Presentation1 Pptonbudget 130128052251 Phpapp02
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Transcript of Presentation1 Pptonbudget 130128052251 Phpapp02
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MEANING OF BUDGET BUDGET (FROM FRENCH WORD BOUGETTE, PURSE) GENERALLY REFERS TO A LIST OF ALL PLANNED EXPENSES AND REVENUES. ...AN ANNUAL PROPOSAL THAT OUTLINES THE ANTICIPATED FEDERAL REVENUE AND DESIGNATES PROGRAM EXPENDITURES FOR THE UPCOMING FISCAL YEAR.
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DEFINITIONSTAYLOR A BUDGET IS THE MASTER FINANCIAL PLAN OF THE GOVERNMENT. IT BRINGS TOGETHER ESTIMATES OF ANTICIPATED REVENUE AND PROPOSED EXPENDITURE FOR THE BUDGETED YEARS.
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According to BASTABLETHE BUDGET HAS COME TO MEAN THE FINANCIAL ARRANGEMENTS OF A GIVEN PERIOD, WITH THE USUAL IMPLICATIONS THAT THEY HAVE BEEN SUBMITTED TO THE LEGISLATURE FOR APPROVAL
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According to FINDLAY SHIRRASTHE BUDGET IS AN ANNUAL STATEMENT OF EXPENDITURE AND REVENUE TO MEET THAT EXPENDITURE PREPARED BY PUBLIC AUTHORITIES AND USUALLY COVERS ATLEAST TWO FISCAL PERIODS-THE CLOSING PERIOD AND THE PERIOD TO COME .
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IN THE WORDS OF MUNROBUDGET IS A PLAN OF FINANCING FOR THE INCOMING FISCAL YEAR.THIS INVOLVES AN ITEMISED ESTIMATE OF ALL REVENUES ON THE ONE HAND AND ALL EXPENDITURES ON THE OTHER
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A SUMMARY OF THE ABOVE DEFINITIONSON THE BASIS OF THE DEFINITIONS WE CAN STATE THAT A BUDGET IS :
A statement of expected revenue and proposed expenditure;It has to sanctioned by the authority;It is for a particular period-a year;It puts forth conditions regarding the procedures involved in the collection of revenue and the expenditure to be incurred.
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MEANING OF BUDGETHENCE A BUDGET IS A STATEMENT OF THE ESTIMATED REVENUE AND EXPENDITURE OF THE GOVERNMENT IN RESPECT TO A PARTICULAR FINANCIAL YEAR.
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IMPORTANCE OF BUDGETIt sets a frame work for policy formulationBudgeting is a means of policy implementationA budget is a means of legal controlIt is a tool of accountabilityIt is a tool of managementIt is an instrument of economic policy
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BUDGET IS CONCERNED WITH THREE PERIODSTHE ACTUAL REVENUE AND EXPENDITURE OF THE PREVIOUS YEAR [if the current year is 2009-10 then 2008-09 will be the preious year]THE REVISED ESTIMATES OF REVENUE AND EXPENDITURE OF THE CURRENT YEAR.ESTIMATES OF REVENUE AND EXPENDITURE FOR THE NEXT FINANCIAL YEAR.
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COMPONENTS OF BUDGETRevenue receiptsCapital receiptsRevenue expenditureCapital expenditure
THUS A BUDGET HAS TWO MAIN COMPONENTS :[A] RECEIPTS ,[B] EXPENDITURE.
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COMPONERNTS OF BUDGETRECEIPTSA. REVENUE RECEIPTS [1+2 ] 1. TAX REVENUE 2. NON TAX REVENUEB. CAPITAL RECEIPTS [3+5] 3.RECOVERY LOANS 4.OTHER RECEIPTS 5.BORROWING & OTHER LIABILITIESTOTAL RECEIPTS = A+B
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A.REVENUE RECEIPTSD.REVENUE EXPEND.A.1.TAX REVENUE6.ON NON PLAN ACC.2.NONTAX REV7.ON PLAN ACCOUNTB.CAPITAL RECEIPTS.[3+4+5]E.CAPITAL EXP.[8+9]3.RECOVERY OF LOAN8.ON NON PLAN ACC.4.OTHERB RECEIPTS 9.ON PLAN ACCOUNT5.BORROWINGS ANDOTHER LIABILITIESF.TOTAL EXP.[D+E] G.BUDGE.DEFI-F-CH.REV. DEFI D-AC.TOTAL RECEIPTS-A+BI.FISCAL DEFICIT[F_(A+3+4)]
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EXPENDITUREEXPENDITUREA. REVENUE EXPENDITURE [1+2] 1 ON PLAN ACCOUNT 2 ON NON PLAN ACCOUNTB.CAPITAL EXPENDITURE
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RECEIPT ITEMS OF THE BUDGET
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REVENUE RECEIPTS
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TAX REVENUETAX REVENUE INCLUDES ALL THE REVENUES EARNED THROUGH VARIOUS KINDS OF TAXES.TAXES ARE BROADLY DIVIDED INTO DIRECT & INDIRECT TAXES.
