06_Joeri Van Speybroek_Dell_MeetupDora&Cybersecurity.pdf
Government Budget and Expenditure Plan
1.
2. Budget
• budget is a systematic plan for the expenditure of a
usually fixed resource during a given period.
• The Budget is the most extensive account of the
Government`s finances, in which revenues from all
sources and expenses of all activities undertaken are
aggregated.
• It comprises the revenue budget and the capital
budget.
• It also contains estimates for the next fiscal year
called budgeted estimates.
3. Revenue Budget
• The revenue budget consists of revenue receipts of
the government (revenues from tax and other
sources) and the expenditure met from these
revenues.
Revenue receipts are divided into tax and non-tax
revenue.
Tax revenues are made up of taxes such as income
tax, corporate tax, excise, customs and other duties
which the government levies.
4. • Non-tax revenue consist of interest and dividend on
investments made by government, fees and other
receipts for services rendered by Government.
• Revenue expenditure is the payment incurred for the
normal day-to-day running of government
departments and various services that it offers to its
citizens.
• The government also has other expenditure like
servicing interest on its borrowings, subsidies, etc.
5. • Usually, expenditure that does not result in the
creation of assets, and grants given to state
governments and other parties are revenue
expenditures.
However, all grants given to state governments and
other parties are also clubbed under revenue
expenditure, although some of them may go into the
creation of assets.
The difference between revenue receipts and revenue
expenditure is usually negative. This means that the
government spends more than it earns. This difference
is called the revenue deficit.
6. Capital Budget
• It consists of capital receipts and payments.
• The main items of capital receipts are loans raised by
Government from public which are called Market
Loans, borrowings by Government from Reserve
Bank and other parties through sale of Treasury Bills,
loans received from foreign Governments and bodies
and recoveries of loans granted by Central
Government to State and Union Territory
Governments
and
other
parties.
7. • Capital payments consist of capital expenditure
on acquisition of assets like land, buildings,
machinery, equipment, as also investments in
shares, etc., and loans and advances granted by
Central Government to State and Union Territory
Governments,
Government
companies,
Corporations
and
other
parties.
Capital Budget also incorporates transactions in
the Public Account.
8. Union and Concurrent List
• The relation between Union and States is the
very bedrock of the Indian Federal system.
• India is a federal State with a national
government and a government of each
constituent state.
• The Indian government follows a strong central
bias.
9. • Based on the distribution of powers between
the Central Government and the State
Government there are three lists –
– Union list,
– State list and
– Concurrent list (powers entertained by both
center and state).
10. • The Union List: Also referred to as List I, this list
contains legislations, on which the Union enjoys
exclusive control. There are 99 subjects that are
included in the Union list, some of them are
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Defence
Banking
Taxes
Coinage
Insurance
Currency
Union Duties
Foreign Affairs
11. • The State List: This is the List II of the Indian
Legislative. There are a total of 69 subjects in this
particular list, all of which are exclusive legislative
powers of the State.
– Public Order and Police
– State Taxes and Duties
– Agriculture
– Sanitation
– Local governments
– Forests
– Fisheries
– Public Health
12. • The Concurrent List: This list contains 52 items,
which are powers vested on the State as well as the
Union. Some of the subjects included in the
Concurrent List are :
• Economic and Social Planning
• Criminal Law and Procedure
• Civil Procedure
• Torts
• Trusts
• Marriage
• Education
• Welfare and Labor
• Contracts
13. Consumerism
• Consumerism can be defined as a social movement seeking
to augment the right of buyers in relation to seller.
• purchasing of new goods and services, with little attention
to their true need, durability, product origin or the
environmental consequences of manufacture and disposal.
• driven by huge sums spent on advertising designed to
create both a desire to follow trends, and the resultant
personal self-reward system based on acquisition.
14. • the production, processing, and consumption,
of commodities requires the extraction and
use of natural resources (wood, ore, fossil
fuels, and water);
• it requires the creation of factories and
factory complexes whose operation creates
toxic byproducts, while the use of
commodities themselves (e.g. automobiles)
creates pollutants and waste.
