“Democracy is the art and science of mobilizing the entire physical, economic and spiritual resources of various sections of the people in the service of the common good of all” MAHATMA GANDHI
ABOUT BUDGET The Union Budget of India, referred to as the Annual Financial Statement in Article 112 of the Constitution of India, is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget has to be passed by the House before it can come into effect on April 1, the start of India's financial year.
ABOUT BUDGET The fiscal year runs from April 01- March 31 It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year called budgeted estimates.
The first Union budget of independent India was presented by R. K. Shanmukham Chetty on November 26, 1947.
It was Mr.Yashwant Sinha , the Finance Minister of India in the government of Atal Bihari Vajpayee, who changed the ritual by announcing the 2001 Union Budget at 11 am.
FACTS Time of Budget Announcement Until the year 2000, the Union Budget was announced at 5 pm on the last working day of the month of February. This practice was inherited from the Colonial Era, when the British Parliament would pass the budget in the noon followed by India in the evening of the day.
FACTS Former Finance Minister Morarji Desai presented the budget eight times, the most by any. Indira Gandhi, the first women Prime Minister of India, took over the Ministry of Finance to become the only woman to hold the post of the finance minister. Pranab Mukherjee, the first Rajya Sabha member to hold the Finance portfolio, presented the annual budgets for 1982-83, 1983-84 and 1984-85.
HIGHLIGHT Finance minister Pranab Mukherjee presented the Union budget for 2010-11 in the Lok Sabha on Friday, February 26, 2010.
BUDGET 2010-11 The Indian economy was facing grave uncertainty. Growth had started decelerating when the interim and full budget for 2009-10 were presented. At home there was added uncertainty because of subnormal southwest monsoon. India weathered the economic crisis well and emerged from the global slowdown faster than any other country.
BUDGET 2010-11 First challenge before the government is to quickly revert to high GDP growth path of 9%. Expects 10% economic growth in the near future. Second challenge is to harness economic growth to make it more inclusive and consolidate gains. Third challenge is to overcome weakness in government's public delivery mechanism; a long way to go in this.
BUDGET 2010-11 Impressive recovery in the past few months. Can witness faster recovery in the coming months. Food security has been strengthened. But bottleneck of the public delivery mechanism can hold us back. Fiscal year 2009-10 was challenging for the economy.
BUDGET 2010-11 Economy stabilized in the first quarter of 2009 itself. 18.5% manufacturing growth in December was the highest in two decades. Figures for merchandise exports for January encouraging after turnaround in November and December last year. Double digit food inflation last year due to bad monsoon and drought-like conditions.
BUDGET 2010-11 Government conscious of the price rise and taking steps to tackle it. Erratic monsoon and drought-like conditions forced supply-side bottleneck that fuelled inflation. Need to review stimulus imparted to economy last year to overcome the recession. Need to ensure that the demand-supply imbalance is managed.
BUDGET 2010-11 Government hopes to implement direct tax code from April 2011. Earnest Endeavour to implement general sales tax in April 2011. Government will raise Rs25,000 crore from divestment of its stake in state-owned firms. Nutrient-based fertilizer subsidy scheme to come into force from April 1 this year. Nutrient-based fertilizer subsidy will reduce volatility of subsidy and also reduce it.
BUDGET 2010-11 Market capitalization of five public-sector undertakings listed since October increased by 3.5 times. FDI inflows steady during the year. Government has taken series of steps to simplify FDI regime. Intends to make FDI policy user friendly by compiling all guidelines into one document. Government has decided to set up apex-level Financial.
BUDGET 2010-11 RBI considering issuing banking licenses to private companies. Non-banking finance companies will also be considered if they meet the criteria. Government to provide Rs16,500 crore to public-sector banks to maintain tier-I capital. Government to continue interest subvention of 2% for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises. Government to provide Rs300 crore to organize 60,000 pulse and oilseed villages and provide integrated intervention of watershed and related programmes.
BUDGET 2010-11 Deficit in food grains storage capacity to be met with private-sector participation. Period for repayment of loans by farmers extended by six months to June 30, 2010, in view of the drought and floods in some parts of the country. Interest subvention for timely repayment of crop loans raised from 1% to 2%, bringing the effective rate of interest to 5%. Road transport allocation raised by 13% to Rs19,894 crore.
BUDGET 2010-11 Rs1,73,552 crore provided for infrastructure development. Allocation for railways fixed at Rs16,752 crore, an increase of Rs950 crore over the last financial year. Government proposes to set up Coal Development Regulatory Authority. Mega power plant policy modified to lower cost of generation; allocation to power sector more than doubled to Rs5,130 crore in 2010-11. Government favours competitive bidding for coal blocks for captive power plants.
