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PUSHPINDER JIT SHARMA LECTURER R.I.M.T-REGIONAL

SHEEBA YASEEN MANMEET PRADEEP M.B.A – II SEM

DEFINITION OF Union Budget • The dictionary meaning of budget is a

systematic plan for the expenditure of a usually fixed resource during a given period.

• The Union Budget of India, referred to as the Annual Financial Statement is the annual budget of the Republic of India, presented by  Finance Minister of India in Parliament.

The Union budget is preceded by an Economic Survey which outlines the broad direction of the budget and the economic performance of the country.

Graphical Representation of India’s GDP Composition  

GROSS DOMESTIC PRODUCT GROWTH RATE•Economic growth is the increase in value of the goods and services produced by an economy. • It is conventionally measured as the percent rate of increase in real gross domestic product, or GDP. •Growth is usually calculated in real terms, i.e. inflation-adjusted terms, in order to net out the effect of inflation on the price of the goods and services produced.

AGRICULTURE SECTOR Agriculture – Backbone Of Indian

Economy. The Government is giving highest

priority to agriculture and allied sector. The sector provided employment to 55

per cent of the work force. The total geographical area of India is

328.7 million hectares of which 140.3 million hectares is net sown area, while 193.7 million hectares is the gross cropped area

Union Budget 2010-11

The Budget Estimates 2010-11 provides for a total expenditure of Rs. 11,08,749 crore.

BUDGET 2010-2011 FOR AGRICULTURAL  GROWTH:

Agriculture  sector has been raised by Rs 2185 crore to Rs 12185 crore.A four-pronged strategy 1.  Agricultural production;  2.  Reduction in wastage of produce;  3. Credit support to farmers; and  4. Thrust to the food processing sector.

Union Budget 2011-2012 for Agricultural Sector The total expenditure in 2011-12 will be 12.58 trillion rupees.The total plan outlay for agriculture & allied sector is to be increased by 19.79% to Rs 147.44 bn. The target agricultural credit is proposed to be raised to Rs 4,750 bn in FY12 from Rs 3,750 bn in FY11.

Custom duty reduced from 5% to 2.5% on agriculture based sectorsFarm credit – Rs. 375000 crores(up by rs.50000 crores)Agriculture Credit has been increased from Rs.3,75,000 crores to Rs.4,75,000 crores. National Mission for Sustainable AgricultureMega Food Parks   Storage Capacity and Cold Chain

Union Budget 2011-12 is likely to undertake measures to ease such constraints in the form of reforms in Agriculture & Infrastructure sector.

1. Larger Investments in Agriculture sector,

2. Steps towards reduction in essential commodities hoarding,

3. Investment in R&D in agriculture.

4. Irrigation and water management

5. Related to agriculture inputs

Scarcity of input water.

Shortage of agricultural labour because of NREGS.

Shortage of organic manures in spite of rising demand.  Feed problems of diary and farm animals and poultry

birds.

Mounting overdue of farm loans and failure of cooperatives.

Climate related crop failures and outbreak of diseases.

Mental trauma of the farm families in combating economic reform.

Rising cost of living and deficit family budget.

Uncertainly of the cropping system and changing package of practices.

Confuse in the channel of marketing aid loss of market during harvesting.

  Widening gap of income between farmers and non-

farmers.

Introduction of a powerful supply chain to support the processing and marketing of consumable farm turn out,

Introduction of advanced technology and infrastructure to assist the conversion of farm produce into a finished value added product an

Introduction of technology to enhance agricultural turn out.

• Benefit of 5% concessional customs tariffs on particular agricultural equipment not created in India

• Tax exemption from central excise tariff on particular equipment for conservation and processing of agriculture and associated sectors

• Service tax exemption on the testing and documentation of agricultural seeds

• Service tax exemption on the transportation of cereals and pulses by rail and road.

An allocation of Rs 10.62 bn for National Horticulture Mission.

An allocation of Rs 13.50 bn for National Food Security Mission.

An allocation of Rs 10.00 bn for Macro Management in Agriculture.

An allocation of Rs 10.00 bn Micro Irrigation.

An allocation of Rs 9.50 bn for National Agricultural Insurance Scheme

Budget focuses on farm sector: AnalystsBudget Conveys strong Signal for Reforms: Pranabh MukherjeeFarm Sector gets Big Boost In Budget : FMUnder developed states to benefit from budget 2011-2012.With Inflation at higher rate and cost of living increasing enormously, aam aadmi is expecting a more beneficial budget for savings from this budget