15. Consumer Rights
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Right to safety
Right to be informed
Right to choose
Right to be heard
Right to enjoy a clean and healthful
environment
• Right of the poor and other minorities to
have their interests protected
16. Right to Safety : Consumers have the right to be protected
against products and services that are hazardous to health
and life.
Right to be informed: The consumer has the right to be
protected against fraudulent, deceitful or grossly misleading
information, advertising, labeling, or other practices, and to
be given the facts that (s)he needs to make an informed
choice.
Right to choose: Consumers have the right to assured access,
to a variety of products and services at competitive prices. In
those industries in which competition is not workable,
government regulation is substituted to assure unsatisfactory
quality and service at fair prices
17. Right to be heard (redress): Consumers have the right
to be assured that consumer interests will receive full
and sympathetic consideration in the formulation of
Government policy and fair and expeditious treatment
in its administrative tribunals.
Right to enjoy a clean and healthful environment:
Environmental issues; Pollution issues
18. Cooperative Society
• An autonomous association of persons united
voluntarily to meet their common economic,
social, and cultural needs and aspirations
through a jointly-owned and democraticallycontrolled enterprise.
19. Types of Cooperatives
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Housing cooperative
Building cooperative
Retailers' cooperative
Utility cooperative
Worker cooperative
Business and employment co-operative
Social cooperative
Consumers' cooperative
Agricultural cooperative
Cooperative banking (credit unions and cooperative
savings banks) wholesale society Cooperative
20. Growth of Cooperatives in India
• National Cooperative Development Corporation
(NCDC) was established in 1963 under NCDC Act
1962 to promote production, marketing and
export of agricultural produce.
• Number of Cooperatives Societies increased from
35 thousand in 1965-66 to 545 thousand in 200203.
• Today, Cooperatives cover each & every village of
India.
21. Government Policies :
• The Union Cabinet approved the National Cooperative
Policy, aiming at:
• Minimizing the say of the Government in Cooperatives.
• Redefining the role of Registrar of Coop. Societies as a
facilitator for Coop. Societies.
• Repatriation of the Government’s equity in the
Cooperatives by infusion of equivalent cooperative
shares.
22. • Multi-State Cooperative Societies Act- 2002 ensures
functioning of Cooperatives as autonomous
Institutions.
• The new legislation reduces the role of Government
and provides professionalism in Cooperatives to
withstand competition.
• Government participation in the equity is allowed
only when requested by the Society.
23. Grey Areas Of Cooperative Sector
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Poor infrastructure,
Lack of awareness,
Lack of quality management,
Over-dependence on government,
Dormant membership,
Non-conduct of elections,
Lack of strong human resources policy,
Neglect of professionalism,
Restricted coverage
24. • Cooperatives are also unable to evolve strong
communication and public relations strategies
which can promote the concept of
cooperation among the masses.
25. Corporate Social Responsibility
• The impact of a company’s actions on society
• Requires a manager to consider his acts in terms of a
whole social system, and holds him responsible for
the effects of his acts anywhere in that system
• Businesses need to balance economic, legal, and
social responsibilities in order to achieve long-run
success.
• More generally, there is a often a relationship
between good social and good financial
performance.
26. Corporate Social Responsibility Continuum
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Do what it takes to make a profit;
Fight CSR initiatives
Comply with legal requirements
Do more than legally required, e.g., philanthropy
Articulate social (CSR) objectives
Integrate social objectives and business goals
Lead the industry on social objectives
28. Pyramid of CSR
Philanthropic Responsibilities
Be a good corporate citizen.
Ethical Responsibilities
Be ethical.
Legal Responsibilities
Obey the law.
Economic Responsibilities
Be profitable.
29. Corporate Social Responsibility (CSR)
Arguments Against
• Restricts the free
market goal of profit
maximization
• Business is not
equipped to handle
social activities
• Dilutes the primary
aim of business
• Increase business
power
• Limits the ability to
compete in a global
marketplace
30. Corporate Social Responsibility (CSR)
Arguments For
• Addresses social issues
business caused and
allows business to be
part of the solution
• Protects business selfinterest
• Limits future
government intervention
• Addresses issues by
using business resources
and expertise
• Addresses issues by
being proactive
