Finance Minister Mr. Pranab Mukherjee on February 28, 2011 presented the Union Budget 2011-12 in the Parliament.

● Fiscal deficit target at 4•6% for 2011-12, down from 5•1% estimated for 2010-11.
● Government expects economy to grow at 9% in 2011-12.
● Government debt : About 44•2% of GDP, well below Finance Commission target.
● Expenditure up 3% at Rs. 12•58 lakh crore in 2011-12.
● Gross tax receipt at Rs. 9•3 lakh crore.
● Personal tax rates : Minimum exemption raised to Rs. 1,80,000 from Rs. 1,60,000.
● Windfall for seniors : For those above 80 (known as very senior citizens) income up to Rs. 5,00,000 free from tax.
● Senior citizen age entitlement cut from 65 to 60, entitled income upto Rs. 2,50,000 free from tax.
● Women tax payers tax free income raised to Rs. 1,90,000.
● Direct Taxes Code implementation from April 1, 2012.
● Rs. 30,000 crore tax-free bonds this year; exemptions for individual investors extended by one more year.
● Housing interest rate becomes cheaper with ceiling hiked from Rs. 20 lakh to Rs. 25 lakh.
● Service tax rate retained at 10 per cent.
● Service tax on medical treatment in mid and large hospitals (above 25 beds).
● No change in fuel prices.
● Inflation to ease next year.
● IT surcharge : Reduced to 5% from 75% but MAT hiked to 18•5% from 18%.
● Air travel : Costlier by Rs. 50 –250 with hike in service tax.
● Excise duty unchanged at 10 per cent.
● 130 items brought under central excise.
● Iron ore export duty hiked to 20 per cent.
● Auto parts : Duty concession on import of batteries of electric vehicles and critical parts/assemblies of hybrid vehicles.
● 10% unified rate of excise duty on readymade garments.
● ‘Nutrient-based’ subsidy scheme for urea makers to be considered.
● Fertilisers : Investment in new fertiliser plants gets tax concession.
● Self-assessment scheme for Customs duty payments.
● Goods and Services Tax may come in 2011-12.
● Disinvestment adds 50 lakh new retail investors.
● Disinvestment to raise Rs. 40,000 crore.
● Mutual funds can accept foreign money.
● Foreign investors may directly invest in mutual funds.
● Corporate bonds : FII limit hiked for both infrastructure and other categories.
● Reducing edible oil imports.
● Rs. 18,000 crore for RIDF-XVII.
● More funds for micro and small units.
● Relief for indebted handloom weavers.
● Boost to rural housing.
● Mortgage Risk Guarantee Fund for providing credit to weaker section.
● Funds for Self-sufficiency in pulses.
● More mega food parks.
● Anganwadi worker’s salaries doubled.
● Rs. 500 crore to National Skill Development Fund.
● Insurance for unorganised sector workers in hazardous mining and associated industries.
● Rs. 400 crore for bringing green revolution in the east.
● Defence allocation raised 11•6% to Rs. 1•64 lakh crore.