Sahil Parmar Ub.docx

A Study On General Awareness About Union Budget Among Youth

A Project Submitted to University of Mumbai for partial completion of the degree of Bachelor in Commerce (Accounting and Finance) Under the Faculty of Commerce

By Sahil Rasik Parmar

Under the Guidance of Prof. Nicole Pereira RSET’s Kes Shroff College of Arts and Commerce Affiliated to University of Mumbai Reaccredited by NAAC with ‘A’ Grade Bhulabai Desai road, \Kandivali (W) Mumbai – 400067

MARCH 2019

A Study On General Awareness About Union Budget Among Youth

A Project Submitted to University of Mumbai for partial completion of the degree of Bachelor in Commerce (Accounting and Finance) Under the Faculty of Commerce

By Sahil Rasik Parmar

Under the Guidance of Prof. Nicole Pereira RSET’s Kes Shroff College of Arts and Commerce Affiliated to University of Mumbai Reaccredited by NAAC with ‘A’ Grade Bhulabai Desai road, Kandivali (W) Mumbai –400067 MARCH 2019

RSET’s Kes Shroff College of Arts and Commerce AffiliatedtoUniversityofMumbai ReaccreditedbyNAACwith‘A’Grade Bhulabai Desai road, kandivali(W) Mumbai –400064

CERTIFICATE This is to certify that Mr. Sahil Rasik Parmar has worked and duly completed his Project Work for the degree of Bachelor in Commerce (Accounting & Finance) under the Faculty of Commerce in the subject of his project is entitled, “A Study On General Awareness About Union Budget Among Youth” under my supervision. I further certify that the entire work has been done by the learner under my guidance and that no part of it has been submitted previously for any Degree or Diploma of any University. It is his own work and facts reported by her/his personal findings and investigations.

ProjectGuide

Principal Sign

Prof. Nicole Pereira Date:

External Examiner Date:

College Seal

DECLARATION

I the undersigned Mr. Sahil Rasik Parmar here by, declare that the work embodied in this project work titled “General awareness about union budget among youth” forms my own contribution to the research work carried out under the guidance of Prof. Nicole Pereira is a result of my own research work and has not been previously submitted to any other University for any other Degree/ Diploma to this or any other University. Wherever reference has been made to previous works of others, it has been clearly indicated as such and included in the bibliography. I, here by further declare that all information of this document has been obtained and presented in accordance with academic rules and ethical conduct

Student Mr. Sahil Rasik Parmar

Certified by

Project by Prof. Nicole Pereira

ACKNOWLEDGMENT

To list who all have helped me is difficult because they are so numerous and the depth is so enormous. I would like to acknowledge the following as being idealistic channels and fresh dimensions in the completion of this project. I take this opportunity to thank the University of Mumbai for giving me chance to do this project. I would like to thank my Principal, Dr. L. Bhushan for providing the necessary facilities required for completion of this project. I take this opportunity to thank our Coordinator Prof. Dr. Vaibhav R Ashar for his moral support and guidance. I would also like to express my sincere gratitude towards my project guide Prof. Nicole Pereira whose guidance and care made the project successful. I would like to thank my College Library, for having provided various reference books and magazines related to my project. Lastly, I would like to thank each and every person who directly or indirectly helped me in the completion of the project especially my Parents and Peers who supported me throughout my project.

ABSTRACT

The Union Budget is an annual report of India. It contains the Government’s revenue and expenditure for a particular fiscal year, which runs from April 1 to March 31. It is the most extensive account of the Government's finances, in which revenues from all sources and expenditures on all activities undertaken are enumerated. It comprises of the revenue budget and the capital budget. It also contains estimates for the next fiscal year. This project is made on the current interim budget announce by Govt. of India. It consists of types of budget, advantage of budget, people opinion toward interim budget present this year People opinion was collected through survey method by using questionnaire. The data received through presented in tabular and pie chart form so that people can easily understand the outcome of survey.

INDEX

Chapter

Title of the Chapter

No.

Page No.

1

Introduction

1-36

2

Research Methodology

37-41

3

Literature Review

42-60

4

Data Analysis, Interpretation and Presentation

61-78

5

Conclusion and Suggestions

79-80

Bibliography Appendix

CHAPTER.1 INTRODUCTION Budget (derived from the old French word meaning purse) is a quantified financial plan for a forthcoming accounting period.

Definition: - A budget is a formal statement of estimated income and expenses based on future plans and objectives. In other words, a budget is a document that management makes the revenues and expenses for an upcoming period based on their goals for the business.

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WHAT DOES BUDGETMEAN?

There are tons of different kinds of budgets from short-term and long-term to department specific. Management can make a budget for anything. The important thing to remember is these budgets are really just the management’s future goals and plans for the business written down in financial form. For instance, if management were planning to purchase a new piece of equipment next year, that expense would show up in the budget. See what I mean? It’s just a written plan that details the financial goals of the company for a future period.

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EXAMPLE

Short-term budgets typically only cover a one-year span of time or less. The estimated revenues and expenses are set at the beginning of the year and the actual numbers are evaluated later in the period to see if they “met the budget.” Long-term budgets cover time periods of one-year or more and are usually are quite general. Since it’s difficult enough to estimate production expenses and sales volumes in the current period, it’s even more difficult for years into the future. Instead, long-term budgets general tend to focus on large investments and broad company goals.

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Other budgets are created to track job performance during a period. For example, the sales budget is used to track sales growth during a period and gauge the how successfully new goals are met. The cash budget tracks the amount of cash spent and taken in during a period and compares it with the goals for that time frame. At the end of each period, the current budget numbers and actual performance numbers are compared and adjustments are made if needed. 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. In summary, the purpose of budgeting tools: 1. Tools

provide a forecast of revenues and expenditures, that is, construct a model

of how a business might perform financially if certain strategies, events and plans are carriedout. 2. Tools

enable the actual financial operation of the business to be measured

against theforecast. 3. Lastly,

tools establish the cost constraint for a project, program, or operation.

Forthcoming accounting period. 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. In summary, the purpose of budgeting tools: 1. Tools

provide a forecast of revenues and expenditures, that is, construct a model

of how a business might perform financially if certain strategies, events and plans are carriedout. 2. Tools

enable the actual financial operation of the business to be measured

against theforecast. 3. Lastly,

tools establish the cost constraint for a project, program, or operation.

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A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Companies, governments, families and other organizations use it to express strategic plans of activities or events in measurable terms. A budget is the sum of money allocated for a particular purpose and the summary of intended expenditures along with proposals for how to meet them. It may include a budget surplus, providing money for use at a future time, or a deficit in which expenses exceed income.

Importance of budget Budgeting is one of the biggest keys to managing your money. Many people are often turned off by the simple term budget. They associate it with restrictions and a lot of hassle and headaches. They may feel like they are too poor to budget or have other budgeting excuses. However, budgeting can save you money, and allow you to have more to spend by helping you to make the most of your money. Your budgeting style can determine how successful you are at budgeting.

Here are seven things that will help you look at budgeting in a new light. You may also want to review these reasons to start budgeting

Stops Overspending:Most people who do not have a budget end up overspending each month. It limits their spending power in the future as more and more of their salaries have to be applied to debt payments. If you are worried about restricting your spending, consider what it would feel like to have the majority of your pay check be applied to credit card payments. The stress of finding a way to pay for the rising cost of gas and food can be astronomically when most of your pay check is already planned. User your budget to help you determine when to stop spending. An envelope system or budgeting software can make the process easier.

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Helps You Reach Your Goals:A budget is a plan that helps you prioritize your spending. With a budget, you can move focus your money on the things that are most important to you. It may be getting out of debt, saving up for a home or working on starting your own business. Your budget creates a plan and lets you track it to make sure you are reaching your goals.

Helps You Save Money:People who do not have a budget tend to save less money than people who do. It is because when you budget you assign your money to do certain things. It allows you to automatically put money into a savings or investment account each month. A budget can help you stop dipping into your savings each month. As you do this, you will begin to build wealth. It will give you true financial freedom in the future. Budget money to transfer into savings each month. Use your budget to help you stop dipping into your savings or emergency fund by planning for your expenses in advance.

Helps You Stop Worrying:Most people do not like the restrictions that having a budget put on them. However, you decide how much you spend in each category. So if you want to put a large portion of your money towards your leisure activities, as long as you are saving and meeting your other needs, you shouldn't feel bad about that. However, once you set up limits, you need to stick to them. If you aren't doing that, you may have a budgeting weakness that you need to address. Budgeting is not about

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limiting the fun in your life, but opening up opportunities and money to have more fun. The key is remembering to include these categories in your budget. You will know how much you have to spend on each category. You will be able to stop spending when you no longer have money available.

