FINANCIAL BUDGET

2011

SUBMITTED BY:-
QAMAR RAES
&
ANUJ LAMBA
 WHAT DOES THE BUDGET SHOW ?

THE BUDGET ESSENTIALLY HAS TWO PARTS.

THE RECEIPTS BUDGET INCLUDES REVENUE BY WAY OF
TAXES AS WELL AS REIPTS BY NON-TAX MEANS SUCH AS
SALE OF SPECTRUM OR IN THE FORM OF DIVIDENDS
FROM PSUs.
THE EXPENDITURE BUDGET PROVIDES DETAILS OF
SPENDING BY VARIOUS MINISTRIES AS WELL AS
DETAILS OF SUBSIDIES AND INTEREST PAYMENTS.
 BUDGET OVER THE YEARS

THE BUDGET SYSTEM WAS INTRODUCED IN

INDIA ON APRIL 7,1860.
JAMES WILSON,THE FIRST INDIAN FINANCE
MEMBER,DELIVERED THE BUDGET SPEECH.
THE FIRST BUDGET WAS PRESENTED ON NOV
26,1947 BY R.K.SHANMUGHAM CHETTY.
YASHWANT SINHA MOVED THE BUDGET TO
11AM IN 1999,INSTEAD OF 5 PM EARLIER.
23 PEOPLE HAVE PRESENTED BUDGETS
INDEPENDENT INDIA.MORARJI DESAI HOLDS
THE RECORD FOR THE MOST WITH 8 FULL
BUDGETS AND 2 INTERIM BUDGETS.
ALL 3 PM’S FROM THE FIRST FAMILY OF
INDIAN POLITICS- JAWAHARLAL
NEHRU,INDIRA GANDHI AND RAJIV GANDHI
HAVE PRESENTED 1 BUDGET EACH.
 WHO’S WHO IN FINANCE MINISTRY

DEPARTMENT OF ECONOMIC AFFAIRS :-

USUALLY THE BUDGET DIVISION,WHICH
COORDINATES BUDGET-MAKING,IS HOUSED IN
THE DEPARTMENT. THE BUDGET DIVISION
COORDINATES WITH THE FINANCE SECRETARY.
 DEPARTMENT OF EXPENDITURE :-
RESPONSIBLE FOR ALL SPENDING-RELATED
PROPOSALS.
 ECONOMIC DIVISION :-
PREPARES THE ECONOMIC SURVEY
DEPARTMENT OF REVENUE :-
CO-ORDINATES ON TAX-RELATED ISSUES
CENTRAL BOARD OF DIRECT TAXES :-
TAX POLICY LEGISLATION (TPL) DIVISION
HANDLES BUDGET-RELATED ISSUES.
 CENTRAL BOARD OF EXCISE AND CUSTOMS :-

