ECONOMICS HOLIDAY ASSIGNMENT
GOVERNMENT BUDGET : IT’S ROLE IN THE ECONOMY
SAHHANA XII B
INDEX
- Introduction
- Meaning
- Objectives
- Components
- Budget receipts
- Sources of Government Income
- Budget Expenditure
- Government Expenditure
- Types Of Budget
- Overview of Government Deficit Indicators
- Revenue Deficit
- Fiscal Deficit
- Calculation of Revenue Deficit
- Calculation of Fiscal Deficit
- Overview of Primary Deficit
- Union Budget
- Bahi Khata
- Summary of union budget 2025-26
- Budget Allocation and Utilization in India
- Comparison of union budget 2024-25 and 2025-26
- Expenditure of major items
- Viksit Bharat
- Tax reforms
INTRODUCTION
A government budget is an official and comprehensive financial
document that delineates the anticipated revenue and proposed
expenditure of a government for a designated period, typically a
fiscal year. It serves as an indispensable instrument for the
formulation and execution of public policies, ensuring prudent
allocation of resources and effective economic governance. By
systematically outlining the government's financial priorities, the
budget facilitates macroeconomic stability, promotes equitable
income distribution, and supports the nation’s developmental
objectives. Furthermore, it provides a framework for monitoring,
controlling, and evaluating the financial performance of the
government within the broader economic environment.
MEANING
Government budgeting is a fundamental aspect of public administration and
governance, serving as a critical tool for economic management, policy
implementation, and social development. It reflects the government’s priorities,
commitments, and plans for the nation’s future.
History of Government Budget
the union budget is more than just numbers it's a financial blueprint that shapes the nation's
economy and social trajectory over the years governments have sought to balance economic
growth with social equality through budgetary allocations November 1947 marked the
presentation of India's first ever budget by RK
Shan mokam chetti to finance its expenses the
government relied heavily on taxation aiming to
generate over 80% of its income from taxes since
1947 India has seen 92 Union budgets including
12 interim budgets presented.
MORARJI DESAI HOLDS THE RECORD FOR PRESENTING THE MOST
BUDGETS HE HAS PRESENTED UPTO TEN
YEARLY BUDGETS
OBJECTIVES
i) Reallocation of Resources: - Through the budgetary policy, Government aims to
reallocate resources in accordance with the economic (profit maximization) and social
(public welfare) priorities of the country. For example, Govt. discourages the production
of harmful consumption goods (like liquor, cigarettes etc.) through heavy taxes and
encourages the use of “khadi products” by providing subsidies.
ii) Redistribution Activities: - Economic inequality is an inherent part of every economic
system. Government aims to reduce such inequalities of income and wealth, through its
budgetary policy. Fiscal instruments like taxation, subsidies and expenditure on social
security, public works etc. are used by the Govt. to achieve this objective.
iii) Management of Public Enterprises: - There are large numbers of public sector
industries (especially natural monopolies) which are established and managed for social
welfare of the public. Budget is prepared with the objective of making various provisions
for managing such enterprises and providing them financial help.
iv) Stabilizing Economic Activities: - Govt. budget is used to prevent business
fluctuations of inflation or deflation and to maintain economic stability. The Govt. aims
to control the different phases of business fluctuations through it budgetary policy.
Policies of surplus budget during inflation and deficit budget during deflation are adopted
to achieve stability in the economy.
v) Economic growth: - Economic growth has been the main objective of every economy
at all times. The growth rate of a country depends on rate of saving and investment. For
this purpose, budgetary policy aims to mobilize sufficient resources for investment in the
public sector. Therefore, the Government makes various provisions in the budget to raise
COMPONENTS
REVENUE BUDGET
- Revenue Receipts
Revenue receipts refer to the receipts of income which a government makes
from its day-to-day activities. It does not involve the creation of liabilities or the
sale of assets. It is a function of the products and services which are offered in
the market.
These revenues are recurring in nature as they are the products of the daily
business of a government. It is part of the profit-and-loss or income statement of
a company.
