Wednesday October 17, 2018
Home India Demystifying ...

Demystifying the process: Budget 2016

0
//
117
Republish
Reprint

By Amit Kapoor

New Delhi: The course of fiscal policy of the government is decided by the budget, which is an important document. This year too seems to be kick started with the halwa ceremony, renowned for commencing the printing of the budget documents on February 19.

Another unique feature of this year’s budget is that some of the key officials have communicated through a series of videos that aim to demystify the budgetary process. These videos also give a flavor about the essential features of the upcoming budget to be presented by FM Jaitley on February 29.

The key officials that have spoken before the budget announcement include the finance minister, the minister of state for finance, and the revenue and the economic affairs secretaries – and all have made some crucial points relating to the budget 2016.

The finance minister, in his interactions, had mentioned the use of technology to the advantage of all taxpayers. Already some 1.4 crore people have been notified of the budget refunds through the technology platforms and their refunds have been processed through the same medium. Roughly 90 percent of the budget filings are done online, and this is where the power of technology is making the tax process smooth and efficient.

The minister of state for finance, in his interaction, has mentioned that the budget will aim to reduce poverty, provide prosperity to farmers, help in job creation for the young people of the country and provide a better quality of life to all citizens. He also expressed his belief that India will continue to be a beacon of growth and stability in a very turbulent global environment.

The economic affairs secretary tried to demystify the budget process and mentioned that it is a long-term process as opposed to the common conception. It generally starts in September with a detailed circular being issued to all the ministries. Post this, in November and December, the Department of Expenditure holds meetings with various ministries about the requirements in the current and the next years.

At the beginning of January, the Department of Revenue makes its forecasts for the current year and the next year. There are the revised estimates for the current year and the budget estimates for the next year. Post this once the revenue and expenditure proposals converge, the finance minister holds consultations with various stakeholders and proposals are concretized at the end of January. Decisions are then taken and post this followed by printing of budget documents.

The economic affairs secretary also alluded to the fiscal deficit and how the government is looking at it. He too was upbeat about India’s performance amid global turbulence and said that budget has to focus on growth as it leads to job creation and economic development.

The revenue secretary, in his interaction, mentioned taxation and the broad structure of the budget. He stated that the total tax revenue projection is Rs.14.4 lakh crore. The income tax revenue is close to about Rs.7.9 lakh crore and the indirect tax revenue is close to Rs.6.5 lakh crore.

Within the income tax, there are two components – the corporate income tax and the personal income tax. The corporate income tax is around 59 percent while the personal income tax is around 41 percent.

On the indirect side, there are three major components: excise duties, customs and service tax. Normally these are roughly the same contribution, but this year, due to the oil duty, the excise duties are close to 39 percent while the other two form the remaining indirect taxes.

The service tax structure is diversified, which is a good thing. The direct side seems as having a shortfall of about Rs.40,000 crore as corporate earnings have been low but this will be compensated by the indirect side which is buoyant. The revenue secretary also alluded to ways and means to reduce the litigation that has been seen as a perennial problem for India’s corporate sector.

In the week ahead, a lot of haze will get cleared on the issues pertaining to the budget. The new media strategy seems to be a good initiative leading up to the budget. Overall the stage is set for a historic budget. It is also hoped that the government succeeds in the balancing act when Finance Minister Arun Jaitley presents the budget in the Lok Sabha at 11 am on February 29. (IANS)

Click here for reuse options!
Copyright 2016 NewsGram

Next Story

How To Plan Your Finances Better, This Dussehra

With these 3 tips, you can conquer and rid yourself of financial demons holding you back this Dussehra

0
Financial Plans
So, read, research, understand, and then invest to reap substantial returns.

At some point of time in life, you may have created a budget, followed or earmarked investments and tried to take control of your finances. Often, even the most stringent of financial plans, fall flat because of several reasons, such as:

  • Lack of prioritizing financial security
  • Overwhelming amounts of advice
  • Unforeseen circumstances and sudden expenses

In order to streamline your finances, it is important to delve deep and understand what financial mistakes hold you back.

This Dussehra, take a look at the financial shortfalls you need to overcome, and pledge to walk the righteous path. Here’s a brief lowdown on the same.

Bid Adieu To Procrastination
Just sitting and thinking of ways to execute a financial plan is not enough. You need to stop day dreaming in order to act when the time is ripe. Experts believe that in order to reap great returns from the market you need to keep an eye on your investments and keep rebalancing and diversifying your portfolio.

Volatile markets, for instance, are a signal that you need to increase your investments in safe options like FD, commodities, gold, and real estate. On the other hand, you can invest for short-term gains in assets like shares when the market is highly bullish. The trick is to be aware and informed so that you can take the right action at the right time.

Overcome Ignorance And Financial Fear


Ignorance or a bad experience are the main reasons why you may be afraid of doing anything other than storing your money in a savings account. Well, now is the time to conquer this fear. Financial planning starts from the moment you outline your goals and pick and choose assets for your portfolio to achieve them.

Detail out your financial goals and plans like retirement, a world tour with your family, your child’s marriage, and more. Then start putting in money in different instruments corresponding to each goal.

However, in order to decide what assets permit growth, you will have to read about them. The right research will help you gain more knowledge about the varied options, which in turn will ease the decision-making process for you. So, read, research, understand, and then invest to reap substantial returns.

finanancial plans
Choose high interest assured return investments

Lay The Bricks For Your Financial Wellbeing Today
Instead of waiting any further, start your financial journey right now. To begin with, include both short and long-term options in your portfolio. Introduce investments that guarantee earnings to boost your confidence and enjoy your gains.

Choose high interest assured return investments like recurring deposits, pension plans and fixed deposits on the one hand. On the other hand, you can pick riskier high return investments like shares.

Out of all these investments, FDs bring a lot on the table. So, you can choose to invest in varied cumulative and non-cumulative FDs from trusted issuers like Bajaj Finance. These FDs are lucrative in terms of the benefits and the interest rate they offer on your investment. Awarded ICRA’s MAAA (stable) rating and CRISIL’s FAAA/Stable rating, Bajaj Finance FDs are credible and assure you up to 8.85% interest on your investment. As you can start investing with a mere sum of Rs.25,000, you have no excuse not to begin.

Financial plans
In order to streamline your finances, it is important to delve deep and understand what financial mistakes hold you back. pixabay

Since applying online is easy and convenient, it’s time to get started now! Choose between a cumulative FD in case you want to enjoy the benefits of compounding or a non-cumulative FD to access the interest as a regular payout.

With these 3 tips, you can conquer and rid yourself of financial demons holding you back this Dussehra and celebrate your financial triumphs for years to come.