BUDGET 2011

The Centre has also instructed state governments to take necessary action under the provision of the Essential Commodities Act and the Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act, to prevent hoarding and blackmarketing of essential commodities.

Income-Tax

                      
                              To provide more money in the hands of the citizens, FM may raise the current tax exemption limit from Rs 1.6 lakh to Rs 1.8 lakh. Unlike previous Budgets, there is less scope for changing direct tax policies as Direct Tax Code (DTC) will be implemented soon.

                          Chairman of the Standing Committee on Finance Yashwant Sinha even suggested raising the income tax exemption limit from RS 1.6 lakh to Rs 2 lakh in the Union Budget.

Central sales tax 

                      Experts want the unified central tax on good and services to be 8% in preparation of the transition to a Goods and Services Tax. The government may cut the central sales tax from 2% to 1%, to compensate states for lost revenue.

Rural schemes 

              It remains to be how FM manages it in the backdrop of rising wage rates in a programme like Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The finance ministry is likely to allocate only Rs 42,000-45,000 crore for the MGNREGA. The scheme will have an opening balance of about Rs 10,000 crore.