UNION

BUDGET

 PRESENTED BY:-

 DEEPAK
KHANDELWAL
- The budget is the annual announcement
WHAT
of theIS government’s
UNION BUDGET? fiscal policy
changes. It announce the tax changes
proposed for the following tax year and
also how the government plan to spend
the revenue.
-
- It is an instrument for fulfilling the
obligations of the states
-
- It is a political statement of the
priorities set by the government.
-
- It shows the financial transaction of the
year.
-
Economic
Survey
Ø
Ø The economic survey of India is published by
central statical organization.
Ø
Ø Each year survey is conducted to show the
status of economic scenario of the country.
Ø
Ø The Economic Survey of India showcases the
annual- economic development of the country.
Ø
Ø It is scheduled to be presented on 2nd July,
when the Budget Session of Parliament begins.
Ø
Ø Union Budget sets goals and targets for the
next one year, the Economic Survey focuses on
the growth achieved the previous year and the
factors that contributed to it.
It talks about the state of the economy
while concentrating on selected
economic indicators such as:-
Ø State of the Economy
Ø Challenges and policy response.
Ø Fiscal Developments and Public
Finance.
Ø Price and Monetary management.
Ø Industrial Production.
Ø Agriculture & Food management.
Ø Energy, Infrastructure and
Communication.
Ø Poverty and Human development.
Ø Financial Intermediate and Markets.
Ø
Ø GDP to growSTATE OF
to 7.5 per cent in 2009-10.
Ø The overall growth of GDP at factor cost
ECONOMY
at constant prices in 2008-09, as per
revised estimates released by the
Central Statistical Organisation (CSO)
(May 29, 2009) was 6.7 per cent.
Ø Despite the slowdown in growth,
investment remained relatively buoyant,
growing at a rate higher than that of
GDP
Ø The overall rate of growth of capital
information at constant price was 15.6 in
07-08 is compare to 13.9 in 06-07.
Ø The index of industrial production for the
year 2008-09 points towards a sharp
slowdown with growth being placed at
2.4 per cent.
Ø
 CHALLENGES AND POLICY
RESPONSE .
During the last two years the Indian
economy faced three major challenges-
Ø Increase the capital inflow which
reached to maximum in the last
quarter of 2007-08.
Ø An inflationary explosion in global
commodity prices.
Ø Global financial meltdown and
collapse of international trade.
 FISCAL DEVELOPMENT AND
PUBLIC FINANCE

Fiscal consolidation began in the



early 1990. with fiscal deficit declining

from 6.6% for GDP in 1990-91 to 4.1%
of GDP in 1996-97 and it reached to
6.2% of GDP in 2001-02.
 INDUSTRY

Ø The growth of industrial

sector started to
slowdown in the first half
of 2007-08.
Ø Overall growth during the
year remained as high as
8.5%.
Ø The year 2008-09 thus
closed with the industrial
growth at only 2.4% as
per the index of
industrial production(IIP).
AGRICULTURE AND FOOD
MANAGEMENT

Ø The performance of the

agricultural sector
influence the growth of
Indian economy.
Ø Agricultural sector
contributed 12.2% of
national exports in 2007-
08.
Ø Agricultural accounted for
17.8% of the GDP in 2007-
08 as compared to 21.7%
 BUDGET AT A GLANCE
Ø Total estimated expenditure is
Rs.10,20,838crore, 36% more than previous.
Ø
Ø Total estimated income is Rs. 6,14,497crore.
Ø
Ø Sustain rate of growth 9%p.a over an
extended time.
Ø
Ø Non tax revenue receipts estimated at
Rs.1,40,279crore in 2009-10 compare to
Rs.95,785crore in 2008-09.

INFRASTRUCTURE AND
INDUSTRY
Ø Inadequate infrastructure is
responsible for pushing
back India’s GDP by
about 2%.
Ø IIFCL will refinance 60% of
bank loan in critical
sectors.
Ø Allocation of national
highway authority of India
for the national highway
development programme
increased by 23%.
Ø National Ganga Project
allocation to go up to Rs
562 Crore.
AGRICULTURE
 Target for agriculture credit are
Rs.3,25,000 crore for year
2009-10.
 For farmers loans upto 3 lakh at
7% p.a.
 Agriculture sector has grown by
2.4%.
 Record rice production at 98.04
million tonnes.
 14 national agricultural projects
approved.
 Central assistance for storm
water drainage project
increase to Rs.500 crore from
200 crore.
 Rajeev Gandhi Krishi vikas
EDUCATION
Ø Overall plan expenditure
for education sector in
budget 2009-10 is 3.25
lakh crore.
Ø This is 34% up from the
previous year.
Ø 2,113 crore to set upto
more IITs and IIMs.
Ø Interest subsidy on loans
for higher education.
Ø Rs. 827 crore allocated for
opening one central
university in each
uncovered state.
Ø Spending on higher
education raised to
 OIL AND GAS
Ø Bio-diesel custom duty lowered.
Ø To develop and set up national gas
grid.
Ø Domestic oil prices should be in
sync with global crude.
Ø Tax incentives will be provided on
capital expenditure on the laying
and operating of cross country
natural gas, crude or in pipe line
networks for excise duty on naphtha
reduced to 14%.
RURAL DEVELOPMENT

