home page 






    budget special    main page | budget basics | budget glossary |budget highlights                                                                             Prev Economic survey |Prev Union Budget | Prev Railway Budget

Click for Economic Survey 2010-11
Click for Railway Budget 2011-12
Click for UNION BUDGET 2011-12

Indian Budget 2011-12
Shri Pranab Mukherjee, Minister of Finance- February 28, 2011

HIGHLIGHTS- Indian Budget 2011-2012

Banking Licences

RBI is considering giving some additional banking licenses to private sector players. Non Banking Financial Companies could also be considered, if they meet the RBI’s eligibility criteria.

Public Sector Bank Capitalisation

Rs.16,500 crore provided to ensure that the Public Sector Banks are able to attain a minimum 8 per cent Tier-I capital by March 31, 2011.

Recapitalisation of Regional Rural Banks (RRB)

Government to provide further capital to strengthen the RRBs so that they have adequate capital base to support increased lending to the rural economy.

Corporate Governance

Government has introduced the Companies Bill, 2009 in the Parliament to replace the existing Companies Act, 1956, which will address issues related to regulation in corporate sector in the context of the changing business environment.

Credit support to farmers

Banks have been consistently meeting the targets set for agriculture credit flow in the past few years. For the year 2010-11, the target has been set at Rs.3,75,000 crore.

In view of the recent drought in some States and the severe floods in some other parts of the country, the period for repayment of the loan amount by farmers extended by six months from December 31, 2009 to June 30, 2010 under the Debt Waiver and Debt Relief Scheme for Farmers.

Incentive of additional one per cent interest subvention to farmers who repay short-term crop loans as per schedule, increased to 2% for 2010-11.


Rs 1,73,552 crore provided for infrastructure development which accounts for over 46 per cent of the total plan allocation.

Allocation for road transport increased by over 13 per cent from Rs. 17,520 crore to Rs 19,894 crore.

Rs 16,752 crore provided for Railways, which is about Rs.950 crore more than last year.

India Infrastructure Finance Company Limited (IIFCL)

IIFCL’s disbursements are expected to touch Rs 9,000 crore by end March 2010 and reach around Rs 20,000 crore by March 2011.

IIFCL has refinanced bank lending to infrastructure projects of Rs. 3,000 crore during the current year and is expected to more than double that amount in 2010-11.

The take-out financing scheme announced in the last Budget is expected to initially provide finance for about Rs. 25,000 crore in the next three years.

GO TO PAGE 1 >> Click here
GO TO PAGE 3 >> Click here
GO TO PAGE 4 >> Click here

For Main Page of Indian Budget 2011-12.... Click here
For DIRECT TAXES- Indian Budget 2011-12.... Click here
For INDIRECT TAXES- Indian Budget 2011-12.... Click here
For Quick Budget Updates follow us on TWITTER.... http://twitter.com/banknet

Advertise | Book Store | About us | Contact us | Terms of use | Disclaimer

© Banknet India | All rights reserved worldwide.
Best viewed with IE 4.00 & above at a screen resolution of 800 x 600 or higher