The document summarizes the key aspects of the Union Budget of India for 2015-2016. It was presented by 8 individuals and guided by a professor. The budget aims to reduce the fiscal deficit through measures like increasing service tax and reducing corporate tax over time. It allocates funds towards infrastructure, agriculture, education, defense, and welfare schemes. The recommendations include reducing individual tax and increasing investment in planned vs. non-planned expenditure.

1. Presented By :
1. Ankush Sinha – 030104028.
2. Avishekh Gupta - 030104052.
3. Debraj Sinha – 030104036.
4. Divya Prakash Gupta - 030104007.
5. Gunjan Khandelwal- 030104044.
6. Joydeep Bakshi – 030104026.
7. Rishika Bhotika- 030104029.
8. Saloni Buaria- 030104037.
Analysis Of Union Budget
2015-2016
Guided by:
Prof. Sangita Dutta Gupta

2.  A budget is a financial document used to project future income and
expenses. The budgeting process may be carried out by individuals or
by companies to estimate whether the person/company can continue to
operate with its projected income and expenses.
 A Budget is a tool to help you understand where your money goes.
 A Budget allows you to decide how much and when you spend your
income.
 A Budget allows you to make and reach your financial goals.
 A Budget is the cornerstone of a solid financial future.
What is a Budget ?

3. What is Union Budget ?
 According to Article 112 of the Indian Constitution, the Union Budget of a year,
also referred to as the annual financial statement, is a statement of the
estimated receipts and expenditure of the government for that particular year.
 The fiscal year runs from 1st April to 31st March.
 Union Budget is classified into Revenue Budget and Capital Budget.
 Revenue budget includes the government's revenue receipts and expenditure.
 Capital Budget includes capital receipts and payments of the government.
 Fiscal deficit is incurred when the government's total expenditure exceeds its
total revenue.

4. COMPONENTS OF BUDGET
 Revenue Receipts
a) Tax revenue b) Non-tax revenue
 Capital receipts
a) Recovery of loan and other receipts
b) Borrowings
c) Other liabilities
 Revenue Expenditure
 Capital Expenditure

5. Direct Taxes :
A tax that is paid directly by an individual or organization to the imposing entity.
A taxpayer pays a direct tax to a government for different purposes.
Components :
1. Corporate Tax Rs. 4,70,000 Cr. (2015).
Rs. 4,51,000 Cr.(2014).
2. Personal/ Individual Tax Rs. 3,27,000 Cr. (2015).
Rs. 2,84,000 Cr. (2014).

6. Indirect Tax
Custom Duty
(2,08,000 cr.)
Central Excise
(2,30,000 cr.)
Service tax
(2,10,000 cr.)
Total Indirect tax Total Direct tax Union territory Total T/f to State
2015 : 648000 cr. 797000 cr. 4000 cr. 14,49,000 5,23000 cr.
2014 : 624000 cr. 736000 cr. 3401 cr. 13,63,401 38,7732 cr.

7.  Non-Tax Revenue:
Public income received through the administration, commercial enterprises, gifts
and grants are the source of non-tax revenues of the government.
This amounted to Rs. 2,21,000 Cr.
 Components:
(i) Administrative revenue
(ii) Profit from state enterprises
(iii) Gifts and grants

8. Calculation Of Total Revenue:
Non tax Revenue = 221000 cr.
58% of total tax rev. = 936000cr.
Recovery of Bad debt = 75000 cr.
Total Receipt of Central Govt.
(2015) 12,22,000 cr.
(2014) 11,67,131 cr.
Difference = 54,869 cr.

9. EXPENDITURE
NON-
PLANNED
YEAR 2015-
2016
Rs 13,12,000 cr
PLANNED
YEAR 2014-
2015
Rs 5,75,000 cr.
YEAR 2015-
2016
Rs 4,65,000 cr.

10. Non-planned expenditure
Sectors Amount (cr)
1.Interest 4,50,000
2.Defence 2,46,000
3.Subsidies 2,44,000
4.Grants to States 1,08,000
5.Pension Fund 88,000
6.Police Expense 51,000
7.Social Service Expense 31,000
8.Economic Service Expense 30,000
9.General Service Expense 29,000
10.Miscellaneous Service Expense- 29,000
Total = 13,12,000

11. Fiscal Deficit Trends
 India recorded a Government Budget deficit equal to 4.50 percent of the
country's Gross Domestic Product in the fiscal year 2013/2014.
 Government Budget in India averaged -3.87 Percent of GDP from 1991 until
2014
 reaching an all time high of -2.04 Percent of GDP in 1997 and a record low of -
7.80 Percent of GDP in 2009.

