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BUDJET 2008-2009
Origin and History <ul><li>The first general budget of India was presented by the India's first Finance Minister Sir R.K. ...
Passing of Budget <ul><li>The annual Indiabudget has to be passed by the House of the parliament before it can come into e...
Key features of Interim Budget 2008-2009 <ul><li>The Gross Domestic Product increased by 7.5 percent, 9.5 percent, 9.7 per...
<ul><li>The Gross capital formation in agriculture as a proportion of a agriculture GDP increased from 11.1 percent in 200...
<ul><li>Major initiatives including a new Centrally Sponsored Scheme launched to </li></ul><ul><li>universalize education ...
Union Budget 08-09 Highlights <ul><li>  For Men </li></ul><ul><li>Upto Rs. 1,50,000/-NilRs. 1,50,001/- to Rs. 3,00,000/-10...
<ul><li>The release of Union Budget 2008-2009 by Finance Minister  </li></ul><ul><li>P. Chidambaram on 29 Feb'08 might int...
<ul><li>Tea would get Rs 400 crore special support fund . </li></ul><ul><li>Agriculture loans would be reconstructed in 20...
Affected items after the Union Budget 2008-09   <ul><li>  Cheaper  </li></ul><ul><li>Two wheelers </li></ul><ul><li>Small ...
<ul><li>BUDGET SPEECH ENDS  </li></ul><ul><li>Corporate surcharge tax: unchanged </li></ul><ul><li>Indirect tax proposals ...
<ul><li>Excise duty of Rs 1.35/litre applied on unbranded petrol.  </li></ul><ul><li>Excise duty of Rs 4.6/litre applicabl...
<ul><li>General CENVAT rate:   dipped from 16% to 14%.  </li></ul><ul><li>5% cut of customs duty on some bulk drugs.  </li...
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Budget 2009

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CHECK THE WHOLE HIGHLIGHT OF BUDGET 2008-09

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Transcript of "Budget 2009"

  1. 1. BUDJET 2008-2009
  2. 2. Origin and History <ul><li>The first general budget of India was presented by the India's first Finance Minister Sir R.K. Shanmugham Chetty on November 26, 1947. Since then, 28 Union Finance Ministers have been presenting the budget every year. Initially, much attention was given to the agricultural sector but as later on, the focus shifted to the other sectors including the industrial, financial and other sectors. </li></ul>
  3. 3. Passing of Budget <ul><li>The annual Indiabudget has to be passed by the House of the parliament before it can come into effect on April 1, the start of India's financial year. The Indian parliament has one month to review and modify the government's budget proposals. If by April 1, the parliamentary discussion of the budget has not been completed, the budget as proposed by the minister of finance goes into effect and subject to retroactive modifications after the parliamentary review. </li></ul>
  4. 4. Key features of Interim Budget 2008-2009 <ul><li>The Gross Domestic Product increased by 7.5 percent, 9.5 percent, 9.7 percent and 9 percent in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9 percent for three consecutive years for the first time. </li></ul><ul><li>The growth drivers for the period were agriculture, services, manufacturing along with trade and construction. </li></ul><ul><li>Fiscal deficit down from 4.5 percent in 2003-04 to 2.7 percent in 2007-08 and Revenue deficit from 3.6 percent to 1.1 percent in 2007-08 </li></ul><ul><li>The domestic investment rate as a proportion of GDP increased from 27.6 percent in 2003-04 to 39 percent in 2007-08.Gross Domestic savings rate shot up from 29.8 percent to 37.7 percent during this period. </li></ul>
  5. 5. <ul><li>The Gross capital formation in agriculture as a proportion of a agriculture GDP increased from 11.1 percent in 2003-04 to 14.2 percent in 2007-08 </li></ul><ul><li>While manufacturing sector recorded growth of 9.5 per cent per annum in the period 2004-05 to 2007-08, communication and construction sectors grew at the rate of 26 per cent and 13.5 per cent per annum respectively. </li></ul><ul><li>Annual growth rate of agriculture rose to 3.7 per cent during 2003-04 to 2007-08.The foodgrain production recorded an increase of 10 million tonnes each year during this period and touched an all time high of 230 million tonnes in 2007-08. </li></ul><ul><li>Exports grew at an annual average growth rate of 26.4 per cent in US dollar terms in the period 2004-05 to 2007-08. Foreign trade increased from 23.7 per cent of GDP in 2003-04 to 35.5 per cent in 2007-08. </li></ul>
