FINANCIAL BUDGET 2011

8/7/2019 FINANCIAL BUDGET 2011

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SUBMITTED BY:-

QAMAR RAES

&

ANUJ LAMBA

FINANCIAL BUDGET2011


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WHAT DOES THE BUDGET SHOW?

y THE BUDGET ESSENTIALLY HAS TWO PARTS.

y THE RECEIPTS BUDGET INCLUDES REVENUE BY WAY OF

TAXES AS WELL AS REIPTS BY NON-TAX MEANS SUCH AS

SALE OF SPECTRUM OR IN THE FORM OF DIVIDENDS

FROM PSUs.

y THE EXPENDITURE BUDGET PROVIDES DETAILS OF

SPENDING BY VARIOUS MINISTRIES AS WELL AS

DETAILS OF SUBSIDIES AND INTEREST PAYMENTS.


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BUDGET OVER THE YEARS

y THE BUDGET SYSTEM WAS INTRODUCED ININDIA ON APRIL 7,1860.

y JAMES WILSON,THE FIRST INDIAN FINANCE

MEMBER,DELIVERED THE BUDGET SPEECH.y THE FIRST BUDGET WAS PRESENTED ON NOV

26,1947 BY R.K.SHANMUGHAM CHETTY.

y YASHWANT SINHA MOVED THE BUDGET TO11AM IN 1999,INSTEAD OF 5 PM EARLIER.


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y 23 PEOPLE HAVE PRESENTED BUDGETSINDEPENDENT INDIA.MORARJI DESAI HOLDSTHE RECORD FOR THE MOST WITH 8 FULL

BUDGETS AND 2 INTERIM BUDGETS.y ALL 3 PMS FROM THE FIRST FAMILY OF

INDIAN POLITICS- JAWAHARLALNEHRU,INDIRA GANDHI AND RAJIV GANDHI

HAVE PRESENTED 1 BUDGET EACH.


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WHOS WHO IN FINANCE MINISTRY

y DEPARTMENT OF ECONOMIC AFFAIRS :-

USUALLY THE BUDGET DIVISION,WHICHCOORDINATES BUDGET-MAKING,IS HOUSED IN

THE DEPARTMENT. THE BUDGET DIVISIONCOORDINATES WITH THE FINANCE SECRETARY.

y DEPARTMENT OF EXPENDITURE :-

RESPONSIBLE FOR ALL SPENDING-RELATED

PROPOSALS.y ECONOMIC DIVISION :-

PREPARES THE ECONOMIC SURVEY


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y DEPARTMENT OF REVENUE :-

CO-ORDINATES ON TAX-RELATED ISSUES

y CENTRAL BOARD OF DIRECT TAXES :-

TAX POLICY LEGISLATION (TPL) DIVISIONHANDLES BUDGET-RELATED ISSUES.

y CENTRAL BOARD OF EXCISE AND CUSTOMS :-

TAX RESEARCH UNIT (TRU) DEALS WITHBUDGET MATTERS.


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Highlights ofthe Budget 2011/12

y GROWTH, INFLATION EXPECTATIONS :-

y Economy expected to grow at 9 percent in 2012, plus orminus 0.25 percent

y Inflation seen lower in the financial year 2011-12

SPENDING

y Plan expenditure seen at 4.41 trillion rupees in 2011-12,up 18.3 percent

REVENUE

y Gross tax receipts seen at 9.32 trillion rupees in 2011-12

y Non-tax revenue seen at 1.25 trillion rupees in 2011-12


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POLICY REFORMS :-y To create infrastructure debt funds

y To boost infrastructure development with tax-free

bonds of 300 billion rupeesy Food security bill to be introduced this year

y To permit Securities and Exchange Board of India(SEBI) registered mutual funds to access subscriptionsfrom foreign investments

y Raised foreign institutional investor limit in 5-yearcorporate bonds for investment in infrastructure by$20 billion

y Public debt bill to be introduced in parliament soon


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ySECTOR SPENDING :-y To allocate more than 1.64 trillion rupees to

defense sector in 2011-12

y Corpus of rural infrastructure development fundraised to 180 billion rupees in 2011-12

y To provide 201.5 billion rupees capital infusion instate-run banks in 2011-12

y To allocate 520.5 billion rupees for the educationsector

y To raise health sector allocation to 267.6 billionrupees


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y AGRICULTURE :-y Removal of supply bottlenecks in the food sector will be in

focus in 2011-12y To raise target of credit flow to agriculture sector to 4.75

trillion rupeesy Gives 3 percent interest subsidy to farmers in 2011-12y Cold storage chains to be given infrastructure statusy Capitalization of National Bank for Agriculture and Rural

