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What is a budget?

A tool to manage your money


For a specific period of time

usually monthly Budget due to our limited resources Helps us meet our responsibilities and our financial goals

Why Budget?

Usually for 1 month

Where The Rupee Comes From


non-tax revenue 10% non-debt capital reciepts 1% service & other taxes 7% excise 17%

borrowings 19%

customs 12%

corporation tax 21%

income tax 13%

Where Does The Rupee Goes To


other non plan exp. 11% subsidies 7% non plan assistance to states 5% defence 12% planned state assistance 7% state's share of taxes & duties 18%

interest 20%

central plan 20%

Preparing a Budget
Budgeting is about:
Choosing how to use your money
Knowing what your income and expenses are every month

Four Steps to Preparing a Budget


1. Keep track of your daily spending
2. Determine what your monthly income and expenses are the month before they are due

3. Decrease spending
4. Increase income

Step 1: Keep Track of Daily Spending


Many people spend all their moneyDo you know where your money goes each month?
Have you ever had any money and then spent it? Do you remember exactly what you bought?

Control Your Money!


Know where your money goes Keep a personal spending diary

Step 2: Income
Income comes in the form of:
Allowances Wages from a job Miscellaneous work (like cutting grass) Interest and dividends from investments

Step 2: Expenses
Expenses: items you pay for each month
Housing and car payments Insurance Food and clothing Utility bills Personal, child or pet care Eating out or other entertainment Educational costs

Expenses
Expenses:
Everything you pay for in a time period

There are three types of expenses: Fixed Flexible Periodic

Expenses (continued)
Fixed Expenses do not change Car payment Rent Flexible/ Variable/ or Discretionary Expenses might change Electricity Food Clothing or entertainment Periodic Expenses occur regularly but not frequently Insurance Subscriptions Warranties/ Service Agreements License renewals

Step 3: Find Ways to Decrease Spending

Step 3: Find Ways to Decrease Spending


You can decrease spending by:
Carrying little cash and controlling your credit card use Not shopping for fun Remembering your savings goals Buying only what you need Paying your bills on time to avoid extra fees and charges

Step 4: Find Ways to Increase Income


Get a second job or a job that pays more to increase income Use certain tax credits that can help you increase your income (or pay fewer taxes so that you get more in your paycheck)

Who decides the budget?


Finance minister of India

UNION BUDGET 2012-13


This year budget was given

by Pranab Mukherjee, the Finance Minister of India on 16th March 2012. This was the 7th budget of his career . These budgetary proposals would be applicable from 1 April 2012 to 31 March 2013.

How does the Union Budget affect our life?

The Union Budget not only talks about what has happened in the past year, but also what is likely to happen in the coming year. While many of the things discussed in the Budget affect us indirectly, one space that directly impacts us is Taxation!

PERSONAL TAXATION
General (both men & women) Tax slab

Income Tax Slab (in Rs.) Up to Rs. 2 Lakhs Rs. 2 Lakhs to Rs. 5 Lakhs Rs. 5 Lakhs to Rs.10 Lakhs Above Rs. 10 Lakhs

Tax
No Tax

10%
20%

30%

Education
For 2012-13,Rs 25,555 crore provided for RTE-SSA representing an increase of 21.7 per cent over

Agriculture
Plan Outlay for Department of Agriculture and Cooperation increased by 18 per cent.

Health
Allocation of resources proposed to be increased from 18,115 crore in 2011-12 to 20,822 crore in 2012-13.

National Urban Health Mission is being launched.

Infrastructure
Allocation of the Road Transport and Highways Ministry enhanced by 14 per cent to 25,360 crore.

Savings and Investments


Infusion of Rs.15,888 crore in public sector banks, regional rural banks and NABARD in

2012-13.

Hope to raise Rs.30,000 crore from disinvestments

Transport
Allocation of the Road

Transport and Highways Ministry enhanced by 14 per cent to 25,360 crore. Direct import of Aviation Turbine Fuel permitted for Indian Carriers as actual users.

Textile
Government has announced a financial package of 3,884 crore for waiver of loans of handloom weavers and their cooperative societies.