Allows You to Be Flexible: Budgeting can be flexible. You can move money between categories as you need to throughout the month. Generally, you should restrict yourself from touching the money you have set aside for savings, but you can adjust the amount you spend on each category as you go. It is another way that you can keep yourself from overspending. It also allows you to recognize issues and adjust so that you do not end up eating ramen at the end of every month. Budgeting lets you adjust to cover unexpected expenses as they happen. Learn how to transfer money between categories in your budgeting software.

Budgeting Puts You into Control:If you feel like you are not in control of your money and you are constantly wondering where it went and what happened to it, budgeting can put you in control? It allows you to prioritize your spending, track how you are doing and realize when you need to stop. It puts a solid plan into place that is easy to flow and gives you the chance to plan and prepare for the future. It is the biggest tool you have to change your financial future, and it gives you the power to make changes starting today. 

Checking on your budget each day can help you to monitor it and keep you from overspending.



Making decisions at the beginning of the month makes it easier to manage your money.

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Budgeting Can Be Simple: Budgeting can be simple. You can simplify the process by using percentages of your income to cover your set expenses, savings amounts, and your spending money. Then you simply track the money as you spend it. This means there a lot fewer categories and a lot more flexibility. You may decide to switch to an envelope system, which eliminates the need to track your spending.  Keep

at it--the first few months of budgeting are a bit more difficult as you

adjust your categories to find the amounts that work for your situation.  Cash

can help make it easier as can budgeting software. If you are married

budgeting meetings with your spouse can make handling your money much easier.

Look Into The Importance Of Budgets For Governments And Not-For-Profits Government and not-for-profit budgets are far more important than those for businesses because they are expressions of public policy and often carry the authority of law, preventing public officials from spending outside their budgetary authority. The increased importance of budgets is reflected in government financial reports by a required report comparing budgeted and actual amounts. Governments and not-for-profits are governed mainly by their budgets, not by the marketplace. Revenues and expenditures are controlled through the budgetary process. Government’s revenues may be determined by legislature, so they aren’t subject to competition like in for-profit. Not-for-profit revenues aren’t established by legal mandate, but are obtained from contributions, dues, tuition, or user charges, unlike the sales of a business. Government and not-for-profit budgets are very important because they are the culmination of the political process and contain most of the organization’s important decisions. The budget determines which constituents give to the entity and which receive, which activities are supported and which are assessed. The

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force of law backs government budgets and officials use it to guide to oversee spending. Constituents want assurance that spending has not exceeded authorized amounts and that revenues and expenditure estimates were reliable. The budget is used as a control device and complements the accounting and reporting system. Governmental Accounting Standards Board (GASB) recognize that state laws require administrators of state agencies and of local governmental units to obtain the appropriate legislative body’s formal approval of all plans to raise revenues and make expenditures. It is also common for state agencies to be given the responsibility for monitoring the financial plans and operations of local governmental units. GASB standards set up a three-part budgetary principle: An annual budget(s) should be adopted by every governmental unit, the accounting system should provide the basis for appropriate budgetary control, and budgetary comparisons should be included in the appropriate financial statements and schedules for governmental funds for which an annual budget has been adopted. It’s important to remember that a budget, when adopted according to procedures specified in state laws, is binding upon the administrators of a government.

TYPES OF BUDGET 1. Corporate Budget The budget of a company is often compiled annually, but may not be a finished budget, usually requiring considerable effort, is a plan for the short-term future, typically allows hundreds or even thousands of people in various departments (operations, human resources, IT, etc.) to list their expected revenues and expenses in the final budget. If the actual figures delivered through the budget period come close to the budget, this suggests that the managers understand their business and have been successfully driving it in the intended direction. On the other hand, if the figures diverge wildly from the budget, this sends an 'out of control' signal, and the share

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price could suffer. Campaign planners incur two types of cost in any campaign: the first is the cost of human resource necessary to plan and execute the campaign. The second type of expense that campaign planners incur is the hard cost of the campaign itself.

Master Budget The Institute of Cost and Management Accountants, England defines master budget as the summary budget incorporating all the functional budgets, which is finally approved, adopted and applied. Thus, master budget is prepared by consolidating departmental or functional budgets. It is a summarized budget incorporating all functional budgets. It projects a comprehensive picture of the proposed activities and anticipated results during the budget period. It must be approved by the top management of the enterprise. Though practices differ, a master budget generally includes, sales, production, costs-materials, labor, factory overhead, profit, appropriation of profit and major financial ratios

Operating Budget An operating budget is a forecast and analysis of projected income and expenses over the course of a specified time period. To create an accurate picture, operating budgets must account for factors such as sales, production, labor costs, materials costs, overhead, manufacturing costs, and administrative expenses. Operating budgets are generally created on a weekly, monthly, or yearly basis. A manager might compare these reports month after month to see if a company is overspending on supplies.

Cash Flow Budget A cash flow budget is a means of projecting how and when cash comes in and flows out of a business within a specified time period. It can be useful in helping a

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company determines whether it's managing its cash wisely. Cash flow budgets consider factors such as accounts payable and accounts receivable to assess whether a company has ample cash on hand to continue operating, the extent to which it is using its cash productively, and its likelihood of generating cash in the near future. A construction company, for example, might use its cash flow budget to determine whether it can start a new building project before getting paid for the work it has in progress

Financial Budget A financial budget presents a company's strategy for managing its assets, cash flow, income, and expenses. A financial budget is used to establish a picture of a company's financial health and present a comprehensive overview of its spending relative to revenues from core operations. A software company, for instance, might use its financial budget to determine its value in the context of a public stock offering or merger.

2. Personal Budget A personal budget or home budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. For example, jobs are an income source, while bills and rent payments are expenses. A third category (other than income and expenses) may be assets (such as property, investments or other savings or value) representing a potential reserve for funds in case of budget shortfalls. There are many informational sites and software available for use in personal and family problems.

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3. Sales Budget A sales budget is an estimate of expected total sales revenue and selling expenses of the firm. It is known as a nerve centre or backbone of the enterprise. It is the starting point on which other budgets are also based. It is a forecasting of sales for the period both in quantity and value. It shows what product will be sold, in what quantities, and at what prices. The forecast not only relates to the total volume of sales but also its break-up product wise and area wise. The responsibility for preparing sales budget lies with the sales manager who takes into account several factors for making the sales budget.

Some of these factors are: Past sales figures and trend Estimates and reports by salesmen. General economic conditions. Orders in hand. Seasonal fluctuations. Competition .

4. Production Budget The production budget calculates the number of units of products that must be manufactured, and is derived from a combination of the sales forecast and the planned amount of finished goods inventory to have on hand (usually as safety stock to cover for unexpected increases in demand). The production budget is

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typically prepared for a "push" manufacturing system, as is used in a material requirements planning environment. The production budget is typically presented in either a monthly or quarterly format. The basic calculation used by the production budget is: Forecasted unit sales (+) Planned finished goods ending inventory balance = Total production required (−) Beginning finished goods inventory = Products to be manufactured It can be very difficult to create a comprehensive production budget that incorporates a forecast for every variation on a product that a company sells, so it is customary to aggregate the forecast information into broad categories of products that have similar characteristics. The planned amount of ending finished goods inventory can be subject to a considerable amount of debate, since having too much may lead to obsolete inventory that must be disposed of at a loss, while having too little inventory can result in lost sales when customers want immediate delivery. Unless a company is planning to draw down its inventory quantities and terminate a product; there is generally a need for some ending finished goods inventory. The production budget is often divided into several budgets: 

Material Budget- which fixes the quantity, quality and cost of raw materials needed for uninterrupted production;

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Labour Budget-which specifies the requirements of labour in terms of the number and type of workers for various jobs;



Plant and equipment Budget- which lays down the needs of machines, equipment and tools including their repairs and maintenance ;and 11

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Research and Development Budget-which specifies the estimated cost on research and development for developing new products and for improving existing ones.

5. Capital Budget Capital budgeting is the process in which a business determines and evaluates potential large expenses or investments. These expenditures and investments include projects such as building a new plant or investing in a long-term venture. Often, a company assesses a prospective project's lifetime cash inflows and outflows to determine whether the potential returns generated meet a sufficient target benchmark, also known as "investment appraisal."

6. Conditional budget A prediction of future the cash receipts and expenditures for a particular time period. It usually covers a period in short-term future. The cash flow budget helps the business to determine when income will be sufficient to cover expenses and when the company will need to seek outside financing Conditional budgeting is a budgeting approach designed for companies with fluctuating income, high fixed costs, or income depending on sunk costs, as well as NPOs and NGOs. The approach builds on the strengths of proven budgeting approaches, leverages the respective advantages for situations of fluctuating incomes, and at the same time reduces possible negative impacts. The core idea of conditional budgeting is to structure income and expenditures according to probabilities and priorities respectively. After the budget is approved, the actual status of the finances is reviewed and expenses are approved. Therefore, conditional budgeting does not focus on spending a certain amount of money or consuming certain resources; rather, it defines priorities of expenses and

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resources as well as income and earnings levels that will allow releasing the funds for expenses and resource consumption. 7. Marketing Budget A Marketing Budget is Marketing Plan in terms of costs. Marketing Budget is an estimated amount of cost that will be required to promote products or services. Marketing Budget is generally part of a marketing plan and crucial part of the marketing process. It includes all promotional costs like advertising and public relations, employing staff, office costs and other expenses included for marketing. This budget is created to estimate the costs that are necessary for growing a business.

