DOON BUSINESS SCHOOL

BUDGET 2010-11
 BUDGET
 A Budget is a list of all planned expenses and
revenues. It is a plan for saving and spending.
 In other terms, a budget is an organizational plan
stated in monetary terms.
 THE MECHANICS OF BUDGET

All about India’s Largest Economic Decision

Making Exercise.
 STARTING THE PROCESS

 The Budget division of the economic affairs

department issues a circular to all ministers,
states and UTs, autonomous bodies and the
defence forces for preparing revised estimates for
the current financial year and the budget
estimates for the next financial year.
THE BUDGET TEAM
 Department of expenditure.
 Department of economic affairs.
 Department of Revenue.
INPUTS COMES FROM
 The planning Commission
 The Comptroller & Auditor General
 Administrative Ministers
 Other stakeholders.
CONSULTATION
 A final call on tax proposal is taken by the
finance minister, in consultation with the PM.
 PASSING THE BUDGET
 Presentation
 Discussion
 Voting
 PRESENTATION
 The Finance Minister presents the budget in Lok
Sabha on the last working day of Feb.
 The Budget speech has two parts:
Part A : Deals with general economic
survey & policy statements.
Part B : Contains taxation proposals.
 DISCUSSION
 A Few days after the budget is presented, the Lok
Sabha discusses the Budget as whole.
 The FM makes a reply at the end of discussion.
 VOTING
 The Standing Committee reports are presented to
the house, which discusses & votes on demands for
grants.
 The speaker puts all the outstanding demands to
the vote of the house. This device is called
“guillotine”.
 After the general discussion & voting on demands
for grants, the govt introduces the appropriation
bill.
SECURITY TRIVIA
 CHALLENGES OF BUDGET 2010-2011
 To quickly revert to the high GDP growth path of
9% and than find the means to cross “Double
Digit growth Barrier”.
 To harness economic growth to consolidate the
recent gains in making development more
inclusive.
 To address the weakness in govt system.
OVERVIEW OF THE ECONOMY
 Respond to the negative fallout of the global
slowdown.
 The GDP for 2009-10 pegged at 7.2%.
 The growth rate in manufacturing sector in
December 2009 was 18.5% - the highest in the past
two decades.
 A major concern during the second half of 2009-10
has been the emergence of double digit food
inflation.
CONSOLIDATION GROWTH
 Fiscal Consolidation
 Tax Reforms
 People’s ownership of PSUs
 Fertilizer Subsidy
 Petroleum and Diesel pricing policy
 IMPROVING INVESTMENT ENVIRONMENT

 FDI
 Financial Stability and Development Council
 Banking Licenses
 Public Sector Bank Capitalization
 Recapitalization of Regional Rural Banks
 Corporate Governance
EXPORTS
 Handicrafts
 Carpets
 Handlooms
AGRICULTURE GROWTH
 Agricultural Production
 Reduction in Wastage of Produce
 Credit Support to Farmers
 Impetus to the food processing sector
 INFRASTRUCTURE
 The inputs for the development of infrastructure
should be there.
 Allocation for Road Transport should be there.
INCLUSIVE DEVELOPMENT
 Education
 Health
 Financial Inclusion
 Rural Development
 Urban Development & Housing
 Micro, Small & Medium Enterprises
UNORGANIZED SECTOR
 National Social Security Fund for Unorganized
sector Workers.
 National Skill Development Corporation.
SOCIAL WELFARE
 “Saakshar Bahrat”
 Mahila Kisan Sashaktikaran Pariyojana.
BUDGET ESTIMATES