TAX RESEARCH UNIT (TRU) DEALS WITH

BUDGET MATTERS.
 Highlights of the Budget 2011/12

GROWTH, INFLATION EXPECTATIONS :-

 Economy expected to grow at 9 percent in 2012, plus or

minus 0.25 percent
 Inflation seen lower in the financial year 2011-12
SPENDING
 Plan expenditure seen at 4.41 trillion rupees in 2011-12, up
18.3 percent
REVENUE
 Gross tax receipts seen at 9.32 trillion rupees in 2011-12
 Non-tax revenue seen at 1.25 trillion rupees in 2011-12
 POLICY REFORMS :-
 To create infrastructure debt funds
 To boost infrastructure development with tax-free bonds
of 300 billion rupees
 Food security bill to be introduced this year
 To permit Securities and Exchange Board of India (SEBI)
registered mutual funds to access subscriptions from
foreign investments
 Raised foreign institutional investor limit in 5-year
corporate bonds for investment in infrastructure by $20
billion
 Public debt bill to be introduced in parliament soon
SECTOR SPENDING :-
To allocate more than 1.64 trillion rupees to
defense sector in 2011-12
Corpus of rural infrastructure development fund
raised to 180 billion rupees in 2011-12
To provide 201.5 billion rupees capital infusion in
state-run banks in 2011-12
To allocate 520.5 billion rupees for the education
sector
To raise health sector allocation to 267.6 billion
rupees
AGRICULTURE :-
Removal of supply bottlenecks in the food sector will be in focus
in 2011-12
To raise target of credit flow to agriculture sector to 4.75 trillion
rupees
Gives 3 percent interest subsidy to farmers in 2011-12
Cold storage chains to be given infrastructure status
Capitalization of National Bank for Agriculture and Rural
Development (NABARD) of 30 billion rupees in a phased manner
To provide 3 billion rupees for 60,000 hectares under palm oil
plantation
Actively considering new fertilizer policy for urea
FINANCE MINISTER ON THE STATE OF THE
ECONOMY :-
"Fiscal consolidation has been impressive. This year
has also seen significant progress in those critical
institutional reforms that will pave the way for
double digit growth in the near future."
Food inflation remains a concern
Current account deficit situation poses some concern
Must ensure that private investment is sustained
The economy has shown remarkable resilience."
 India Union Budget 2010-2011 General Proposals and Announcements

Fiscal deficit for the FY 2011 is estimated at 5.5%

18.9% growth rate registered by manufacturing industry in 2009
Indian Economy is expected to register a 10% GDP growth in the
coming years
A 7.2% economic growth is estimated to be registered in the
current fiscal
The future years are expected to witness gradual segmentation of
incentives
Direct Tax Code and General Sales Tax to be launched in April
2011
A supreme level Fiscal Stability and Development Council to be
established by the central government
Issue of additional banking licenses by the Reserve Bank of India
to private players and non-banking financial organizations
6 months extension of the refund term for farmer loans up to
June 30th 2011
Undertaking of the introductory development activities for Delhi-
Mumbai industrial corridor
Rs 25000 crores increase by the government via Disinvestment
route
Setting up of Technology advisory group under the governance of
Nandan Nilekani
Allocation of Rs 1900 crore for UID authority
Allocation of Rs 147,000 crore for Defense
India Union Budget 2010-2011 Direct Tax Proposals

Implementation of Direct tax code from April 1, 2011

Introduction of a simplified 2 page Saral 2 form by Indian
Income Tax department for FY 2010-11
Loss of Rs 26,000 cr from the initiation of Direct Tax plans and
profits of Rs 45,000 from the implementation of Indirect Tax
proposals
Corporate Tax to continue at the same rate
3% increase in Minimum Alternate Tax from the previous 15%
to 18% on book gains
Reduction of 10% additional tax on domestic firms to 7.5%
Demand for account assessment of professionals with more
than Rs 15 lakh of earnings
India Union Budget 2010-2011 Indirect Tax Proposals

Service Tax rates to remain constant at 10% in an attempt to include more

services under the tax code
Increase in the tariff on smoking and non-smoking tobacco commodities
2% increase in Central Excise tariff from the previous 8% to the proposed 10%
Total excise tax exemption on electric cars
Central Customs tariff to remain constant at 10%
Excise tariff of Rs 1 per litre on diesel and petrol
Service Tax exemption on News agencies
Limited reduction in the excise tariff on cement
Service Tax exemption on farming seeds
Hike in the customs tariff on gold and platinum exports from the previous Rs
200 to the proposed Rs 300
Hike in Import tax on silver metal to Rs 1500 on every kg
India Union Budget 2010-2011 Individual Tax Proposals

Individuals earning up to Rs 1.60 lakh will not be levied

under Income Tax laws.
Individuals earning from Rs 5 lakh to Rs 8 lakhs will be
charged at 10%
Individuals earning above Rs 8 lakh will be taxed at 30%
Tax exemption limit remains constant for Women and
Senior Citizens at Rs. 1, 90,000 and Rs. 2, 40,000
respectively.
Additional deduction of Rs 20,000 will be accessible for
making investment in Infrastructure Bonds.
THANK YOU