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DIRECT TAXESCORPORATION TAXINCOME TAXINTEREST TAXWEALTH TAXGIFT TAXEXPENDITURE TAX
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INDIRECT TAXCUSTOM DUTIESEXCISE DUTIESSALES TAXSERVICE TAX
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NON TAX REVENUEIT INCLUDES THE REVENUE ACCRUING TO THE GOVERNMENT FROM SOURCES OTHER THAN TAX.THESE ARE ;
INTEREST RECEIPTSDIVIDENDSGRANTSFINES
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CAPITAL RECEIPTSTHESE INCLUDE BORROWING OF THE GOVERNMENT.SINCE THESE RECEIPTS HAVE TO BE REPAID BY THE GOVERNMENT ,THE CAPITAL RECEIPTS ARE LIABILITIES.CAPITAL RECEIPTS INCLUDE PUBLIC BORROWING ,RECIVERY OF LOANS AND RESALE OF SHARES AND BONDS HELD BY THE GOVERNMENT.
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EXPENDITURE ITEMS
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REVENUE EXPENDITUREIT IS THE EXPENDITURE INCURRED FOR THE DAY-TO-DAY FUNCTIONONG OF THE GOVERNMENT DEPARTMENTS AND VARIOUS SERVICES OFFERED TO THE PEOPLE, PAYMENT OF INTEREST ON BORROWINGS,SUBSIDIES ETC.REVENUE EXPENDITURE WILL NOT RESULT IN THE CREATION OF ASSETS
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REVENUE EXPENDITUREIT IS THE EXPENDITURE INCURRED FOR THE DAY-TO-DAY FUNCTIONONG OF THE GOVERNMENT DEPARTMENTS AND VARIOUS SERVICES OFFERED TO THE PEOPLE, PAYMENT OF INTEREST ON BORROWINGS,SUBSIDIES ETC.REVENUE EXPENDITURE WILL NOT RESULT IN THE CREATION OF ASSETS
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CAPITAL EXPENDITURECAPITAL EXPENDITURE IS THE EXPENDITURE INCURRED ON CREATING PERMANENT ASSETS.SUCH EXPENDITURE IS INCURRED ON ITEMS LIKE CONSTRUCTION OF BUILDINGS,ROADS,BRIDGES,CANALS,POWER PLANTS,CAPITAL EQUIPMENTS
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REVENUE RECEIPTSTHE REVENUE RECEIPTS REFER TO ALL RECEIPTS RECEIVED DURING BY THE GOVERNMENT FRM
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TaxationMeaning : Non quid pro quo transfer of private income to public coffers by means of taxes.Classified into
1. Direct taxes- Corporate tax, Div. Distribution Tax, Personal Income Tax, Fringe Benefit taxes, Banking Cash Transaction Tax2. Indirect taxes- Central Sales Tax, Customs, Service Tax, excise duty.
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Government ExpenditureIt includes :Government spending on the purchase of goods & services.Payment of wages and salaries of government servantsPublic investmentTransfer payments
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EXPENDITURE HEADS- 2009-10 BUDGET
Chart1
18
20
13
9
14
15
4
7
RUPEE GOES TO
Sheet1
b
20
13
9
14
15
4
7
Sheet2
CENTRAL PLAN18
INTEREST PAYMENTS20
DEFENCE13
SUBSIDIES9
OTHER NON-PLAN EXPEN14
STATES' SHARE OF TAXES15
NON-PLAN ASSIST. TO STA4
PLAN ASSISTANCE TO STA7
Sheet2
RUPEE GOES TO
Sheet3
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RECEIPTS OF 2009-10 BUDGET
Chart3
29
22
12
10
10
6
10
1
Where does the Rupee come from
Chart1
1
29 22 12 10 10 6 10
RUPEE COMES FROM
Sheet1
BORROWINGS & OTHER LIABILITIES29
CORPORATION TAX22
INCOME TAX12
CUSTOMS10
EXCISE10
OTHER TAXES6
NON-TAX REVENUE10
NON-DEBT CAPITAL1
Sheet1
Where does the Rupee come from
Sheet2
Sheet3
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RUPEE COMES FROM2009-10
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RUPEE GOES TO
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TOTAL RECEIPTS
*
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TOTAL EXPENDITURE
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BUDGET OF 2011-12
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CUSTOMS DUTY
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DIRECT TAXES
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FISCAL DEFICIT
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*