CONTENT

S.NO TOPIC Page.no

1. History of government budget. 2 to 4

2. Main elements of budget. 4

3. Objective of government budget.

5

4. Introduction of budget 2015 7 to16

5. Diagrame proposed 2015 national budget allocation by department/Budget at a Glance

17 to 18

6. Analysis of Budget 2015 19

7. The comparative of 2014-15 and 2015-16

20 to 22

8. Conclusion of Budget 2015-2016

23

9. Referance 23

History OF Government Budget

The word budget is derive from bowgette, which means’ a leather bag’ in

French. The budget was first introduced in India on 7 April 1860 by the East-

India Finance Minister James Wilson Presented the budget in 1860.

Earlier budget were printed in Rastrapati Bhavan. The printing venue was

shifted to Minto Road in New Delhi. Since 1980, budget paper is printed in the

North Block.R.K. Shanmukham Chetty, First Finance Minister of India

presented the budget in November 26, 1947 without any tax proposals;

however, he presented the analysis of the economic scenario of Independent

India just 95 days before the budget. The Union budgets for the fiscal

years 1959-61 to 1963-64, inclusive of the interim budget for 1962-63, were

presented by Morarji Desai.

On February 29 in 1964 and 1968, he became the only finance minister to

present the Union budget on his birthday.

Vyas presented budgets that included five annual budgets, an interim budget

during his first stint and one interim budget and three final budgets in his

second tenure when he was both the Finance Minister and Deputy Prime

Minister of India. After desai's resignation, Indira Gandhi, the Prime Minister

of India, took over the Ministry of Finance to become the only woman to hold

the post of the finance minister. Pranab Mukherjee, the first Rajya

Sabha member to hold the Finance portfolio, presented the annual budgets for

1982-83, 1983–84 and 1984-85.

Rajiv Gandhi presented the budget for 1987-89 after V P Singh quit his

government, and in the process became only the third Prime Minister to

present a budget after his mother and grandfather.

N. D. Tiwry presented the budget for 1988-89, S B Chavan for 1989-90, while

Madhu Dandawate presented the Union budget for 1990-91.

Dr. Manmohan Singh became the Finance Minister but presented the interim

budget for 1991-92 as elections were forced.

In May 1991 following which the Indian National Congress returned to

political power and Manmohan Singh, the Finance Minister, presented the

budget for 1991-92. Manmohan Singh under PV Narasimha Rao, in his next

annual budgets from 1992–93, opened the economy, encouraged foreign

investments and reduced peak import duty from 300 plus percent to 50 percent.

After elections in 1996, a non-Congress ministry assumed office. Hence the

final budget for 1996-97 was presented by P. Chidambaram, who then

belonged to Tamil Maanila Congress.

Following a constitutional crisis when the I. K. Gujral Ministry was on its way

out, a special session of Parliament was convened just to pass Chidambaram's

1997-98 budgets. This budget was passed without a debate. After the general

elections in March 1998 that led to the Bharatiya Janata Party forming the

Central Government, Yashwant Sinha, the then Finance Minister in this

government, presented the interim and final budgets for 1998-99. After general

elections in 1999, Sinha again became the finance minister and presented four

annual budgets from 1999-2000 to 2002-2003. Due to elections in May 2004,

an interim budget was presented by Jaswant Singh.

Former Finance Minister Morarji Desai presented the budget ten times, the

most by any.

The Union Budget of India for 2012–2013 was presented by Pranab

Mukherjee, the Finance Minister of India on 16 March 2012, this was the 7th

budget of his career. These budgetary proposals would be applicable from

financial year 1 April 2012 to 31 March 2013.

The Union Budget of India for 2013–2014 was presented by P.

Chidambaram on 28 February 2013. The Interim Union Budget for 2014–2015

was presented on February 17, 2014.

The Union Budget of India for 2014–2015 was presented by Arun Jaitley on 10

July 2014.

The Union Budget of India for 2015–2016 was presented by Arun Jaitley on 28

February 2015.

The   Union Budget of India : also referred to as the Annual financial

statement in the Article 112 of the Constitution of India, is the annual budget

of the Republic of India. It is presented each year on the last working day of

February by the Finance Minister of India in Parliament. The budget, which is

presented by means of the financial bill and the Appropriation bill, has to be

passed by the Houses before it can come into effect on April 1, the start of

India's financial year.