Tax Revenue
Tax revenues comprise of proceeds coming from the following types of taxes:
● Direct Taxes – It includes taxes which are imposed directly on individuals
(personal income tax) and firms (corporation tax).
● Indirect Taxes – It includes taxes like Excise Taxes (duties levied on goods
produced within the country), Customs Duties (taxes imposed on goods imported
into and exported out of India) and Service Tax.
● Other Direct Taxes – It includes taxes like Wealth Tax, Gift Tax etc.
Non-Tax Revenue
It comprises earnings from sources other than taxes, and mainly consists of:
● Interest receipts on account of loans by the Central Government
● Dividends and profits on investments made by the government
● Fees and other receipts for services rendered by the government.
● Revenue from Spectrum Auctions
● Loans and Grants-in-aids from foreign countries and international organisations
Revenue Expenditure
Revenue Expenditure is expenditure incurred for purposes other than the creation
of physical or financial assets. Thus, these expenses do not yield any revenue in the
future.
Some major components of the Revenue Expenditure include expenses incurred for
the purpose of
● Day-to-day functioning of the government departments
● Salaries, pensions, subsidies, interest payments
● Offering various services to citizens.
● Interest payments on debt incurred by the government
Capital Budget
The Capital Budget is an account of the assets as well as liabilities of the Central
Government. This shows the capital requirements (for creating long term durable
infrastructure) of the government and the pattern of their financing.
Capital Receipts
They comprise the funds received by the government that are not part of the
regular income sources. All those receipts of the government which create liability
or reduce financial assets are termed as capital receipts.
Capital Receipts are of two types:
Debt Creating
These include fresh loans and other liabilities raised by the government.
Non-Debt Creating
These include amounts received by the government from the disposal of its assets
and recovery of loans.
Capital Expenditure
It comprises expenses incurred by the government to create long-term assets and
investments that give profits or dividends in the future.
Some of the major components of Capital Expenditure include:
● Expenditure on developing infrastructure like roads, schools, hospitals, etc.
● Investments in shares of the government companies and corporations.
● Loans and advances made by the Central government to States and Union
Territories or foreign agencies.
● Repayments of loans and other liabilities (only repayment of the principle
amount of the loan forms capital expenditure. Interest payments on loans is a
part of the revenue expenditure.)
What are budget receipts?
Budget receipts refer to the inflow of money or income earned by any
government during any given period, usually a fiscal year. They include both
revenue and capital accounts of receipts and allow financing of government
expenditure.
SOURCES OF GOVERNMENT INCOME
What are revenue receipts?
Revenue receipts refer to the sources of income the government receives from its
regular and recurring sources during a fiscal year. They include taxes, non-tax
revenue, grants-in-aid. All these together are called revenue receipts. They are
spent on day-to-day expenses and meeting the operational costs.
What are capital receipts?
Capital receipts refer to those funds raised by the government that increase its
liability or decrease its assets. They include borrowings, proceeds of disinvestment,
recovery of loans, and deposits. Such capital receipts should be utilized for
long-term investments and for reducing liabilities of the government.
What is the importance of budget receipts to a government?
Budget receipts are important in the sense that they generate the resources that
will be used in financing government expenditure on infrastructure, social
welfare,, defense, and administrative expenditures. They indicate ability as far
as any government's ability to earn and manage is concerned with its fiscal
affairs.
BUDGET EXPENDITURE
Budget expenditure refers to the total amount of money a government plans to
spend within a specific period, typically a fiscal year. It outlines how funds will be
allocated across different ministries, departments, and sectors, showcasing the
government's financial commitments.
SOURCES OF GOVERNMENT EXPENDITURE
REVENUE EXPENDITURE
Revenue Expenditure: These are expenses that are incurred in the current
accounting period and are fully consumed or used up within that period.
CAPITAL EXPENDITURE
This refers to expenses incurred to acquire assets that have a useful life of more
than one accounting period. These assets are typically used to generate income
over a long period.
What is the importance of Budget Expenditure in a government?
