General budget for 2011-2012 got its first approval

The general budget for the year 2011-2012 got its first approval in Lok Sabha. It was approved unanimously by the members on Friday.

Finance minister Pranab Mukherjee announced to achieve a gross domestic product (GDP) growth of 9 percent this year. The house voted for the supplementary demands for grants for the year 2010-11.

Mr. Mukherjee also announced an increase in Member of Parliament’s Local Area Development Fund from RS 2 crore to Rs 5 crore. This will be effective for the members of both the houses from April 1, 2011.

Women’s self-help group development fund of Rs 500 crore will be distributed through NABARD. It will be utilized for refinance of loans. Suggestions and feedbacks on tax proposals will be discussed in Finance Bill, 2011 session.

Mr. Mukherjee also asked the banks to ignore the collateral security for giving loans to scheduled castes (SC) and scheduled tribes (ST).

Also the rising crude oil price will have an impact on the country’s growth, said Mr. Mukherjee.