8. Revenue Budget Revenue budgets are forecasts of a company’s sales revenues and expenditures, including capital-related expenditures. It is essential that you establish whether you possess enough financial means to conduct operations, grow your business and ultimately make a profit. Without this planning, your company's future may be uncertain as you may not know how much money you’re taking in or spending. Revenue budgets ensure that businesses efficiently allocate resources -- and in doing so they save time, effort and money. – consists of revenue receipts of government and the expenditure met from these revenues. Tax revenues are made up of taxes and other duties that the government levies.

9. Expense budget An expense budget is part of the bread-and-butter basics of good management. Set your budget as a goal, then review and revise often to stay on track. Being right on budget is usually good, but good management

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10. Budget Flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget. (The static budget amounts do not change. They remain unchanged from the amounts established at the time that the static budget was prepared and approved.) For Flexibility costs that vary with volume or activity, the flexible budget will flex because the budget will include a variable rate per unit of activity instead of one fixed total amount. In short, the flexible budget is a more useful tool when measuring a manager's efficiency.

11. Performance Budget A performance budget is a budget that reflects the input of resources and the output of services for each unit of an organization. This type of budget is commonly used by government bodies to show the link between taxpayer funds and the outcome of services provided by federal, state or local governments.

12. Zero Based Budget A budget type where every item added to the budget needs approval and no items are carried forward from the prior year’s budget. This type of budget has a clear advantage when the limited resources are to be allocated carefully and objectively. Zero based budgeting takes more time to create as all pieces of the budget need to be reviewed by manage Zero-based budgeting (ZBB) is a method of budgeting in which all expenses must be justified for each new period. The process of zerobased budgeting starts from a "zero base," and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether each budget is higher or lower than the previous one.

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13. Financial Budget: This budget shows the requirement of capital for both long-term and short-term needs of the enterprise at various points of time in future. Its objective is to ensure regular supply of adequate funds at the right time. An important part of the financial budget is the cash budget. Cash budget contains estimated receipts and payments of cash over the specified future period. It serves as an effective device for control and coordination of activities that involves receipt and payment of cash. It helps to detect possible shortage or excess of cash in business. The financial budget also contains estimates of the firm’s profits and expenditure i.e., the operating budget.

14. Overheads Budget: It includes the estimated costs of indirect materials, indirect labor and indirect factory expenses needed during the budget period for the attainment of budgeted production targets. In other words, an estimate of factory overheads, distribution overheads and administrative overheads is known as the overheads budget. The capital expenditure budget contains a forecast of the capital investment. This budget is prepared on departmental basis for effective control over costs. The factory or manufacturing overheads can be divided into three categories:  Fixed,  Variable,  Semi-variable. This classification helps in the formulation of overhead budgets for each department. 15. Union Budget: - According to Article 112 of the Indian Constitution, Union Budget of a year, also referred to as the annual financial statement, isa

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statement of the estimated receipts and expenditure of the government for that particular year. The Union Budget is the annual report of a country. It contains the government of revenue and expenditure for the end of a particular fiscal year, which runs from April 1 to March 31. The Union Budget is the most extensive account of the government's finances, in which revenues from all sources and expenses of all activities undertaken are aggregated. It comprises the revenue budget and the capital budget. It also contains estimates for the next fiscal year.

History of Union budget in India India’s first budget was presented on April 7, 1860, when India was still under the British colonial rule. It was introduced by the then Finance Minister of India, James Wilson.

The first Union Budget of Independent India was presented by the first Finance Minister of Independent India, Sir R.K. Shanmugham Chetty, on November 26, 1947. It is noteworthy that the first Union Budget was presented amidst widespread riots due to the partition of India. This budget was meant for seven and a half months, following which the next budget was to be implemented from April 1, 1948. It was the first Union Budget wherein it was decided that bothIndiaandPakistanwouldsharethesamecurrencytillSeptember1948.

Sir Chetty resigned as the Finance Minister of India, and the responsibility ultimately was passed on to John Mathai, who presented the subsequent Union Budgets of 1949-50 and 1950-51. The budget of 1949-50 was the first instance of a budget being prepared for a United India, including all princely states. The Union Budget of India also referred to as the Annual Financial Statement in the Article 112 of the Constitution of India, is the annual budget of the Republic of India. The Government presents it on the first day of February so that it could be materialized before the commencement of new financial year in April. Till 2016 it was presented on the last working day of February by the Finance Minister

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of India in Parliament. The budget, which is presented by means of the Finance bill and the Appropriation bill has to be passed by Lok Sabha before it can come into effect from April 1, the start of India's financial year. An Interim Budget is not the same as a 'Vote on Account'. While a 'Vote on Account' deals only with the expenditure side of the government's budget, an Interim Budget is a complete set of accounts, including both expenditure and receipts. An Interim Budget gives the complete financial statement, very similar to a full Budget. While the law does not debar the Union government from introducing tax changes, normally during an election year, successive governments have avoided making any major changes in income tax laws during an InterimBudget. As of march 2019, Morarji Desai has presented 10 budgets which is the highest followed by P Chidambaram's 9 and Pranab Mukherjee's 8. Yashwant Sinha, Yashwantrao Chavan and C.D. Deshmukh have presented 7 budgets each while Manmohan Singh and T.T. Krishnamachari have presented 6 budgets. The first Union budget of independent India was presented by R. K. Shanmukham Chetty on November 26, 1947. The Union budgets for the fiscal years 1959-61 to 1963-64, inclusive of the interim budget for 1962-63, were presented by moraji Desai. On February 29 in 1964 and 1968; he became the only finance minister to present the Union budget on his birthday. Desai presented budgets that included five annual budgets and an interim budget during his first stint and three final budgets and one interim budget in his second tenure when he was both the Finance Minister and the Deputy Prime Minister of India. After Desai's resignation, Indira Gandhi, the then Prime Minister of India, took over the Ministry of Finance to become the only woman to hold the post of the Finance Minister. Pranab Mukherjee, the first Rajya Sabha member to hold the Finance portfolio, presented the annual budgets for the financial years 1982-83, 1983–84 and 198485.

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Rajiv Gandhi presented the budget for 1987-89, after V. P. Singh quit his government, and in the process became the third Prime Minister to present a budget after his mother and grandfather. N. D. Tiwari presented the budget for 1988-89, S. B. Chavan for 1989-90, while Madhu Dandawate presented the Union budget for1990-91. Dr. Manmohan Singh became the Finance Minister and presented the interim budget for 1991-92 as elections were forced. Due to political developments, early elections were held in May 1991 following which the Indian National Congress returned to political power and ManmohanSingh, the Finance Minister, presented the budget for 1991-92.

Post-Liberalisation Manmohan Singh under P.V Narasimha Rao, in his next annual budgets from 1992– 93, opened the economy encouraged foreign investments and reduced peak import duty from 300 plus percent to 50 percent. After elections in 1996, a non-Congress ministry assumed office. Hence the financial budget for 1996-97 was presented by P. Chidambaram, who then belonged to Tamil Maanila Congress. Following a constitutional crisis when the I. K. Gujral Ministry was on its way out, a special session of Parliament was convened just to pass Chidambaram's 1997-98 budgets. This budget was passed without a debate. After the general elections in March 1998 that led to the Bharatiya Janata Party forming the Central Government, Yashwant Sinha, the then Finance Minister in this government, presented the interim and final budgets for 1998-99. After general elections in 1999, Sinha again became the Finance Minister and presented four annual budgets from 1999-2000 to 2002-2003. Due to elections in May 2004, an interim budget was presented by Jaswant Singh. Former Finance Minister Morarji Desai presented the budget ten times, the most by any.

