govt budget 2015 data analysis

1. 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 proposed2015
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. Conclusionof Budget 2015-
2016
23
9. Referance 23

2. 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.

3. 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.

4. 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.

5.  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

6. 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.

7. 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:

8.  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 “TeamIndia” 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.

9.  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.

10.  MajorChallenges 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

11. 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.

13.  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.

14.  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.

15.  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.

16.  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.

17.  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.

18.  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.

19.  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.

20. 16%
13%
6%
6%
5%
5%4%
40%
1%
1%
3%
Chart Title
Eduction Public works
Defense Inter and local govt
Social welfare Health
Agriculture Other
Judiciary Environment
Transportation and communication

21. 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)

22. 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

23.  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”.

24.  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.

25. 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

26. 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.

27. 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