To study about Indias Union Budget and the process of making

PROJECT REPORTONImpact Analysis of Budget on Aam AadmiSUBMITTED BY:KAVITA YASHWANT SAWANT

UNDER THE GUIDANCE OFPROF. TRUPTI JOSHI

BACHELOR OF MANAGEMENT STUDIES(BMS)UNIVERSITY OF MUMBAI2012-2013J.B.S.P Sansthas

Changu Kana Thakur Arts, Commerce & Science CollegeNew PanvelREACCREDITED A GRADE BY NAAC

J.B.S.P.s Changu Kana Thakur ARTS, COMMERCE & SCIENCE COLLEGE,NEW PANVEL CERTIFICATE

Date:

This is to certify that KavitaYashwantSawanthas satisfactorily carried out the project work on the topic Study of Indian Budget in B.M.S academic year 2011 2012.

Project Guide B.M.S. Coordinator Principal (Prof. Tupti Joshi) (Prof. Sinimol Joseph) (Dr.S.T.Gadade)

University Examiner

DECLARATION

I, Kavita Yashwant Sawant of C.K.T. College of Arts, Science & CommerceStudent in B.M.S. hereby declare that I have completed this project on Study on Indian Budgetin the academic year 2012-2013 . The information submitted is true and original to the best of my knowledge.

Place: - _______________Date: - ______________ ___________________ Kavita Sawant

ACKNOWLEDGEMENT

There are who influence the making of a project. We sincerely feel that this project has been an integrated activity and a beautiful experience an individual. There were a lot of people who were associated with us during the entire development period of this project and helped us and their efforts cannot be overlooked. We would like to express our sincere thanks, first of all, to Dr.S.T.Gadade (principal), for sharing his experience and knowledge with us throughout the development of this project. He has been a constant source of inspiration and guidance to us and spared no efforts to make sure that all facilities were provided to us for the completion of this project. We would like to take this opportunity to thanks Prof. Trupti Joshi for being a perfect teacher and giving her consistence guidance. Her timely help and advice through the various stages of the project were very well received and implemented.

Kavita y.Sawant

Impact Analysis of Budget on AamAadmi

IndexPage No.

Objectives of the study

Research Methodology

History of Indian Budget

Some interesting facts about budget

What is budget Meaning and Concept

What is Union Budget

Budget Objective

Stages of Budget Process

Six reasons why we produce Budget

Budget Documents

Budget Deficit

Types of Budgetary deficit

Components of Budget

Sector wise allocation for the year 2010 -11

Sector wise allocation for the year 2011 -12

Sector wise allocation for the year 2012 -13

Budget at Glance for 2011-12 and 2012-13

Questionnaire

Findings

Suggestion

Conclusion

OBJECTIVES OF THE STUDY :

To study the impact of Indian Budget on common man. To study the burden of taxes and what the common man is expecting. To study impact on financial services available in the market regarding investment and savings.

RESEARCH METHODOLGY :

RESEARCH METHODOLGYUnion Finance Minister PranabMukharjee presented the annual budget for the fiscal year 2012-13 in the parliament on 16 March 2012 He has given the statement that the budget has real impacts and have some long terms influences.He interviewed that he focused on long term growth of various sectors and the budget also helps to control the inflation. I tried to find out the answer for my question that is this budget boon or bane for the common man fight against inflation and how far it fulfils their expectations.

Data Collection For data collection I studied : Copy of budget 2012, Interaction with different people from different class, Questionnaire.

SIZE OF SAMPLE My Research sample size is 20.

History of Indian Budget :

History of Indian Budget India's firstFinanceMinisterSir R.K. ShanmughamChetty, presented the first Finance Budget of independent India on November 26, 1947. The change in the approach began with Mr.Manmohan Singh who was instrumental in head starting the new phase of economic liberalization. He reduced the control of Government over public sector units through disinvestment. Facts Bite First Finance Minister: ShanmughamChetty Number of Finance Minister Since Independence: 28 Maximum Number of Budgets Presented by: Morarji Desai Economic Liberalization Started by: Mr. Manmohan Singh ( Finance Minister 1991) CurrentFinanceMinister: Mr. Pranab Mukherjee on 28th feb, 2011 (Monday)

Here are some of the interesting facts about Union Budget:Some Facts :- Maximum Number of Budgets Presented by: Morarji Desai. Economic Liberalization Started by: Mr. Manmohan Singh (Finance Minister 1991). Current Finance Minister: Mr. Pranab Mukherjee. Till date, Morarji Desai has had the longest tenure as Finance Minister, 8 years. Jaswant Singh was Finance Minister for 13 days. A week before the budget is presented, the employees of the press stay in the ministry and have no means of communicating with the outside world. P Chidambaram rewrote India`s Exim Policy in one non-stop eight-hour sitting in July 1991, when he became the Commerce Minister. Both YaswantSinha and Manmohan Singh have presented five Union Budgets in a row. The 1965-66 budget contained the first disclosure scheme for black money. Morarji Desai was the only Finance Minister to have had the opportunity to present two budgets on his birthday in 1964 and 1968. Three interim budgets were presented in the 1990s. While YashwantSinha presented the interim Budgets for 1991-92 and 1998-99, Manmohan Singh presented the 1996-97 interim Budget.

What is a Budget ? Meaning and ConceptThe term budget is derived from the French word "Budgette" which means a "leather bag" or a "wallet". It is a statement of the financial plan of the government. It shows the income & expenditure of the government during a financial year, which runs generally from 1stApril to 31st March.Budget is most important information document of the government. One part of the government's budget is similar to company's annual report. This part presents the overall picture of the financial performance of the government.The second part of the budget presents government's financial plans for the period upto its next budget.So, every citizen of a nation from the common man to the politician is eager to know about the budget as they would like to get an idea of the :-1. Financial performance of the government over the past one year.2. To know about the financial programmes & policies of the government for the next one year.3. To know how their standard of living will be affected by the financial policies of the government in the next one yearGovernment has several policies to implement in the overall task of performing its functions to meet the objectives of social & economic growth. For implementing these policies, it has to spend huge amount of funds on defence, administration, and development, welfare projects & various other relief operations.

What is a Union Budget?

1. Budget is a systematic plan for the expenditure of a fixed resource during a given period.

2. It is a yearly affair.

3. It is a comprehensive display ofthe Governments finances.

4. The Finance Minister puts down a report that contains Government of India revenue and expenditure for onefiscal year.

5. The fiscal year runs from April 01 to March 31(2011-2012).

6. The Union budget is preceded by an Economic Survey which outlines the1) Direction of the budget .2) The economic performance of the country.