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The Union Budget of India for 2012–2013 was presented by Pranab Mukherjee, on 16 March 2012, which was the 7th budget of his career. These budgetary proposals would be applicable for financial year 1 April 2012 to 31 March 2013. The Union Budget of India for 2013–2014 was presented by P.Chidambaram on 28 February 2013. The Interim Union Budget for 2014–2015 was presented on February 17, 2014. The Union Budget of India for 2014–2015 was presented by Arun Jaitley on 10 July 2014. The Union Budget of India for 2015–2016 was presented by Arun Jaitley on 28 February 2015. The Union Budget of India for 2016–2017 was presented by Arun Jaitley on 29 February2016 The Union Budget of India for 2017–2018 was presented by Arun Jaitley on 1 February2017 The Union Budget of India for 2018–2019 was presented by Arun Jaitley on 1 February 2018. The Interim Union Budget for 2019–2020 was presented by Piyush Goyal on 1 February 2019

Time of Budget announcement Until the year 1999, the Union Budget was announced at 5:00 pm on the last working day of the month of February. This practice was inherited from the Colonial Era, Another reason was that until the 1990s, all that budgets seem to do was to raise taxes, a presentation in the evening gave producers and the tax collecting agencies the night to work out the change in prices. It was Mr.YashwantSinha the then Finance Minister of India in the NDA government (led by Bharatiya Janata Party) of Atal Bihari Vajpayee, who changed the ritual by announcing the 1999 Union Budget at 11 am

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Date of Budget announcement Also again in 2017, departing from the colonial-era tradition of presenting the Union Budget on the last working day of February, Minister of Finance (India) Arun Jaitley, in the NDA government (led by Bharatiya Janata Party of Narendra Modi government announced that it will now be presented on 1 February. Additionally Rail Budget presented separately for 92 Years, merged with union budget.

Budget: Printing, formalities, ceremonies and utmost secrecy: The Union Budget documents are treated with utmost secrecy, because any leak in official figures can have catastrophic effects. These documents are treated with so much secrecy that even the Finance Minister is not authorized to keepthe Blue Sheet. The Union Budget is prepared on the basis of data and key numbers in the Blue Sheet. Only the Joint Secretary (Budget) is allowed to keep this importantsheet.

Until 1950, all important budget papers were printed inside the Rashtrapati Bhavan premises. However, an imminent data leak left the government with no option but to shift the process to a government-operated press in Minto Road till 1980. Post 1980, the printing of budget papers is done in a basement in the North Block, where the Finance Ministry islocated. The Halwa Ceremony is a famous ritual, which marks the start of the printing of the budget documents. Understandably, officials who are directly in contact with the budget papers and data are locked down in the basement of the North Block. The Halwa ceremony marks the lockdown of the Finance Ministry. In thispremise,eventheFinanceMinisterisnotallowedtocarryamobilephone.

BENEFITS OF BUDGETING 1. Gives you control over your money – A budget is a way of being intentional about the way you spend and save your money. It is said that with budgeting,you

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control your money and not your money controls you. Budgeting saves you the stress of suddenly having to adjust to lack of funds because you did not initially plan how to spend them. It also helps you decide if you want to sacrifice short term spending like buying coffee everyday in exchange for a long term benefit like a cruise vacation or a new HDTV.

2. Keeps you focused on your money goals – You avoid spending unnecessarily on items and services that do not contribute to attaining your financial goals. If you are working with limited resources, budgeting makes it easier to make endsmeet. 3. Makes you aware what is going on with your money – With budgeting, you are clear on what money is coming in, how fast it goes out, and where it is going to. Budgeting saves you from wondering every end of the month where your money went. A budget enables you to know what you can afford, take advantage of buying and investing opportunities, and plan how to lower your debt. It also tells you what is important to you based on how you allocate your funds, how your money is working for you, and how far you are towards reaching your financial goals.

4. Helps you organize your spending and savings – By dividing your money into categories of expenditures and savings, a budget makes you aware which category of expenditure takes which portion of your money. That way, it is easy for you to make adjustments. Budget also serves as a reference for organizing your bills, receipts, and financial statements. When all of your financial transactions are organized for tax time or creditor questions, you save time and effort.

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5. Enables you to save for expected and unexpected costs – Budgeting allows you to plan to set aside money for emergency costs.

6. Enables you to communicate with your significant others about money– If you share your money with your spouse, family, or anyone, a budget can communicate how you use money as a group. This promotes teamwork on working for common financial goals and prevents conflict on how money is used. Creating a budget in tandem with your spouse will avoid conflicts and resolve personal differences on how your money is spent. Budgeting teaches family members spending responsibility and accountability. 7. Provides you with an early warning for potential problems – When you budget and take a “big picture” view, you will see potential money problems in advance, and be able to make adjustments before the problem appears. 8. Helps you determine if you can take debt and how much – Taking debt is not necessarily a bad thing if the debt is necessary or you can afford it. Budgeting shows you how much a debt load you can realistically take without being stressed or if taking the debt load is worth it. 9. Enables you to produce extra money – In budgeting, you get to identify and eliminate unnecessary spending like late fees, penalties and interests. These seemingly small saving can add up overtime.

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Objectives of a Government Budget 1. Economic growth: To promote rapid and balanced economic growth so as to improve living standard of the people Economic growth implies a sustained increase in real GDP of the economy, i.e., a sustained increase in volume of goods and services. Public welfare is the main guide.

2. Reduction of poverty and unemployment: To eradicate mass poverty and unemployment by creating employment opportunities and providing maximum social benefits to the poor .In fact, social welfare is the single most important objective. Every Indian should be able to meet his basic needs like food, clothing, housing (roti, kapda, makaan) along with decent health care and educational facilities.

3. Reduction of inequalities/Redistribution of income: To reduce inequalities of income and wealth, government can influence distribution of income through levying taxes and granting subsidies. Government levies high rate of tax on rich people reducing their disposable income and lowers the rate on lower income group. Again, government provides subsidies and amenities to people whose income level is low. Again public expenditure can be useful in reducing inequalities. More emphasis is laid on equitable distribution of wealth and income. Economic progress in itself is not a sufficient goal but the goal must be equitable progress.

4. Redistribution of income: Equalities in income distribution mean allocating the income distribution in such a way that reduces income inequalities and also there is no concentration of income among few rich. It primarily requires that rate of increase in real Income of poor sections of society should be faster than that of rich sections of society. Fiscal instruments like taxation, subsidies and public expenditure can be made use of to achieve the object.

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5. Re-allocation of resources: To reallocate resources so as to achieve social and economic objectives .Again, government provides more resources into socially productive sectors where private sector initiative is not forthcoming, e.g., public sanitation, rural electrification, education, health, etc. Moreover govt. allocates more funds to production of socially useful goods (like Khadi) and draws away resources from some other areas to promote balanced economic growth of regions. In addition govt. undertakes production directly when required,

6. Price stability/Economic stability: Government can bring economic stability, i.e., control fluctuations in general price level through taxes, subsidies and expenditure. For instance, when there is inflation (continuous rise in prices), government can reduce its expenditure. When there is depression, government can reduce taxes and grant subsidies to encourage spending by the people.

7. Financing and management of public enterprises: To finance and manage public enterprises which are of the nature of national monopoles’ like railways, power generation and water lines etc.

Impact of the budget A budget impacts the society at three levels, 1. It

promotes aggregate fiscal discipline through controlled expenditure, given the

quantum of revenues. 2.

Resources of the country are allocated on the basis of social priorities,

3.

It contains effective and efficient programmers for delivery of goods

and services to achieve its targets and goals

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What is interim Budget? How is it different from General Budget? As per the tradition in India, the incumbent government does not present a full-fledged Union Budget in the election year. Instead, the interim budget during the joint sitting of Rajya Sabha and Lok Sabha in Parliament. Through the full-fledged Union Budget, the central government presents an overview of revenue and expenditure for a financial year(April1-March31).Budget2019willbethecentralgovernment’slastopportunity

to

woo voters as PM Modi’s government is seeking a second term. The Finance Ministry has already made it clear this year’s Union Budget will be an interim Budget. FinanceMinisterArunJaitleywillneitherpresentafullBudgetoravote-on-account. Through the vote-on-account, the central government presents the expenditure of government accounts. An interim budget is a quite similar to a full-budget. Through interim-budget, the central government presents expenditure for the ongoing fiscal and projections for the upcoming fiscal year. However, traditionally no major announcements are done during the interim budget as a full budget is presented by the newly elected government after Lok Sabha polls. However, in the interim budget, the central government does lay out its budget estimate, the revised estimate of fiscal deficit.

Highlight about interim budget 2019 The 2019 Interim Budget was presented on 1 February by the Interim Finance Minister Piyush Goyal. It is a budget which is pushed by a populist move. The main highlight of this budget is that income tax is to be exempted for incomes of up to Rs.5 lakh. 1.Tax proposals for Individuals 2.Tax proposals for Businesses 3.Measures for the poor and backward class 4.Women Empowerment 5.Banking Reforms & Insolvency and Bankruptcy Code (IBC) 6.Positive disruptions in Pension Sector 7.Agriculture Reforms 8.Rural economy. 9. Entertainment industry

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1. Tax Proposals 2019-2020 At A Glance For Individuals 

Income Tax slabs will remain the same for FY2019-20.



No tax on notional rent of second Self-occupied House under “Income from House Property (up to two self-occupied house properties) to be considered for exemption.



Tax Rebate Limit under 87A increased from Rs. 3.5 lakhs to Rs. 5 lakhs for taxpayers. The maximum limit of the tax rebate increased to Rs.12, 500 from the present limit of Rs.2,500.



