the fiscal budget 2012-13
TRANSCRIPT
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The Fiscal BudgetBy
Hitesh I. BhatiaAssistant Professor (Economics)
Navrachana University
Vadodara, GujaratMbl - 09825484126
mailto:[email protected]:[email protected] -
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The word budget has been derived from theFrench word bougette which means a small
leather bag.
It symbolizes a bag containing the financial
proposals. This term of budget used for the annual
financial plans of government dates back to
1773.
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Definition
A budget is a master financial plan of
government.
It presents the estimates of
forthcoming revenue and
proposed expenditure of the period
simultaneously
Philip Taylor
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Every budget statement has got at least three
sets of figures:-
Actual figures for preceding year
Budget and revised figures of the current
year
Budget estimates for the following year.
Budget at a Glance
2010-2011 2011-2012 2011-2012 2012-2013Actuals Budget
Estimates RevisedEstimates BudgetEstimates
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Government Expenditure
Plan Expenditure Non-plan Expenditure
Capital
ExpenditureRevenue
Expenditure
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Plan Expenditure-
means estimated
expenditure provided
in the budget on
various programmes
less than five year
plan.
Non-Plan Expenditure-
means estimated
expenditure provided
in budget on routine
functioning of the
government. For e.g.,
subsidies, salaries,defence, etc.
Revenue Expenditure-
means the expenditure
which does not create
assets or reduce
liabilities.Its recurring
in nature.
Capital Expenditure-
means the expenditure
which creates assets
or reduces liabilities.
Its non recurring in
nature.
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2010-2011 2011-2012 2011-2012 2012-
2013Actuals
Budget
EstimatesRevised
EstimatesBudget
Estimates
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Plan & Non-Plan Expenditure
Developmental
Expenditure
Non-Developmental
Expenditure
1.Social Expenditure
Medical and Public Health
Education, Housing and
Sanitation
Social and Family Welfare
Programmes
2. Economic Expenditure
Agriculture Industry
Transportation and
Communication
Energy and Minerals
Defense
Public Administration
Police and Judiciary
Tax collection
Interest on Public Debt
Subsidies
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Government Receipts
Revenue Receipts Capital Receipts
Tax Revenue
&
Non-tax Revenue
Recovery of loans
Borrowings
Other Receipts
Interest and Receipts
Dividend and Profit
Other Monetary Receipts
Grants and Aids
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Tax Revenue
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Sources of Governments Revenue
Taxes levied by
Central Government
Personal Income
Tax
Corporation Tax
Custom Duty
Central Excise
Service Tax
Taxes levied by StateGovernments
Taxes on Income Agricultural Income Tax
Profession Tax
% share in Income Tax.
Taxes on Property Land Revenue
Estate Duty
Stamps and Registration
Fees Taxes on Commodities
Sales Tax
Excise Duties
Entertainment Tax
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Direct TaxesTaxes, whose incidence
cannot be shifted from tax
payers to other persons,
are known as Direct taxes
such as Income tax and
Wealth tax.
Sources of Direct Taxes
(i) Income tax (ii)
Corporation tax (iii)
Profession tax (iv)
Agricultural income tax (v)Wealth tax (vi) Estate Duty
(vii) Land revenue (viii)
Registration and license
fee.
Indirect Taxes
Taxes, whose incidence isshifted from tax payer to
other persons is knownas Indirect tax.
Sources of Indirect Tax
(i) Sales tax
(ii) Excise
(iii) Customs
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Budget
Balanced Budget Unbalanced budget
Surplus Budget Deficit budget
1. Revenue deficit
2. Fiscal Deficit3. Primary Deficit
4. Budgetary Defici
2012
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2010-2011 2011-2012 2011-2012 2012-
2013Actuals
Budget
EstimatesRevised
EstimatesBudget
Estimates
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Balanced Budget-total
government expenditure
and governments revenue
is equal.
Unbalanced Budget- Total
of Governments expenditure
and revenues are not equal.
Surplus Budget- Total
government receipts are
more then its expenditure.
Deficit Budget- Total
government receipts are less
then its expenditure.
Primary Deficit- it means
Fiscal deficit minus Interestpayments.
Budgetary Deficit- a state
in which total governmentexpenditure is more than
total receipts
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Fiscal Budget
When totalgovernmentsexpenditure is morethen its total receipts
(both capital andrevenue) excludingborrowings.
This shows the extent
to which governmentwill have to dependupon borrowings tomeet its expenditure.
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1. GDP is estimated to grow by 6.9% in 2011-12, after having grown at 8.4% in preceding
two years.2. Key reasons for the interruption of Indian
economy: euro zone crisis, economy,
political turmoil in Middle East and rise incrude oil price.
3. Growth moderated due to tight monetary
policy.
4. Economy is turning around as core
sectors and manufacturing show signs of
recovery.
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1. Current account deficit at 3.6% of GDPfor 2011-12.
2. Fiscal deficit for 2012-13 pegged at Rs
5,13,590 crore, which is 5.1 per cent of
GDP against 5.9% in FY 2011-12
3. Efforts to keep central subsidies under2% of GDP in 2012-13. Over next 3 year,
to be further brought down to 1.75%.
4. For 2012-13, Rs 30,000 crore to be raisedthrough disinvestment.
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Thank You
Hitesh I. Bhatia
Assistant Professor (Economics)
Navrachana University
Vadodara, GujaratMbl - 09825484126
mailto:[email protected]:[email protected]