  6. 6. <ul><li>Major initiatives including a new Centrally Sponsored Scheme launched to </li></ul><ul><li>universalize education at secondary stage in the year 2008-09. </li></ul><ul><li>Outlay on Higher Education increased 9 fold in the Eleventh Five Year Plan. </li></ul><ul><li>Ordinance promulgated for establishing 15 Central Universities. In addition to 6 new Indian Institutes of Technology (IITs) in Bihar, Andhra Pradesh, Rajasthan, Orissa, Punjab and Gujarat which started functioning in 2008-09, two more IITs in Madhya Pradesh 2009-10. </li></ul><ul><li>5 Indian Institute of Science Education and Research (IISER) announced earlier have become functional. 2 new schools of Planning and Architecture at Vijayawada and Bhopal have started functioning. Teaching is expected to commence from academic year 2009-10 in four out of six new Indian Institute of Management proposed for the Eleventh Plan in Haryana, Rajasthan, Jharkhand and Tamil Nadu. </li></ul><ul><li>Due to revision in Educational Loan Scheme by the Government number of </li></ul><ul><li>beneficiaries increased from 3.19 lakh to 14.09 lakh and amount of loan outstanding increased from Rs.4,500 crore as on March, 31, 2004 to Rs.24,260 crore as on September 30, 2008. </li></ul><ul><li>500 ITIs upgraded into centers of excellence. National Skill Development </li></ul><ul><li>Corporation created in July, 2008 with initial corpus of Rs. 1,000 crore. </li></ul>EDUCATION
  7. 7. Union Budget 08-09 Highlights <ul><li> For Men </li></ul><ul><li>Upto Rs. 1,50,000/-NilRs. 1,50,001/- to Rs. 3,00,000/-10 per centRs. 3,00,001/- to Rs. 5,00,00020 per centAbove Rs. 5,00,000/-30 per cent </li></ul><ul><li> </li></ul><ul><li> For Women </li></ul><ul><li>Upto Rs. 1,80,000/-NilRs. 1,80,001/- to Rs. 3,00,000/-10 per centRs. 3,00,001/- to Rs. 5,00,00020 per centAbove Rs. 5,00,000/-30 per cent </li></ul><ul><li>For resident individual of 65 years or above Upto Rs. 2,25,000/-NilRs. 2,25,001/- to Rs. 3,00,000/-10 per centRs. 3,00,001/- to Rs. 5,00,00020 per centAbove Rs. 5,00,000/-30 per cent </li></ul>
  8. 8. <ul><li>The release of Union Budget 2008-2009 by Finance Minister </li></ul><ul><li>P. Chidambaram on 29 Feb'08 might intend to bring about </li></ul><ul><li>some paradigm changes. Lets have a quick look at the </li></ul><ul><li>gainers:- </li></ul><ul><li>Farmers have been granted a package of Rs 60,000-cr </li></ul><ul><li>Rs 44 crore for 22 Sainik schools </li></ul><ul><li>300 more ITIs to be elevated with an investment of Rs 750 crore </li></ul><ul><li>Setting up of 3 new IITs, 16 central universities </li></ul><ul><li>Power sector would be given national fund for transmission, distribution reforms. </li></ul><ul><li>Hike of Rs 12,966 crore from Rs 10,866 crore in NHDP allocation </li></ul><ul><li>Govt . would now cost Rs 50,000 crore on farm loan waiving </li></ul>GAINERS OF BUDGET 2008-09
  9. 9. <ul><li>Tea would get Rs 400 crore special support fund . </li></ul><ul><li>Agriculture loans would be reconstructed in 2004-06 under special packages to be waived. </li></ul><ul><li>Tea Research association would be allocated Rs 20 crore. </li></ul><ul><li>Micro irrigation scheme allocated Rs 500 crore. </li></ul><ul><li>Agriculture share in total investment would be raised to 16% from 10.2% . </li></ul><ul><li>Grant for ministry of minorities would be raised to Rs 1,000 crore. </li></ul><ul><li>Planned schemes for woman to get Rs 11,460 crore this fiscal. </li></ul><ul><li>Child related schemes would be granted Rs 33,434 crore. </li></ul><ul><li>288 branches of public sector banks would be set up in 2008. </li></ul>
