Nandan Nilekani has been set-up to work out the modalities for the proposed system of direct transfer of subsidy forkerosene, LPG and fertilizers
To make the FDI policy more user-friendly, all prior regulations and guidelines have been consolidated into one comprehensive document, which isreviewed every six months. The last review has been released in September 2010. This has been done with the specific intent of enhancing clarity and predictability of our FDI policy to foreign investors. Discussions are underwayto further liberalise the FDI policy.
Currently, only FIIs and sub-accounts registered with the SEBI and NRIs are allowed to invest in mutual fund schemes. To liberalise the portfolio investment route, it has been decided to permit SEBI registered Mutual Funds to accept subscriptions from foreign investors who meet the KYC requirements for equity schemes.
In order to give a boost to infrastructure development in railways, ports,housing and highways development, I propose to allow tax free bonds of `30,000crore to be issued by various Government undertakings in the year 2011-12.This includes Indian Railway Finance Corporation `10,000 crore, NationalHighway Authority of India `10,000 crore, HUDCO `5,000 crore and Ports `5,000crore.
Among the other steps that are being taken for the introduction of GST is the establishment of a strong IT infrastructure. We have made significant progress on the GST Network (GSTN). The key business processes of registration, returns and payments are in advanced stages of finalisation. The National Securities Depository Limited (NSDL) has been selected as technology partner for incubating the National Information Utility that will establish and operate the IT backbone for GST. By June 2011, NSDL will set up a Pilot portal in collaboration with eleven States prior to its roll out across the country.
Infrastructure is critical for our development. For 2011-12, an allocation of over ` 2,14,000 crore is being made for this sector, which is 23.3 per cent higher than current year. This amounts to 48.5 per cent of the Gross Budgetary Support to plan expenditure.
The generation and circulation of black money is an area of serious concern. To deal with this problem effectively, Government has put into operation a five-fold strategy which consists of Joining the global crusade against ‘black money’; Creating an appropriate legislative framework; Setting up institutions for dealing with illicit funds; Developing systems for implementation; and Imparting skills to the manpower for effective action.
Goverment has enhance the exemption limit for the general category of individual taxpayers from `1,60,000 to `1,80,000 this year. This measure will provide a uniform tax relief of `2,000 to every taxpayer of this category.
More detail at: India Budget