An Interim Budget is not the same as a 'Vote on Account'. While a 'Vote on

Account' deals only with the expenditure side of the government's budget, an

Interim Budget is a complete set of accounts, including both expenditure and

receipts. An Interim Budget gives the complete financial statement, very

similar to a full Budget.

Main Elements of budget are:

It is a statement of estimates of government Receipts and

Expenditure.

Budget estimates pertain to a fixed period generally a year.

Expenditure and sources of planned in accordance with the

objectives of government.

It requires to be approved passed, by parliament or Assembly or

some other authority before its implementation.

The various objectives of Government budget are:

Reallocation of resources: Through the budgetary policy

Government aims to relocate resources in accordance with the

economic (Profit maximization) and social (Public welfare) of

country.

Reducing inequalities in income and wealth: Economic inequality is an inherent part of every economic

system. Government aims to reduce such inequalities of income

and wealth, through its budgetary policy. Government aims to

influence distribution of income by income by imposing taxes

on the Rich and spending more on welfare of the Poor.

Economics stability: Government budget is used to

prevent business Fluctuations of inflation or deflation to achieve

the objectives of economics-stability. The government aims to

control the different phases of business fluctuations through its

budgetary policy.

Management of public Enterprises: There are large

numbers of public sector industries which are established and

managed for social welfare of the public. Budget is prepared

with the objective of making various provisions for managing

such enterprises and providing those financial help.

Economic growth: The growth rate of a country depends on

rate of saving and investment. For this purpose, budgetary aims

to mobilize sufficient resources for investment in the public

sector the government makes various provisions in the budget to

raise overall rate of saving and investment in the economy.

Introduction of Budget 2015

Finance Minister Shri Arun Jaitley presenting the general budget for year

2015-2016 in Lok Sabha on 25 February 2015.He said that the Indian

Economy has turned around in the last nine month with the Real GDP growth

expected to accelerate to 7.4% making India the fastest growing large economy

in world. Macroeconomic stability has been restored and conditions have been

creation for sustainable poverty elimination, job creation durable double digit

economic growth.

Three key achievement:

Financial Inclusion- 12.5crores families financial mainstreamed

in 100 days.

Transparent coal blocks auctions to augment resources of the

states.

Swachh Bharat is not only a programme to improve hygiene

and cleanliness but has become a movement to regenerate India.

Games changing reforms on the anvil.

Good and service tax(GST)

Jan Dhan, Aadhar and Mobile (JAM) for direct benefit

transfer.

STATE OF ECONOMY

Inflation Inflation declined - a structural shift

CPI inflation projected at 5% by the end of the year, consequently,

easing of monetary policy.

Monetary Policy Framework Agreement with RBI, to keep inflation

below 6%.

GDP growth in 2015-16, projected to be between 8 to 8.5%.

Vision for “Team India” led by PM

Housing for all - 2 crore houses in Urban areas and 4 crore houses in

Rural areas.

Basic facility of 24x7 powers, clean drinking water, a toilet and road

connectivity.

At least one member has access to means for livelihood.

Substantial reduction in poverty.

Electrification of the remaining 20,000 villages including off-grid

Solar Power- by 2020.

Connecting each of the 1, 78,000 un-connected habitation.

Providing medical services in each village and city.

Ensure a Senior Secondary School within 5 km reach of every child,

while improving quality of education and learning outcomes.

To strengthen rural economy - increase irrigated area, improve the

efficiency of existing irrigation systems, and ensure value addition and

reasonable price for farm produce.

Ensure communication connectivity to all villages.

To make India, the manufacturing hub of the World through Skill India

and the Make in India Programmes.

Encourage and grow the spirit of entrepreneurship - to turn youth into

job creators.

Development of Eastern and North Eastern regions on par with the

rest of the country.

Major Challenges Ahead

Five major challenges: Agricultural income under stress, increasing

investment in

Infrastructure, decline in manufacturing, resource crunch in view of

higher devolution

In Taxes to states, maintaining fiscal discipline.

To meet these challenges public sector needs to step in to catalyse

investment, make in India programme to create jobs in manufacturing,

continue support to programmes

With important national priorities such as agriculture, education, health,

MGNREGA,

Rural infrastructure including roads.

Challenge of maintaining fiscal deficit of 4.1% of GDP met in 2014-15,

despite lower

Nominal GDP growth due to lower inflation and consequent sub-dued

tax buoyancy

Agriculture Major steps take to address the two major factors critical to agricultural

production,

That of soil and water.

