Budget2010 ppt mba finance

BUDGET

• PRESENTED BY :-BABASAB PATIL

4/10/2013 Babasabpatilfreepptmba.com

BUDGET DEFINATION

• A budget is generally a list of all planned expenses and revenues. It is a

plan for saving and spending. A budget is an important concept in

microeconomics, which uses a budget line to illustrate the trade-offs

between two or more goods. In other terms, a budget is an organizational

plan stated in monetary terms.

• CENTRAL BUDGET: The central government budget is defined by law

as a set of financial relationships securing the funding of certain roles of the

State during the financial year. The budget consists of expected revenues

and estimated expenditure and is always prepared for the upcoming

calendar year.


Who prepares the budget?

The responsible authority is the Ministry of Finance, which works with the

designated heading administrators, local authorities and State funds. The resulting draft

law on the central government budget is submitted by the Ministry of Finance to the

Government for approval; the Government then submits this bill to the Chamber of

Deputies.

Purpose of Budget:

1) Provide a forecast of revenues and expenditures i.e. construct a model of how our

business might perform financially speaking if certain strategies, events and plans are

carried out.

2) Enable the actual financial operation of the business to be measured against the forecast


Direct taxes

These are the taxes that are levied on the income of individuals or organizations. Income tax, corporate tax, inheritance tax are some examples of direct taxation

Income tax is the tax levied on individual income from various sources like salaries, investments, interest etc.

Indirect Taxes

These are the taxes paid by the consumer when they buy goods and services. These include excise and custom duties.


Implementation of budget

on various sectors


Hospitality

The budgetary impact on hospitality was not understood

clearly by many until much later. Budget 2010-11 gives a tax

deduction for new two-star hotels that are to be opened on or

after April 1, 2010. The deduction under Section 35AD of the

Income Tax Act will be up to 100 percent of the capital

expenditure (other than investing in financial instruments,

land, and goodwill ) incurred for the purpose of building and

operating a new hotel of two-star or higher category.


Banking

The budget impact on the banking sector has been

manifold. Capitalization of public sector banks, Reserve Bank

of India (RBI) to permit new private sector banks, conversion

of some non-banking financial companies (NBFCs) into

banks, debt wavier and debt relief scheme for farmers, and

extension of deadline for repayment of loans by six more

months from December 31, 2009 to June 30, 2010.


Infrastructure The increased budgetary allocation for roads and rural

infrastructure will give additional opportunities for construction service providers and infrastructure developers. The budget has reiterated the plan of constructing 20 km of roads a day to improve the connectivity to rural areas. The budget has also tied up funding for these projects via tax deductions on investments in infrastructure bonds.

This budgetary push should bring this sector back into focus in the stock markets. Overall, the budget is positive for construction service providers and neutral for infrastructure developers due to the increase in MAT to 18 percent.


Cement Industry

The cement industry, especially asbestos cement

manufacturers, could benefit from the rural housing impetus in

the budget. Acceleration in urban housing and construction,

and other infrastructure-related activity under the Jawaharlal

Nehru National Urban Renewal Mission (JNNURM) and

National Rural Employment Guarantee Act (NREGA) will

revive demand for various cement products, which is

experiencing excellent demand from the rural markets.


Power

Budget 2010-11 has met one of the key demands of the

sector - extension of excise duty exemption on supplies made

to mega power projects irrespective of type of bidding.

Thermal power plants with a generation capacity of over 1,000

MW and hydel power plants with a capacity of more than 500

MW are defined as mega power projects.


Agriculture

• Rs. 400 crore provided to extend the green revolution to the

eastern region of the country comprising Bihar, Chattisgarh,

Jharkhand, Eastern UP, West Bengal and Orissa.

•Rs. 300 crore provided to organise 60,000 “pulses and oil seed

villages” in rain-fed areas during 2010-11 and provide an

integrated intervention for water harvesting, watershed

management and soil health, to enhance the productivity of the

dry land farming areas.

•Credit support to farmers

•Banks have been consistently meeting the targets set for

agriculture credit flow in the past few years. For the year 2010-

11, the target has been set at Rs.3,75,000 crore.


Energy

• Plan allocation for power sector excluding

RGGVY doubled from Rs.2230 crore in 2009-10 to

Rs.5,130 crore in 2010-11.

• Plan outlay for the Ministry of New and

Renewable Energy increased by 61 percent from

Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-

11.

•Solar, small hydro and micro power projects at a

cost of about Rs.500 crore to be set up in

Ladakh region of Jammu and Kashmir.


Education

Plan allocation for school education

increased by 16 per cent from Rs.26,800 crore

in 2009-10 to Rs.31,036 crore in 2010-11

• For higher studies government has provided

less interest education loan i.e. 4% for girls

and 6% for boys.


Social welfare

• Plan outlay for Women and Child Development stepped up by

almost 50 per cent.

“Saakshar Bharat” to further improve female literacy rate

launched with a target of 7 crore non-literate adults which

includes 6 crore women.

• Mahila Kisan Sashaktikaran Pariyojana to meet the specific

needs of women farmers to be launched with a provision of Rs

100 crore as a sub-component of the National Rural

Livelihood Mission.


Sector-Wise Expectations Automobile Sector:


Cement Sector:


Capital Goods, Defense and Engineering:


FMCG Sector:


Education and Media:


CONCLUSION

Finally we can conclude that, This 2010-11

budget is boon for individuals. And corporate

sectors. There are some barriers and problems.

But still it is the best for this year.


THANK YOU
