This document provides an overview and summary of the Indian budget process. It discusses the history of budgets in India dating back to 1860. Key points include that the annual budget is presented by the Finance Minister on the last working day of February, detailing estimated receipts, expenditures, and funds to be collected via taxes and borrowings. The budget formulation process involves consultations with various ministries, states, and stakeholders. Highlights of the 2015 budget include expenditures, GDP projections, sectors like agriculture and education, and tax changes. Challenges faced include agricultural stress, infrastructure investment needs, and fiscal targets. Plans to address challenges include more public investment, manufacturing support, and fiscal discipline.

1. Mukesh Bhavsar

2. Why?
• Financial planning
• Policy changes can
have big impact on lives
of common man
• Because your money
counts!

3. History
• The word Budget was derived from the French word, bougette
• 1860, India’s first budget was presented by James Wilson of East India
Company to the British Crown
• India started following the April 1- March 31 financial year from1867.
Prior to 1867, the financial year would begin May 1
• Independent India’s first budget was presented in November 1947 by
R. K. Shanmukham Chetty (Interim Budget)
• Dr.Manmohan Singh, in his annual budgets from 1992-93, liberalised
the economy, encouraged foreign investments and reduced peak
import duty from 300 plus per cent to 50 per cent

4. What is Budget?
• Annual financial report presented by the Finance Minister on
last working day of February
• Detailed statement of accounts, estimated receipts, expenditure
for the next financial year starting April 1
• The Finance Minister seeks Parliament’s approval to collect
funds for expenditure via taxes, duties and borrowings
• Part A deals with general economic survey of the country while
Part B relates to taxation proposals

5. How?
• Formulated after a detailed consultative process
• All ministries and departments, states, union territories,
autonomous bodies, and the defence forces present their
expenditure and earning estimates to the Ministry of Finance
• The Finance Ministry along with the Planning Commission
(NITI) also seeks the views of various stakeholders like farmers,
business bodies, foreign institutional investors and economists
• Officials who are part of the Budget process are kept in
isolation

6. Budget 2015
• Budget expenditure of 17.77 Lakh Crore
• GDP projection- 8 to 8.5%
• Manufacturing-
• Defence- 2.46 lakh Cr. (14%)
• Agriculture-
• Education-
• Health-
• Infra- 70,000 Cr.
• Black money- cash transfer limit, Penalty, Benami bills
• Comparison with other countries

7. Budget 2015
• Corporate tax cut from 30 to 25%
• Swachh Bharat, Make in India, Jan Dhan,
Aadhar and Mobile (JAM) - for Direct Benefit
Transfer
•MUDRA bank for SC/ST- 20,000 Cr for small
enterprises, loan upto 10 Lakh with 7% interest

8. Highlights for construction
industry
•Housing for all- 2 crore houses in Urban areas and 4 crore
houses in Rural areas by year 2022 (Rs. 22,407 crore)
•Completion of around 1 lakh km of Roads
•Tax free infrastructure bonds for the projects in the rail,
road and irrigation sectors (Rs. 70,000 crore)
•Target of renewable energy capacity revised to 175000
MW till 2022
•Development and job creation

9. TAX SLABS

10. •Deduction on health insurance premium- Rs 15,000 to Rs 25,000 (80D)
•Deduction of up to Rs 50,000 over and above the limit of Rs 1.50 lakh towards NPS (80CCD)
•Sukanya Samriddhi Scheme- 9.1% interest, 21 year age maturity
Major changes in tax saving limits

11. For Us?
•Limit of deduction of health insurance premium
increased from Rs 15000 to Rs 25000
•PF 12% of Rs.6500 or basic (780 pm), now its
12% of Rs.15000
•Service tax has been raised to 14 percent from
12 percent- eating out, grooming, movies, phone
bills and grocery shopping

12. Major Challenges?
• Agricultural income under stress (%
contribution to GDP)
• Increasing investment in infrastructure
• Decline in manufacturing
• Resource crunch in view of higher devolution in
taxes to states
• Fiscal target of 3.9% of GDP

13. Plan to meet these challenges
•More investment from public sector
•Make in India programme to create jobs in manufacturing
•Continue support to programmes with important national
priorities such as agriculture, education, health, MGNREGA,
rural infrastructure including roads
•Disinvestment in loss making units, and some strategic
disinvestment
•Challenge of maintaining fiscal deficit of 4.1% of GDP met
in 2014-15