International School of Media and

Entertainment Studies (ISOMES)

Affiliated with
Chaudhary Charan Singh University

ASSIGNMENT FILE
SUBJECT: Economics

Submitted by:
Krishna Govil
BJMC 3RD Semester
Section-B
1. 1948 - 1949: India's first budget was presented for only seven and a half
months from 15 August 1947 to 31 March 1948. The main thing of the first
budget was the decision to motivate the budget. Partition and its resulting
instability have been the key elements in determining budget provisions. In
this, most of the expenditure was spent on food production, defense
services and civil expenditure. Food production was very low, so the priority
was given to self-sufficiency in food grains. It had set a target of receiving
revenue of about Rs 171 crore, out of which Rs 15.9 crore was expected to
be received from the post and telegraph department. At the same time, the
estimated expenditure in the budget was about 197 crores, out of which
92.74 crores was given to the Defense Department. Budget expenditure
increased due to the removal of instability and the expenditure on relief and
rehabilitation work of refugees.
1950: The post-Partition situation remained the major deciding element
of this budget. The impact of floods in Bihar, cyclone in Bombay and drought
on the west coast was reflected in the budget. In certain sections of the
society, the potency of shopping had increased. In such a situation, it was
the specialty of this budget to control the period of rising inflation. The main
things that were taken care of in this budget were: Re-enactment of food
control, increase the supply of food grains at a reasonable price and
committee of food items from abroad.
1951: Priority was given to agriculture sector in this period. Defense and
civil expenditure remained at the peak. Provisions were made for natural
disasters occurring in different parts of the country, such as earthquakes
in Assam, Bihar floods, and drought in UP and Bihar. In the budget, the
rate of maximum income tax was reduced from 30 percent to 25
percent. Super tax was imposed at the rate of 8.5 annas per rupee for
income above Rs 121,000. The maximum tax on personal tax was 78 per
cent.
1952: During this period a huge increase in demand for indigenous
goods such as jute goods, raw cotton and raw wool etc. was recorded.
Import regulations were gradually relaxed to allow essential
commodities into the country.
1953: Along with the development of agricultural sector, food
production also increased. After this, a steady decline in prices was
observed. Significant increase in revenue was recorded due to
extraordinary jump in receipts from customs, excise and income tax.
However, the fall in exports did not yield favorable results for the
payment of arrears. At the same time, a significant amount of food
grains, non-perishable raw materials and capital / consumers were
imported.
 1958-1960: Industrial production continued to grow but at a slower
pace than in 1957. However, in 1958–59, agricultural production saw a
boom. Being favorable to the climatic conditions, it came to you as the
maximum increase.
1975: During this period, the specialty of the budget was to provide
ample employment opportunities. There was a lot of attention given to
the cultivated areas. Special attention was paid to small enterprises and
entrepreneurs.
1980: Agriculture sector remained a priority during this period.
BudgetOften included the provision to supply seeds in good quality
varieties that produce good yields. Work production programs were
carried forward. These programs were designed for maximum
consumption of earth and ground water. Farmers' service committees
were formed so that they could provide shelter for marketing to farmers
on the processing of their produce.

2. If India used to import 90% of things from other countries only after
independence, then the goods were very expensive and if it was not even
employment, then the goods which were imported then started exporting in
India itself. The import export policy that was introduced was revised and
import duties were reduced on Indian industry to bring prestige from abroad.
The government started harmonizing the structures by reducing the customs
duty from 220% to 150% tax. This was done because the payment of dues was
uncertain. The government introduced service tax for the first time in the
budget of 1994 and all three placed their bets on development through
technological development.
The 1997 budget gave tax relief to individuals and companies. This allowed
companies to adjust the amity paid in earlier years to tax liability in later
years. The government launched the Voluntary Shakti Karan Income Scheme
VDIS to bring black money. It phased out the informal treasury bills used to
reduce the budget deficit. The 1997 budget aimed to broaden the tax base.
The income tax rate in the country in the late 1960s and early 1970s was
97.5%. Also started paying his income stash. The collection of personal
income increased from Rs. 18700 crores as compared to 1997 98 during April
2010 to January 2011 to Rs. 100 crores. VDIS raised around Rs 10,000 crore.
Higher tax pay by taxpayers helped generate market demand. This Rajesh was
used to increase public spending on social welfare and infrastructure.
Liberalization was aimed at liberalizing Indian trade and industry from all
unnecessary controls and restrictions. Those license permits signal the end of
the quota raj. Indian industry has taken place with respect to liberalization.