TDS limit hiked from Rs 10,000 to Rs 40,000 on Post Office Savings and Bank Deposits.



TDS threshold on rent increased from Rs 1,80,000 to Rs 2,40,000



Standard Deduction for the salaried class increased from Rs 40,000 to Rs 50,000.



Section 54 exemption now available on the second house property, provided the capital gains is less than or equal to Rs. 2 crores – to be availed only once in a lifetime.

2. Tax Proposals 2019-2020 At a Glance For Businesses, MSME & Real Estate 

Benefits under Section 80-IBA to be extended for one more year – to the housing projects approved till 31 March2020.



Period of exemption from levy of tax on notional rent, on unsold inventories is extended from one year to two years, starting from the end of the year in which the project iscompleted.



SMEs with earnings below Rs 5 Crores will soon file GST returns only once in 3 months.

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

MSMEs and Traders to note that GST Registered SME units will get 2% interest rebate on an incremental loan of Rs. 1Crore.



The requirement of sourcing from SMEs by Government enterprises has been increased to 25% with 3% reserved for women-ownedSMEs.



A scheme of ‘Business loans up to Rs. 1 crore in 59 minutes’ will be implemented.

3. Measures For The Poor And Backward Class 60,000 crores are being allocated for MGNREGA in Budget Expenditure 20192020. Additional amount would be provided if required.

4. Women Empowerment 

Providing cleaner fuel for rural women – out of the 8 crores promised free LPG connections, 6 crores is already delivered under Ujjwala Yojana and remaining will be delivered in the comingyear. More than 7,000 beneficiaries of PM Mudra Yojana are women. 15.56 crore loans of 7.23 lakh crore disbursed under MUDRAYojana. Benefits of maternity leave of 26 weeks have provided support towomen.

5. BANKING REFORMS & INSOLVENCY AND BANKRUPTCY CODE(IBC) Outstanding loans of public sector banks increased from Rs 18 lakh crore to Rs 52 lakh crore. Under the clean banking initiative, the 4R approach i.e. Recognition, Resolution, Recapitalisation and Reforms is being followed. 3 banks namely Bank of India, Bank of Maharashtra and Oriental Bank of Commerce are out of Prompt Corrective Action(PCA) 8 public sector banks still remain within PCA framework which imposes restrictions on lending and expansion.

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IBC has instituted a resolution-friendly mechanism to speed-up recovery of NPAs. Consequently, Rs 3 lakh crore has already been recovered to this effect. A sum of Rs 2.6 lakh crore has been directed towards recapitalization of Public Sector Banks(PSBs). Amalgamation of banks in place to avail economies of scale, better capital and wider geographical coverage.

6. Positive Disruptions In Pension Sector Benefits to 10 crore workers in the unorganized sector as part of the Mega PensionYojana. 

Contribute Rs. 55-100 per month and govt will contribute the same – to get Rs. 3000 pension monthly post60.



Over Rs 35,000 crore has been allocated under the ‘One Rank One Pension’ scheme for Defencepersonnels. Rs. 500 crore allotted for pension schemes for individuals in othersectors



NPS rules amended in December are implemented – with increased Government contribution from 10% to14%

7. Agriculture Reforms 

Under Pradhan Mantri Kisan Samman Nidhi(PM-KISAN), 6000 rupees per year for each farmer, in three installments, to be transferred directly to farmers’ bank accounts, for farmers with less than 2 hectares land holding. This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore for FY 2019-20 with additional Rs. 20,000 crores in RE2018-19. This initiative is likely to benefit 12 crore small and marginal farmers, at an estimated cost of Rs 75,000 crore for FY 2019-20 with additional Rs. 20,000 crores in RE2018-19. Minimum Support Price (MSP) fixed at 50% more than the cost for all the 22 crops.

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The amount of interest subvention has been doubled and crop loans to farmers increased to Rs 11.68 lakhcrore. Allocation for Rashtriya Gokul Mission increased to Rs 750 crore. Rashtriya Kamdhenu Aayog has been established to genetically upgrade cowresources. Under Kisan Credit Card scheme, farmers pursuing animal husbandry and fisheries will get 2% interest subvention. An additional 3% interest subvention will be provided for timely loan repayment. Under National Disaster Relief Fund (NDRF), farmers affected by natural calamities will get 2% interest subvention. A prompt repayment incentive of 3% will be given for the entire loan reschedulementperiod. New separate Department of Fisheries for welfare of 1.5 crorefishermen. 2% interest subvention to Farmers for Animal husbandry and Fisheries activities; additional 3% in case of timely repayment.

8. Rural Economy New LPG connections were announced for 8 crore poor women. 40 million poor people were to get power connection according to PM Saubhagya Yojana: A budget of 16,000 crore is allocated. Swachh Bharat Mission planned to construct 2 crore toilets by this year. Government planned to construct 51 lakh affordable houses in rural areas and 50 lakhs affordable houses in urban areas. Pradhan Mantri Awes Yojana was to build 1 crore houses in rural areas under this scheme. National livelihood scheme was allocated Rs 5750 crores in this budget. The government planned to spend Rs 14.34 lakh crores for creating livelihood in rural areas. The government allocated 9975 crore for social security.

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9. Entertainment Industry Indian filmmakers to get access to Single window clearance as well for ease of shooting films Regulatory provisions to rely more oneself-declaration To introduce anti-cam cording provisions in the Cinematograph Act to control piracy

10. Railways Capital support of Rs.64,587 crore proposed in 2019-20 (BE) from the budget Overall capital expenditure programme to be of Rs. 1,58,658crores Operating Ratio expected to improve from 98.4% in 2017-18 to 96.2% in 201819 (RE) and to 95% in 2019- 20 (BE) 

Safest year’ for railways in its history All Unmanned Level Crossings on broad gauge network eliminated.



Semi high-speed “Vande Bharat Express” introduced – first indigenously developed and manufactured.

11. For Workers Belonging To The Unorganised sector 

Pradhan Mantri Shram Yogi Mandhan scheme to provide assured monthly pension of 3000 rupees per month, with contribution of only Rs 100/55 per month, for workers in unorganized sector after 60 years of age. This will benefit 10 crore workers in unorganized sector & become the world’s biggest pension scheme for unorganized sector in five years. New Pension Scheme (NPS) had been increased 10% to 14% with effect from April 1,2019. Gratuity limit payment increased from Rs. 10 lakhs to Rs. 20lakhs ESI Cover limitincreasedto

21,000. Minimum pension also increased to

1000.

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12. North East Allocation to be increased by 21% to Rs. 58,166 crores in 2019-20 BE(Budget Estimates) over 2018-19 BE Arunachal Pradesh came on the air map recently 

Meghalaya, Tripura and Mizoram came on India’s rail map for the first time Container cargo movement through improved navigation capacity of the Brahmaputra

13. Others New National Artificial Intelligence portal to support National Program on Artificial Intelligence A new committee under NITI Ayog to identify all the remaining De-notified nomadic and semi-Nomadic tribes. New Welfare development Board under Ministry of social justice and empowerment for development and welfare of De-notified nomadic and semi nomadic tribes.

HIGHLIGHTS ON THE BASIS OF DIFFERENT SECTORS The highlights of the 2019 Interim Budget with regard to the different sectors can be summed up as follows: Economy: Interim Finance Minister Piyush Goyal said that India has already been validated as a hefty player in the global economy. It is also said to be one of the fastest growing economy. He added that for the current financial year, the Current Account Deficit (CAD) is to be cut down to 2.19% from 5.6%.

Anti-corruption: The Interim Finance Minister has also pitched in for more transparency with reference to the coal block auction and spectrum auction.

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Housing and electricity: The Interim Finance Minister has claimed that the government has built 1.53 crore houses under the housing scheme. He added that under the Saubhagya Yojana, almost every house has been provided with an electricity connection for free.

Farming: The amount of Rs.6,000 which is to be allocated for the farmers, as mentioned above, will be transferred to their bank accounts in 3 installments. It can be availed by any farmer who holds less than 2 hectares of land. An estimated amount of Rs.75,000 crore will be spent by the government for this scheme.

For the common man: The contribution for new pension schemes under the EPFO has been bumped up to 14% from 4%. The Interim Finance Minister also said that the gratuity limit has been to Rs.30 lakh from Rs.10lakh.

Digital villages:- The government to make 1 lakh villages into digitals village in next five years 

Defence: The defence budget for 2019 has been set at more than Rs.3 lakh crore. Thus, the defence budget has hit an all-time high. The Interim Finance Minister also added that Rs.35,000 crore has been allocated under the ‘One Rank One Pension’ scheme for the soldiers.

 Income

Tax: The interim Interim Finance Minister said that the direct tax

collection has been increased from Rs.6.38 lakh crore to Rs.12 lakh crore. He also added that the income tax returns will now be processed within 24 hours and the refunds will be initiated accordingly.