‘Paramparagat Krishi Vikas Yojana’ to be fully supported.

‘Pradhanmantri Gram Sinchai Yojana’ to provide ‘Per Drop More

Crop’.

`5,300 crore to support micro-irrigation, watershed development and

the ‘Pradhan

Mantri Krishi Sinchai Yojana’. States urged to chip in.

`25,000 crore in 2015-16 to the corpus of Rural Infrastructure

Development Fund

(RIDF) set up in NABARD; `15,000 crore for Long Term Rural

Credit Fund; `45,000

Crore for Short Term Co-operative Rural Credit Refinance Fund; and

`15,000 crore

For Short Term RRB Refinance Fund.

Target of `8.5 lakh crore of agricultural credit during the year 2015-

16.

Focus on improving the quality and effectiveness of activities under

MGNREGA.

Need to create a National Agriculture Market for the benefit farmers,

which will also

Have the incidental benefit of moderating price rises. Government to

work with the

States, in NITI, for the creation of a Unified National Agriculture

Market.

Infrastructure Sharp increase in outlays of roads and railways. Capital expenditure of

public sector

Units to also go up.

National Investment and Infrastructure Fund (NIIF), to be established

with an annual

Flow of `20,000 Crores to it.

Tax free infrastructure bonds for the projects in the rail, road and

irrigation sectors.

PPP mode of infrastructure development to be revisited and revitalised

(SETU) Self-Employment and Talent Utilization) to be established as

Techno-financial, incubation and facilitation programme to support all

aspects of start-up business`1000crore to be set aside as initial amount

in NITI.

5 new Ultra Mega Power Projects, each of 4000 MW, in the Plug-and-

Play mode.

Skill India Less than 5% of our potential work force gets formal skill training to

be employable.

A national skill mission to consolidate skill initiatives spread across

several ministries to be launched.

Deen Dayal Upadhyay Gramin Kaushal Yojana to enhance the

employability of rural youth.

A Committee for 100th birth celebration of Shri Deen Dayalji

Upadhyay to be announced soon.

A student Financial Aid Authority to administer and monitor the front-

end all scholarship as well Educational Loan Schemes, through the

Pradhan Mantri Vidya Lakshmi Karyakram.

An IIT to be set up in Karnataka and Indian School of Mines, Dhanbad

to be upgraded in to a full-fledged IIT.

New All India Institute of Medical Science (AIIMS) to be set up in

J&K, Punjab,

Tamil Nadu, Himachal Pradesh and Assam. Another AIIMS like

institutions to be set

Up in Bihar.

A post graduate institute of Horticulture Research & Education is to be

set up in Amritsar.

3 new National Institute of Pharmaceuticals Education and Research in

Maharashtra,

Rajasthan & Chhattisgarh and one institute of Science and Education

Research are to be set up in Nagaland & Orissa each.

An autonomous Bank Board Bureau to be set up to improve the

governance of public

Sector bank.

Inspire of large increase in devolution to state sufficient fund allocated

to education, health, rural development, housing, urban development,

women and child development, water resources & cleaning of Ganga.

Green India Target of renewable energy capacity revised to 175000 MW till 2022,

comprising

100000 MW Solar, 60000 MW Wind, 10000 MW Biomass and 5000

MW Small

Hydro.

A need for procurement law to contain malfeasance in public

procurement.

Proposal to introduce a public Contracts (resolution of disputes) Bill to

streamline the

Institutional arrangements for resolution of such disputes.

Proposal to introduce a regulatory reform Bill that will bring about a

cogency of approach across various sectors of infrastructure.

Investment

Foreign investments in Alternate Investment Funds to be allowed.

A project development company to facilitate setting up manufacturing

hubs in CMLV countries, namely, Cambodia, Myanmar, Laos and

Vietnam.

Distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments to be done away with. Replacement with composite caps.

TAX PROPOSAL

Objective of stable taxation policy and a non-adversarial tax

administration.

Fight against the scourge of black money to be taken forward.

Efforts on various fronts to implement GST from next year.

No change in rate of personal income tax.

Proposal to reduce corporate tax from 30% to 25% over the next four

years, starting

From next financial year.

Rationalisation and removal of various tax exemptions and incentives

to reduce tax

Disputes and improve administration.

Exemption to individual tax payers to continue to facilitate savings.