Budget Objective

The Budget as a Policy DocumentAs a policy document, the Budget indicates what services the City will provide during the next year.Additionally, the level of services and reasons for their provision are stated.

The Budget as an Operations GuideAs an operations guide, the Budget indicates how departments and funds are organized to provide Services to the citizens of Garden City and visitors to the community.

The Budget as a Financial PlanAs a financial plan, the Budget summarizes and details the cost to the citizens for current and approved service levels and includes funding information.

The Budget as a Communications DeviceThe Budget is designed to be user friendly with summary information in text, charts, tables and graphs.

Stages of budget process:

Budgets have to be passed regularly, usually on an annual basis, in order to ensure that the government continues to operate. The budget process is governed by a timeline that typically can be separated into four different stages:

(I) The drafting stage: is concerned with compiling a draft budget that can be submitted to the legislature. This stage is mostly internal to the executive, but it does not have to be a secretive affair. (a) The first step is to set fiscal policy and estimate available revenues in order to establish the total resource envelope that will be available for spending. (b) Based on the policy framework of the government the finance ministry issues indicative expenditure ceilings for each department. (c) This leads up to negotiations between spending departments and the financeministry about the allocation of funds across different functions. (d) A consolidated draft budget has to be reviewed and approved at the highestpolitical level, such as the president or cabinet, which will also make final decisions on especially contentious issues that could not be resolvedbefore. (e) Once a comprehensive budget has been drafted, it has to be approved by the Legislature to become effective.

(II)The Legislative stage: During the legislative stage,(a) Parliament scrutinizes the expenditure and revenue proposals of the executive. Its options are to approve or reject the budget, to amend it, or, in a few cases, to substitute the draft tabled by the executive with itsown budget.(b) In some countries, the legislature passes separate legislation forappropriations and changes to the tax code; in others it considers a unified budget bill. (c)The exact form of legislative approval is less important than the fact that itmust be comprehensive.(d) The duration of the legislative stage is an important element of variationbetween budget processes of different countries. (e) The United States Congress spends about eight months and sometimes more on deciding the budget, while some legislatures only have about amonth. Budget scrutiny takes time.(f) A good rule of thumb, therefore, is that the more time the legislature hasto review the draft budget, the greater its overall potential influence.(g) A national legislature requires a minimum of three months forEffective consideration of the annual state budget.

(III) The Implementation Stage: Implementation of the budget commences with the beginning of the fiscal year. (a) The execution or implementation stage of the budget process ismainly in the hands of the executive. (b) The finance ministry or treasury usually plays a leading roleIn assuring that funds are apportioned to spending departments in line with the approved budget.(c) Sometimes, however, in many developing countries, cash constraints lead to certain expenditures being cut below voted and other unplanned adjustments to approved spending. Funds might be shifted to purposes other than those that were approved.(d) Frequent adjustments to budgets can reflect the uncertainties that are characteristic of the macroeconomic environment, but continuous or repetitive budgeting is also a symptom of a weak and ill-disciplined budget system.(e) To ensure that its authority is not undermined by excessiveadjustments, the legislature might find it useful to keep a close eye on implementation through scrutiny of actual spending during the fiscal year. (f) Any significant adjustments to the budget should be captured inadjustment or supplemental appropriations that are tabled in the legislature for approval. (g) In-year adjustment decisions need to be made in a transparent manner and should be subject to the same scrutiny carried out at the budget formulation stages.

(IV)Audit and Evaluation Stage: During the audit and evaluation stage, (a) an independent audit institution, such as an audit court or auditor general, analyses government accounts and financial statements.(b) In most countries, the audit of accounts is followed by the consideration of audit finding by the legislature. (c) If the process is effective, any recommendations based on audit findings are reflected in future budgets, which allows for continuous improvements in public spending and generally public financial management. (d) Audit reports need to be produced and tabled in the legislature asspeedily as possible to ensure their relevance and accuracy. (e) Long delays undermine accountability, because officials who areresponsible for a loss of public money may have moved on or retired by the time an incident receives attention.(f) Delays may make it more difficult to pursue disciplinary measures. (g) The interest of the public is also likely to focus on more current matters. (h) The timely submission of audit reports requires that departments produce their financial statements in time for the audit institution to meet the dead line. (i) The relevant financial management legislation usually prescribes when(ii) and in what form the necessary information has to be submitted by departments to the auditors.

Budgeting is a process rather than an event, and budget cycles are ongoing and Interconnected. The role of parliament should not be restricted to budget approval and the review of audit findings. During budget execution, the legislature should have access to actual revenue and expenditure data on an ongoing basis. In this way, it will be able to keep track of the progress that is being made in implementing the approved budget.

Why do we produce budgets?Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include: To control resources To communicate plans to various responsibility centre managers. To motivate managers to strive to achieve budget goals. To evaluate the performance of managers To provide visibility into the company's performance.

SIX reasons why we need a budget

The question one may ask - why budget?The answer - B.U.D.G.E.T.

It is a BeaconBudget is the roadmap to our financial success and independence. Budget tells us where are we heading financially. Will it be a life of financial freedom? Or would we be always struggling for money? Would we be in debt or lead a debt-free life?

Living without a budget is akin to driving without any destination in mind. We would burn up a lot of petrol (a costly proposition) and still end up nowhere. Budget provides the necessary 'purpose' and 'direction' to our financial journey.

A budget can act as an early warning signal, which can help us to take corrective action and a any financial disaster.

Checks Unnecessary spendingA budget shifts the power from money to you. You become the master and manage the money rather than money managing you.

On one hand the incomes are usually limited. But when it comes to spending, the options are almost unlimited. This is truer today with the boom in consumerism. Therefore, it becomes imperative that we manage our resources diligently to prevent any financial stress and meet our important expenses - food, clothing, shelter, education - comfortably.

Once we list down our expenses we can identify the areas of financial waste and take necessary steps to curtail needless expenses.

Helps manage DebtA budget warns us if we are living beyond our means. With easy availability of finance - by way of credit card, personal loans, EMI-based purchases etc. - we tend to overspend and end-up straining our finances, even before we realise. The result is debt-trap and the consequent tensions and trauma.

Budget helps us to prevent the debt traps. Suitably aligning our spending pattern can free up a lot of cash, which can be used to rationalise one's debt and work towards becoming debt-free in due course of time.

We can then manage debt to our advantage, rather than compromise our future for a few moments of pleasure today.

Promotes Goal settingWe all have certain basic needs. Apart from this we also have our dreams and aspirations. Be it a car, a house, children's education & marriage, foreign trip etc., it all usually ends up on the question of money. A clear view of our financial position assists in defining our possibilities. It helps the family to prioritize and focus on important goals. The financial milestones get defined.

