subject: Expectations from India's Union Budget 2011-2012 [print this page] Expectations from India's Union Budget 2011-2012
The Finance Minister of India Mr. Pranab Mukherjee has proposed many policy changes and reforms in the country's financial structure in his India Union Budget 2011-2012 Speech. This has generated quite a lot of expectations amongst the masses, the corporate world and other sectors. The central budget of India remains a key factor in determining the country's economic health.
According to official sources in the finance ministry, the finance minister is expected to push the subsidies on food to about 20 percent. During this fiscal's central budget, the government has made a lot many changes in the Customs Tariff-2011 which will have an impact on commodities such as petroleum products, precious metals and IT software. Although, the prevailing rate of the basic customs duty has not been changed in the Customs Tariff-201.
The finance minister has also introduced New Amendment in Excise duty. As per the New Amendment in Excise duty, the standard rate of excise duty (CENVAT) specifically for non-petroleum goods has been hiked from 8 percent to 10 percent. Excise duty on cement has also been increased to 10 percent. Duty rates on petrol and diesel have been changed by an additional 1 Rupee per litre. Also, the basic excise duty on all tobacco products has been increased. Exemptions have also been withdrawn on few items such as Microprocessor chips used in computers, flash drives and CD/DVDs.
On the other hand, there are some categories in which the government has granted full exemption from excise duty. Items such as Dementholised oil, Deterpenated Mentha oil, Spearmint/ Mentha Piperita oils and all intermediates and by-products of Menthol will not bear any excise duty. Two important concessions have been given to companies in the small scale sector.
In the India Union Budget 2011-2012 Speech, the finance minister is hopeful that the Indian economy reverts back to its growth rate of 9 percent soon and cross the double digit growth barrier. For more information on the central budget 2011, log on to the website of Infodrive India. The company keeps a detailed track of amendments and announcements made in the central budget every year.
