New Delhi, February 28: Presenting Union Budget 2011-12 in Lok Sabha, Finance Minister Pranab Mukherjee focused on taming inflation, price rise, and increasing investments in infrastructure and agriculture.
Pranab said inflation has remained above the comfort level for most part of the current fiscal and is another focus area.
The overall inflation at 8.23% is higher than the comfort level of the Reserve Bank at 5-6%, he said. The minister added that food inflation had also touched a high of 18.23% in December, but moderated to 11.49 % in mid-February.
Budget Highlights
Could have done better
Growth broad based
Agricultural rebound
Double digit growth in services
Food inflation 20.2% in Feb 2010 to 9.3% in January 2011
Fiscal consolidation impressive
Agri has rebounded
Idea to improve deliverance, PDS and governance
Need to ensure private investment
Development needs to be inclusive
Service sector continues to grow in double digits
Resources not a major concern in medium term
Quality of outcome needs to improve
Leakages need to be plugged in schemes
Corruption needs to be fought unitedly
Have to fight corruption collectively
Taking steps to simplify tax procedures
This Budget a transition towards more transparent economy in India
Stronger fiscal consolidation needed
In 20-11, agriculture grew by 5.4%, industry by 8.4% and services by 9.6%
Economy showed remarkable resilience to domestic and international shocks
GDP growth at 8.2% last year
GDP growth to be 8.6% in FY 11
GDP growth to be around 9% in FY 12
Agriculture has grown at 5.4%
Industry has grown at 8.1%
Services sector had grown at 9.6%
Exports grew at 24.1% in FY 11
Imports grow at 11.6% in FY11
Taking steps to simplify tax procedures
Expect inflation to be lower next year
Economy showed remarkable resilience to domestic and international shocks
The 13th finance commission has worked out a fiscal consolidation roadmap
Combined states debt target of 23.4% of GDP
Public Debt Management of India Bill in next financial year
Direct Tax Code code enactment in 2011-12, effective from April 2012
GST decision have to be taken in consonance with states
Areas of divergence have been narrowed on GST
—Agencies