Development (NABARD) of 30 billion rupees in a phasedmanner

y To provide 3 billion rupees for 60,000 hectares under palm oilplantation

y Actively considering new fertilizer policy for urea


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y FINANCE MINISTER ON THE STATE OF THEECONOMY :-

y "Fiscal consolidation has been impressive. This year

has also seen significant progress in those criticalinstitutional reforms that will pave the way fordouble digit growth in the near future."

y Food inflation remains a concern

y Current account deficit situation poses some concern

y Must ensure that private investment is sustained

y The economy has shown remarkable resilience."


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India Union Budget 2010-2011 GeneralProposalsand Announcements

y Fiscal deficit for the FY 2011 is estimated at 5.5%y 18.9% growth rate registered by manufacturing industry in

2009y Indian Economy is expected to register a 10% GDP growth in

the coming yearsy A 7.2% economic growth is estimated to be registered in thecurrent fiscal

y The future years are expected to witness gradual segmentationof incentives

y Direct Tax Code and General Sales Tax to be launched in April2011

y A supreme level Fiscal Stability and Development Council tobe established by the central government


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y Issue of additional banking licenses by the Reserve Bank ofIndia to private players and non-banking financialorganizations

y 6 months extension of the refund term for farmer loans up toJune 30th 2011

y Undertaking of the introductory development activities forDelhi-Mumbai industrial corridor

y Rs 25000 crores increase by the government viaDisinvestment route

y Setting up of Technology advisory group under the

governance of Nandan Nilekaniy Allocation of Rs 1900 crore for UID authorityy Allocation of Rs 147,000 crore for Defense


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India Union Budget 2010-2011 Direct TaxProposals

y Implementation of Direct tax code from April 1, 2011y Introduction of a simplified 2 page Saral 2 form by

Indian Income Tax department for FY 2010-11y Loss of Rs 26,000 cr from the initiation of Direct Tax

plans and profits of Rs 45,000 from the implementationof Indirect Tax proposalsy Corporate Tax to continue at the same rate

y 3% increase in Minimum Alternate Tax from theprevious 15% to 18% on book gains

y Reduction of 10% additional tax on domestic firms to7.5%

y Demand for account assessment of professionals withmore than Rs 15 lakh of earnings


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India Union Budget 2010-2011 IndirectTax Proposals

y Service Tax rates to remain constant at 10% in an attempt to includemore services under the tax code

y Increase in the tariff on smoking and non-smoking tobaccocommodities

y 2% increase in Central Excise tariff from the previous 8% to the

proposed 10%y Total excise tax exemption on electric carsy Central Customs tariff to remain constant at 10%y Excise tariff of Rs 1 per litre on diesel and petroly Service Tax exemption on News agenciesy

Limited reduction in the excise tariff on cementy Service Tax exemption on farming seedsy Hike in the customs tariff on gold and platinum exports from the

previous Rs 200 to the proposed Rs 300y Hike in Import tax on silver metal to Rs 1500 on every kg


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India Union Budget 2010-2011 IndividualTax Proposals

y Individuals earning up to Rs 1.60 lakh will not belevied under Income Tax laws.

y Individuals earning from Rs 5 lakh to Rs 8 lakhs will

be charged at 10%y Individuals earning above Rs 8 lakh will be taxed at

30%

y Tax exemption limit remains constant for Womenand Senior Citizens at Rs. 1, 90,000 and Rs. 2,40,000 respectively.

y Additional deduction of Rs 20,000 will be accessiblefor making investment in Infrastructure Bonds.


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Documents

FINANCIAL BUDGET 2011