 Infrastructure:

“Infrastructure is the growth driver of economy,” Jaitley had

said in his Budget speech last year. “Our country needs massive investments estimated to be in excess of Rs 50 lakh crore in infrastructure to increase growth of GDP, connect and integrate the nation with a network of roads, airports, railways, ports and inland waterways and to provide good quality 32

services to our people. The transport sector received an “all-time high allocation” of Rs 1.35 trillion (Rs 1.35 lakh crore) in last year's budget. The government had maintained its allocation to the Pradhan Mantri Gram Sadak Yojana – Prime Minister’s Rural Roads Programme — at Rs 19,000 crore, the same as in2016-17 Health : 22nd AIIMS to be setup in Haryana National Health Mission estimates Were hiked from Rs 30,634 crore to Rs 32,251 crore from the previous fiscal.

 Corporations

and industry:-Jaitley extended the reduced corporation tax rate

for companies with a turnover of up to Rs 250 crore in his speech for Budget 2018-19 in the Lok Sabha. The then FM had claimed 99 per cent of the company’s filing their tax returns belonged to the Rs 250-crore turnover bracket. To boost domestic manufacturing, Jaitley had announced a customs duty hike on mobiles to 20 per cent from 15 per cent. Duty on TVs was hiked to 15 per cent."Towards fulfillment of my promise to reduce corporation tax in a phased manner, I now propose to extend benefit of reduced corporation tax rate of 25 per cent to companies which have reported a turnover of up to Rs 250 crore in financial year 2016-17," Jaitley had said. The government had reduced the corporation tax to 25 per cent from 30 per cent in the Union Budget of 2017-18 for companies with a turnover of Rs 50 crore in the financial year 2015-16.

Measures for small business:- Measures announced for small business and start-ups are notable steps in making business process simpler with the use of technology. These should offer support and growth framework to the SME and start-up community.

2% interest rebate for GST registered SME units on incremental loan of INR 1 Crore Public procurement on Government e-marketplace platform (GeM) to be utilized by MSMEs for selling goods, extended to public sector enterprises.

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Requirement of sourcing from SMEs by Government enterprises increased to25% and at least 3% to be sourced from women ownedSMEs. 

Support for 3 lakh Common Services Centre – rendering digital services, creating digital infrastructure.

Major fund allocation of interim budget 2019 Rural Development: increased by 4.6 per cent to Rs 1.18-lakh crore for the next financial year as compared to Rs 1.12-lakh crore in the current fiscal. 60, 000 crore allocation for MGNREGA in 2019-20 BE(Budget Estimates). For fiscal year 2018-19, NREGS was allocated Rs 55,000crore. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) promises unskilled manual work to every adult for at least 100 days in rural parts of the country. It was introduced in2005. PMAY-G, the allocation is less at Rs 19,000 crore from Rs 21,000 crore in 2018-19. PMGSY stands at Rs 19,000 crore for 2019-20, same as in2018-19. Rs 93,847.64 crore allocated for education sector for 2019-20, an increase of over 10 per cent from Rs 85,010 crore2018-19 Rs 37,461.01 crore has been allocated for higher education, Rs 56,386.63 crore has been earmarked for school education. Job and Skill Development from Rs 5,071 crore to Rs 7,511 crore2019-20. Urban Rejuvenation Mission AMRUT and Smart Cities Mission: BE were increased from Rs 12,169 to Rs 13,900 crore for the 2019-20 fiscalyear. Food subsidy to Food Corporation of India under National Food Security Act: increased from Rs 1, 38,123 crore to Rs 1, 51,000crore. Space Technology: increased from Rs 6,576 crore to Rs 7,483crore. National Highways Authority of India: increased from Rs 29,663 crore to Rs 36,691 crore. Direct Benefit Transfer: increased from Rs 16,478 crore to Rs 29,500crore. Urea subsidiary: raised from Rs 45,000 crore to Rs 50, 164crores. Sports Budget: increased from Rs 2002.72 (2018-2019) crore to Rs 2216.92 crore. 34

Allocation for Integrated Child Development Scheme (ICDS) increased by over 18% to Rs. 27,584 crores in BE2019-20 Substantial increase in allocation for the Scheduled Castes and Scheduled Tribes  Allocation

for SCs increased by 35.6% – from Rs. 56,619 crores in BE 2018-19

to Rs. 76,801 crores in BE for2019-20  Allocation

for the STs increased by 28% – from 39,135 crore in BE 2018-19 to

Rs. 50,086 crores in 2019-20BE

Political agenda in the interim budgets In recent times, the interim budgets have played a key role for the government to list out its achievements in order to make a fervent appeal to the electorate. According to political analyst Priya Ranjan Dash, “As a matter of propriety, the incumbent government at the end of its tenure presents an interim budget for three to four months with a viewto keeping the government running. The outgoing government does not want to commit the incoming government to a full-budget.” “Generally, the incumbent government does not present essentially an expenditure budget. In an interim budget or vote-on-account no fresh programme, schemes are included normally. Similarly, on the revenue side of the budget, no tax proposals are made. In case of interim budget or vote-on-account, no finance bill is presented along with,” Dash told Financial Express Online. “However, it has become a practice for the incumbent government to use vote-onaccount or interim budget as a manifesto. Finance Ministers in recent decades during interim budgets talked about new schemes without backing it up with actual expenditure. The main objective of such declaration is just to woo the voters,” Dash added.

In 1995-96 interim budget, the then Finance Minister Manmohan Singh has not only given details of the works done by PV Narasimha Rao government but also made

35

allegorical reference to the ‘friendly hand’. In 2009, former Finance Minister Pranab Mukherjee talked about the Lok Sabha polls and again reminded the voters of ‘helping hand’. Former Union Minister P. Chidambaram in 2014 concluded his budget speech by exuding confidence that voters would keep their faith in “a hand”. From BJP’s point of view, Jaswant Singh got the opportunity to present the Vajpayee government’s interim budget in 2005. Apart from speaking on the achievements of the BJP government, he also talked about the unfinished works of the ruling dispensation.

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CHAPTER.2 RESEARCH METHODOLOGY This chapter describes and discusses how we have gathered the necessary data and information that will be use in the entire study. It describes who will be the respondents and focus of the research. This also shows the procedure of data collection and techniques used to analyse such data. This chapter also discusses the type of research, research method and the medium which will be used to conduct research.

OBJECTIVE OF THE STUDY:To Get the information regarding History of union budget in India To deeply understand the interim budget To understand the impact of budget on various sector To see what are the new policy have been introduce by the govt. To see how budget going to effect the Indian economy. To know whether youth were aware about the budget or not. To know the point of view of youngster about the budget How budget is going the effect coming election. To Compare interim budget with past budget

RESEARCH METHOD According to this research, the researcher relies on the views of participants, asks broad, general questions and collects data consisting largely of words from participants, analyses these data and draws conclusion accordingly. The main characteristic of qualitative research is that it is mostly appropriate for small samples, while its outcomes are not measurable and quantifiable. Its basis advantage, which also constitutes its basic difference with quantitative research, is that it offers a complete description and analysis of a research subject, without limiting the scope of the research and the nature of participant’s responses. It 37

provides rich data. In this study we have prepared a questionnaire consisting of several questions to collect data from respondents through internet. However, it is possible that the outcomes may not be reliable because it is based on researcher's personal judgments. NATURE OF STUDY The methodology adopted to achieve the project objectives involved descriptive research method. The information required for fulfilling the objectives of study was collected from various primary and secondary sources. SOURCE OF DATACOLLECTION:For the purposes of this research, primary as well as secondary sources of data collection will be used. Primary data will be gathered through online survey created via Google Forms which will be sending by email or by sharing a link on social media platforms. Social media platforms will consist of WhatsApp, Facebook, Twitter, Instagram, Hike, etc. Secondary data will be gathered through Journals, Books, Newspapers, Magazines and Google. Secondary sources of data collection are used to get well versed with the research conducted by other researchers by reviewing of literatures, to better define the problem and to interpret primary data more insightfully. It may be possible that secondary data is inaccurate as compared to primary data. Two sources of collecting data have been employed i.e. primary data and Secondary data.

a) PRIMARY DATA:Primary data is data that is collected by a researcher from first-hand sources, using methods like surveys, interviews, or experiments. It is collected with the research

38

project in mind, directly from primary sources. The term is used in contrast with the term secondary data. A questionnaire is used as a tool for the systematic collection of relevant information. A well questionnaire consisting of simple questions has been prepared and directed to the respondents. (Questionnaire is attached at the end of the projects) The questionnaire prepared consists of closed-ended questions which includes Multiple choices question. The questionnaire also consists of open-ended questions. The first section of questionnaire is prepared mainly for collecting the personal information about the respondents. The second section contains multiple choice questions. It is prepared to collect the information about respondent perception.

b)

SECONDARY DATA:-

Secondary data refers to data which is collected by someone who is someone other than the user. Common sources of secondary data for social science include censuses, information collected by government departments, organizational records and data that was originally collected for other research purposes. It is collected from books, magazine, news articles, newspaper, and internet.