BUDGET 2010-11 Rs500 crore allocated for solar and hydro projects for the Ladakh region in Jammu Kashmir. Allocation for new and renewable energy ministry increased by 61% to Rs1,000 crore. One-time grant of Rs200 crore provided to Tirupur textile cluster in Tamil Nadu. Allocation for National Ganga River Basin Authority doubled to Rs500 crore. Alternative port to be developed at Sagar Island in West Bengal.
BUDGET 2010-11 Plan allocation for school education raised from Rs26,800 crore to Rs31,036 crore in 2010-11. 25% of plan outlay earmarked for rural infrastructure development. Plan allocation for health and family welfare increased to Rs22,300 crore from Rs19,534 crore. For rural development, Rs66,100 crore have been allocated. Allocation for National Rural Employment Guarantee Authority stepped up to Rs40,100 crore in 2010-11.
BUDGET 2010-11 Indira Awas Yojana's unit cost raised to Rs45,000 in the plains and Rs48,500 in hilly areas. 1% interest subvention loan for houses costing up to Rs20 lakh extended to March 31, 2011; Rs700 crore provided. Allocation for development of micro and small-scale sector raised from Rs1,794 crore to Rs2,400 crore.
BUDGET 2010-11 A unique identity symbol will be provided to the rupee in line with the US dollar, British pound sterling, euro and Japanese yen. Defence allocation pegged at Rs1,47,344 crore in 2010-11 against Rs1,41,703 crore in the previous year. Of this, capital expenditure would account for Rs60,000 crore.
BUDGET 2010-11 Gross tax receipts pegged at Rs7,46,656 crore for 2010-11, non-tax revenues at Rs1,48,118 crore. Total expenditure pegged at Rs11.8 lakh crore, an increase of 8.6%. Fiscal deficit at 5.5%. Fiscal deficit seen at 4.8% and 4.1% in 2011-12 and 2012–13, respectively.
BUDGET 2010-11 Cash subsidy for fuel and fertiliser instead of previous practice of bonds to continue. Fiscal deficit pegged at 6.9% in 2009-10 as against 7.8% in the previous fiscal. Government's net borrowing to be Rs3,45,010 crore for 2010-11. Income-tax department ready with two-page Saral-2 returns form for individual salaried assesses
BUDGET 2010-11 Personal income-tax rates pruned: Income up to Rs1.6 lakh — nil Income above Rs1.6 lakh and up to Rs5 lakh — 10% Income above Rs5 lakh and up to Rs8 lakh — 20% Income above Rs8 lakh — 30%
BUDGET 2010-11 Additional deduction of Rs20,000 allowed on long-term infrastructure bonds for income-tax payers; this is above Rs1 lakh on savings instruments allowed already. Investment-linked tax deductions to be allowed to two-star hotels anywhere in the country. One-time interim relief to housing and real-estate sector.
BUDGET 2010-11 Businesses with a turnover of up to Rs60 lakh and professionals earning up to Rs15 lakh to be exempted from the obligation to audit their accounts. Housing projects allowed to be completed in five years instead of four to avail of tax breaks. Revenue loss of Rs26,000 crore on direct tax proposals.
BUDGET 2010-11 Central excise duty on all non-petroleum products raised to 10% from 8%. FM increases customs duty on crude oil to 5%, on diesel and petrol to 7.5%, and on other petroleum products to 10%. Structural changes in excise duties on cigarettes, cigars, and cigarillos. Clean energy cess of Rs50 per ton to be levied on coal produced in India. Concessional excise duty of 4% on solar cycle-rickshaws.
BUDGET 2010-11 Customs and central excise proposals to result in a net revenue gain of Rs43,500 crore. More services to be brought under the service tax net. Certain accredited news agencies exempted from payment of service tax. Net revenue gain from tax proposals pegged at Rs20,500 crore.
COMMENTS "It's a budget to boost growth. An exceedingly good job. Well Done.” -- PM Manmohan Singh
COMMENTS "This would help in improving the health-care delivery mechanism which will indirectly help health insurers to serve their clients better,“ ---- Krishnamoorthy Rao, CEO and MD, Future Generali India Insurance Co Ltd.
COMMENTS "The middle-class will have a huge investible surplus in their hands because the lower income-tax levels.“ -----Rajesh Relan, managing director, MetLife India Insurance Company Ltd.
COMMENTS "The government's agenda of inclusive growth has been reinforced with increased social spending and welcome measures like extension of the Rashtriya Swasthya Bima Yojana health insurance scheme to NREGA beneficiaries“ -----Mr. Dasgupta, ICICI Lombard GIC
THANK YOU FOR YOUR KIND ATTENTION ! PRESENTED BY : VISHWAKARMA RAVINDRA