Broad themes : Measures to curb black money;

Job creation through revival of growth and investment and promotion

of domestic

Manufacturing – “Make in India”;

Improve ease of doing business - Minimum Government and

maximum

Governance;

Improve quality of life and public health – Swachh Bharat;

Benefit to middle class tax-payers; and

Stand alone proposals to maximise benefit to the economy.

Swachh Bharat 100% deduction for contributions, other than by way of CSR

contribution, to Swachh

Bharat Kosh and Clean Ganga Fund.

Clean energy cess increased from `100 to `200 per metric tonne of

coal, etc. to

Finance clean environment initiatives.

Excise duty on sacks and bags of polymers of ethylene other than for

industrial use

Increased from 12% to 15%.

Enabling provision to levy Swachh Bharat cess at a rate of 2% or less

on all or certain

Services, if need arises.

Services by common affluent treatment plant exempt from Service-tax.

Concessions on custom and excise duty available to electrically

operated vehicles and

Hybrid vehicles extended up to 31.03.2016.

Entrepreneurship/Make in India Job seekers to Job creators. Swach Bharat, Soil Testing, Tourism etc create

opportunities. 10,000 Crore fund for Tech start ups.

New bank for SME’s. Electronic Trade receivables discounting system. Tariff rationalization. Raw material and Intermediates made cheaper. Fully finished imports costlier.

Social Security

Creating a Social security Net. Encouraging Pension plans. Government contributes 50% of premium (Atal

Pension plans). Low cost Life and Health Insurance products (JAM). Direct Cash Transfers. Autonomy for beneficiary. Low transaction costs and low losses. 1 Crore to 10.5 Crore. Skill Enhancement. National Skills Mission. Skills integrated into

schools from XI. Linked to Make in India.

Benefits to middle class tax-payers

Limit of deduction of health insurance premium increased from `15000

to ` 25000,

For senior citizens limit increased from `20000 to `30000.

Senior citizens above the age of 80 years, who are not covered by

health insurance, to

Be allowed deduction of ` 30000 towards medical expenditures.

Deduction limit of ` 60000 with respect to specified decease of serious

nature enhanced to ` 80000 in case of senior citizen.

Additional deduction of `25000 allowed for differently abled persons.

Limit on deduction on account of contribution to a pension fund and

the new pension

Scheme increased from ` 1 lakh to `1.5 lakh.

Additional deduction of ` 50000 for contribution to the new pension

scheme u/s 80CCD.

Payments to the beneficiaries including interest payment on deposit in

Sukanya Samriddhi scheme to be fully exempt.

Service-tax exemption on Varishtha Bima Yojana.

16%

13%

6%

6%

5%5%4%

40%

1% 1%3%

Chart TitleEduction Public worksDefense Inter and local govtSocial welfare HealthAgriculture Other Judiciary EnvironmentTransportation and communication

Reven

e Rece

ipts

Capita

l Rece

ipts

Total

Receipts

Non-plan Ex

piditures

Plan Ex

penditu

re

Total

Exp

enditu

re

Reven

e Defi

cit

Effecti

ve Reve

nue Defi

cit

Fiscal

Deficit

Primary

Deficit

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2013-14(actuals)2014-15(Budget Estimates)2014-15(Revised Esimates)2015-16 Budget Estimates)

ANALYSIS OF BUDGET 2015

Centre for budget and governance accountability carries out an in

depth analysis of the union budget and brings out such a publication

within 24 hours of the presentation of the budget in parliament in every

year.

The main purpose of this publication is to facilitate an informed

discussion on the union budget, particularly around the sectors and

issues relevant for the poor and vulnerable sections of the population.

The Union budget which is published in the year 2015-2016 in

Parliament mainly focus on social sectors such as education ,health,

drinking water, and sanitation ,food, security etc.

The responsiveness of the budget towards the vulnerable sections of

the population such as women, children, Dalits, ,religious minorities,

persons with disabilities and urban poor

The taxation policy is also adopted in this budget.

It also discussed the main important issues such as the outlays for

promoting renewable energy, the proposals relating to black money

and the need for stronger policy measures for transparency and

accountability in the domain of government budgets in India

The recommendations of the 14th commission are trying to facilitate a

clear understanding of the changes in the federal fiscal architecture

in the country which would be taking place in 2015 2016 pertaining to

centre state sharing of resources and restructuring of central schemes

The comparative of 2014- 2015 and 2015- 2016

On July 10th 2014 the finance minister Arun Jaitley presented 2014

2015 budget and he presented 2015 2016 budget on 28 February 2015.