3. The strategy of reforms introduced in India in July 1991 presented a mixture

of macroeconomic stabilization and structural adjustment. It was guided by
short-term and long-term objectives. Stabilization was necessary in the short
run to restore balance of payments equilibrium and to control inflation. At
the same time changing the structure of institutions themselves through
reforms was equally important from long term point of view.

The new government moved urgently to implement a programme of

macroeconomic stabilization through fiscal correction. Besides this, structural
reforms were initiated in the field of trade, industry and the public sector.
Objective of Reforms
As per the Discussion Paper on Economic Reforms brought out by the Ministry
of Finance in July 1993, the objectives of the reforms were:
“…to bring about rapid and sustained improvement in the quality of the people
of India. Central to this goal is the rapid growth in incomes and productive
employment… The only durable solution to the curse of poverty is sustained
growth of incomes and employment… Such growth requires investment: in
farms, in roads, in irrigation, in industry, in power and, above all, in people.
And this investment must be productive. Successful and sustained
development depends on continuing increases in the productivity of our
capital, our land and our labour.

4. India got independence in 1947, India was emerging fast in every field, that
was the period of 1992, when liberalization started in India, new experiments
were being tried in many fields! One such area was the telecom sector, after
liberalization in India, there was unprecedented improvement in the telecom
sector, many private companies were allowed to invest in the telecom sector
in India, after which there was a historical improvement in the telecom sector
in India.
Before the 90s, the Department of Telecommunications used to be
completely under the Government of India, after which liberalization took
place in India and there were many changes like - reduction in call rates,
because there was competition in private companies and secondly people got
better facilities. And mobile phones reached the common people! Bhartiya
Airtel rapidly emerged as the largest private sector telecom company, after
which many private sector companies continued to invest in the telecom
sector - like Idea, Vodafone, Aircel, Jio! Today India is the second largest
mobile phone consumer country in the world!

5. First of all, know what this disinvestment would be…

Disinvestment is actually the reverse process of investing in a company.

When a government or a company invests money in a business or industry,
it is called investment. But when a government or company withdraws
money from a business by selling its shares, it is called disinvestment.
Through the disinvestment process, the government sells its shares to
someone else and gets out of the company concerned, and the money
acquired in this way is used in other schemes. Now every year the
government sets big targets for disinvestment. Just like this year, the
government has set a target of raising more than Rs 2 lakh crore from
disinvestment. Disinvestment can be done either in the hands of a private
company or their shares can be issued in public. To understand this, we will
take BPCL as an example ..

BPCL is worth 55 thousand crores

BPCL's net worth is currently 55 thousand crores. The government aims to

raise Rs 65,000 crore by selling its entire 53.3 per cent. For this, approval will
not have to be obtained from Parliament. Last year, the government
pressurized ONGC to acquire HPCL. After this, the government had asked LIC
to take over the bank in the last financial year after it did not find an
investor for the stranded IDBI Bank. The government has also resorted to
exchange traded funds (ETFs) to raise resources under the disinvestment
process.
Bharat Petroleum Corp Ltd. (BPCL) top management said that the
disinvestment process fully on track and some formalities are taking some
time.BPCL chairman K Padmakar told shareholders that "This (privatisation)
is expected to unlock tremendous value through the sharpening of
professionalism, improvement in efficiencies, increased investments, access
to advanced technologies and newer global markets and product
diversification, thus propelling future growth."

END

Thank You! Submitted by:

Krishna Govil
BJMC 3RD Semester
Section-B