More importantly, it sets a direction for our saving and investment pattern. It helps in proper asset allocation.

Usually we earn, we spend and whatever remains we save. This strategy generally fails to build-up the desired wealth. Instead, we should first earmark a % of our income towards saving & investing. And then work out the expenses around the balance income. This discipline of forced savings is a must to curtail impulse buying.

Prepares for EmergenciesAny emergency, e.g. an immediate need for medical attention, can be very traumatic. If on top of this we have no idea of how to arrange for finance at a short notice, then we are only compounding the problem.

If we are in control of our finances, we can deal with any crisis situation more effectively.

While making a budget we should plan to set aside a small amount regularly and build up an 'emergency corpus'. This will come in quite handy. And this amount should be kept in a short-term investment option like bank FD or money-market MF so that it is easily accessible.And in case any money from your 'emergency corpus' has been used, replenishing it should be the top priority.

Taste financial successAnd last but not the least, a budget helps us to stop worrying and start 'enjoying' our money.

As we keep achieving our desired goals as planned, there is a sense of satisfaction, a sense of achievement. When we are out for a movie/dinner or on a vacation, we don't have any unpaid bills haunting us. The taste of this financial success is sweet and long lasting than any impulse purchase.

And before one concludes, a warning - preparing a budget is relatively the easier part of the job. The difficult part is adhering to it - month after month, year after year. It requires time and commitment. One has to be patient and determined, or else it will end up like the umpteen new-year resolutions - only promises and no concrete result.

BUDGET DOCUMENTS1.The Budget documents presented to Parliament comprise, besides the Finance Minister's Budget Speech, of the following:A. Annual Financial Statement (AFS)B. Demand for Grants (DG)C. Appropriation BillD. Finance BillE. Memorandum Explaining the Provisions in the Finance Bill, 2010F. Macro-economic framework for the relevant financial yearG. Fiscal Policy Strategy Statement for the financial year H. Medium Term Fiscal Policy StatementI. Expenditure Budget Volume -1J. Expenditure Budget Volume -2K. Receipts BudgetL. Budget at a glanceM. Highlights of BudgetN. Status of implementation of Announcements made in Finance Minister's Budget Speech of the previous financial yearThe documents shown from Serial A, B, C and D are mandated by Art. 112, 113, 114(3) and 110(a) of the Constitution of India respectively while the documents at Serial F, G and H are presented as per the provisions of the Fiscal Responsibility and Budget Management Act 2003.2. In addition to the above, individual Departments/Ministries also prepare and present to Parliament their Detailed Demands for Grants, Performance and Outcome Budget, and their Annual Reports. The Economic Survey which highlights the economic trends in the country and facilitates a better appreciation of the mobilization of resources and their allocation in the Budget is brought out by the Economic Division of Department of Economic Affairs, Ministry of Finance. The Economic Survey is presented to Parliament usually in advance of the Union Budget. The web versions of these documents are normally posted by the respective ministries/departments on their web sites.

3.1 A brief description of the Budget documents listed3. (A)Annual Financial Statement (AFS),The core budget document, shows estimated receipts and disbursements by the Government of India for 2010-11 in relation to estimates for 2009-10 as also expenditure for the year 2008-09. The receipts and disbursements are shown under the three parts, in which Government Accounts are kept viz.,(i) Consolidated Fund, (ii) Contingency Fund and (iii) Public Account. Under the Constitution, Annual Financial Statement distinguishes expenditure on revenue account from other expenditure. Government Budget, therefore, comprises Revenue Budget and Capital Budget. The estimates of expenditure included in the Annual Financial Statement are for the net expenditure, i.e., after taking into account the recoveries, as will be reflected in the accounts. The significance of the Consolidated Fund, the Contingency Fund and the Public Account as well as the distinguishing features of Revenue and Capital Budget are given briefly below. (i)The existence of the Consolidated Fund of India (CFI) flows from Article 266 of the Constitution. All revenues received by Government, loans raised by it, and also its receipts from recoveries of loans granted by it form the Consolidated Fund. All expenditure of Government is incurred from the Consolidated Fund of India and no amount can be drawn from the Consolidated Fund without authorisation from Parliament. (ii)Article 267 of the Constitution authorises the Contingency Fund of India which is an impress placed at the disposal of the President of India to facilitate Government to meet urgent unforeseen expenditure pending authorization from Parliament. Parliamentary approval for such unforeseen expenditure is obtained, post-facto, and an equivalent amount is drawn from the Consolidated Fund to recoup the Contingency Fund. The corpus of the Contingency Fund as authorized by Parliament presently stands at Rs.500 core. (iii)Moneys held by Government in Trust as in the case of Provident Funds, Small Savings collections, income of Government set apart for expenditure on specific objects like road development, primary education, Reserve/Special Funds etc. are kept in the Public Account. Public Account funds do not belong to Government and have to be finally paid back to the persons and authorities who deposited them. Parliamentary authorisation for such payments is, therefore, not required, except where amounts are withdrawn from the Consolidated Fund with the approval of Parliament and kept in the Public Account for expenditure on specific objects, in which case, the actual expenditure on the specific object is again submitted for vote of Parliament for drawl from the Public Account for incurring expenditure on the specific object. (iv) Revenue Budget consists of the revenue receipts of Government (tax revenues and other revenues) and the expenditure met from these revenues. Tax revenues comprise proceeds of taxes and other duties levied by the Union . The estimates of revenue receipts shown in the Annual Financial Statement take into account the effect of various taxation proposals made in the Finance Bill. Other receipts of Government mainly consist of interest and dividend on investments made by Government, fees, and other receipts for services rendered by Government. Revenue expenditure is for the normal running of Government departments and various services, interest payments on debt, subsidies, etc. Broadly the expenditure which does not result in creation of assets for Government of India is treated as revenue expenditure. All grants given to State Governments/Union Territories and other parties are also treated as revenue expenditure even though some of the grants may be used for creation of assets. (v)Capital Budget consists of capital receipts and capital payments. The capital receipts are loans raised by Government from public, called market loans, borrowings by Government from Reserve Bank and other parties through sale of Treasury Bills, loans received from foreign Governments and bodies, and recoveries of loans from State and Union Territory Governments and other parties. Capital payments consist of capital expenditure on acquisition of assets like land, buildings, machinery, equipment, as also investments in shares, etc., and loans and advances granted by Central Government to State and Union Territory Governments, Government companies, Corporations and other parties. Capital Budget also incorporates transactions in the Public Account. (vi) Accounting Classification The estimates of receipts and disbursements in the Annual Financial Statement and of expenditure in the Demands for Grants are shown according to the accounting classification prescribed under Article 150 of the Constitution, which enables Parliament and the public to make a meaningful analysis of allocation of resources and purposes of Government expenditures. The Annual Financial Statement shows separately, certain disbursements as charged on the Consolidated Fund of India, where the Constitution mandates such items of expenditure, like emoluments of the President, salaries and allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the Speaker and the Deputy Speaker of the Lok Sabha, salaries, allowances and pensions of Judges of the Supreme Court, Comptroller and Auditor-General of India and the Central Vigilance Commission, interest on and repayment of loans raised by Government and payments made to satisfy decrees of courts etc. These items of expenditure are charged on the Consolidated Fund of India and are not required to be voted by the Lok Sabha. 3. (B) Demands for Grants(i)Article 113 of the Constitution mandates that the estimates of expenditure from the Consolidated Fund of India included in the Annual Financial Statement and required to be voted by the Lok Sabha are submitted in the form of Demands for Grants. The Demands for Grants are presented to the Lok Sabha along with the Annual Financial Statement. Generally, one Demand for Grant is presented in respect of each Ministry or Department. However, in respect of large Ministries or Departments more than one Demand is presented. In regard to Union Territories without Legislature, a separate Demand is presented for each of the Union Territories . In budget 2010-11 there are 105 Demands for Grants. Each Demand first gives the totals of 'voted' and 'charged' expenditure as also the 'revenue' and 'capital' expenditure included in the Demand separately and also the grand total of the amount of expenditure for which the Demand is presented. This is followed by the estimates of expenditure under different major heads of account. The breakup of the expenditure under each major head between 'Plan' and 'Non-Plan' is also given. The amounts of recoveries taken in reduction of expenditure in the accounts are also shown. A summary of Demands for Grants is given at the beginning of this document, while details of 'New Service' or 'New Instrument of Service' such as, formation of a new company, undertaking or a new scheme, etc., if any, are indicated at the end of the document. (ii)Each Demand normally includes the total provisions required for a service, that is, provisions on account of revenue expenditure, capital expenditure, grants to State and Union Territory Governments and also loans and advances relating to the service. Where the provision for a service is entirely for expenditure charged on the Consolidated Fund of India, for example, interest payments (Demand for Grant No. 34), a separate Appropriation, as distinct from a Demand, is presented for that expenditure and it is not required to be voted by LokSabha. Where, however, expenditure on a service includes both 'voted' and 'charged' items of expenditure, the latter are also included in the Demand presented for that service but the 'voted' and 'charged' provisions are shown separately in that Demand.

