Unionbudget Ppt Final 090913094649 Phpapp01

7/31/2019 Unionbudget Ppt Final 090913094649 Phpapp01

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UNION BUDGET 2009-

10


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INTRODUCTION..

Finance minister Mr. Pranab Mukherjee presented the

Union Budget 2009-10 in the Lok Sabha on July 6,2009. Unionbudget is a schematic plan of Indias financial andoperational goals. It is an action plan that facilitates allocationof resources in India .

The government recognizes the challenges that this task

entails, particularly at a time when the world is struggling withan unprecedented financial crisis and economic slowdownthat has also affected India.


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CHALLENGES:

The first challenges is to lead the economy back to the highGross Domestic Product(GDP) growth rate of 9% per annum atthe earliest.

The second challenge is to deepen and broaden the agendafor inclusive development.

The third challenge is to re-energize government and improvedelivery mechanisms.


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TOWARDS ECONOMIC REVIVAL:Short -term measures: Infrastructure development

Highways and railways

Urban infrastructure

Power

Gas

Assam gas cracker project

Agricultural development

Debt relief for farmers

Accelerated irrigation benefit programs

Restoring export growth


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Medium Term Measures:

Fertilizer subsidy

Petroleum and diesel pricing policy

Taxation

Peoples ownership of public sector units

Financial sector

Investment environment

Towards Inclusive Development: National Rural Employment Guarantee Scheme(NREGS)

National food security

Bharat nirman Pradhan Mantri Adarsh Gram Yojana

Empowerment of weaker sections

Females literacy

Integrated child development services


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Student loans to weaker sections Welfare of minorities

Welfare of workers in the unorganized sector Employment exchanges Handlooms Health Environment and climate change

Towards Building Accountable Institutions:

National security One Rank One Pension for ex-servicemen(OROP) Education Commonwealth games 2010


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BUDGET ESTIMATES:

BUDGET at a GLANCE : 2008-2009 Revised Estimates 2009-2010 Budget Estimates

1. Revenue Receipts562173 614497

2. Tax Revenue (net to Centre) 465970 474218

3. Non-tax Revenue 96203 140279

4. Capital Receipts (5+6+7)$

338780 406341

5. Recoveries of Loans 9698 4225

6. Other Receipts 2567 1120

7.Borrowings and other

Liabilities*

326515 400996

8. Total Receipts (1+4)$ 900953 1020838

9. Non-plan Expenditure 617996 695689

10. On Revenue Account of which, 561790 618834

11. Interest Payments 192694 225511

12. On Capital Account 56206 76855

13. Plan Expenditure 282957 325149

14. On Revenue Account 241656 278398

15. On Capital Account 41301 46751

16. Total Expenditure (9+13) 900953 1020838

17.Revenue Expenditure

(10+14)

803446 897232

18.Capital Expenditure

(12+15)97507 123606

19. Revenue Deficit (17-1)241273(4.4)

282735(4.8)

20.Fiscal Deficit

{16-(1+5+6)}

326515

(6.0)

400996

(6.8)

21. Primary Deficit (20-11)133821(2.5)

175485(3.0)


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BUDGET HIGHLIGHTS:Tax proposals

Direct Taxes :The Direct Taxes Code, along with aDiscussion Paper, to be released to the public for debate. TheDirect Taxes Code Bill will be finalized for introduction in Lok

Sabha sometime during the Winter Session based on the inputsreceived.

Indirect Taxes: Proposals on indirect taxes to seek to

achieve stable framework by maintaining the overall ratestructure for customs and central excise duties as well asservice tax.


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WHAT DOES THE BUDGET DOES?

AGRI-COMMODITIES:

Increased target for credit flow set at Rs. 3,25,000 crore for2009-10 as compared with Rs.2,87,000 crore in 2008-09.

Additional subvention of 1% to be paid as incentive to farmerswho repay short-term crop loans on schedule. Additionalallocation of Rs 411 crore made.

Abolition of commodities transaction tax.

Investmentlinked tax incentives to be provided for setting upand operating cold chain, warehousing facilities for storingagricultural produce.


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AUTO:

Weighted deduction of 150% for expenditure relating to in-house R&D extended.

Specific component to ad valorem duty to now attractuniform rate of Rs.15,000 per unit.

Reduction in excise duty on petrol driven trucks for transportwithin cities and across short distances to 8% from 20%.

Increase in allocation to defense sector.


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BANKING: IIFCL to refinance 60% of banks loans to PPP.

Target for agricultural credit in FY 10 hiked by 13.2% & additionalsubvention of 1% for farmers who repay on schedule.

Extension of debt waiver to farmers to repay 75% of their loansextended by six months.

Banks and insurance companies to receive support and

capital infusion.

Higher APDRP allocation by 160% to enable higher fundingto power projects.


