The Finance minister Pranab Mukherjee restricted the fiscal deficit in the Union Budget for 2011-2012 to 4.6% or Rs 4,12,817 crore. The net market borrowing will come to Rs 3.43 lakh crore with an additional Rs 15,000 crore financed through treasury bonds. This was significantly lower than the 5% levels expected by economists and analysts. The key worry is with regard to oil prices with pressures coming through on sustained levels above $120 per barrel, which is expected to keep FIIs away.

Tax payers get some sops in the current budget. The first gain is the increased threshold income tax exemption limit. Minimum Income Tax exemption limit is raised to Rs1.80 lakh from Rs 1.6 lakh for general tax payers for financial year 2011-12. This means, you can save Rs 2,000 next financial year on tax payment. It will also provide relief to many taxpayers.

Central Excise duty of 1 per cent is being imposed in case of jewellery and articles of gold, silver and precious metals, the levy would apply only to goods sold under a brand name. This would increase the cost for buyers of branded jewellery if the same is being completely passed on by the branded jewellery units. Such articles are being sold at a premium; this can increase the cost even further.