Budget 2011 Highlights5

• Gross tax receipts seen up 24% yoy to Rs9.32lakh crores
• Non-tax revenue seen at Rs1.25lakh cr in FY2012
• Fiscal deficit down from 5.5% to 5.1%. Target of 4.6% for FY2012 - positive for markets
• FY2013 fiscal deficit target of 4.1%
• Increase in income-tax exemption limit from Rs1,60,000 to Rs1,80,000
• Senior citizen age decreased from 65 to 60. Exemption limit increased to Rs2,50,000 from Rs2,40,000
• Surcharge on companies reduced from 7.5% to 5% - positive for tax-paying companies
• Investment link deduction for fertiliser companies, Positive for all fertiliser companies
• Branded Jewellery to attract additional 1% excise duty, Negative for Titan
• Micro-irrigation equipment to have lower excise of 5% from 7.4%, Positive for Jain Irrigation
• Central excise duty retained at 10%, Positive for Automobile sector
• Export duty on iron ore, Current - 15% on lumps and 5% on fines, Proposed - 20% on both lumps and fines, Negative for exporting miners - Sesa Goa and NMDC
• Change in excise with AD valorem duty, Negative for South based cement players - India Cement and Madras Cement
• Excise duty exemption on equipments for UMPP - Positive for capital goods sector
• No excise duty on equipment (UMPP), Positive for private players