Highlights of Union Budget 2010-11

Finance Minister Pranab Mukherjee presented the Union Budget 2010-11 in parliament on Monday(28-02-2011).

Here are some of the highlights:

·        Exemption limit for the general category of individual taxpayers enhanced from

Rs 1,60,000 to Rs 1,80,000. For senior citizens, the qualifying age reduced to 60 years from the present 65 years and exemption limit raised to Rs 2.50 lakh. Citizens over 80 years to have exemption limit of Rs 5 lakh. No Change in women tax exemption limit i.e1,90,000.

·        Total expenditure proposed at Rs 12, 57,729 crore. Increase of 18.3 per cent in total Plan allocation i.e Rs 4, 41,547 crores . Increase of 10.9 per cent in the Non-plan expenditure i.e Rs 8, 16,182 crores.

·        Indian economy expected to grow at 9 per cent with an outside band of +/- 0.25 per cent in 2011-12. Gross Domestic Product (GDP) estimated to have grown at 8.6 per cent in 2010-11 in real terms.

·        Fiscal Deficit brought down from 5.5 per cent in BE 2010-11 to 5.1 per cent of GDP in RE 2010-11. Fiscal Deficit kept at 4.6 per cent of GDP for 2011-12. Fiscal Deficit to be progressively reduced to 3.5 per cent by 2013-14.

·        “Effective Revenue Deficit” estimated at 2.3 per cent of GDP in the Revised Estimates for 2010-11 and 1.8 per cent for 2011-12.

·        Priority sector home loans limit raised to Rs. 25 lakh from Rs. 20 lakh.

·        Current surcharge of 7.5 per cent on domestic companies proposed to be reduced to 5 per cent.

·        Rate of Minimum Alternative Tax proposed to be increased from 18 per cent to

18.5 per cent of book profits.

·        Central Excise Duty to be maintained at standard rate of 10 per cent.

·        Disinvestment in 2011-12 seen at 400 billion rupees.

·        Provision of Rs 1,64,415 crore, including Rs 69,199 crore for capital expenditure to be made for Defence Services in 2011-12.

·        Rs 6,000 crore to be provided during 2011-12 to enable public sector banks to maintain a minimum of Tier I CRAR of 8 per cent.

·        Rs 500 crore to be provided to enable Regional Rural Banks to maintain a CRAR of at least 9 per cent as on March 31, 2012.

·        Rs 5,000 crore to be provided to SIDBI for refinancing incremental lending by banks to these enterprises.

·        Rs 3,000 crore to be provided to NABARD to provide support to handloom weaver co-operative societies which have become financially unviable due to non-repayment of debt by handloom weavers facing economic stress.

·        Allocation under Rashtriya Krishi Vikas Yojana (RKVY) increased from Rs 6,755 crore to Rs 7,860 crore.

·        Credit flow for farmers raised from Rs 3,75,000 crore to Rs 4,75,000 crore in 2011-12.

·        Allocation of Rs 2,14,000 crore for infrastructure in 2011-12.  This is an increase of 23.3 per cent over 2010-11.This also amounts to 48.5 per cent of total plan allocation.

·        National Food Security Bill (NFSB) to be introduced in the Parliament during the course of this year.

·        Allocation for social sector in 2011-12 (` 1,60,887 crore) increased by 17 per cent over current year. It amounts to 36.4 per cent of total plan allocation.

·        Allocation for social sector in 2011-12 (` 1,60,887 crore) increased by 17 percent over current year. It amounts to 36.4 per cent of total plan allocation.

·        Allocation for Bharat Nirman programme proposed to be increased by ` 10,000 crore from the current year to Rs 58,000 crore in 2011-12.

·        Plan to provide Rural Broadband Connectivity to all 2,50,000 Panchayats in the country in three years.

·        From 1st April, 2011, remuneration of Anganwadi workers increased from Rs 1,500 per month to Rs 3,000 per month and for Anganwadi helpers from Rs 750 per month to Rs 1,500 per month.

·        Allocation for primitive Tribal groups increased from Rs185 crore in 2010-11 to Rs 244 crore in 2011-12.

·        21,000 crore allocated to Sarva Shiksha Abhiyan, which is 40 per cent higher than Budget for 2010-11.

·        Target of providing banking facilities to all 73,000 habitations having a population of over 2,000 to be completed during 2011-2012.

·        Eligibility for pension under Indira Gandhi National Old Age Pension Scheme for BPL beneficiaries reduced from 65 years of age to 60 years. Those above 80 years of age will get pension of Rs 500 per month instead of ` 200 at present.

·        Rs 200 crore proposed to be allocated for Green India Mission from National Clean Energy Fund.

·        Rs 200 crore proposed to be allocated for launching Environmental Remediation Programmes from National Clean Energy Fund.

·        Special allocation of ` 200 crore proposed to be provided for clean-up of some more important lakes and rivers other than Ganga.

·        Rs 8,000 crore provided in current year for development needs of Jammu and Kashmir.

·        Allocation made in 2011-12 to meet the infrastructure needs for Ladakh (` 100 crore) and Jammu region (` 150 crore).

