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Discuss Budget 2009!!!

Admin (CCI Team) (12880 Points)

15 February 2009

Discuss Budget 2009 and its implications here!!!

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ADmin

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32 Replies

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 15 February 2009

Hello people

Now will discuss of budget things, so what will be going to happen this year budget, from this recession we can get any relif from the Taxes and many more, pls discuss people what is your opinions.........................

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shailesh agarwal (professional accountant) (7642 Points)
Replied 16 February 2009

OPINION KA KYA KAROGE -------HOGA TO VAHI ---JO PM CAHENGE

shailesh agarwal (professional accountant) (7642 Points)
Replied 16 February 2009

HUM LOG TO BUDGET KE BAD RO PEET LANGEY

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 16 February 2009

I believe

The threshold limits of Income Tax for Individuals as well as Corporates will be raised.

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 16 February 2009

Mr. shailesh agarwal, kya sir kuch to gyan batiye hamare saath ???

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CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 16 February 2009

On the Budget day, the finance minister tables 10-12 documents. Of these, the main and most important document is the Annual Financial Statement.

Annual Financial Statement

Article 112 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year — April 1 to March 31. This statement is the annual financial statement.

The annual financial statement is usually a white 10-page document. It is divided into three parts, consolidated fund, contingency fund and public account. For each of these funds, the government has to present a statement of receipts and expenditure.

Consolidated Fund:

This is the most important of all government funds. All revenues raised by the government, money borrowed and receipts from loans given by the government flow into the consolidated fund of India. All government expenditure is made from this fund, except for exceptional items met from the Contingency Fund or the Public Account. Importantly, no money can be withdrawn from this fund without the Parliament’s approval.

Contingency Fund:

As the name suggests, any urgent or unforeseen expenditure is met from this fund. The Rs 500-crore fund is at the disposal of the President. Any expenditure incurred from this fund requires a subsequent approval from Parliament and the amount withdrawn is returned to the fund from the consolidated fund.

Public Account:

This fund is to account for flows for those transactions where the government is merely acting as a banker. For instance, provident funds, small savings and so on. These funds do not belong to the government. They have to be paid back at some time to their rightful owners. Because of this nature of the fund, expenditure from it are not required to be approved by the Parliament.

For each of these funds the government has to present a statement of receipts and expenditure. It is important to note that all money flowing into these funds is called receipts, the funds received, and not revenue. Revenue in budget context has a specific meaning.

The Constitution requires that the budget has to distinguish between receipts and expenditure on revenue account from other expenditure. So all receipts in, say consolidated fund, are split into Revenue Budget (revenue account) and Capital Budget (capital account), which includes non-revenue receipts and expenditure. For understanding these budgets — Revenue and Capital — it is important to understand revenue receipts, revenue expenditure, capital receipts and capital expenditure.

Revenue receipt/Expenditure:

All receipts and expenditure that in general do not entail sale or creation of assets are included under the revenue account. On the receipts side, taxes would be the most important revenue receipt. On the expenditure side, anything that does not result in creation of assets is treated as revenue expenditure. Salaries, subsidies and interest payments are good examples of revenue expenditure.

Capital receipt/Expenditure:

All receipts and expenditure that liquidate or create an asset would in general be under capital account. For instance, if the government sells shares (disinvests) in public sector companies, like it did in the case of Maruti, it is in effect selling an asset. The receipts from the sale would go under capital account. On the other hand, if the government gives someone a loan from which it expects to receive interest, that expenditure would go under the capital account.

In respect of all the funds the government has to prepare a revenue budget (detailing revenue receipts and revenue expenditure) and a capital budget (capital receipts and capital expenditure). Contingency fund is clearly not that important. Public account is important in that it gives a view of select savings and how they are being used, but not that relevant from a budget perspective. The consolidated fund is the key to the budget. We will take that up in the next part.

As mentioned in the first part, the government has to present a revenue budget (revenue account) and capital budget (capital account) for all the three funds. The revenue account of the consolidated fund is split into two parts, receipts and disbursements — simply, income and expenditure. Receipts are broadly tax revenue, non-tax revenue and grants-in-aid and contributions.

Kalpesh (Accountts & Income Tax) (338 Points)
Replied 16 February 2009

MORE OVER FIGURS ARE ON GOVT PAPER ONLY. PLAN AND PLAN AND PUBLISH AND SOME TO EXPENSES AND MAJOR COMING BACK IN HAND OF POLICY MAKER.

(Guest)

Highlights of the interim budget
Government focussed on farms, jobs, fiscal devolution

Manmohan Singh government's agenda was change

Economy grew at 9% for three straight years

Per capital income growth at 7.4% per annum for four years
Investment as percentage of GDP rose to 39% in 2007-08 from 27.6%
Gross domestic savings rate at 37.7% during 2007-08
Foreign trade at 35.5% of GDP during 2007-08
FY'09 outlook encouraging if rainfall normal
Forecasts indicate 2009 may be worse than 2008
India cannot remain immune to the global financial crisis
Mukherjee: Growth rate of exports down to 17.1% in 9 months
India still the second fastest growing economy
Packages in Dec-08, Jan-09 aimed at stoking demand
Government okayed 37 infra projects between August'08-January'09
Refinance to banks for long term credit to infra projects
IIFCL to refinance 60% of commercial bank loans for PPP
IIFCL can raise Rs.10,000cr by Mar'09; extra Rs.30,000cr
FRBM targets relaxed to boost consumption demand
Government may consider additional fiscal measures in budget
Mukherjee: Need to accelerate pace of policy reforms
Government will need to return to deficit targets after revival
Government to expand employment generation schemes
Mukherjee: Steps to bring back 9% growth needed at earliest
Plan allocation for agriculture increased by 300% in 08-09
India got record $32.4bn FDI in FY'08