Budget expenditure is important for the smooth functioning of government
services, promoting economic growth, reducing poverty, and creating public assets.
It ensures national security, provides employment opportunities, manages public
debt, and maintains economic stability by balancing inflation and unemployment.
Through welfare programs and infrastructure development, it supports the overall
progress and well-being of the country and its citizens.
TYPES OF BUDGETS
Balanced Budget
A balanced budget is the one wherein the expected or actual receipts are equal to
proposed expenditures. This means that the income equals the total spending.
A Balanced Budget increases the level of aggregate demand in the economy
moderately. Hence, it is recommended in a situation when the economy is close to
achieving full employment.
Surplus Budget
A surplus budget is the one wherein receipts exceed expenditures. In other words,
more money is coming in than going out.
A Surplus Budget reduces the aggregate demand. Hence, it is recommended in an
economic situation when there is a large inflationary gap
Deficit Budget
A deficit budget is the one wherein expenditures exceed receipts. This means the
government is spending more money than it is earning or receiving. A Deficit
Budget increases the aggregate demand. Hence, it is recommended in an economic
situation of depression.
Overview of Government Deficit Indicators
Budget Deficit
Budget Deficit refers to the difference between all receipts and expenses in both
revenue and capital account of the government.
Budget Deficit = Total Expenditure – Total Receipts
Since it, usually, equals to zero (0), it does not have much significance.
Revenue Deficit
Revenue Deficit is the excess of government’s revenue expenditure over its
revenue receipts.
Revenue Deficit = Revenue Expenditure – Revenue Receipts
A high revenue deficit, usually, results in borrowing by the government to finance
recurring and non-asset creating expenditure. Since it may lead to unsustainable
levels of debt, it is a warning to the government either to curtail its expenditure or
increase its tax and non-tax receipts.
Effective Revenue Deficit (ERD)
Effective Revenue Deficit is the difference between revenue deficit and grants for
creation of capital assets. Thus, it indicates the actual revenue deficit after grants
given for capital expenditure.
Effective Revenue Deficit = Revenue Deficit – Grants for Creation of Capital
Assets
Effective Revenue deficit was introduced in the Union Budget 2012-13, on the
suggestion of Rangarajan Committee
Fiscal Deficit
Fiscal Deficit is defined as excess of total budget expenditure (revenue and capital)
over total budget receipts (revenue and capital) excluding borrowings during a
fiscal year.
Fiscal Deficit = Total Expenditure – (Revenue Receipts + Non-Debt Creating
Capital Receipts)
Fiscal deficit is a measure of how much the government needs to borrow from the
market to meet its expenditure when its resources are inadequate.
Primary Deficit
Primary Deficit is defined as fiscal deficit of current year minus interest payments
on accumulated debt.
Primary Deficit = Fiscal Deficit – Net Interest Liabilities
It is a measure of current year’s fiscal operation after excluding the liability of
interest payment created due to borrowings undertaken in the past.
Monetized Deficit
Monetized Deficit refers to that part of the fiscal deficit which is financed by the
government either by borrowing money or drawing-down its cash from the RBI.
Monetized Deficit = Borrowing from RBI + Draw-down by the government of its
cash balance from the RBI.
It involves infusion of new money and hence expansion in money supply in the
economy.
UNION BUDGET
The Union Budget of India, also known as the Annual Financial Statement
under Article 112 of the Indian Constitution, is the country's annual financial
plan prepared by the Ministry of Finance. It outlines the government's
expected revenues, collected by the Department of Revenue, and planned
expenditures, managed by the Department of Expenditure. The budget serves
as a financial blueprint for the upcoming fiscal year, forecasting economic
conditions and aligning the Government of India's spending with its policy
objectives.The Union Budget is presented through the Finance Bill, and the
Appropriation Bill must be passed by the Lok Sabha before it can take effect
on April 1, the beginning of India's financial year.
