m 6



m  


m  


m 6
 
6

m 

 
m 
m A financial statement detailing the
estimated receipts and expenditures of
the central government for the
forthcoming fiscal year and a financial
review of the current fiscal year
m ?ndia's public finance system follows the
British pattern.
m ?n ?ndia the Budget is presented in
Parliament on a date fixed by the
President.
m Date: 26-29 February
m R K Shanmukhan Chetty (Nehru's Cabinet
1947-1949) presented the first Budget of
independent ?ndia on November 26, 1947.
m Budgeting is an integral part of society
m By establishing a budget, Government
can set targets for achieving a certain
level of income and monitor expenses.
m Control of Fiscal Deficit and ?nflation
m Monitoring Debt-To-GDP Ratio
m Social Spending
m Fiscal deficit is essentially the difference
between what the government spends
and what it earns. ?t is expressed as a
percentage of GDP.
m Challenge befor Govt is not just to
reduce the fiscal deficit but also
reconfigure its spending away from
consumption to investment.
m Curtailing the Excise duty and VAT.
m A surge in global food and energy prices
that added to ?ndia's subsidy burden
m Abolition of Education Cess.
m Reduction in Securities Transaction Tax
 ‡ To rise Tax free income slab rise from
Bar Raise
1,60,000 to 3,00,000

‡ Reducing the peak rate from current 30% to

MAX. TAX 25%.
RATE

‡ Under Sec 80C Govt should increase

aggregate deductible limit from 1lakh to 2.5
?NVESTMENT
L?M?T lakhs.
a

‡ T ri ti f r ?
t


Ë US?NG
BENEF?TS
fr . l t l .

‡ T x fr li it f R 000 l
MED?CA
RE?MBURSEMT
b i
r .

‡ Tr
p rt ti
ll w
 f R
TRANSP RTAT? N 800/
t l b i
r .
 GARMENT &
‡ Reduction in prices of garments.
F D ‡ Measure to prevent food wastage.
PR CESS?NG

‡ Reduction in the prices of products

GST ‡ Getting more companies and services under
implementation the tax net.

‡ ?mprovement in the foreign investments

F RE?GN ‡ Enable ?ndian students to avail the
?NVESTMENT international education at affordable costs .
a


‡ Government's increased
spending on infrastructure will
?
  push domestic production.

‡ Allocation for the textile sector

X? has been increased to s.4,500
?
  crore from s.4,090 crore .
?mpact on Various Sectors
Ö
  



 
Ö
  



 
=


Upto Rs. 1,60,000/- Nil

=6


Upto Rs. 1,80,000/- Nil

=







Upto Rs. 2,40,000/- Nil



!
" Removal of 10 per cent surcharge

Removal of Fringe benefit tax and Commodities transaction tax


m Exemption limit of individual taxes to Rs
3 lakhs from Rs1.60 lakhs for salaried
people

m Exemption limit for women is expected

to be increased from 1.80 lakhs to 4
lakhs and for senior citizen from Rs 2
lakhs to 5 lakhs
a 
m A reduction of 30% is expected in the
corporate tax
m ?ntroduction of Direct Tax Code (DTC)
suggesting a 25% rate
a


m Finance minister is unlikely to bring any
reform in this category of tax.

m ?t is predicted to be included under the

Direct Tax Code, to be implemented
from April 2011.
m Gratuity Limit: Expected to be raised to
Rs10 lakhs from Rs 3.5 lakhs.
 
m The self assessment slab for
businessmen and professionals is Rs 40
lakhs at present.

m According to expectations, the slab may

be revised to Rs 1 crore to lower the
burden felt by the business people and
professionals
2 
 
m No Direct Tax Code in Budget
m °


m Reforming ?deal Tax Structure for
country like ?ndia
m Complicated ?mplementation
 a


#$$%&'$ "


m Allocated Rs.6 billion
m Target for agriculture credit
flow set at Rs.3,25,000 crore in the 2010 Budget.
higher than previous year. m Continue the interest
m ?nterest subvention scheme subvention scheme .
for short term crop loans. m Every year 4 % growth
m Accelerated ?rrigation Benefit required to have another
Programme inc. by 75%. revolution.
m Rashtriya Krishi Vikas Yojana
stepped up by 30%.
2 Öa
2a
X Public spending on education
continues to remain at a low
of 3.37 per cent of the GDP.
X The outlay on Ëigher
Education has been increased
900 per cent in the Eleventh
Five Year Plan.
X Loan accounts have
increased from 3.14 lakhs to
14.09 lakhs.
m Need for greater
allocation for the health
and education schemes
besides better utilisation
and accountability and
commitment towards
them for the uplift of SCs
and STs.

#$$%&'$ (!)!*+,#$'$&''


  ÖaÖ 22a

X Allocation of Rs39.7bn m ?ndia has announced

under JNNURM to stimulus packages
improve housing sector. equaling 12% of GDP.
X Allocation increased by
m The 11th plan has
59% to Rs 120 bn to
improve roads. projected $500bn
investment b/w 2007-12.
X Allocation increased to
Rs 20.8bn , a rise of m Govt aims to achieve
160% from previous year investment of 9% of GDP
under APDRP in power by 2011/12.
sector.
#$$%&'$ (!)!*+,#$'$&''
2   
m Expect the ?mport tariffs to come down
in the Exam Policy to a maximum tune
of 40 %.
m Cut import duty on hybrid cars.
m The gems and jewelry industry has
sought zero duty and open general
license ( GL) on gold imports in the
forthcoming Union Budget.
   


  
 

  


m Real Estate
m Food And Bevarages
m ?T Sector
m Agriculture