3. (C) Appropriation BillAfter the Demands for Grants are voted by the LokSabha, Parliament's approval to the withdrawal from the Consolidated Fund of the amounts so voted and of the amount required to meet the expenditure charged on the Consolidated Fund is sought through the Appropriation Bill. Under Article 114(3) of the Constitution, no amount can be withdrawn from the Consolidated Fund without the enactment of such a law by Parliament. The whole process beginning with the presentation of the Budget and ending with discussions and voting on the Demands for Grants requires sufficiently long time. The LokSabha is, therefore, empowered by the Constitution to make any grant in advance in respect of the estimated expenditure for a part of the financial year pending completion of procedure for the voting of the Demands. The purpose of the 'Vote on Account' is to keep Government functioning, pending voting of 'final supply'. The Vote on Account is obtained from Parliament through an Appropriation (Vote on Account) Bill. 3. (D) Finance BillAt the time of presentation of the Annual Financial Statement before Parliament, a Finance Bill is also presented in fulfilment of the requirement of Article 110 (1)(a) of the Constitution, detailing the imposition, abolition, remission, alteration or regulation of taxes proposed in the Budget. A Finance Bill is a Money Bill as defined in Article 110 of the Constitution. It is accompanied by a Memorandum explaining the provisions included in it.

3. (E) Memorandum Explaining the Provisions in the Finance Bill To facilitate understanding of the taxation proposals contained in the Finance Bill, the provisions and their implications are explained in the document titled Memorandum Explaining the Provisions of the Finance Bill.3. (F) Macro-economic Framework StatementThe Macro-economic Framework Statement, presented to Parliament under Section 3(5) of the Fiscal Responsibility and Budget Management Act and the rules made there under contains an assessment of the growth prospects of the economy with specific underlying assumptions. It contains assessment regarding the GDP growth rate, fiscal balance of the Central Government and the external sector balance of the economy. 3. (G) Fiscal Policy Strategy StatementThe Fiscal Policy Strategy Statement, presented to Parliament under Section 3(4) of the Fiscal Responsibility and Budget Management Act, outlines the strategic priorities of Government in the fiscal area for the ensuing financial year relating to taxation, expenditure, lending and investments, administered pricing, borrowings and guarantees. The Statement explains how the current policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures. 3. (H) Medium-term Fiscal Policy StatementThe Medium-term Fiscal Policy Statement, presented to Parliament under Section 3(2) of the Fiscal Responsibility and Budget Management Act 2003, sets out three-year rolling targets for four specific fiscal indicators in relation to GDP at market prices namely (i) Revenue Deficit, (ii) Fiscal Deficit, (iii) Tax to GDP ratio and (iv) Total out-standing Debt at the end of the year. The Statement includes the underlying assumptions, an assessment of sustainability relating to balance between revenue receipts and revenue expenditure and the use of capital receipts including market borrowings for generation of productive assets. 3.2To facilitate a more comprehensive understanding of the major features of the Budget, certain other explanatory documents are presented. These are briefly summarized below. 3. (I) Expenditure Budget Volume-1(i)This document deals with revenue and capital disbursements of various Ministries/Departments and gives the estimates in respect of each under 'Plan' and 'Non-Plan'. It also gives analysis of various types of expenditure and broad reasons for the variations in estimates. (ii)Under the present accounting and budgetary procedures, certain classes of receipts, like payments made by one department to another and receipts of capital projects or schemes, are taken in reduction of the expenditure of the receiving department. The estimates of expenditure included in the Demands for Grants are for the gross amounts. While the estimates of expenditure included in the Annual Financial Statement are for the net expenditure, after taking into account the recoveries. The document Expenditure Budget makes certain other refinements like netting expenditure of related receipts so that inflation of receipts and expenditure figures are avoided and there can be a better appreciation of the magnitudes of various expenditure. Contributions to International bodies and estimated strength of establishment of various Government Departments and provision there for are shown in separate annexes. A statement each showing (i) Plan grants and loans released by Ministries/Departments directly to State and district level autonomous bodies, under various Central and Centrally Sponsored Plan schemes, (ii) Gender Budgeting and (iii) Schemes for development of Scheduled Castes and Scheduled Tribes are also included in this document. (iii)Plan Outlay.Plan expenditure forms a sizeable proportion of the total expenditure of the Central Government. The Demands for Grants of the various Ministries show the Plan expenditure under each head separately from the Non-Plan expenditure. The Expenditure Budget Vol. 1 also gives the total Plan provisions for each of the Ministries arranged under the various heads of development and highlights the budget provisions for the more important Plan programmes and schemes. A description of important schemes included in the Plan along with the objectives, targets and achievements is given in the Outcome Budget of the respective Ministry. Variations in the estimates of Plan expenditure are also explained. (iv) Public Sector EnterprisesA large part of the Plan expenditure incurred by the Central Government is through public sector enterprises. Budgetary support for financing outlays of these enterprises is provided by Government either through investment in share capital or through loans. Expenditure Budget Vol. 1 shows the estimates of capital and loan disbursements to public sector enterprises in 2009-2010 and 2010-2011 for Plan and Non-Plan purposes and also the extra budgetary resources available for financing their Plans. A detailed report on the working of public sector enterprises is given in the document titled 'Public Enterprises Survey' brought out separately by the Department of Public Enterprises. A report on the working of the enterprises under the control of the