In 2014 2015 budget the income tax exemption limit was raised last

year by 50000 to RS 2.5 lakh and for senior citizens to RS 3 lakh.

In 2015 2016 budget the total year exemption is of up to RS 4,44,2000

Crores.

Investment exemption limit in 2014 2015 budget is RS 1.5lakh from

RS 1 lakh

In 2015-2016 additional 2% surcharge for the super rich with the

income of more than s 1 crore.

In 2014- 2015 the investment limit in puff raised to RS 1.5 lakh from 1

lakh

In 2015- 2016 service tax increased to 14% from the current

In 2014- 2015 RS 150 crore was allocated for increasing safety of

women in large cities.

In 2015- 2016 RS 150 crore is allocated this time for research and

development .nit to be established an involvement of entrepreneurs,

researchers to forester scientific innovations.

LCD, led, TV become cheaper last year.

The government has proposed to set up 5 ultra mega power projects

each of 4,000 mw in 2015- 2016.

Government last year projected revenue generation form taxes of RS

9.77 lakh crore

50000 toilets will be constructed under the Swachh bharat abhiyan.

Two new programs will be introduced GST and JAM trinity. GST will

be implemented by April 2016.

Last year RS 2.037 crore was set aside for integrated Ganga

conservation .the mission was named as “namami ganga”.

Mudra bank refinance micro finance orgs to encourage first generation

sc/st entrepreneurs last year the FDI limit to be hiked at 49 pc in

defense, insurance.

This year the up gradation of 80000 secondary and senior secondary

schools.

Last year it was declared that the government will provide RS 500

crore for the rehabilitation of displaced Kashmiri citizens.

This year RS 5000 crore additional allocation for Manraga. The

government will create a universal security system for all Indians.

It was declared that IIM’s will be opened in Himachal Pradesh,

Punjab, Bihar, odisha and Rajasthan last year.

This year the IIM”s will be opened in Jammu and Kashmir and Andhra

Pradesh Indian institute of mines situated in Dhanbad will be upgraded

to IIT.

Last year RS 100 crore schemes to support 600 new and existing

community radio stations.

This year there well be visa on arrival for 150 countries.

Rail Budget 2014-15 Rail Budget 2015-16

Was presented by, the then Railway Minister Sadananda Gouda on July 8, 2014

Was presented by Suresh Parch the current Railway Minister on February 26, 2015

This was the first Rail Budget presented by any Bhatia Junta Party (BJP) Minister and it was also the first rail budget introduced by Saraland Gouda

This was the maiden budget presented by the current Rail Minister Suresh Prabhu

It was promised that new escalators, toilets and seats will be built on all stations across India

This time it has been promised that 17,000 toilets will be replaced by bio-toilets primarily stressing on the concept of CLEAN RAILWAYS

It was assured last year that food courts,

water facilities and a separate

housekeeping wing will be introduced

at 50 important stations.

This year it has been

promised that the Indian

Railways have allotted 67%

more funds for passenger

amenities like water

facilities; more general class

coaches will be added to

select trains. The Railway

Minister this has again

promised that a separate

department will be created to

take care of cleanliness.

It was declared last year that new

CCTV's will be installed to monitor

cleanliness activities and security

issues.

This budget a 24*7 helpline

will be launched with effect

from March 1, 2015 to deal

with the grievances of the

people, pertaining to train

reservations and delay issues.

It was also promised that 4000 women

constables will be recruited to ensure

safety of women and nearly 17,000

Railway Protection Force (RPF)

constables to provide safety to

passengers.

This year it has been assured

new jobs will be created for

the masses as the predicted

total investment is of 850,000

crore for over the next 5

years.

Last year it was assured that the E-

ticketing system will be improved to

support 7,200 tickets per minute and to

create a platform for 1,20,000

simultaneous users.

The Minister assured that the total track capacity will be boosted by 14% to 1, 38,000 kilometers.

CONCULSION OF BUDGET 2015-2016

In this budget there are so many changes which are improved more

before than that.

In railway budget they have raised the price of the tickets which so

many people can’t afford that so it is a minus point and plus point is

that the booking of tickets timing is made up to 120 days so we can

book our tickets in advance also.

So in this the women safety fund is not given so we think it is necessary

to have women safety fund.

Reference:-

www.ibtimes.co.in www.bankingawareness.com www.thehindu.com www.indianbudget.in www.picnic.in/budget