By:

Akash, Harvinder, Aishwarya, Guruprasad P, Nutan, Ankita, Mabhuri.

UNION BUDGET
2008
What is budget?

 A budget is the statement of the

government’s estimated incomes and
expenditures for a period of one financial
year.
 The budget of Indian government
divided into two parts:
 Revenue budget: revenue budget is a statement
of the government’s estimated revenue receipts
and revenue expenditure for a period of one
financial year.
 Capital budget: capital budget is a statement of
the government’s capital receipts and long
period capital expenditure.
Union budget 2008

 Shri chidambarm, union finance minister,

presented UPA govt. budget for the year
2008-2009 to the loka-sabha on 29-02-2008
and it is approved by both the houses of
parliament. This was the fifth budget focusing
on growth of GDP.
Quoting swami Vivekananda, shri
Chidambaram “we reap what we sow, we are
the makers of our own fate,”
said that the budget has kept in mind
fundamental principal “to grow we must
develop, presently 9% to 10%GDP.
Budget at a glance

 Revenue receipts 6,02,935

 Revenue expenditure 6,58,119
 Fiscal deficit 1,33,287cr
 Revenue deficit 55,184
 Revenue deficit is 1.4%of GDP.
 Fiscal deficit is 3.1% of GDP.
Defence expenditure

 In 2007-2008 the expenditure on defence

was 96000cr.which was increased by
1,05,600cr in 2008-2009.
The budget contained the following tax
proposals:

 Direct tax: no changes in personal income tax

rate and corporate taxes.3% of the total
population pay direct tax. the total cash
collection is 12% of GDP.
Indirect taxes: the budget has continued the
process of rationalization of central excise and
customs. Mr. Chidambaram proposed a cut in
custom duty on project import from 7.5% to 5%.
Service tax: proposed to increase service taxes
revenue by bringing in services companies like
stock and commodity exchange and customized
software maker under the levy.
Indirect taxes:

The budget has continued the process of

rationalization of central excise and customs.
Mr. Chidambaram proposed a cut in custom
duty on project import from 7.5% to 5%.
He also withdraw duty on steel melting scrap
and aluminum scrap from the current 5% to
“improve the supply of raw material”.
Life saving drugs and bulk drugs used for
manufacture of such drug will attract lower
custom duty.
Cut custom duty on set-top-boxes, specified
machinery and raw material for sports good.
Excise duty on small car, two, three wheelers,
buses and their chassis will come down to 12%
from 16%.while in case of hybrid cars the duty
will be lowered to 14% from 24%.
However, in the software segment excise duty
on packaged software will raised to 12% from
8%.
He also cut excise duty to 8% from current
16%on water purification devices, packaging
material and breakfast cereals.
Service tax:

 Mr. Chidambaram proposed to increase service

taxes revenue by bringing in services
companies like stock and commodity exchange
and customized software maker under the levy.
 Right to use goods, in case where VAT is not
payable, those would also come under the
services tax net.
 Providing relief to small services provider." as a
result 65000 small services provider will go out
of the tax net”.
Income tax:

 The person whose annual income is 1,50,000

will not pay tax.
1,50,000 – 3,00,000 = 10%
3,00,000 – 5,00,000 = 20%
5,00,000 – and above = 30%
 The women whose annual income is 1,80,00 will
not pay tax.
1,80,000 – 3,00,000 = 10%
3,00,000 – 5,00,000 = 20%
5,00,000 – and above = 30%
 For senior citizen whose annual income is
2,25,000 will not pay tax.
2,25,000 – 3,00,000 = 10%
3,00,000 – 5,00,000 = 20%
5,00,000 – and above = 30%
Other important items in the budget:

 Allocation of Rajiv Gandhi drinking water

mission to be increased from 5850cr to7300cr.
 Total sanitation campaign increased from
954cr to 1200cr.
 Provision for aids control program by 993cr.
 Growth in agriculture from 2.2% to 4%.
 26 Navodaya Vidyalaya are opened in
backward region.
 Mid-day meals provided Rs 8,000cr.
 50cr for the tiger protection force.
 624cr are allocated for common wealth games
 Total output of agriculture is 219.3 tones is a
record.
 75cr for film industry, art and literature etc.
 14 project are started for irrigation and water.
 3 IIT center will be opened in Bihiar, Rajasthan.
 40cr will be invested on science, research &
development.
 60000cr loans to be cleared and providing 2.5%
subsidies to small farmer.
 500 soil testing are set up in private sector.
 Allocated Rs 31280cr for bharat nirman.
 Provision for polio control program by 142cr.
 52 villages are connected with telephone and 42
villages provided electricity.
 In rural area the wages rate are increased from
Rs 1000 to Rs1500.
 Allocated Rs 34400cr for education and for sarva
shiksha Rs 13100 cr.
 1,00,000 scholarship will been given in 2008-
2009.
THANK YOU