various administrative Ministries is also given in the Annual Reports of the various Ministries circulated to Members of Parliament separately. The annual reports along with the audited accounts of each of the Government companies are also separately laid before Parliament. Besides, the reports of the Comptroller and Auditor General of India on the working of various public sector enterprises are also laid before Parliament. (v)Commercial DepartmentsRailways is the principal departmentally-run commercial undertaking of Government. The Budget of the Ministry of Railways and the Demands for Grants relating to Railway expenditure are presented to Parliament separately. The total receipts and expenditure of the Railways are, however, incorporated in the Annual Financial Statement of the Government of India. To portray the actual working and not inflate either receipts or expenditure, the expenditure as reflected in the Receipts Budget & Expenditure Budget Vol. 1 and Vol. 2 has been taken net of receipts. The Demands for Grants of the Department of Telecommunications, are presented along with other Demands of the Central Government. (vi) The receipts and expenditure of the Defense Department shown in the Annual Financial Statement, are explained in greater detail in the document Defense Services Estimates presented along with the Detailed Demands for Grants of the Ministry of Defense. (vii) The details of grants given to bodies other than State and Union Territory Governments are given in the statements of Grants-in-aid paid to non-Government bodies appended to Detailed Demands for Grants of the various Ministries. Annexure 5 to Expenditure Budget Vol.1 shows details of grants-in-aid exceeding Rs.5 lakhs (recurring)or Rs.10 lakhs (non-recurring) to private institutions, organizations and individuals sanctioned during the year 2008-09. 3. (J) Expenditure Budget Volume-2The provisions made for a scheme or a programme may spread over a number of Major Heads in the Revenue and Capital sections in a Demand for Grants. In the Expenditure Budget Vol. 2, the estimates made for a scheme/programme are brought together and shown on a net basis at one place, by Major Heads. To understand the objectives underlying the expenditure proposed for various schemes and programmes in the Demands for Grants, suitable explanatory notes are included in this volume in which, wherever necessary, brief reasons for variations between the Budget estimates and revised estimates for the current year and requirements for the ensuing Budget year are also given. 3. (K) Receipts BudgetEstimates of receipts included in the Annual Financial Statement are further analysed in the document "Receipts Budget". The document provides details of tax and non-tax revenue receipts and capital receipts and explains the estimates. The document also provides the arrears of tax revenues and non-tax revenues, as mandated under the Fiscal Responsibility and Budget Management Rules, 2004. Trend of receipts and expenditure along with deficit indicators, statement pertaining to National Small Savings Fund (NSSF), statement of revenues foregone, statement of liabilities, statement of guarantees given by the government, statements of assets and details of external assistance are also included in Receipts Budget.

3. (L) Budget at a Glance(i)This document shows in brief, receipts and disbursements along with broad details of tax revenues and other receipts. This document also exhibits broad break-up of expenditure - Plan and Non-Plan, allocation of Plan outlays by sectors as well as by Ministries/Departments and details of resources transferred by the Central Government to State and Union Territory Governments. This document also shows the revenue deficit, the gross primary deficit and the gross fiscal deficit of the Central Government. The excess of Government's revenue expenditure over revenue e receipts constitutes revenue deficit of Government. Government mainly borrows through issue of dated securities, i.e. market borrowings. Apart from this, Government also borrows funds under many schemes which form part of capital receipts. The difference between the total expenditure of Government by way of revenue, capital and loans net of repayments on the one hand and revenue receipts of Government and capital receipts which are not in the nature of borrowing but which finally accrue to Government on the other, constitutes gross fiscal deficit. Gross primary deficit is measured by gross fiscal deficit reduced by gross interest payments. In the Budget documents 'gross fiscal deficit' and 'gross primary deficit' have been referred to in abbreviated form 'fiscal deficit' and 'primary deficit', respectively. This document also shows liabilities of the Government on account of securities (bonds) issued in lieu of oil and fertilizer subsidies. (ii)The document also includes a statement indicating the quantum and nature (share in Central Taxes, grants/loan) of the total Resources transferred to States and Union Territory Governments. Details of these transfers by way of share of taxes, grants-in-aid and loans are given in Expenditure Budget Volume.1. Bulk of grants and loans are disbursed by the Ministry of Finance and are included in the Demand 'Transfers to State and Union Territory Governments'. The grants and loans released to States and Union Territories by other Ministries/Departments are provided for in their respective Demands.

3. (M) Highlights of BudgetThis document explains the key features of the Budget 2010-11, inter alia, indicating the prominent achievements in various sectors of the economy. It also explains, in brief, the budget proposals for allocation of funds to be made in important areas. The summary of tax proposals is also reflected in the document. 3. (N) Detailed Demands for GrantsThe Detailed Demands for Grants are laid on the table of the LokSabha sometime after the presentation of the Budget, but before the discussion on Demands for Grants commences. Detailed Demands for Grants further elaborate the provisions included in the Demands for Grants as also actual expenditure during the previous year. A break-up of the estimates relating to each programme/organisation, wherever the amount involved is not less than Rs.10 lakhs, is given under a number of object heads which indicate the categories and nature of expenditure incurred on that programme, like salaries, wages, travel expenses, machinery and equipment, grants-in-aid, etc. At the end of these Detailed Demands are shown the details of recoveries taken in reduction of expenditure in the accounts.

