BUDGET

Submitted to – Prof. R.C BhatnagarFormer DGM of Bank of India

• An estimate of income and expenditure for a set period of time.

• The term budget is derived from the french word bougette.• Examples of budget-• Sales budget• Capital budget• Revenue budget• Marketing Budget.

BUDGET

UNION BUDGET

• According to Article 112 of the Indian Constitution, the Union Budget of a year, also referred to as the annual financial statement, is a statement of the estimated receipts and expenditure of the government for that particular year.

• It is presented by The Finance Minister

NEED OF UNION BUDGET…

• Future growth.

• To decrease the CAD.

• Meeting Financial goals.

• To control the fiscal deficit.

• Limited monetary resources.

INDIAN BUDGET: SOME BENCHMARKS

• The first Indian budget by an Indian finance minster was presented by Late Liaquat Ali Khan.

• First budget after Independence was presented by Late. R.K. Shanmukham Chetty, Minister of finance in 1947.

INDIAN BUDGET: SOME BENCHMARKS

• Former finance minister as well as 5th Prime minister of India Late. Morarji Desai presented the union budget maximum number of times .

• The first day budget was presented by our 30th Finance minister Shri. Yashwant sinha.

Union budget 2013-14

• Budget of 6,581 words.

• 10 times Urban word used.

• 6 times Reform word used.

Union budget 2014-15

• Budget of 16,473 words.

• 29 times Rural word used.

• 4 times word Gujarat used.

NEW THINGS INTRODUCED….

Union budget 2013-14

• Nirbhaya Fund introduced.

• New banking licenses to be introduced.

• Rashtriya Swasthya Bima Yojana .

Union budget 2014-15

• Women safety scheme introduced .

• Pilot project for safety of women.

• Health cards introduced.• Skill India and digital

India schemes introduced.

• 100 crore for urea policy.

BUDGET 2014: BANKING /NBFC

Expected Budget

• Recapitalization of PSB’s.

• Raise exemption limit under section 80C. .

• Surcharge tax for corporate may be exempted.

Actual Budget

• Recapitalization through merging of banks.

• Raised the exemption by 50 thousand.

• No change. Remains 3%.

Indian banks will get a position in the global market.Savings will be increased due to tax exemption. This would keep the production of CSR related goods constant.

BUDGET 2014: BANKING /NBFC

Expected Budget

• The decrease in the share holding of the PSU’s.

• Increase FDI in insurance.

Actual Budget

• The government share in the PSU’s will be more than 51%’ )

• Increased by 23% in the FDI in insurance.

Fund will be raised under BASEL –III Norms up to Rs 2.4 lakh crore equity shares.From 26 % to 49% increase would help in many ways to improve the economic condition of India.

BANKING REFORMS AT A GLANCE(budget 2014-15)

Financial Inclusion. Consolidation of banks. Promotion of long term financing. Promotion of area based banks(RRB’s). Promotion of PPP(Public Private Partnership). Decrease the time slot for NPA recovery through 6

more recovery tribunals.

BUDGET 2014-15 HIGHLIGHTS……

TAME HIGH INFLATION

Action taken• Rs-500 crore price stabilization

fund to subsidize retail food prices.

• FCI will be broken up for more efficient food grain management.

• Plans announced to stick together national agricultural market for easier movement of staples from surplus to deficit.

Intended impact• Break the cable of middle man

to ensure greater profits over the cost of production for farmers.

• Narrow down the difference between retail prices and prices that farmers get.

• Signal to RBI to cut loan rates after inflation starts falling on budget proposals.

JOBS AND SKILLS

Action taken• Launch a national multi skill

mission.

• Specific schemes announced to developing labour incentives such as tex-tiles infrastructure, housing and tourism.

• Training to support traditional professionals such as builder, carpenter, black smith, weavers , etc

Intended impact• Leverage India’s demographic

dividend and shift the focus to employability.

• Encourage small enterprises through tax breaks.

• Remove people from unproductive farm work in villages to skill based jobs in semi urban areas.

BUILDING INFRASTRUCTURE

Action taken• A target to build an additional

23 km a day of highways.

• Building 100 new cities, priority development of 100 most backward districts.

• Rules to be changed to make it easier to hasten infrastructure and industrial projects such as SEZ (Social economic zones).

Intended impact• Reduce time and cost that

have been the major bane of India’s infrastructure project.

• Construction in highways, railways, airports, power and other projects to create jobs.

• Easier land acquisition rules will enable companies to set up factories, new capacity lines to hire new people.

REVIVE INDUSTRY

Action taken• The Govt. has clarified its

position on retrospective tax provisions.

• FDI in insurance and defence sector raised to 49% from 26%.

• A venture capital fund for micro, small and medium enterprises will be established with corpus of rs- 10,000 crore to act as catalyst to attract private capital.

Intended impact• Clarifications on Retrospective

tax will sooth frayed nerves of anxious investors.

• Electronic good manufacturing hubs to boost hiring, investment and eventually, reduce dependence on import.

• MIZ (mega industrial zones) will aid jobs and boosts sectors such as steel and cement..

BOOSTING SPENDING

Action taken• Tax breaks on income and

savings to raise people’s disposable income.

• Tax cuts will bring down prices of a host of consumer products like footwear and LED TV, panels, prompting people to spend more.

• Excide duty cuts announced in the interim budget will continue till december.

Intended impact• Greater disposable income will

goad people to save and spend more.

• More spending will increase sales of goods such as car.

• Greater purchases means goods will move out of shop shelves faster prompting companies to produce more to meet the additional demand.

CLOSING THE DEFICIT

Action taken• Petroleum subsidy will to

brought down to rs- 63,426 crores from 84,480 crores last year.

• Total subsidy bill kept at 2,60,657 marginally up from rs 2,55,516 crores in 2013-14.

• Budget for MNREGA raised by rs 100 crore to 34,100 crore.

Intended impact• Manageable fiscal deficit will

lower the threat of our sovereign down grade.

• A lower fiscal deficit ths year will give the Govt elbow room to introduce tax breaks next year.

• Consistently lower deficit will enable early adoption of direct and indirect reforms.

EFFECTS OF BUDGET

MASCOT JINX

EFFECTS OF BUGET

MASCOT JINX

EFFECTS OF BUGET

MASCOT JINX

EFFECTS OF BUDGET

MASCOT JINX

BUDGET SIMPLIFIED…

Submitted by-

Ajeetesh Srivastava

Ambrish Kumar Mishra