Union Budget: Presented By:-Deepak Khandelwal Irfan Shafi Sagar Kumar

UNION BUDGET
PRESENTED BY:-
 DEEPAK KHANDELWAL
 IRFAN SHAFI
 SAGAR KUMAR
WHAT IS UNION BUDGET?
 The budget is the annual announcement of the
government’s 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
The economic survey of India is published by central statical
organization.
 Each year survey is conducted to show the status of economic

scenario of the country.
The Economic Survey of India showcases the annual- economic

development of the country.
It is scheduled to be presented on 2nd July, when the Budget

Session of Parliament begins.
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:-
State of the Economy
Challenges and policy response.
Fiscal Developments and Public Finance.
Price and Monetary management.
Industrial Production.
Agriculture & Food management.
Energy, Infrastructure and Communication.
Poverty and Human development.
Financial Intermediate and Markets.
STATE OF ECONOMY
GDP to grow to 7.5 per cent in 2009-10.
The overall growth of GDP at factor cost 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.
Despite the slowdown in growth, investment remained
relatively buoyant, growing at a rate higher than that of
GDP
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.
The index of industrial production for the year 2008-09
points towards a sharp slowdown with growth being placed
at 2.4 per cent.
Challenges and policy response.
During the last two years the Indian economy faced

three major challenges-
Increase the capital inflow which reached to
maximum in the last quarter of 2007-08.
An inflationary explosion in global commodity
prices.
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
The growth of industrial sector

started to slowdown in the first half
of 2007-08.
Overall growth during the year
remained as high as 8.5%.
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
The performance of the agricultural

sector influence the growth of Indian
economy.
Agricultural sector contributed
12.2% of national exports in 2007-08.
Agricultural accounted for 17.8% of
the GDP in 2007-08 as compared to
21.7% in 2003-04.
BUDGET AT A GLANCE
Total estimated expenditure is Rs.10,20,838crore, 36%
more than previous.
Total estimated income is Rs. 6,14,497crore.
Sustain rate of growth 9%p.a over an extended time.
Non tax revenue receipts estimated at Rs.1,40,279crore

in 2009-10 compare to Rs.95,785crore in 2008-09.
INFRASTRUCTURE AND INDUSTRY
 Inadequate infrastructure is responsible

for pushing back India’s GDP by about
2%.
 IIFCL will refinance 60% of bank loan in
critical sectors.
 Allocation of national highway authority
of India for the national highway
development programme increased by
23%.
 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 yojana
allocation up by 30%.
EDUCATION
Overall plan expenditure for education
sector in budget 2009-10 is 3.25 lakh
crore.
 This is 34% up from the previous year.
2,113 crore to set upto more IITs and
IIMs.
Interest subsidy on loans for higher
education.
Rs. 827 crore allocated for opening one
central university in each uncovered
state.
Spending on higher education raised
to Rs.2010 crore.
OIL AND GAS
Bio-diesel custom duty lowered.
To develop and set up national gas grid.
Domestic oil prices should be in sync with global
crude.
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
In National Rural Health

Mission(NRHM) to increase of Rs.2,057
crore.
Pradhan Mantri Adarsh Gram Yojna
has been initiated for integrated
development of 1000 villages
allocation Rs.100 crore.
Allocation under Rajiv Gandhi Gram
Vidyutikaran yojna is up by 27% to
Rs.7000 crore.
Expenditure on Indira Awas Yojna by
63% to Rs.8800 crore.
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.
Varanasi and Sibsagar will be taken up for handlooms.
Bhiwani and Erode for powerlooms.
And Narsapur and Moradabad for handicrafts.
Each mega-cluster will require about Rs.70 crore.

TAX
Surcharge of 10% on personal income tax
removed.
Custom duty reduced from 10% to5% on 10
specific life saving drugs.
Excise duty on branded articles of jewellery to
be reduced from 2% to nil.
Excise duty on special boiling point spirit to be
reduced to 14%.
HEALTH
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.
Allocation under National Rural Health Mission

increase by Rs.2057 crore.
SPORTS AND POWER
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.
Allocation under Accelerated

power development and reform
programme increase by 16% to
Rs.2080 crore.
RAILWAY BUDGET
HIGHLIGHTS OF RAILWAY BUDGET
Railways has generated the revenue of 90,000

crore in last 5 years.
The India Railway has expenditure 81685 crore.
Development of Rail facility in Jammu and

Kashmir.
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,
Rajkot, Bandel and Jhansi.
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
the country.
Mega logistics hubs in Eastern and Western corridors

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 unless the global economic crisis
is over.
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.

Union Budget: Presented By:-Deepak Khandelwal Irfan Shafi Sagar Kumar

Uploaded by

Copyright:

Available Formats

Union Budget: Presented By:-Deepak Khandelwal Irfan Shafi Sagar Kumar

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Union Budget: Presented By:-Deepak Khandelwal Irfan Shafi Sagar Kumar

Uploaded by

Copyright:

Available Formats

UNION BUDGET

It is an instrument for fulfilling the obligations of the states

 It is a political statement of the priorities set by the

It shows the financial transaction of the year.

 Each year survey is conducted to show the status of economic

The Economic Survey of India showcases the annual- economic

It is scheduled to be presented on 2nd July, when the Budget

During the last two years the Indian economy faced

Fiscal consolidation began in the early 1990. with

The growth of industrial sector

The performance of the agricultural

Total estimated income is Rs. 6,14,497crore.

Sustain rate of growth 9%p.a over an extended time.

Non tax revenue receipts estimated at Rs.1,40,279crore

 Inadequate infrastructure is responsible

In National Rural Health

In order to scale up both infrastructure and

Each mega-cluster will require about Rs.70 crore.

All BPL families to be covered under Rashtriya

Allocation under National Rural Health Mission

In Commonwealth games 2010

Allocation under Accelerated

Railways has generated the revenue of 90,000

The India Railway has expenditure 81685 crore.

Development of Rail facility in Jammu and

For all mail/express and ordinary passenger trains,

Also there is to be a fare Reduction of 2 per cent for

50 stations to be upgrade to world class standards.

49 stations to be developed at pilgrim centers.

Multi-functional complexes with shopping malls, food

Mega logistics hubs in Eastern and Western corridors

To set up 1000 MW power plant.

 309 out of 375 stations will be developed with

Cold storage facilities for farmers to store products

There have been muted references to disinvestment and

Important areas like banking and insurance have

But this budget has emerged as part of the present

You might also like