3. (O) Outcome Budget(i)With effect from Financial Year 2007-08, the Performance Budget and the Outcome Budget hitherto presented to Parliament separately by Ministries/Departments, are merged and presented as a single document titled "Outcome Budget" by each Ministry/Department in respect of all Demands/Appropriations controlled by them, except those exempted from this requirement. Outcome Budget broadly indicates physical dimensions of the financial budget of a Ministry/Department, indicating actual physical performance in the preceding year (2008-2009), performance in the first nine months (up to December) of the current year (2009-2010) and the targeted performance during the ensuing year (2010-2011). (ii)Outcome Budget contains a brief introductory note on the organization and function of the Ministry/Department, list of major programmers/schemes implemented by the Ministry/Department, its mandate, goal and policy framework, budget estimates, scheme-wise analysis of physical performance and linkage between financial outlays and outcome, review covering overall trends in expenditure vis-a-vis budget estimates in recent years, review of performance of statutory and autonomous bodies under the administrative control of the Ministry/Department, reform measures, targets and achievements and plan for future refinements. (iii)As far as feasible, coverage of women and SC/ST beneficiaries under various developmental schemes and schemes for the benefit of North Eastern Region are also separately indicated.

3. (P) Annual ReportsA descriptive account of the activities of each Ministry/Department during the year 2009-2010 is given in the document Annual Report which is brought out separately by each Ministry/Department and circulated to Members of Parliament at the time of discussion on the Demands for Grants. 3. (Q) Economic SurveyThe Economic Survey brings out the economic trends in the country, which facilitates a better appreciation of the mobilisation of resources and their allocation in the Budget. The Survey analyses the trends in agricultural and industrial production, infrastructure, employment, money supply, prices, imports, exports, foreign exchange reserves and other relevant economic factors which have a bearing on the Budget, and is presented to the Parliament ahead of the Budget for the ensuing year. The Budget of the Central Government is not merely a statement of receipts and expenditure. Since Independence , with the launching of Five Year Plans, it has also become a significant statement of governmental policy. The Budget reflects and shapes, and is, in turn, shaped by the country's economic life. For a better appreciation of the impact of governmental receipts and expenditure on the other sectors of the economy, it is necessary to group them in terms of economic magnitudes, for example, how much is set aside for capital formation, how much is spent directly by the Government and how much is transferred by Government to other sectors of the economy by way of grants, loans, etc. This analysis is contained in the document Economic and Functional Classification of the Central Government Budget which is brought out by the Ministry of Finance separately.What is a Budget Deficit ?Meaning:-When the government expenditure exceeds revenues, the government is having a budget deficit. Thus the budget deficit is the excess of government expenditures over government receipts (income). When the government is running a deficit, it is spending more than it's receipts The government finances its deficit mainly by borrowing from the public, through selling bonds, it is also financed by borrowing from the Central Bank.

Types of Budgetary Deficit

The different types of budgetary deficit are explained in following points :-

1. Revenue Deficit

Revenue Deficit takes place when the revenue expenditure is more than revenue receipts. The revenue receipts come from direct & indirect taxes and also by way of non-tax revenue.The revenue expenditure takes place on account of administrative expenses, interest payment, defence expenditure & subsidies.Table below indicate revenue deficit of the central government of India.

From the above table it is clear that revenue deficit was Rs. 18,562 crores in 1990-91 and Rs. 94,644 crores in 2005-06. As proportion of GDP, revenue deficit increased from 1.5% in 1980-81 to 3.3% in 1990-91 and declined to2.7% in 2005-06. The decline is due to the passing of the Fiscal Responsibility and Budget Management Act in 2002.

2. Budgetary Deficit

Budgetary Deficit is the difference between all receipts and expenditure of the government, both revenue and capital. This difference is met by the net addition of the treasury bills issued by the RBI and drawing down of cash balances kept with the RBI. The budgetary deficit was called deficit financing by the government of India. This deficit adds to money supply in the economy and, therefore, it can be a major cause of inflationary rise in prices.Budgetary Deficit of central government of India was Rs. 2,576 crores in 1980-81, it went up to Rs. 11,347 crores in 1990-91 to Rs. 13,184 crores in 1996-97.The concept of budgetary deficit has lost its significance after the presentation of the 1997-98 Budget. In this budget, the practice of ad hoc treasury bills as source of finance for government was discontinued. Ad hoc treasury bills are issued by the government and held only by the RBI. They carry a low rate of interest and fund monetized deficit. These bills were replaced by ways and means advance. Budgetary deficit has not figured in union budgets since 1997-98. Since 1997-98, instead of budgetary deficit, Gross Fiscal Deficit (GFD) became the key indicator.3. Fiscal DeficitFiscal Deficit is a difference between total expenditure (both revenue and capital) and revenue receipts plus certain non-debt capital receipts like recovery of loans, proceeds from disinvestment.In other words, fiscal deficit is equal to budgetary deficit plus governments market borrowings and liabilities. This concept fully reflects the indebtedness of the government and throws light on the extent to which the government has gone beyond its means and the ways in which it has done so. in 1980-81, fiscal deficit was Rs. 7,733 crores. Between 1980-81 and 1990-91 it increased 5 times to Rs. 37,606 crores. Since the introduction of economic reforms in 1991-92, the government has tried to restrict the growth of fiscal deficit. As percentage of GDP fiscal deficit declined from 6.2% in 2001-02 to 4.1% in 2005-06.

4. Primary Deficit

The fiscal deficit may be decomposed into primary deficit and interest payment. The primary deficit is obtained by deducting interest payments from the fiscal deficit. Thus, primary deficit is equal to fiscal deficit less interest payments. It indicates the real position of the government finances as it excludes the interest burden of the loans taken in the past.Table below indicate primary deficit as a Percentage of GDP.

Primary deficit of the central government of India was 16,108 crores in 1990-91, it reduced to 14,591 crores in 2005-06.

5. Monetised DeficitMonetised Deficit is the sum of the net increase in holdings of treasury bills of the RBI and its contributions to the market borrowing of the government. It shows the increase in net RBI credit to the government. It creates equivalent increase in high powered money or reserve money in the economy.

All these budgetary deficit reveal fiscal imbalance. Fiscal imbalance & budget deficit result in harmful consequences like mounting inflation, deficit in balance of payment, etc. It has also adversely affect the growth of the economy. The government must introduce fiscal correction policies to overcome the deficit budget and fiscal crisis.

Components of Government BudgetThe main components or parts of government budget are explained below.