Ever since television became ubiquitous, the Union Budget has been
broadcast live from Sansad Bhawan on DD National, DD News, and Sansad
TV. The presentation typically runs uninterrupted from 11 AM to 1 PM,
followed by a panel discussion that assesses the changes, benefits, and
shortcomings of the budget. Additional budget documents and materials are
available on the official budget website and the Union Budget mobile
app.The Rail Budget—which was presented separately since the past 92
years—was merged with the Union Budget in 2016.Since 1947, there have
been a total of 73 annual budgets, 14 interim budgets, and four special or
mini-budgets.
Time of budget announcement
Yashwant Sinha, the Finance Minister of India in the NDA government led
by Prime Minister Atal Bihari Vajpayee, changed the longstanding tradition
by announcing the 1999 Union Budget at 11 AM. The budget was previously
presented at 5 PM, a colonial practice designed to align with British morning
time.This new timing became the standard from 2001 onwards.
Date of budget announcement
In 2017, breaking from the tradition of presenting the Union Budget on the
last working day of February, Arun Jaitley, the then Finance Minister in the
NDA government led by Prime Minister Narendra Modi, announced that the
budget would now be presented on February 1[6]
BAHI KHATA
Bahi Khata is a traditional Indian ledger book used for maintaining financial
records and accounts. The word comes from Hindi, where ‘Bahi’ means
ledger and ‘Khata’ means account. For centuries, it has been an essential
part of India’s business culture, especially among small traders, shopkeepers,
and local merchants. In earlier times, when modern accounting systems did
not exist, businessmen would carefully record their daily transactions, credits,
and debts in these handwritten ledgers.
Even today, in many parts of rural India, traders and local businesses
continue to use Bahi Khata for their accounts, preserving this age-old method
of bookkeeping.
The term gained national attention in 2019 when India’s Finance Minister
Nirmala Sitharaman replaced the colonial-era leather briefcase with a Bahi
Khata for presenting the Union Budget. Wrapped in a red cloth and adorned
with the national emblem, it symbolized India’s tradition, simplicity, and
cultural pride. This move represented a shift towards Indian heritage and
away from colonial practices.
Today, the Bahi Khata stands as a symbol of India’s rich trading history and
cultural values, representing a blend of traditional practices and modern
governance in the country’s financial system
COMPONENTS OF UNION BUDGET
BUDGET FORMULATION
The budget process in India, like in most other countries, comprises four distinct phases:
i) Budget formulation- preparation of estimates of expenditure and receipts for the
ensuing financial year;
ii) budget enactment- approval of the proposed Budget by the Legislature through the
enactment of Finance Bill and Appropriation Bill;
iii) budget execution- enforcement of the provisions in the Finance Act and
Appropriation Act by the government—collection of receipts and making disbursements
for various services as approved by the Legislature;
iv) legislative review of budget implementation- audits of government’s financial
operations on behalf of the Legislature.
FISCAL POLICY
policy is the use of government spending and taxation to influence the economy.
Governments typically use fiscal policy to promote strong and sustainable growth and
reduce poverty.
