BUDGET 2011-12 (Sustaining Growth)

SUSTAINING GROWTH

Fiscal consolidation

Fiscal consolidation targets at Centre and States have shown positive effect on macro economic management of the economy.

Amendment to Centre’s FRBM Act, 2003 laying down the fiscal road map for the next five years to be introduced in the course of the year.

Proposal to introduce the Public Debt Management Agency of India Bill in the next financial year.


Tax Reforms

Direct Taxes Code (DTC) to be finalised for enactment during 2011-12. DTC proposed to be effective from April 1, 2012.

Areas of divergence with States on proposed Goods and Services Tax (GST) have been narrowed. As a step towards roll out of GST, Constitution Amendment Bill proposed to be introduced in this session of Parliament.

Significant progress in establishing GST Network (GSTN), which will serve as IT infrastructure for introduction of GST.

Expenditure Reforms

A Committee already set up by Planning Commission to look into the extant classification of public expenditure between plan, non-plan, revenue and capital.

Subsidies

Nutrient Based Subsidy (NBS) has improved the availability of fertiliser; Government actively considering extension of the NBS regime to cover urea.

Government to move towards direct transfer of cash subsidy to people living below poverty line in a phased manner for better delivery of kerosene, LPG and fertilisers. Task force set up to work out the modalities for the proposed system.


People’s ownership of PSUs

Overwhelming response to public issues of Central Public Sector Undertakings during current year.

Higher than anticipated non-tax revenue has led to reschedulement of some disinvestment issues planned for current year.

40,000 crore to be raised through disinvestment in 2011-12.

Government committed to retain at least 51 per cent ownership and management control of the Central Public Sector Undertakings.