·        A new scheme with an outlay of ` 300 crore to be launched to provide assistance to States to modernise their stamp and registration administration and roll out e-stamping in all the districts in the next three years.

·        A new simplified form ‘Sugam’ to be introduced to reduce the compliance burden of small tax payers falling within presumptive taxation.

Highlights of Economic Survey 2010-11

The Economic Survey of India 2010-11 was tabled by the Union Finance Minister of India Pranab Mukherjee on 25 February 2011.

Here are the some of the highlights of Economic survey:

·        The Survey predicted the 9% growth for Indian economy in the next fiscal and estimated 8.6 percent growth in this financial year.

·        As per the survey, the inflation stood at 8.23 per cent in January 2011.

·        The economic Survey of India stated that the trade gap has narrowed to over 82 billion US dollars in the first nine months of the current fiscal and gross fiscal deficit is at 4.8 per cent which is 1.5 percent less than last fiscal(6.3%).

·        The Survey stated that the spending in social sector programmes increased by five percent of the GDP over past five years.

·        The Survey pointed out that Forex reserves of India are estimated to be over 297 billion US dollars. This is mainly due to growth in export sector.

·        Agriculture likely to grow at 5.4% in 2010-11.(For complete details Click here)

·        Industrial output grows by 8.6% ; manufacturing sector registers 9.1%.

·        Exports in April-December 2010 up by 29.5 %.

Current Affairs July 2010(Short Answers)

·        Head of the Committee instituted by RBI to look into the interest rates and bank fees, charges & services – M Damodaran.

·        Which committee recommended 15-20% variable component in the salary package for PSB employees, instituted by Finance minister – A K Khandelwal.

·        RBI has revised the norms for __________ for giving loans to the housing and real estate segment – Urban Cooperative Banks(UCBs).

·        SEBI has announced that MF distributors and agents will now need a NISM certificate to sell policies. What is the full form of NISM - National Institute of Securities Market.

·        RBI has advised all banks to print IFSC on cheque leaves issued to customers. IFSC stands for- Indian Financial System Code.

·        India has emerged as the ___ most preferred destination for retailers in the world - 39^th.

·        India’s first Anti-submarine warfare Corvette – INS Kamorta.

·        _____ banks are recently allowed by the RBI to open ATM’s at places other than their branches without prior approval – Urban Cooperative banks.

·        National Florence Nightingale Award 2010 was given to – A P Subhadra.

·        Government has fixed FRP of Sugarcane for the year 2010-11 at Rs. 139.12 per quintal. FRP stands for - Fair and Remunerative Price.

·        India’s trade deficit during 2009-10 - $102.1 billions.

·        Asian Banker Achievement award given to – SBI.

·        Who is the head of the committee for comprehensive review of National  Small Savings Fund(NSSF) structure , interest rates, tenor and other administrative matters – Shyamala Gopinath.

·        ____ company offered  to provide cloud computing solutions t Rural Banks – Polaris.

·        Chairman of RBI working group on BPLR on the basis of which Base Rate System is slated to switch over by the banks – Deepak Mohanty.

General Awareness Quiz 2010 - 67

1.      Which among the following committee was appointed by the Supreme court of India to study PDS reforms?

a)E.N Rammohan Committee    b)R N Malhohtra Committee   c)C Rangarajan Committee    d)Wadhwa Committee    e)none

2.      What is the name of India’s third indigenous destroyer which was launched on April 2010?

a)INS Shivalik     b)INS Chennai     c)INS Kochi     d)INS Vikramaditya   e)none

3.      What is the India’s rank in the Global Hunger Index with a hunger rate of 23.9 out of 88 countries?

a)38^th     b)44^th    c)56^th    d)65^th    e)none

4.      The government has started implementing liberal FDI rules under which proposals up to Rs 1,200 crore foreign equity would be cleared by the Finance Minister without seeking approval of the ________________?

a)Cabinet Committee on Economic Affairs(CCEA)

b)Department of Industry Policy and Promotion (DIPP)

c)Foreign Investment Promotion Board (FIPB)

d)Prime Minister

e)none

5.      Which country tested the13.8-tonne AC313 heavy lift helicopter that can carry 27 passengers?

a)US    b)France     c)Italy    d)China   e)none

6.      Recently which of the following countries unveiled New Economic Model (NEM) that will transform the nation into a high-income economy?

a)Malaysia    b)India     c)China    d)Brazil    e)none

7.      India has signed a $59.1-million agreement with ___________ for the second tranche of the Himachal Pradesh Clean Energy Development Investment Programme?

a)IMF     b)World Bank    c)ADB   d)NABARD    e)none

8.      Census of India is administered under __________?

a)Ministry of health and family welfare

b)Ministry of social justice and empowerment

c)Ministry of Finance

d)Ministry of Home Affairs

e)none

9.      Who is the head of a high-level committee set up by the Planning Commission to suggest measures for effective management of public expenditure?

a)Nitin Desai    b)M G Rao   c)C Rangarajan     d)R Malhotra   e)none

10. Recently Central Government said that two Indian private sector banks are treated as foreign banks because of the foreign equity of both the banks are around 74 per cent. What are the two banks we are discussing?