SUMMARY OF UNION BUDGET 2025-2026
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1 LAKH; TO
BOOST MIDDLE CLASS HOUSEHOLD SAVINGS & CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO ₹ 12.75 LAKH PER ANNUM IN
NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT – AGRICULTURE,
MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-DHAANYA KRISHI
YOJANA’ TO COVER 100 LOW AGRICULTURAL PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL FOCUS ON
TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED INTEREST
SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%, TARGET TO BRING IT
DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE COVER TO
MSMEs FROM ₹ 5 CR TO ₹ 10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL, MEDIUM AND
LARGE INDUSTRIES FOR FURTHERING “MAKE IN INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR EDUCATION,
WITH A TOTAL OUTLAY OF ₹ 500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI LINKED
CREDIT CARDS WITH ₹ 30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-SHRAM PORTAL
& HEALTHCARE UNDER PM JAN AROGYA YOJANA
₹ 1 LAKH CRORE URBAN CHALLENGE FUND FOR ‘CITIES AS GROWTH HUBS’
NUCLEAR ENERGY MISSION FOR R&D OF SMALL MODULAR REACTORS WITH
AN OUTLAY OF ₹ 20,000 CRORE
MODIFIED UDAN SCHEME TO ENHANCE REGIONAL CONNECTIVITY TO 120
NEW DESTINATIONS
₹ 15,000 CRORE SWAMIH FUND TO BE ESTABLISHED FOR EXPEDITIOUS
COMPLETION OF ANOTHER 1 LAKH STRESSED HOUSING UNITS
₹ 20,000 CRORE ALLOCATED FOR PRIVATE SECTOR DRIVEN RESEARCH
DEVELOPMENT AND INNOVATION INITIATIVES
GYAN BHARATAM MISSION FOR SURVEYAND CONSERVATION OF
MANUSCRIPTS TO COVER MORE THAN ONE CRORE MANUSCRIPTS
FDI LIMIT ENHANCED FOR INSURANCE FROM 74 TO 100 PER CENT
JAN VISHWAS BILL 2.0 TO BE INTRODUCED FOR DECRIMINALISING MORE
THAN 100 PROVISIONS IN VARIOUS LAWS
UPDATED INCOME TAX RETURNS TIME LIMIT INCREASED FROM TWO TO FOUR
YEARS
DELAY IN TCS PAYMENT DECRIMINALISED
TDS ON RENT INCREASED FROM ₹ 2.4 LAKH TO ₹ 6 LAKH
BCD EXEMPTED ON 36 LIFESAVING DRUGS AND MEDICINES FOR TREATING
CANCER, RARE AND CHRONIC DISEASES
BCD ON IFPD INCREASED TO 20% AND ON OPEN CELLS REDUCED TO 5%
BCD ON PARTS OF OPEN CELLS EXEMPTED TO PROMOTE DOMESTIC
MANUFACTURING
TO BOOST BATTERY PRODUCTION, ADDITIONAL CAPITAL GOODS FOR EV AND
MOBILE BATTERY MANUFACTURING EXEMPTED
BCD EXEMPTED FOR 10 YEARS ON RAW MATERIALS & COMPONENTS USED
FOR SHIP BUILDING
BCD REDUCED FROM 30% TO 5% ON FROZEN FISH PASTE AND 15% TO 5% ON
FISH HYDROLYSATE
BUDGET ALLOCATION AND UTILIZATION 2025
AGRICULTURE
1. Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts
Programme
To cover 100 districts and likely to help 1.7 crore farmers.
2. Enhanced Credit through KCC
Facilitate short term loans for 7.7 crore farmers, fishermen, and dairy farmers
with enhanced loan of ₹5 lakh.
3. Mission for Cotton Productivity
5-year mission to facilitate improvements in productivity and sustainability of
cotton farming.
4. National Mission on High Yielding Seeds
Targeted development and propagation of seeds with high yield, pest resistance
and climate resilience.
5. Makhana Board in Bihar
To be set up to improve production, processing, value addition, and marketing
and organisation of FPOs.
MSME
1. Credit Cards for Micro Enterprises: Customised Credit Cards with a ₹
5 lakh limit for micro enterprises registered on Udyam portal. In the
first year, 10 lakh such cards will be issued.
2. Scheme for first time Entrepreneurs: For 5 lakh first-time
entrepreneurs, including women, Scheduled Castes and Scheduled
Tribes, a new scheme, to be launched, to provide term loans up to ₹ 2
crore during the next 5 years
Revision in classification criteria for MSMEs
RS. IN CRORE INVESTMENT TURNOVER
Micro entreprises 2.5 10
Small entreprises 25 100
Medium entreprises 125 500
INVESTMENT
- PM Research Fellowship To provide ten thousand fellowships for
technological research in IITs and IISc.
- Research, Development & Innovation Allocating ₹ 20,000 crore
to implement private sector driven Research, Development and
Innovation initiative.
- Gene Bank for Crops Germplasm The 2nd Gene Bank with 10
lakh germplasm lines to be set up for future food and nutritional
security
- National Geospatial Mission To develop foundational geospatial
infrastructure and data. Using PM Gati Shakti, facilitation of
modernization of land records, urban planning, and design of
infrastructure projects.