1. Revenue BudgetThis financial statement includes the revenue receipts of the government i.e. revenue collected by way of taxes & other receipts. It also contains the items of expenditure met from such revenue.(a) Revenue Receipts :These are the incomes which are received by the government from all sources in its ordinary course of governance. These receipts do not create a liability or lead to a reduction in assets.Revenue receipts are further classified as tax revenue and non-tax revenue.I. Tax Revenue:-Tax revenue consists of the income received from different taxes and other duties levied by the government. It is a major source of public revenue. Every citizen, by law is bound to pay them and non-payment is punishable.Taxes are of two types, viz., Direct Taxes and Indirect Taxes.Direct taxes are those taxes which have to be paid by the person on whom they are levied. Its burden cannot be shifted to someone else. E.g. Income tax, property tax, corporation tax, estate duty, etc. are direct taxes. There is no direct benefit to the tax payer.Indirect taxes are those taxes which are levied on commodities and services and affect the income of a person through their consumption expenditure. Here the burden can be shifted to some other person. E.g. Custom duties, sales tax, services tax, excise duties, etc. are indirect taxes.II. Non-Tax Revenue:-Apart from taxes, governments also receive revenue from other non-tax sources.The non-tax sources of public revenue are as follows:-1. Fees : The government provides variety of services for which fees have to be paid. E.g. fees paid for registration of property, births, deaths, etc.2. Fines and penalties : Fines and penalties are imposed by the government for not following (violating) the rules and regulations.3. Profits from public sector enterprises : Many enterprises are owned and managed by the government. The profits receives from them is an important source of non-tax revenue. For example in India, the Indian Railways, Oil and Natural Gas Commission, Air India, Indian Airlines, etc. are owned by the Government of India. The profit generated by them is a source of revenue to the government.4. Gifts and grants : Gifts and grants are received by the government when there are natural calamities like earthquake, floods, famines, etc. Citizens of the country, foreign governments and international organisations like the UNICEF, UNESCO, etc. donate during times of natural calamities.5. Special assessment duty : It is a type of levy imposed by the government on the people for getting some special benefit. For example, in a particular locality, if roads are improved, property prices will rise. The Property owners in that locality will benefit due to the appreciation in the value of property. Therefore the government imposes a levy on them which is known as special assessment duties.(b) Revenue Expenditure:I. What is Revenue Expenditure?Revenue expenditure is the expenditure incurred for the routine, usual and normal day to day running of government departments and provision of various services to citizens. It includes both development and non-development expenditure of the Central government. Usually expenditures that do not result in the creations of assets are considered revenue expenditure.II. Expenses included in Revenue Expenditure:-In general revenue expenditure includes following:-1. Expenditure by the government on consumption of goods and services.2. Expenditure on agricultural and industrial development, scientific research, education, health and social services.3. Expenditure on defence and civil administration.4. Expenditure on exports and external affairs.5. Grants given to State governments even if some of them may be used for creation of assets.6. Payment of interest on loans taken in the previous year.7. Expenditure on subsidies.2. Capital BudgetThis part of the budget includes receipts & expenditure on capital account projected for the next financial year. Capital budget consists of capital receipts & Capital expenditure.(a) Capital Receipts:I. What are Capital Receipts?Receipts which create a liability or result in a reduction in assets are called capital receipts. They are obtained by the government by raising funds through borrowings, recovery of loans and disposing of assets.II. Items included in Capital Receipts:-The main items of Capital receipts (income) are:-1. Loans raised by the government from the public through the sale of bonds and securities. They are called market loans.2. Borrowings by government from RBI and other financial institutions through the sale of Treasury bills.3. Loans and aids received from foreign countries and other international Organisations like International Monetary Fund (IMF), World Bank, etc.4. Receipts from small saving schemes like the National saving scheme, Provident fund, etc.5. Recoveries of loans granted to state and union territory governments and other parties.(b) Capital Expenditure:I. What is Capital Expenditure? :-Any projected expenditure which is incurred for creating asset with a long life is capital expenditure. Thus, expenditure on land, machines, equipment, irrigation projects, oil exploration and expenditure by way of investment in long term physical or financial assets are capital expenditure.

Union Budget 2010-11- Sector-wise Allocation

1. Agriculture & Related Activities- Rs 12308.47 crore

a. Crop related activities- Rs 7083.82 croreb. Animal Husbandry- Rs 865.46 crorec. Dairy Development- Rs 76.55 crored. Fishery- Rs 241.77 croree. Agricultural research & Education- Rs 2070 crore

2. Rural Development- Rs 46194.10 crorea. Special Programme for Rural Development- Rs 4897.10 croreb. Rural employment/earnings- Rs 40100 crorec. Land reform- Rs 180 crored. Other Rural Development Activities- Rs 1017 crore3. Irrigation & Flood Control- Rs 526 crore

4. Energy- Rs 146578.72 crcrorea. Electricity- Rs 66096.94 croreb. Petroleum- Rs 66807.21 crorec. Coal & Lignite- Rs 11824.57 crored. Non-Conventional Sources of Energy- Rs 1850 crore5. Minerals & Industry- Rs 39019.07 crorea. Rural & Small industries- Rs 3278 croreb. Iron & Steel- Rs 17208.67 crorec. Consumer Industry- Rs 3678.12 crored. Fertilizer Industry- Rs 2870 crore

6. Transport- Rs 10997.55 crorea. Railways- 40549.27croreb. Roadways & bridges- Rs 45535.73 crorec. Port- Rs 4069.48 crore

7. Communication- Rs 18529.10 crore8. Science, Technology & Environment- Rs 13676.77 crorea. Space Research/Discovery- Rs 5000 croreb. Nuclear Energy research/Discovery- Rs 2084.86 crorec. Environment & Ecology- Rs 1210.91 crore9. Social Service- Rs 136566.13 crorea. General education- Rs 33692 croreb. Technical Education- Rs 4276.03 crorec. Family Welfare- 12792.81 crored. Public health- Rs 7270.59 croree. Ousing- rs 17827.50 croref. General cleanliness- Rs 9593 croreg. Urban Development- Rs 7849.85 croreh. ST, SC, OBC development- Rs 6995.14 crorei. Social Security & Development- Rs 11629.40j. North-east sector- Rs 19396.37 crorek. Art & Culture- Rs 658.10 crore

10. Other Economic Sevice- Rs 7553.56 crorea. Tourism- Rs 945 croreb. International Trade- Rs 1170.99 crorec. Economic & Technical Cooperation with countries- Rs 700 crored. Population census & Survey- Rs 2884.91 crore11. General Servicea. Law & order, Judiciary- Rs 252 croreb. Police- Rs 945.29 crore12. Defence- Rs 147344 crore