Kalpesh (Accountts & Income Tax) (338 Points)
Replied 16 February 2009

IMPORT TAX, EXCISE DUTY, INCOME TAX, SALES TAX, CENTRAL SALES TAX, SERVICE TAX, BCCT, TAX TAX TAX,,,,,,,,,

OUT OF BUDJET EXPENSES AND PROVISION OUT OF 1 RS ONLY 0.10 PAISE REACH IN HAND OF ACTUAL NEEDED SO WE SHOULD TAKE FIGURE AS DIVIDED IN 0.10 PAISE WHICH DECLERE IN BUDJET

(Guest)

Tax collections down by Rs 60,000 cr

Budget estimate for expenditure for 2009-10 put at Rs 953,231 crore (Rs 9532.31 billion). This includes Rs 285,145 crore (Rs 2851.45 billion) for plan expenditure while non-plan spend put at Rs 668,883 crore (Rs 668.83 billion).
Revised fiscal defict esimated at 6 per cent of GDP as against 2.5 per cent in the Budget estimate. Revised revenue deficit placed at 4.4 per cent as against 1 per cent in the Budget estimate for 2008-09.
Fiscal deficit has gone up from Rs 133,287 crore (Rs 1332.87 billion) in the budget estimates to Rs 326,515 crore (Rs 3265.15 billion) in the revised estimates for 2008-09.
Tax collections down by Rs 60,000 crore (Rs 600 billion) over budget estimates for 2008-09.
Fertiliser subsidy increased by Rs 44,863 crore (Rs 448.63 billion) from about Rs 14,000 crore (Rs 140 billion) during 2008-09.
Central plan expenditure increased from Rs 2,43,386 crore (Rs 2,433.86 billion) to Rs 2,82,957 crore (Rs 2,829.57 billion).
Revised budget estimates for 2008-09 increased to Rs 909,053 crore (Rs 9,090.53 billion) from Rs 750,884 crore (Rs 7,508.84 billion).
Rs 632 crore (Rs 6.32 billion) provided for recaptalisation of Regional Rural Banks.
Non-performing assets of public sector banks have fallen from 7.8 per cent in 2007 to 2.3 per cent in March 2008.

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(Guest)

nflation rate fell to 4.4 per cent on Janaury 31, 2009

India's GDP clocked 9% in 08
Export growth rate in first nine months of 2008-09 touched 17.1 per cent.
Industrial production fell by 2 per cent in 2008 on a year to year basis. World economy, according to forecasts, will fare worse in 2009 than in 2008.
Inflation rate fell to 4.4 per cent on Janaury 31, 2009.
Domestic investment rate at 37.7%
The annual rate of growth in agriculture was 3.7 per cent.
Foodgrain production increased by 10 million tonnes each year to all time high of 230 million tonnes in 2007-08.
Foreign trade rose from 23.7 per cent of GDP to 35.5 per cent of GDP in 2007-08.
Gross domestic savings rate increased from 29.8 per cent in 2003-04 to 30.7 per cent in 2007-08.
Tax to GDP ratio increased from 9.2 per cent 2003-04 to 4.5 per cent 2007-08, says Mukherjee.
In the first four years of UPA government, the economy has shown a dream run with growth rates booming throughout the tenure.
The per capita income also registered the fastest growth rate during the last four years.
The fiscal deficit dropped to 2.7 per cent, while the revenue deficit grew.
The investment rate grew to 39 per cent and domestic savings rate showed great improvement at 37.7 per cent.
The tax to GDP ratio roie to 12.5 per cent.
UPA was focussed on delivering 7 per cent plus growth throughout its tenure. Pranabg Mukherjee was the finance minister from 1982 to 1984.

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 16 February 2009

HELLO

SO ALL OF YOU SATISIFED WITH THIS BUDGET????????

(Guest)

6 new IITs started functioning in 2008-09

February 16, 2009

IITs in Madhya Pradesh and Rajasthan will start functioning in 2009-10.

Student loans increased from Rs 4,500 crore on March 31, 2004 to Rs 24,260 crore (Rs 242.60 billion) as on September 30, 2008.
Rural infrastructure development scheme to be expanded through suitable allocations.
60.4 lakh (6.04 million) houses constructed under Indira Awas Yojana during the year.
Minimum support price for wheat increased from Rs 630 to Rs 1,080 per qunital.
The government will continue interest subvention scheme for farmers for loans up to Rs 3 lakh (Rs 300,000).
Rs 65,300 crore (Rs 653 billion) in loans waived for farmers during 2008-09. It benefitted 3.6 crore (Rs 36 million) households.
Agriculture credit has been increased by three fold to Rs 250,000 crore.
Six new IITs started functioning in 2008-09. Two more
Export growth rate in first nine months of 2008-09 touched 17.1 per cent.
Industrial production fell by 2 per cent in December.
India Infrastructure Finance Company to raise Rs 10,000 crore (Rs 100 billion) from market by end of March 2009.
Fifty infrastructure projects worth Rs 67,700 crore (Rs 677 billion) given in-principle or final approval.
Need for accelerating pace of policy reforms, particularly in financial sector.
The FDI inflow between April-Nov 2008 was $23.3 billion, a growth of 45 per cent compared with that during the same period in 2007.
The government has relaxed the Fiscal Responsibility Budget Management (FRBM) targets to counter global economic slowdown.