- Gyan Bharatam Mission Documentation and conservation of our
manuscript heritage to cover more than 1 crore manuscripts.
National Digital Repository of Indian knowledge systems for
knowledge sharing to be set up.
EXPORTS
- Export Promotion Mission: With sectoral and ministerial targets to
facilitate easy access to export credit, cross-border factoring support,
and support to MSMEs to tackle non-tariff measures in overseas
markets.
- BharatTradeNet: A digital public infrastructure, ‘BharatTradeNet’
(BTN) for international trade will be set-up as a unified platform for
trade documentation and financing solutions. Support for integration
with Global Supply Chains.
- National Framework for GCC: As guidance to states for promoting
Global Capability Centres in emerging tier 2 cities.
- Warehousing facility for air cargo: To facilitate upgradation of
infrastructure and warehousing for air cargo including high value
perishable horticulture produce.
COMPARISON OF 2024 AND 2025 UNION BUDGET
Category Union budget 2024 Union budget 2025
Economic Focused on self-reliance (Atmanirbhar Bharat) Emphasising the Vision for "Viksit Bharat"
& MSMEs, employment, skilling, and middle with increased private sector investment
development
class
Agriculture & Rural ● ₹1,22,528.77 Crore allocated ● ₹ 1.37 lakh crore allocated
Development
● PM Kisan Yojana continued ● Expanded Kisan Credit Card
(₹5 lakh credit to 7.7 crore
farmers)
● Improve research, develop
seeds that resist pests and
climate challenges
● Increase the availability of over
100 new seed varieties
● PM Dhan Dhaanya Krishi
Yojana
MSMEs & Startups ● ₹50,000 crore allocated for ● Increased credit guarantee cover
MSMEs of ₹ 20 Crore
● MUDRA limit doubled ₹20 lakhs ● Customized credit card limit ₹5
from ₹10 lakhs. lakh for microenterprises
● ₹2 crore loans for first-time
entrepreneurs
Education & ● Expansion of medical colleges & ● 50,000 Atal Tinkering Labs,
Healthcare
skill development 10,000 more medical seats
● 1.48 lakh crore to education, ● AI Centres of Excellence
employment and skill ● ₹ 500 crore to setting up a
development Centre of Excellence in AI for
education
Infrastructure & ● ₹10 lakh crore capital outlay ● ₹1 lakh crore Urban Challenge
Urban Development
● PM Gati Shakti Plan Fund
● New Greenfield Airports
● ₹530 crore UDAN expansion
Tax Reforms & ● Simplified tax slabs ● Simplified tax slabs
Benefits
● focus on digital tax filing ● focus on digital tax filing
Banking & Financial ● FDI in insurance is capped at ● FDI in insurance increased to
Sector
74% 100%
● INR 3,500 crores for the ● Grameen Credit Score System
incentive scheme, with INR
3,000 crores for BHIM-UPI and
INR 500 crores for RuPay debit
cards
Defence & National ● ₹6.21 lakh crore allocation ● rises by 9.53% to ₹6.81 lakh
Security
including pension crore, focusing on pensions,
salaries, and modernisation
● Nuclear Energy Mission
EXPENDITURE OF MAJOR ITEMS
1. DEFENSE - 4,91,732
2. RURAL DEVELOPMENT - 2,66,817
3. HOME AFFAIRS - 2,33,211
4. AGRICULTURE AND ALLIED ACTIVITIES - 1,71,437
5. EDUCATION - 1,28,650
6. HEALTH - 98,311
7. URBAN DEVELOPMENT - 96,777
8. IT AND TELECOM - 95,298
9. ENERGY - 81,174
10. COMMERCE & INDUSTRY - 65,553
11. SOCIAL WELFARE - 60,052
12. SCIENTIFIC DEPARTMENTS - 55,679
VIKSIT BHARAT
Viksit Bharat (Developed India) is a national vision and mission aimed at
transforming India into a fully developed, self-reliant, and prosperous nation
by the year 2047, marking 100 years of India’s independence.