Ø In National Rural Health

Mission(NRHM) to
increase of Rs.2,057
crore.
Ø Pradhan Mantri Adarsh
Gram Yojna has been
initiated for integrated
development of 1000
villages allocation Rs.100
crore.
Ø Allocation under Rajiv
Gandhi Gram
Vidyutikaran yojna is up
 DEVELOPMENT OF MEGA-
CLUSTERS
In order to scale up both infrastructure
and
production, it is proposed to take up six

centres
for development as mega-clusters.

Ø Varanasi and Sibsagar will be taken up

for handlooms.
Ø Bhiwani and Erode for powerlooms.
Ø And Narsapur and Moradabad for
handicrafts.

 TAX
Ø Surcharge of 10% on personal
income tax removed.
Ø Custom duty reduced from 10%
to5% on 10 specific life saving
drugs.
Ø Excise duty on branded articles of
jewellery to be reduced from 2% to
nil.
Ø Excise duty on special boiling point
spirit to be reduced to 14%.


Ø
 HEALTH

Ø All BPL families to be covered under

Rashtriya Swasthya Bima
Yojana(RSBY). Allocation under RSBY
increased by 40% over previous
allocation to Rs.350 crore in 2009-
10.


Ø Allocation under National Rural

Health Mission increase by Rs.2057
crore.


Ø
SPORTS AND POWER

Ø In Commonwealth
games 2010 outlay to
be stepped up from
Rs.2112 crore in Interim
Budget to Rs.3472 crore
in regular budget 2009-
10.
Ø
Ø Allocation under
Accelerated power
development and
reform programme
 RAILWAY
BUDGET
HIGHLIGHTS OF RAILWAY BUDGET

Ø Railways has generated the revenue

of 90,000 crore in last 5 years.


Ø The India Railway has expenditure

81685 crore.


Ø Development of Rail facility in

Jammu and Kashmir.
Ø
REDUCED TARRIFS:


 For ordinary passenger trains there is

reduction in passenger fares by Rupee
1 for fares costing up to Rs 50 per
passenger for journey above 10 km.


 For all mail/express and ordinary

passenger trains, second class and
sleeper class fares are to be reduced
by 2 per cent for tickets costing Rs 50
and more per passenger.


 Also there is to be a fare Reduction of

2 per cent for AC First Class, AC II tier,
AC III tier and AC Chair Car.
NEW PASSENGER SERVICES:


 43 new train services to be started in

2009-10.
 Extension of 14 trains envisaged.
 Frequency of 14 trains is to be
increased.


INFRASTRUCTURE:


 New lines to be introduced

 Gauge conversion at Chhindwara,
Ahmedpur and Naghbir
 Doubling at Tala, Secunderabad,
Sahibganj, Ara, Ghumani, Hissar,
Dankuni, Bibinagar, Krishnanagar,
DEVELOPMENT:


 Seven nursing college to be set up on

railway land in places including
Delhi, Kolkata & Mumbai.

 50 stations to be upgrade to world class
standards.

 49 stations to be developed at pilgrim
centers.

 Multi-functional complexes with
shopping malls, food stalls, medicines
and variety stores in different parts of
 Colleges on Rail land on Public-Private
Partnership.

 To set up 1000 MW power plant.

 309 out of 375 stations will be
developed with modern facilities .

 Cold storage facilities for farmers to
store products




 CONCLUSION

There
 have been muted references to
disinvestment and banking reforms. The FDI
scenario has been left largely unchanged while
reforms in the education and insurance sector
have not been mentioned extensively.


On the positive side this budget has been very



good to the rural sector and this is the single

biggest impact of this budget. The National Rural
Employment Guarantee Scheme has been
allotted more funds to make it a bigger success.
There have been extra funds allotted
towards rural housing as well.
The farm loan waiver has been extended

till the end of the year which is going to

be helpful for farmers unable to pay
back their loans even this year due to
the weak monsoon.
Global economics have played a large
part in this budget. It has been the
single biggest determinant of revenue
economics for this fiscal.
The FM has pretty much decided that
reforms cannot be pushed until and
The rural reforms are excellent but at


the cost of urban reforms is

disappointing.


Important areas like banking and



insurance have been ignored.



But this budget has emerged as part of

the present
government’s long term roadmap for

the economy.