12. Reasons for Fiscal deficit
Increase in
Subsidies
Payment of
Interest
Defense
Expenditure
Poor
Performance of
Public Sector
Tax Evasion
Weak Revenue
Mobilization
Huge
Borrowings
Unproductive
expenditure by
the government

13. Government Budget Forecast
 In 2016, the Government Budget is expected to increase to -3.90 percent of
GDP. In the long-term, the Government Budget in India is projected to trend
around -3.50 and -3.06 percent of GDP in the years of 2020 and 2030 respectively.
 India Government Budget Forecasts are projected using an autoregressive
integrated moving average (ARIMA) model

14. Indian Govt. Budget V/S Others
Countries
Government
Budget
Reference Previous Highest Lowest Unit
Australia -3.1 14-Jun -1.2 2 -4.2 percent of GDP
Brazil 1.6 13-Dec 2 2.8 0.8 percent of GDP
China -2.1 14-Dec -2.1 0.58 -3.05 percent of GDP
France -4.1 13-Dec -4.9 -1.5 -7.5 percent of GDP
India -4.5 14-Mar -4.9 -2.04 -7.8 percent of GDP
Indonesia -2.3 13-Dec -1.9 3.02 -2.5 percent of GDP
Japan -7.6 13-Dec -9.2 2.58 -9.2 percent of GDP
Russia -0.5 14-Dec -0.5 9.88 -7.9 percent of GDP
United Kingdom -5.8 13-Dec -6.1 3.6 -11.4 percent of GDP
United States -2.8 14-Sep -4.1 4.6 -12.1 percent of GDP

15. Taxation
 Abolition of Wealth Tax.
 No change in tax slabs.
 Service tax increased to 14 per cent.
 Total exemption of up to Rs. 4,44,200 can be achieved.
 Rate of corporate tax to be reduced to 25% over next four years.
 100% exemption for contribution to Swachh Bharat, apart from CSR.
 Additional 2% surcharge for the super-rich with taxable income of
over Rs. 1 crore.

16. INFRASTRUCTURE
 Rs. 70,000 cr to Infrastructure sector.
 Tax-free bonds for projects in rail road and irrigation.
 Atal Innovation Mission to be established to draw on expertise of
entrepreneurs, and researchers to foster scientific innovations;
allocation of Rs. 150 cr.
 Govt. proposes to set up 5 ultra-mega power projects, each of
4000MW.
 PPP model for infrastructure development to be revitalized and
government to bear majority of the risk.

17. Agriculture
 Rs. 25,000 cr for Rural Infrastructure Development Bank.
 Rs. 5,300 cr to support Micro Irrigation Programme.
 Farmers credit - target of 8.5 cr.
Education
 Expenditure on the education sector Rs. 17,000cr.
 New IIMs & IITs to come up in various states.
Defence
 Allocation of Rs. 2,46,726 cr; an increase of 9.87 per cent over last year.
 Focus on Make in India for quick manufacturing of Defence equipment.

18.  Development schemes for old monuments.
 Visa on Arrival for 150 countries.
Gold
 Initiated Gold Monetisation Scheme.
Welfare Schemes
 Housing for all by 2020.
 GST & JAM Trinity.
 6Crores toilets across country.
 Refinancing by Mudra Bank.
 Rs 5000 Crore additional allocation for MGNREGA.
Tourism

19. Recommendations
Individual Tax should be reduced.
Investments in the area of planned expenditure should have been more
than non-planned expenditure.
Education sector should have not been ignored.
Government should have concentrated more on domestic need/market
rather than International market.
Abolishment of wealth tax should not be carried on for a longer period of
time.
Gold monetization can help to grow the economy of our country.

20. References
 http://economictimes.indiatimes.com/definition/Union-Budget
 http://www.tradingeconomics.com/india/government-budget/forecast
 Seminar at “The Bengal Club”.