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How Is Budget Prepared
 

How Is Budget Prepared

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    How Is Budget Prepared How Is Budget Prepared Presentation Transcript

    •  
    • CII Proposals BUDGET NCAER Economic Survey NASSCOM proposals BUDGET
    • ECONOMIC SURVEY
      • What is the Economic Survey all about ?
      • It is a survey, which is released just prior to the Budget and collates information from all sectors of the economy.
      • The Economic Survey has reviews of the economy as a whole.
      • It aims to give a summary of the economy's performance in the year gone by, with a view to enabling the formulation of a growth-oriented Budget.
      • The survey reveals the effectiveness of the previous year's Budget and gives an opportunity to the Government and its economic advisors to plan for the year ahead.
    • Highlights of Economic Survey 2005-06
      • Economic growth projected at 8.1 per cent in 2005-06.
      • Agriculture growth at 2.3 per cent.
      • Foodgrains output up by 5 million tonnes to 209.
      • Inflation rate projected at 5% in current fiscal.
      • In medium-term, inflation likely to fall.
      • Interest rates may harden.
      • Savings rate up at 29.1 per cent of GDP.
      • Investment rate up at 31 per cent of GDP.
      • Industrial growth at 7.8 per cent (April-December).
      • Fiscal and revenue deficit targets to be met.
    • Highlights contd….
      • Tele-density increases to 11.32 per cent.
      • Trade deficit increases.
      • Bold policy reforms in oil sector required.
      • Policy required for speedy development of infrastructure.
      • Indian industry needs to be unburdened from high taxes.
      • Forex reserve down by $2 billion to $139.2 billion (till Jan'06).
    • What is Fiscal Deficit?
      • Fiscal deficit = total expenditure –(Revenue receipts + recovery of loan + other receipts)
      • Primary deficit = fiscal deficit – interest payment
      • Revenue deficit = revenue expenditure – revenue receipts
    • Fiscal Indicators:Centre and States Combined
      • Figures are in % of GDP
      3% 0 % Year FD RD PD RD/FD DEBT INTEREST PAYMENT 1990-91 9.4 4.2 5.0 44.6 64.9 4.4 1995-96 6.5 3.2 1.6 48.8 61.3 5.0 2004-05 7.5 3.7 1.4 48.9 82.5 6.2 2005-06 7.5 3.1 1.6 41.5 79.5 5.8 2006-07 6.5 2.2 0.8 33.6 78.6 5.7
      • Is fiscal deficit Good or Bad?
      • Is it a good idea to reduces Fiscal Deficits Through Disinvestment?
      • Does increased government expenditure necessarily lead to a greater fiscal deficit?
    • Key Research Areas of NCAER. Assessment of policies relating to taxes and subsidies, administered prices, exchange rate, capital flows, monetary policy and public spending in a framework that quantifies the impact of these factors on the aggregate output and price is made available through commissioned studies, periodic reports and seminars. 1. Growth, Trade and Economic Management
    • 2. Investment Climate, Physical and Economic Infrastructure Council has produced a number of important studies and reports on India's infrastructure including topics such as domestic fuel use, use of non-conventional energy, regulatory framework for electricity generation and supply, telecommunication and transportation. Core Themes: -Policy issues in industry and infrastructure - Sectoral studies to evaluate competitiveness and growth prospects -Tracking Consumer expenditure  
    • 3. Agriculture, Rural Development and Resource Management - Reforms in the agricultural sector and agreement on agriculture (AoA) under the WTO -Price policy and public distribution system (PDS) -Land consolidation, fragmentation and optimal land-use plans -Rural infrastructure and agro-processing -Irrigation and watershed management -Changing food baskets and their impact on production patterns
    • 4. Household Behaviour, Poverty, Human Development, Informality and Gender -Evaluation of poverty and employment - focus on informal sector employment -Sectoral studies in population and demographic transition -Morbidity and health economics -Economics of education -Gender studies
    • Proposals for the budget 2007-08
      • The percentage share of agriculture in the total GDP in India is declining at a continuous rate. This sector constitutes a larger employed sector in the country. The need of the hour is to undertake quick steps to provide productive employments and self-employments in other sectors.
      • More investments on education and skill formation: Investment on the formation of Social Overhead Capital in India is necessary for achieving global expertise and competitiveness. There should be more investments in education and skill formation.
      • More emphasis is to be given for achieving FRBM targets.
    • Proposals for the budget 2007-08
      • It proposes for a single goods and services tax in the coming budget 2007-08.
      • Generation of employment and self-employment in the non-farming sectors.
      • The poverty rate in the country must be reduced by creating income earning sources for the people.
      • Developing elementary and secondary education in the country.
      • Budget 2007-08 should aim at the growth of Indian Economy, which is led by the level of consumption in the country.
    • THANK THEM………….