SAMPLING METHOD:The method of convenience sampling is used to develop the sample of the research. According to this method, which belongs to the category of nonprobability sampling techniques that relies on data collection from population members who are conveniently available to participate in the study. In this study, the sample respondents were the persons who have received the link of online survey on social media platforms and those who have been referred by email. As regardsthesamplesize,itwillbe100respondents.Aswehaveusedconvenience

39

sampling we would continue to invite students, etc to take part in the research until our sample size isreached. SAMPLING UNIT:It defines the target population that will be sampled i.e. it answered who is to be surveyed. Though large samples give more reliable and accurate results than small samples, but due to time constraint, the sample size was restricted to 80 respondents. In this study, the sampling units are the people from malad area

RESPONDENTS PROFILE:Respondents form an important component of the primary data survey. So it is very essential that the personal profile of the respondents undergo in a study. Descriptive analysis was done to present the demographic information of the respondents. The sample size consists of 80 respondents. First section of questionnaire includes the customer’s profile. The basic attributes of the respondents are age, sex, occupation, educational qualification and other socio-demographic information. Second section presents a comprehensive profile of bank customers who had participated in this research study.

Sample size 80 student from Kandivali resident.

Research instrument: -Questionnaire (Google form) Method of research: - survey method

TECHNIQUES AND TOOLS TO BE USED The study has used various statistical tools for the analysis of data. They are percentage analysis, tabulations, Pie charts are also provided for better

40

understanding of the viewer. A separate interoperations of each diagram is also given to make the analysis simple and easy to understand LIMITATION OF STUDY:Due to limitation of time limited information can be collected. Data is a mixture of primary data and secondary data. As information is based on secondary data there is a chance of having second hand information. There can be possibilities of individual biasness. Information is limited to youth among Kandivali (Mumbai) student only. Sample size may not be the true representation of the population. Primary data is made on the basis of information given by 85 respondents only. Data present in this file might get change with passes of time. For collecting information Google form has been used there might be a chances respondent may not be target audience. Information is based on particular age group i.e. 20-25yrs.

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CHAPTER.3 Research Methodology

Pawan Goenka, managing director, Mahindra and Mahindra The budget was on expected lines, being a pre-election budget. At the same time it was prudent. The government's hasn't gone overboard in trying to be populist. Fiscal prudence has been maintained. An expected fiscal deficit of 3.4% for 20192020 is a good number. However, it is not clear where the revenue will come from to finance the schemes announced by the government. One miss was that there was not enough in this budget that would lead to industrial growth. That might come in the full budget postelection.

Rajnish Kumar, chairman, SBI “The Union Budget for FY 19-20 is growth oriented and forward looking in nature. The announcement of an Assured Income Support Scheme for Small and Marginal farmers is the most welcome step. Additionally, Interest Subvention announced for farmers pursuing Animal Husbandry and Fishery will provide a fillip to this sector. Raising the full tax rebate up to 5 lacs will surely be welcomed by country’s emerging middle class. We believe, this will further strengthen the purchasing power of the growing middle class thereby providing a welcome fillip to the economy at large. Further, exemption of tax on second self-occupied house is likely to give further boost to the housing sector. Hiking the ceiling limit for TDS on bank deposits and small savings will act as a catalyst for this deposit segment by attracting the new depositors. To sum up, on the whole, it is a growth-oriented budget having something for everyone.”

Krish Iyer, president & CEO, Walmart India “The Interim Budget of 2019 is rightly focusing on the middle class, rural sector and on enhancing farmers' income. It is giving huge resources in the hands of people which will drive rural income and consumption. Growing consumption is 42

critical to support and boost local manufacturing and job creation in the country. Overall, this Budget maintains focus on fiscal consolidation and is a win-win budget for all as it will help bridge the divide between India and Bharat. It’s heartening to note that fiscal deficit has been contained at 3.4% despite the aforesaid initiatives.”

Vivek Gambhir, managing director and CEO, Godrej Consumer Products Limited Overall, this is a “consumption first” budget that will provide a much-needed thrust to growth in the FMCG sector. It re-emphasises the aam aadmi at the heart of the Government’s pro-growth, pro-reform agenda; maintaining the fiscal deficit, stimulating demand and building a sustainable growth platform. It is positive for FMCG; proactive efforts to drive demand and increase consumption, in rural and urban, should help improvegrowth. Focused efforts to relieve stress in the agrarian economy, including the 60,000 crore investment in MNREGA, and crop loans, will help put more money in the hands of farmers. The PM Kisaan Samman Nidhi allocation of 75,000 crore, is importantly, aimed at benefitting small and marginal farmers. The plan to create 1 lakh digital villages in the next 5 years will improve connectivity and thereby distribution networks. Raising the personal income tax slab limit from2.5 lakh to 5 lakh, and raising the standard deduction for salaried employees, will increase disposable income for middle and salaried classes and drive demand for mass products. But the need of the hour is clearly more productive job creation and gainful employment to meet the needs and aspirations of Young India. We hope to see this enabled through investments in SMEs and infrastructure investments, which seem to have slowed down. The commitment to source 3% of government projects material from only womenowned SMEs, Mega Pension Scheme for unorganised workers, focus on health and wellness, will drive more inclusivegrowth. However, the timely disbursement and strong on-ground execution will be absolutely critical now to ensure the translation and real success of this roadmap of change to make India a ”5 by 5” economy - $5 trillion economy in 5years. 43

Sunil Duggal, CEO, Dabur India Ltd Finance Minister Piyush Goyal’s Interim Budget 2019 can be summed up as a series of sops for the middle class, farmers and millions of employees in the unorganized sector. Not only does he promise to put more disposal income in the pockets of Middle-Class India, he is also seeking to improve the quality of life of people at the bottom of the pyramid, particularly the small and marginal farmers, and unorganized sector workers. In short, it a great Budget for that should spur consumption. The government’s decision to allocate 60,000 crore for MNREGA and another 19,000 for construction of rural roads under Gram Sadak Yojana, coupled with the increased interest subvention scheme for distressed farmers and the modest farm support scheme offering income support for marginal farmers tick all the right boxes when it comes to fueling the Rural and Agrarian Economy. The minister also announced social security coverage for workers in the unorganized sector. These are steps in the right direction and would go a long way in improving their quality of life. But the biggest beneficiary this year is Middle-Class India. The government decision to exempt tax on an income of up to 5 lakh for individuals tax payers and an increase in standard deduction to 50,000, the hike in TDS threshold for home rent and higher Capital Gains tax exemptions under Section 54 are big-ticket reliefs for the Aam Aadmi. I am confident this Budget would boost overall consumer confidence and play a catalyst for demand generation for branded consumer staples and consumerproducts. What’s also heartening to see is the government’s commitment to long-term reforms while addressing a changing international tax landscape. The decision to process Income-Tax returns within 24 hours and immediate payment of refunds, in addition to anonym zing tax scrutiny within the next two years to beat corruption and increase ease of process are steps that will create the foundation for a new-age India. The Interim Budget, I feel, has successfully laid down the blueprint for creating an enabling framework that would promotegrowth. However, the upward revision in fiscal deficit target to 3.4% of GDP for 2018-19 and 2019-20 remains an area of concern. Also, there is not much clarity on the government vision and strategy for improving infrastructure and job creation.

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Saugata Gupta, MD & CEO, Marico Limited A host of measures by the Government to boost the agrarian economy through minimum support price and increased investment in the farmer scheme is a welcome move as it will benefit small and marginal farmers. Simplified tax assessment processes coupled with the increase in tax exemption for income up to 5 lakh per annum for individual tax payers, will not only reduce the tax burden on the middle class citizens but also increase the tax payer base in India. It will additionally result in the rise of disposable income in the hands of consumers thereby augmenting consumption. Given its focus on masses, this budget should place higher disposable income in the hands of a large section of the society which augers well for consumer goods sector in general and rural growth more specifically. Another welcome feature of the budget was the focus on digital India and building an all-encompassing digital infrastructure.

Zarin Daruwala, CEO, India, Standard Chartered Bank “The Budget balances the objective of boosting growth while adhering to fiscal prudence in the medium term. The measures to support the rural and underprivileged segments via direct income support for small and marginal farmers and tax relief for middle class are much needed and welcome. The steps to provide impetus to the housing sector would have a multiplier effect on GDP growth given the sector’s significant economic linkages. Overall, the Budget is likely to boost domestic demand and support India’s economic outlook.”

Nikhil Prasad Ojha, partner, Bain & Company This budget is consumption friendly, especially at bottom-of-pyramid and lowermiddle income groups. Increase in allowable rebate will boost purchasing power in urban and semi-urban areas. Additionally, minimum assured farmer income will impact rural demand for FMCGs and small durables.