Union Budget 2011-12- Sector-wise AllocationUnion Finance Minister of India, Pranab Mukherjee, presented the Budget 2011-12 in the LokSabha of Indian Parliament. The sector-wise allocation of funds in the budget are given as following:Agriculture and Allied Activities-14362 crore rupees Rashtriya Krishi Vikas Yojana- 7860 crore rupees Agriculture and Allied Activities- 14362 crore rupees Bringing Green Revolution to Eastern Region- 400 crore rupees Integrated Development of 60000 pulses villages in rain-fed areas-300 crore rupees Promotion of Oil Palm- 300 crore rupees Initiative on Vegetable Clusters- 300 crore rupees Nutri-Cereals- 300 crore rupees National Mission for Protein Supplements- 300 crore rupees Accelerated Fodder Development Programme- 300 crore rupees

Rural Development-55438 crore rupees Allocation for Rural Infrastructure Development Fund (RIDF) - 18000 crore rupees For Rural Housing Fund- 2000 crore rupees For recapitalization of rural banking- 500 crore rupees

Social Services-127157 crore rupees Education- 52057 crore rupees Health- 26760crore rupees Sarva Siksha Abhiyan- 21000 crore rupees For National Skill Development Fund- An additional 500 crore rupees in 2011-12 For North Eastern region and special category states-8000 crore rupees The allocation under the Backward Regions Grant Fund- 9890 crore rupees For tribal Groups- 244 crore rupees In the Budget for 2011-12, for the first time, specific allocations are being earmarked towards Scheduled Castes Sub-plan and Tribal Sub-plan.

Industries and Minerals-38852 crore rupeesScience, Technology, Environment and Climate Change-16186 crore rupeesBharat Nirman-58000 crore rupeesDefence Sector-164415 crore rupees out of which include 69199crore rupees for capital expenditureTo speed up delivery of justice,1000 crore rupees was allocated forthePlan provision for Department of Justicefor 2011-12.

Union Budget 2012-13- Sector-wise AllocationUnion Finance Minister Pranav Mukharjee presented the annual budget for the fiscal year 2012-13 in the parliament on 16 March 2012.The Union Minister of Finance came up with an increased budgetary allocation for various sectors including agriculture, rural development, defense etc. While, the Plan Outlay for Department of Agriculture and Co-operation increased by 18 percent, the target for agricultural credit raised by 100000 crore rupees to 575000 crore rupees. Budgetary allocation for rural drinking water and sanitation received a hike of over 27 per cent. Flagship programmes like Right to Education-SarvaShikshaAbhiyan received an increase of 21.7 per cent in the budget are allocation.Some of the major allocations made for different sectors of economy are as follows:Agriculture and Allied Activities Budgetary allocation for agriculture and allied activities 2012-13 increased by 18% 9217 crore rupees allocated for RashtriyaKrishiVikasYojana. 1000 crore rupees for Bringing Green Revolution to Eastern India (BGREI) project 300 crore rupees to Vidarbha Intensified Irrigation Development Programme under RKVY. 200 crore rupees allocated for incentivising research with rewards 14242 crore rupees allocated for Accelerated Irrigation Benefit Programme (AIBP) 500 crore rupees provided to broaden scope of production of fish to coastal aquacultureRural Development 14,000 crore rupees allocated for rural drinking water and sanitation 24000 crore rupees allocated for Pradhan Mantri Grameen Sadak Yojna 12040 crore rupees provided for Backward Regions Grant Fund scheme 20,000 crore rupees allocated for Rural Infrastructure Development Fund 5000 crore rupees earmarked for creating warehousing facilities

Education Sarva Siksha Abhiyan -Right to Education- 25555 crore rupees 3124 crore rupees provided for Rashtriya Madhyamik Shiksha Abhiyan (RMSA)Health 20822 crore rupees National Rural Health Mission

Employment and skill development 3915 crore rupees provided for National Rural Livelihood Mission 1276 crore rupees allocated for Prime Ministers Employment Generation Programme 1000 crore rupees allocated for National Skill Development Fund

Defence and Security 193407 crore rupees allocated for Defense services including 79579crore rupees for capital expenditure 1185 crore rupees to be allocated for construction of nearly 4000 residential quarters for Central Armed Police Forces 3280 crore rupees proposed to be allocated for construction of office building of Central Armed Police ForcesInfrastructureandIndustrialDevelopment

25360 crore rupees allocated for Road Transport and Highways Ministry 3884 crore rupees loan waiver for handloom weavers and their cooperative societies 500 crore rupees pilot scheme announced for promotion and application of Geo-textile in the North Eastern Region 70 crore rupees allocated to set up a power loom mega cluster in Ichalkaranji in Maharashtra 5000 crore rupees India Opportunities Venture Fund to be set up with SIDBI 15888 crore rupees to be provided for capitalization of public sector banks and financial institutionsOther major allocations 37113 crore rupees allocated for Scheduled Castes Sub Plan 21710 crore rupees earmarked for Tribal Sub Plan.

QUESTIONNAIRE

1. Do you think the budget 2012-13 come up to the expectations or fulfil the whims of Aam Admi ?

2. What element of budget 2012-2013 will impact on your family?

3.Does new tax slab in the budget 2012-2013 give benefit to you?

4. Is union budget 2012-2013 affect your investment strategy and portfolio.

5. Do you think the union budget presented by FM, will help to control the inflation?

6)What would you say overall regarding Union Budget 2012-2013?

7) What do you think if the FM allowing FDI to invest in Indian Market.

8. Recently Govt. Has allowed single brand retail FDI 100% and multi brand retail FDI 51%.Does this will impact your budget?

9) Do to under recovery govt. has suddenly hike the price of diesel & gas cylinder does make any change in Indian economy?

10) If we relate the union budget 2011-12 & 2012-13.Does it has influence the Growth of India.

BIBLIOGRAPHY

www.timesofindia.com

www.moneycontrol.com

www.indiabudget.nic.in

www.budget.govt.ie

SUGGESTION

My suggestion to improve the effect of Indian Budget is:1.The Government should reduce the prices of agro products & there by consumer durables.2.Main thing the Government need to control raising prices of Gas which is the basic requirement now days.3.Government also needs to control price rise of petrol & diesel.

CONCLUSION

After making this project I come to conclusion that, most of the people of are not satisfied with Indian Budget 2012-13. Almost in every sector the prices of taxes had been raised by this budget which is mostly affecting the middle class people who constitute major part of our nation. But the Government of India has a chance to overcome these dissatisfaction in the people by making good provision in next year budget.