Evolution of Union Budget


Published on

View the presentation to understand the evolution in the composition of the budget with respect to taxes & expenditure. For more details on the Budget head to: http://bit.ly/WHTKfT

Published in: Economy & Finance, Business
1 Comment
  • nifty made low 5600 .................
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Understand the evolution of our union budget over a period of time with various stats and facts. Kotak Securities also provide you various <a href="http://www.kotaksecurities.com/stock-market-news/equity/1000/equity-market/NSE/ALL/ALL">share market news/updates & happening.To stay updated with our upcoming budget 2013-14 news and analysis <a href="http://www.kotaksecurities.com/budget2013-14/India-union-budget-2013-14.htm">click here</a>
  • Evolution of Union Budget

    1. 1. Evolution of Union Budget
    2. 2. Pre 1991 Budgets INDIA’S FISCAL POLICY • Emphasis on public sector expansion for economic growth and industrial development • Fiscal policy focused on transfer private savings to cater to the growing consumption and investment needs • Reduction of income and wealth inequalities via taxes •High administrative controls • Licensing and quota system for private sector
    3. 3. Revenue Strategy
    4. 4. Direct and indirect taxes were focused on revenue from private sector • 1950-51: Indirect taxes at 2.3% of GDP • 1950-51: Direct taxes at 1.8% of GDP
    5. 5. Post 1991: Economic Liberalization INDIA’S FISCAL POLICY • India opened economy to foreign investment and trade • Private sector was encouraged • Quotas and licenses were abolished
    6. 6. Tax reform: Direct 1992-93: Personal income tax brackets reduced to 3at of 20%, 30% and 40% 1993-94: Distinction between closely and widely held companies removed. Uniform ` corporate tax rate brought down to 40% 1996-97: Minimum Alternative Tax or MAT was introduced. MAT required a company to pay a minimum of 30% of profits as tax 1997-98 :Personal income tax brackets reduced further to10%, 20%, and 30%. Uniform corporate tax reduced to 35% with 10% tax on distributed dividends 2004-05: STT or Securities Transaction Tax was introduced 2005-06: Fringe benefit tax or FBT was brought in
    7. 7. Tax reform: Indirect 1994: 95: Service tax was introduced and its net kept expanding 1996-97: MODVAT was expanded to cover most commodities 1997-98: Peak custom duty rate was brought down to 40% 1999-2000: Eleven rates were merged into three with a few luxury items subject to additional non-rebatable tax 2000-01: The three rates were merged in to a single rate and renamed as central VAT or CENVAT. Three additional excise duties at 8%, 16%, 24%were kept. 2002-03: Peak customs duty cut to 30% 2004-05: Peak customs duty cut by 5% to 25% 2005-06: Peak customs duty saw a 10% cut from 25% to 15%
    8. 8. Tax Reform
    9. 9. POST 1991: EXPENDITURE STRATEGY • Focus on reducing subsidies and cutting down on non-capital expenditure. • Composition of government expenditure takes time to have effect • 2003: FRBMA was adopted. • FRBM Act gave target for balancing current revenues and expenditures • FRBM Act set overall limits to the fiscal deficit at 3% of GDP to be achieved in phases • FRBM Act enhanced budgetary transparency • Fiscal prudence limiting public debt via higher revenue and controlled expenditure has been institutionalized • Expenditure reforms aim to target reduction of subsidies
    10. 10. Expenditure Strategy
    11. 11. Budget Simplified Facebook Website Twitter
    12. 12. Disclaimer: • Kotak Securities Limited, Registered Address: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E) Mumbai 400 051. SEBI Registration No: NSE INB/INF/INE 230808130, BSE INB 010808153/INF 011133230, OTC INB 200808136, MCXSX INE 260808130. Investments in securities are subject to market risks, please read the SEBI prescribed Combined RDD prior to investing. • Correspondence Address: Kotak Securities Limited, Infinity IT Park, Bldg. No 21, Opp Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. Tel no: 66056825. • The views expressed by experts on the Website of Kotak Securities or any other platform are framed by Simplus Information Services Pvt. Ltd. and viewers to check with certified experts before taking any decision on said views. However, Kotak Securities does not guarantee or warrant the accuracy, adequacy or completeness of any information or representations viewed on any links or on any other platform and is not responsible for any errors or omissions or for the results obtained from the use of such information. Kotak Securities especially states that it has no financial liability whatsoever to any user or viewer on account of the use of information provided on its website or any other platform. The content, information and other material displayed or viewed on the website of Kotak Securities are submitted by Simplus Information Services Limited. Kindly note that Simplus Information Services Pvt. Ltd. are responsible for ensuring that material submitted for inclusion on the website of Kotak Securities or on any other platform complies with all the legal formalities. Any information displayed or viewed on its website or any other platform is to be construed as public conversation only.