a)ICICI, HDFC    b)HDFC, Axis Bank     c)ICICI, Federal Bank   d)Yes Bank, ICICI   e)none

11. Which of the following state celebrated the Golden Jubilee celebrations recently?

a)Kerala     b)Uttar Pradesh    c)Gujarat    d)Rajasthan   e)none

12. Which of the following is India’s first indigenously-built stealth warship?

a)INS Sahyadri    b)INS Shivalik    c)INS Satpura   d)INS Vikramaditya   e)none

13. Who has been declared as the World Statesman Award for the year 2010?

a)Manmohan Singh    b)Angela Merkel    c)Mohamed Nasheed     d)Gordon Brown   e)Barack Obama

14. The Nuclear Security Summit 2010 held at ____________?

a)Paris    b)New York     c)Moscow   d)Brasilia    e)Washington

15. As per the Economist Intelligence Unit's e-readiness ranking for the year 2009, India ranked ______ among the countries of the world?

a)3^rd      b)22^nd     c)36^th    d)58^th   e)none

16. For which of the following schemes in India has got an appraisal from Labour and Employment ministers of G-20 countries?

a)Rashtriya Swasthya Bima Yojana (RSBY), Aam Admi Bima Yojna (AABY)

b)Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA)

c) Swarna Jayanti Gram Swarozgar Yojana (SGSY), Jawaharlal Nehru National Urban Renewal Mission(JNNUM)

d)Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA), Rashtriya Swasthya Bima Yojana (RSBY)

e)none

17. India is planning to invest $1 trillion in ____________ sector during the 12th Five-Year Plan?

a)Infrastructure      b)Education    c)Science & Technology    d)Defense    e)none

18. Which of the following city has bagged the 'Best Metro in Asia Pacific' award, instituted by London-based event management firm Terrapinn?

a)Tokyo     b)Delhi    c)Singapore    d)Beijing    e)none

19. A/c to the experts, after financial crisis, a __________ crisis is likely to affect the world?

a)Liquidity crisis     b)Technological crisis     c)Energy Crisis   d)Currency Crisis   e)none

20. In which of the following countries India has opened its 23^rd cultural relations centre named “Indira Gandhi Cultural Centre”?

a)Nepal     b)Bangladesh     c)Srilanka    d)Afghanistan   e)none

Highlights of Economic Survey 2009-10

The Finance Ministry presents the Economic Survey in the parliament every year, just before the Union Budget. It is the ministry's view on the annual economic development of the country.

Here are the some of the highlights of Economic survey 2009-10:

• Economy posted a remarkable recovery expected to grow at 7.2 per cent in 2009-10 against 6.7 per cent in 2008-09.
• Economy likely to grow by up to 8.75 per cent in 2010-11.
• Full recovery; return to 9 per cent growth in 2011-12.
• India world's 2nd largest wireless network with 525.1 million mobile users
• Manufacturing growth more than doubled to 8.9 per cent in 2009-10 from 3.2 per cent in 2008-09.
• India 10th largest gold holding nation at 557.7 tonnes or about 6 per cent of total foreign exchange reserves.
• Exports in April-December 2009 down 20.3 per cent.
• Imports in April-December 2009 down 23.6 per cent.
• Farm & allied sector production falls 0.2% in 2009-10.
• Need serious policy initiatives for 4% agriculture growth.
• Gross fiscal deficit pegged at 6.5 pc of GDP in 2009-10.
• Trade gap narrowed to USD 76.24 billion in April-December 2009.
• Per capita income increased to 5.3 per cent in 2009-10 from 3.7 per cent in 2008-09.
• Bank credit grows by 13.9 per cent on year-on-year basis. Non-food bank credit recorded an increase of 8.7 per cent on financial year basis till January 15, 2010 
• Economic Survey suggested gradual roll back of stimulus steps unveiled in the wake of the global financial meltdown.
• During the year 2009-10, 4.34 crore households have been provided employment under the National Rural Employment Guarantee Scheme (NREGS).
• FIIs investment in equity market rose to Rs 83,424 crore in 2009 compared to withdrawals of Rs 52,987 crore in 2008.
• The total foreign exchange reserves increased by $31.5 billion in 2009-10 fiscal, from $252 billion at the end of March 2009 to $283.5 billion in December 2009.
• Under the National Rural Health Mission (NRHM), which was launched in 2005, infant mortality rate (IMR) is expected to fall below 30 in every 1,000 live births by 2012.The current IMR stands at 53, substantially lower than the figure of 80 in 1991.
• The Indian pharmaceutical industry has become the third largest in world in terms of volume and ranks 14th in terms of value at over Rs 1 lakh crore.
• The Dubai debt crisis is likely to have "some impact" on India's exports and imports as the gulf region is the country's largest trade partner.
• Given the uncertain global context, the Government did not fix an export target for 2009-10, instead the Foreign Trade Policy (FTP) 2009-14 set the objective of an annual export growth of 15 percent with an export target of US$ 200 billion by March 2011.

For Complete details of Economic Survey 2009-10 download here.