Important Union Budgets
 

Important Union Budgets

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View our presentation to learn about the Finance Ministers who changed the face of the nation when they presented the Union Budget. For the latest updates on Union Budget 2013-14, head to: ...

View our presentation to learn about the Finance Ministers who changed the face of the nation when they presented the Union Budget. For the latest updates on Union Budget 2013-14, head to: http://bit.ly/WHTKfT

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  • Understand different phases of our union budget and how it evolved over period of time. This information is brought to you by Kotak Securities India’s largest share broking firm, We also offer you various opportunities to invest in share market & also update you with <a href="http://www.kotaksecurities.com/stock-market-news/equity/1000/equity-market/NSE/ALL/ALL">live updates & latest happenings from Indian share market</a>.To know about various analysis on upcoming union budget 2013-14 visit <a href="http://www.kotaksecurities.com/budget2013-14/India-union-budget-2013-14.htm“&gt;">www.kotaksecurities.com/budget2013-14/India-union-budget-2013-14.htm</a>.

Important Union Budgets Important Union Budgets Presentation Transcript

  • Important Union Budgets
  • 1947 - The First Budget Finance Minister: R K Shanmukham Chetty  The first budget presented in November 1947 concentrated on agriculture while over the next ten years the focus moved to the industrial sector with a focus on forestry, fishing and textile.
  • 1950 : The Agriculturist’s Budget Finance Minister: C D Deshmukh  The budget proposed a Grow More Food Plan to push agriculture via assured irrigation to meet the growing demand. The Grow More Food Plans towards economic development showed short-term growth but didn’t help in the long run.
  • 1969: Bank Nationalization Finance Minister: Morarji Desai  The government nationalized 14 banks in 1969.  It became mandatory for banks to provide 40% of their net credit to priority sectors like agriculture, small-scale industry, retail trade, small businesses, etc. to ensure that the banks fulfill their social and developmental goals.  The 60s saw budgets focus on public finance, savings, taxation and inflation. The aim was to secure a balance between consumption and investment on resources besides increasing exports.
  • 1970: GaribiHatao Finance Minister : Indira Gandhi  Indira Gandhi in her maiden budget speech claimed, “the weaker sections are the greatest source of economic strength”. She proposed “anti-poverty programmes”.  The budget introduced special schemes and discretionary transfers. It sought to combine social welfare expenditure and future growth potential.  The budget set the economy on the irreversible path of high spending by central government. Revenue surplus turned into a revenue deficit.
  • 1986: Cheers for Tax Reform Finance Minister: VP Singh  This year saw the launch of a long-term program for tax reform.  The excise policy saw a major overhaul.  Fiscal Policy was designed to widen tax base.  The budget introduced the modified value added tax or Modvat. It allowed manufacturers to obtain instant and full reimbursement of excise duty paid on components and raw materials.
  • 1991: Rise of a New India Finance Minister: Manmohan Singh This budget changed the rules of the game through an inclusive economic strategy, all new currency policy, abolishing the licence regime. The new import-export policy opened up the economy for FDI. Foreign investment limit in high-priority industries was raised to 51%. Interest rates were made flexible. Commercial banks were allowed to set interest rates based on risk on loan. The private sector emerged as the star gainer. The opportunities and scope of expansion increased manifold. The 1991 Budget changed the way the world viewed India.
  • 1997: The Dream Budget Finance Minister: P Chidambaram  This budget is not called the Dream budget for nothing. The budget presented a road map for economic reforms in India. Tax structure got a rejig.  A slew of measure both on the direct and indirect tax front changed India’s tax landscape.
  •  Maximum income tax rate for individuals was cut from 40% to 30%. Income tax rate for companies was decreased to 35% per from 40%.  Peak customs duty came down to 40% from 50%.  Dividend tax on individual investors was abolished.  This budget introduced the Voluntary Disclosure of Income Scheme, that targeted recovery of black money.  Tax filing was made mandatory based on ownership of a telephone, four-wheeler, occupation of immovable property and foreign travel.
  • 2002: The Rollback Budget Finance Minister :Yashwant Sinha This budget is often called the Rollback budget because it saw as many key proposals were withdrawn or rolled back by the finance minister.  Rebate in income tax under Section 88 of the IT Act was cut to 15% for the Rs 1.5 lakh and Rs 5 lakh bracket. The original proposal had reduced the tax rebate in this bracket from 20% to 10%. And tax rebate for income up to Rs 1.5 lakh was rolled back to 20%.
  •  5% service tax on life insurance premium, was scrapped. 4% excise duty on spare parts and accessories of bicycles, hand pumps, toys and umbrellas was abolished.  LPG price hiked by Rs 40 per cylinder was reduced to a cut of Rs 20 per cylinder.  100% income tax deduction on export profits in SEZs, software technology parks (STPs) and 100% EOUs was restored. The budget had proposed to restrict the tax deduction to 90% of profits.
  • But it was not all bleak – this budget was a boon for the housing sector. Housing was considered a growth driver. Construction for residential purposes was incentivized. Indirect tax policy was also reformed with the introduction of VAT or value added tax. VAT now is the backbone for the introduction of GST.
  • 2005: Social Sector Impetus Finance Minister: P Chidambaram  Landmark schemes of the government like National Rural Health Mission, Gender Budget and NREGA were announced first time in budget of 2005-06.  The National Rural Health Mission is a health program for improving health care delivery across rural India. The scheme proposes a number of new mechanisms for healthcare delivery including training local and the JananiSurakshayYojana (motherhood protection program). It also aims at improving hygiene and sanitation infrastructure.
  •  National Rural Employment Guarantee Act (now called MGNREGA) is a job guarantee scheme. It provides a legal guarantee for one hundred and fifty days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at a minimum wage. If they fail to do so the government has to pay the salary at their homes.
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