The budget document provides details on key fiscal targets and highlights from the Indian budget. The fiscal deficit target for the current year is 4.6% of GDP, which is better than the previous target but may be aggressive given other factors. Revenue deficit is a continuing concern. Some key points include reduced corporate tax surcharges, increased exemption limits for individual taxpayers, and changes to indirect taxes that will make some consumer goods cheaper and some services more expensive. Infrastructure spending saw a large increase but financing remains a challenge. Allocations to social sectors also increased substantially.

2. Fiscal highlightsGDP growth target – 9% ± 0.25%.

3. Fiscal deficit

4. 4.6% of GDP (better than 4.8% set in roadmap L/Y); positive for bond markets.

5. Target looks aggressive given absence of non-tax revenues (3G booty) this year & underestimation of subsidies.

6. Target to reach 4.1% in 2012-13 and 3.5% in 2013-14 welcome.

7. Effective Revenue Deficit – 1.8% of GDP; persistent Revenue Deficit a concern.

8. Net market borrowings

9. Rs 3.43 lakh crore.

10. Lower than estimates; positive for bond markets. Budget 2011 like the India England One-day result A TIE BETWEEN GROWTH & INFLATION BUT NOBODY WINS!!!

11. Direct TaxDirect tax slabs tinkered with

12. Exemption limit raised to Rs 1.8 lakh from Rs 1.6 lakh; with inflation at over 10% , hardly any increase in real terms.

13. Exemption limit for senior citizens - raised to Rs 2.5 lakh from Rs 2.4 lakh.

14. Age to qualify as “senior citizen” reduced to 60 from 65.

15. “Very Senior Citizens” (80 years +) - exempt upto Rs 5 lakh.

16. Salaried taxpayers not required to file return of income if tax discharged by way of TDS.

17. Corporate taxes

18. Surcharge reduced from 7.5% to 5%.

19. MAT increased marginally from 18% to 18.5%.

20. SEZ units & developers to be subject to MAT; will hit infra companies.

21. LLPs to be subject to MAT; negative for LLPsPositive for corporates; not much for the aam aadmi

22. Indirect Tax - Excise & ImportNo reversal of excise stimulus given in 2009; positive for auto companies.

23. Environmental concern - Fuel cell, hydrogen cell technology, hybrid vehicles granted concessions.

24. Branded garments to get expensive – excise duty @ 10%.

25. Consumer goods such as sanitary napkins, diapers to get cheaper – excise reduced from 10% to 1%.

26. Efforts to incentivize agriculture by reducing duties:

27. No excise on air-conditioning equipment, refrigeration panels used in cold chains.

28. No excise on equipment used in cold storages, mandis and warehouses.

29. Customs duty on micro-irrigation equipment reduced from 7.5% to 5%.

30. No customs on import of de-oiled rice bran cake. Export duty of 10% to discourage exports; positive for dairy processing organizations.Indirect Tax - Excise & Import Excise duty on iron ore increased to 20%; negative for mining companies such as Sesa Goa, NMDC; positive for steel companies.