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CEMENT AND CONSTRUCTION:

Customs duty exemption on concrete batching plants ofcapacity 50 cubic meters per hour or more has beenwithdrawn. Such plants will now attract customs duty of 7.5%.

Allocation under Jawaharlal Nehru National Urban Renewal

Mission (JNNURM) increased by 87% YoY to Rs 1.3 lakh crore in2009-10.

Allocation for housing and provision of basic amenities tourban poor enhanced to Rs 3970 crore.

Allocation to National Highways Authority of India(NHAI) for theNational Highway Development Programme (NHDP) increasedby 23%.


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EDUCATION :

Increase in provision for scheme Mission in Education throughICT to Rs 900 crore.

Rs 827 crore allocated to open one Central University in eachuncovered state.

Rs 2,113 crore allocated for IITs and NITs.

Higher education overall Plan budget hiked by Rs 2,000 croreover interim BE 2009-10.

Benefits to access higher education to enable economicallyweaker students.

National Mission for Female Literacy to be launched with focuson minorities ,SC, ST, and other marginalized groups.

Allocation of Rs 13,100 crore to Sarva Shiksha Abhiyan (SSA).


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FMCG & FOODS

Allocation under NREGs hiked by 144%.

Goods and Services Tax (gst) to come in effect from 1stApril ,2010.

4% duty maintained on paper, paperboards, biscuits, cakesand pastries.

Increase in tax exemption on personal income.

Fringe benefit tax (FBT) abolished.

Minimum alternate tax (MAT) on book profits hiked to 15%

from 10%


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PHARMACEUTICALS:

Customs duty on nine specified life savings drugs to5%.These drugs exempt from excise and CVD.

Provision for the National Rural Health Mission increased byRs 2,050 crore over and above Rs 12,070 crore provided in

the Interim Budget.

SOFTWARE: Tax deductions under STPI scheme extended by one

more year.

Rate of minimum alternate tax (MAT) on book profitsincreased from 10% to 15% carry-forward provision for tax-credit extended to 10 years.


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HOTELS:

The outlay for Commonwealth Games to be stepped upfrom Rs2100 crore in the Interim Budget to Rs 3500 crore

Greater focus on infrastructure development . Also , theBudget has indicated getting the GDP growth rate back on

track.

TELECOM:

Allotted Rs 39,100 crore for the National Rural EmploymentGuarantee Scheme (NREGS),an increase of 144%.

Full exemption of the countervailing duty (CVD) OF 4% onaccessories, parts and components imported for themanufacture of mobile phones has been reintroduced foranother year.


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HOW THE BUDGET WILL IMPACTYOUR BUDGET? Prices of daily use items such as soaps, hair oils, toothpaste

may increase marginally on impending commodity priceincrease.

The increase in customs duty on gold and silver, never mindthe exemption of branded jewellery from excise levy.

Prices of MP3 and MP4 players are likely to fall, furnitureproducts would become expensive.

Price of cooking oil will rise because o non-imposition ofcustoms duty o imports.


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VIEWS:

A M NAIK

CMD, Larsen & ToubroThe plethora of infrastructure investments and

other investments and other outlays will helpstimulate growth for infrastructure companies andthe economy in general. But there is nothing for thepower sector. At L&T, we expect our order intakeand sales to continue to maintain growth as perour guidance levels.

KRIS GOPALKRISHNANCEO& MD, Infosys

I m positive on the budget at the highestlevel through the impact on the IT sector is minimal.It could have been better, its still positive. Theproposals on FBT , corporate and personal tax andreforms in the tax system and transfer pricing will

help.


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S NAKANISHI CEO&MD, Maruti Suzuki Ltd

It is a progressive Budget. The focus on ruraland infrastructure development will usher in

opportunity for growth industries , including automobiles.

TUSHAR PODDAR- VP& Chief India Economist,Goldman Sachs

The fiscal proposals are commendableand a short-term increase in deficit is warranted.Financing the deficit will not be difficult. Therewere hopes of structural reforms, which were notmet. The short-term policy objective of stimulating

demand will likely be achieved.

MANOJ KOHLI - CEO , Bharti Airtel Ltd

The budget signals significant demand

stimulus emanating from rural and infrastructuresectors.


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CONCLUSION:

Union Budget 2009-10 can be termed as Rasna delivered in aMirinda bottle. Functionally there are no problems with the Budget2009-10, but it certainly didnt meet the expectations that India Inc had

with it. It simply lacked the expected Fizz!

However, it would appreciate that a single budget speech cannotsolve all our problems nor is the union budget the only instrument todo so, yet it is an important means to share the vision of thegovernment.


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SOURCES:

BIBLIOGRAPHY:

Websites-

www.indiabudget.nic.com

www.economywatch.com www.personalmoney.in

www.indiainfoline.com

www.thehindubusinessline.com

Magazine and newspapers-

Competition success review.

Economic times.


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THANK YOU!!!

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Unionbudget Ppt Final 090913094649 Phpapp01