  10. 10. Affected items after the Union Budget 2008-09 <ul><li> Cheaper </li></ul><ul><li>Two wheelers </li></ul><ul><li>Small cars </li></ul><ul><li>Bulk drugs </li></ul><ul><li>Anti-AIDS drugs </li></ul><ul><li>Crude sulphur </li></ul><ul><li>Buses, Chassis </li></ul><ul><li>Water Purifier </li></ul><ul><li>Refrigeration Components </li></ul><ul><li>Paper and its products </li></ul><ul><li>Naphtha </li></ul><ul><li>Pharma goods </li></ul><ul><li> Expensive </li></ul><ul><li>Non filter cigarettes </li></ul><ul><li>Unbranded petrol and diesel </li></ul>
  11. 11. <ul><li>BUDGET SPEECH ENDS </li></ul><ul><li>Corporate surcharge tax: unchanged </li></ul><ul><li>Indirect tax proposals to incur a loss of Rs 5,000 cr </li></ul><ul><li>Direct tax proposals would be revenue neutral </li></ul><ul><li>Dividend of subsidiary company will be released from DDT </li></ul><ul><li>Banking transaction tax to be exempted </li></ul><ul><li>Central sales tax: </li></ul><ul><li>Reduced to 2% </li></ul><ul><li>15% rise in short term capital gains tax </li></ul><ul><li>5-yr tax holiday for building hospitals in tier-II, tier III regions </li></ul><ul><li>Short-term capital gains rises to 15 pc </li></ul>
  12. 12. <ul><li>Excise duty of Rs 1.35/litre applied on unbranded petrol. </li></ul><ul><li>Excise duty of Rs 4.6/litre applicable on unbranded diesel. </li></ul><ul><li>Introduction of Commodities Transactions Tax . </li></ul><ul><li>Securities Transaction Tax would be considered like deductible expenditure. </li></ul><ul><li>Star hotels: 2,3,4 star hotels to get 5-yr tax holiday in UNESCO's heritage sites. </li></ul><ul><li>FBT exempted on creche, employee sports, guest houses facilities. </li></ul><ul><li>Duty on two wheelers slashed from 16 to 12 pc. </li></ul><ul><li>Tax slab for Rs 3-5 lakh would be 20 pc. </li></ul><ul><li>TAX: exemption raised from Rs 1,10,000 to Rs 1,50,000. </li></ul><ul><li>TAX: Women exemption threshold streched from Rs 1,45,000 to 1,80,000. </li></ul><ul><li>TAX: Senior citizens' exemption raised from Rs 1,95,000 to 2,25,000. </li></ul><ul><li>TAX: Coporate income tax unchanged. Excise duty of Rs 1.35/litre applied on unbranded petrol. </li></ul><ul><li>Excise duty of Rs 4.6/litre applicable on unbranded diesel. </li></ul><ul><li>Introduction of Commodities Transactions Tax . </li></ul><ul><li>Securities Transaction Tax would be considered like deductible expenditure. </li></ul><ul><li>Star hotels: 2,3,4 star hotels to get 5-yr tax holiday in UNESCO's heritage sites. </li></ul><ul><li>FBT exempted on creche, employee sports, guest houses facilities. </li></ul><ul><li>Duty on two wheelers slashed from 16 to 12 pc. </li></ul><ul><li>Tax slab for Rs 3-5 lakh would be 20 pc. </li></ul><ul><li>TAX: exemption raised from Rs 1,10,000 to Rs 1,50,000. </li></ul><ul><li>TAX: Women exemption threshold streched from Rs 1,45,000 to 1,80,000. </li></ul><ul><li>TAX: Senior citizens' exemption raised from Rs 1,95,000 to 2,25,000. </li></ul><ul><li>TAX: Coporate income tax unchanged . </li></ul>
  13. 13. <ul><li>General CENVAT rate: dipped from 16% to 14%. </li></ul><ul><li>5% cut of customs duty on some bulk drugs. </li></ul><ul><li>Crude sulphur: duties stepped down to 5%. </li></ul><ul><li>Relieve of duties on coral. </li></ul><ul><li>Fiscal Deficit & Revenue Deficit: pegged at 3.1% & 1.4%. </li></ul><ul><li>Duties on convergence products dipped to 5%. </li></ul><ul><li>Set top boxes: 100% exemption. </li></ul><ul><li>COMMONWEALTH GAMES: allocated Rs 624 crore. </li></ul><ul><li>Steel melting & aluminum scrap: duties reduced. </li></ul><ul><li>Peak rate of customs duties unchanged. </li></ul><ul><li>Sixth central pay commission would submit report by March. </li></ul><ul><li>Revenue Deficit would be 1.4 % agt Budget Estimate of 1.5%. </li></ul><ul><li>Planning Commission to assess major schemes. </li></ul><ul><li>PROTECT TIGER: Rs 50 cr to Natl Tiger Conservation Authority to get Rs 50 crore. </li></ul><ul><li>Rs 75 cr for ICCR for cultural development. </li></ul><ul><li>Defence allocation raised by 10% to Rs 1,05,600 crore. </li></ul><ul><li>PDS to get Rs 32,676 as subsidy. </li></ul>

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