The term Viksit Bharat means Developed India. It reflects a collective
dream of turning India into a nation where:
● Every citizen lives a good quality of life.
● Basic needs like healthcare, education, and employment are accessible
to all.
● The country leads globally in technology, economy, and environmental
sustainability.
Economic Growth
Making India one of the top global economies through manufacturing,
digital innovation, and start-up culture.
Social Welfare
Improving education, healthcare, poverty reduction, and empowering women
and youth.
Technology & Innovation
Promoting advancements in AI, space technology, renewable energy, and
digital infrastructure.
Infrastructure Development
Modernizing transportation, creating smart cities, and improving rural-urban
connectivity.
Environmental Sustainability
Focusing on clean energy, net-zero emissions, and sustainable living
practices.
Global Leadership
Strengthening India’s role and influence in international organizations and
global policymaking
PRINCIPLES OF VIKSIT BHARAT
- ZERO POVERTY
- HUNDRED PER CENT GOOD QUALITY SCHOOL EDUCATION
- ACCESS TO HIGH QUALITY, AFFORDABLE AND COMPREHENSIVE
HEALTHCARE
- HUNDRED PER CENT SKILLED LABOUR WITH MEANINGFUL
EMPLOYMENT
- SEVENTY PER CENT WOMEN IN ECONOMIC ACTIVITIES
- FARMERS MAKING OUR COUNTRY THE FOOD BASKET OF THE
WORLD
TAX REFORMS - Changes in direct taxes and proposal to introduced the
New Income Tax Bill
REGULATORY REFORMS - Light-touch regulatory framework based
on principles and trust to unleash productivity and employment
- High level committee for regulatory reforms
- Investment friendliness index of states
- FSDC mechanism : to evaluate impact of the current financial
regulations and subsidiary instructions along with a framework to
enhance their responsiveness and development of the financial sector
- Jan vishwas Bill 2.0 : to decriminalize more than 100 provisions in
various laws
INDIRECT TAX PROPOSALS
Rationalization of customs tariff structure for industrial goods
- Removal of 07 tariff rates
- Apply not more than one cess or surcharge
- Apply equivalent cess to maintain effective duty incidence on most
items and lower cess on certain items
DIRECT TAX PROPOSALS
Personal income tax reforms with special focus on the middle class
Rationalization of TDS/TCS for easing difficulties - tax deduction limit for
senior citizens doubled from rs. 50,000 to rs 1,00,000
The annual limit of rs. 2.40 lakh for TDS on rent increased to rs 6 lakh.
Encouraging voluntary compliance - Extension of time limit to file updated
returns from the current limit of two years to four years
Reducing compliance burden - reduced compliance for small charitable
trust/institutions by increasing their period of registration from 5 years to 10
years.
Tax payers to be allowed to claim the annual value of 02 self occupied
properties (previously 01) without any conditions (previously conditions
attached)
EMPLOYMENT AND INVESTMENT
- Tax certainty for electronics manufacturing schemes
- Tonnage tax scheme for inland vessels
- Extension for incorporation by 5 years of start-ups
- Specific benefits to ship-leasing units, insurance offices and treasury
centers of global companies which are set up in IFSC
- Certainty of taxation to category I and category II AIF’s undertaking
investments in infrastructure and other such sectors on the gains from
securities
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- https://en.wikipedia.org/wiki/Union_budget_of_India
- https://www.youtube.com/watch?v=7hYhTOnxYu4
- https://www.youtube.com/watch?v=qVOhx2Bmujg
- https://scholar.google.com/scholar?hl=en&as_sdt=0%2C5&q=history+of+
government+budget+in+india+&btnG=
- https://groww.in/p/difference-between-capital-expenditure-and-revenue
- https://testbook.com/ugc-net-commerce/budget-receipts#:~:text=Budget%20
Receipts%20FAQs-,What%20are%20budget%20receipts%3F,allow%20fina
ncing%20of%20government%20expenditure.
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