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Ankur Dhawan- chief investment officer, PropTiger.com Government has given sufficient reasons for real estate to rejoice in this budget. Though there were many direct announcements for sector such as extension of Section 80 IBA for 1 year, no interest on notional rent till 2 year of completion of project, reinvestment of capital gain in 2 houses rather than one and no tax on notional rent for 2 self-occupied houses, yet announcement of doubling of NIL income tax slab from 2.5 Lakh to 5 Lakh will have much stronger impact on real estate sales especially for affordable housing buyers. Not only government is giving credit link subsidy scheme for these buyers but also leaving more money in hand to pay EMIs through increased tax savings.

Vishal Gondal, CEO and founder GOQii “The 2019 budget looks promising for the healthcare sector; we have seen some major initiatives and announcements that will potentially change the health Index of India. One of the key highlights is the establishment of a system that ensures a stress free environment and comprehensive wellness for all. Keeping in mind that 55 per cent of India’s workforce are millennials, this is definitely need of the hour. Therefore, paving way for a stress-free India is directly proportional to its growth. The healthcare announcements made in the budget are a welcome move and will help build a strong economy. This will provide opportunities for companies like GOQii to contribute to making a stress-free India and creating a space that encourages preventive healthcare over curative. Further, Ayushman Bharat’s vision of improving the lives of 50 crore Indians which will potentially result in cumulative savings of 3,000 crores by the poor, is a testimony that the Government of India is strengthening the nation’s health ground up. We support the same philosophy that is making healthcare easily accessible for all Indians and governments’ efforts are evident through increased focus on making medicines, healthcare services and other healthrelated instruments moreaffordable.”

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Anuj Puri, chairman, ANAROCK Property Consultants The interim budget was more or less a vote bank-facing exercise - an electoral pitch that drew attention to past achievements. Vote-bank directed announcements included benefits to 12-crore small farmers via credit of 6,000 per year directly into their bank accounts, and also to 10 crore labourers by way of direct pension bonanza. Direct and indirect positives for the real estate sector include boost to affordable homes: People earning up to 5 lakh will get a full tax rebate. However, if one invests in specified government saving schemes then the tax exemption extends to Rs. 6.5 lakh. This can have good implications for affordable housing, but not really on the mid-income housing. The Government also extended the benefit of tax exemption for developers by one more year, up to 2020 now. This, too, will give a push to the affordable housing segment. Electricity for all by 2019 could have positive implications by making more far-flung areas liveable and therefore more viable for affordablehousing. The standard deduction for the salaried class was raised from 40,000 to 50,000, which definitely implies some increase in disposable income. There was a decisive push to the second home market via exemption of notional rent on second self-occupied homes. This could boost the second home market to some extent. There will now be no tax on house rents up to Rs. 2.4 lakh from the previous limit of Rs. 1.8 lakh. This can attract more investors to buy second homes for earning rentalincome. On the downside, there was no major tax relief to the ‘real’ middle-class. No announcements were made with regards to clearing the NBFC deadlock which continues to hold the real estate sector to ransom. Industry status for the real estate sector, while not really expected, was ignored again. There were promises of reduction on GST burden on homebuyers, but no announcement of actual relief. To bail itself out from the issue of job creation deficit in the country, this budget could have given a far more decisive impetus to real estate sector - one of the largest creators of jobs. Alternately, it could have created a stress-asset fund to bail out distressedhomebuyers. All in all, this was a balanced budget for real estate, even though it was clearly configured as a crowd-pleasing electoral pitch with a cursory nod towards the ongoing challenges in the economy. 47

For the housing sector to regain significant momentum, the real need is to woo back the long-term investors who exited the residential market. One possible way was to re-introduce the home loan benefit on second homes. The Government's move on this front is certainly welcome.

L C Singh, vice chairman, Nihilent Limited The impetus provided by the government in propagating the advancements in Artificial Intelligence for building nation’s assets is indeed heartening to know. The plan to set up a National Centre for AI augers well for positioning India at the centre of global innovations.

Gaurav Gupta, CEO, Adani Capital The Budget has announced some key measures for the rural economy and SME sector. The Interest subvention for SME for loans up to 1 crore, the government’s aim to source 25% from SMEs will spur a new wave of economic development, making way for more capital expenditure by the SMEs, with add-on benefits to other allied industries. This will further aid employment generation and help in the all-inclusive growth of theeconomy.

Jayant Manglik, president, Religare Broking Ltd The Modi government has seemingly once again managed to defy the convention by pulling off a Budget, which seems more in the nature of a full budget rather than an interim budget. The priorities in the budget were clearly focused on two important segments of the Indian economy – the middle-income group and the farmers. Thus, for the former, while the government has proposed income tax relief to those having income of up to5 lakhs, a 75,000 cr relief package has been announced for the farmers community for FY20 and also a 20,000 cr farmer income support package for the current fiscal. However, the government has pegged the fiscal deficit target at 3.4%forFY20,whichisamarginalnegativeconsideringthattheobjectiveof 48

staying on course to reducing the fiscal deficit has been compromised for another year. From the stock market point of view, this Budget will be welcomed, as it focuses on increasing the disposable income in the hands of a large section of the economy i.e. middle-income group and farmers. The budget proposals are a positive for sectors related to consumption, which include FMCG, Auto, Consumer Durables, Banks and Fertilizer / Agri. Moreover, with several announcements pertaining specific to the Real Estate sector in the Budget, this sector will stand to be a beneficiary over the medium-to-long-term. Thus, sectors related to and dependant on Real Estate will also stand to gain and these include Paints, Cement, Ceramics,etc. The General Elections are around the corner, a fact which was seemingly on the government’s mind, and at the same time, a feel-good in the economy was the need of the hour. In this backdrop, the government has rightly put growth (consumption) over fiscal discipline for next year. Overall, it was a good budget, which is aimed at setting the stage not just for the Election battleground at a micro level, but for pushing India’s growth to a higher growth trajectory at the macro level in a challenging global and domesticset-up.

Ashok Hinduja, chairman, Hinduja Group of Companies (India) It is a people’s budget with the long term vision for making India an engine of growth for world economy. The proposals would fulfil the expectations of common people, salaried class and farmers to a large extent. The distressed farmers will stand to benefit by several measures announced. The cash support of 6,000 per year to them is a good beginning to increase their income and lift them above poverty level as experienced in Telangana. Another welcome measure is the assured monthly pension for unorganized sector workers. However, more money supply into the economy should not lead to inflation and other adverse effects. The higher allocation to Defence and capital expenditure should give a boost to manufacturing industry and job creation. The fiscal deficit is stated to be 3.4% of GDP which is slightly higher than the figure expected by the global rating agencies.Butifthehigherdeficitleadstocreationofmoregoodsandservices,it

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will not affect the economic growth. On the whole, the acting Finance Minister has done a good job.

Ranen Banerjee, partner, PwC India The income tax sops for the taxpayers will lead to higher disposable incomes for discretionary spends. This will support demand uptick. We expect credit growth from some of the banks coming out of the PCA (Prompt Corrective Action) framework and realisation of 3 lakh crore of NPAs as announced. The changes to the capital gains from sale of house property, being allowed to be invested in 2 properties instead of one and the 10 year window for registration of affordable housing projects for getting tax relief will provide a boost to the real estate sector and consequently to construction activity. We expect good tailwinds to the India growth story from these announcements in the budget.

Nikunj Ghodawat, CFO, CleanMax Solar It is good to see that Renewable Energy remains a priority for the Government and has been prominently highlighted in India's 2030 Vision. Electric Vehicles have also been brought into focus. What we will wait to see is, finger print on the renewable industry like uniformity in policies, imposition of duties, ease of financing etc. to reduce dependence on deplete-able energy resources, thereby fueling adoption of renewable energy. For Electric Vehicles to be a norm of the future, policies should include how EVs can be powered by renewable energy. While the budget has confirmed the role of renewables in its vision of a clean and green India, and states have started showing enthusiasm in adoption, a long term road map will be expected by the industry.

Mahesh Balasubramanian – MD & CEO, Kotak General Insurance The honourable FM has done a fine balancing act in his budget speech, with something for everyone, given that this is an election year budget. He has kept the

50

interest of both Bharat and India in mind and announced measures which caters to all. The fiscal deficit of 3.4% for this year in a minor slippage, I am sure the markets will not be too worried about it and in fact have responded well. The market is relieved to hear that the government continues on road of fiscal discipline with Fiscal deficit at 3.4% for FY 20. We have to see how the government will achieve this, but directionally it gives great comfort. For Bharat, the Assured Farm Income scheme called PM Kisan Sanman Nidhi is a good move. Rs 6000 / year for every farmer will cost Rs 75,000 cr and will be 0.26% GDP. The fact that this DBT scheme also ensures that the money reaches the hands of the farmer. Rs 60,000cr for MNREGA, Rs 3000 cr savings through the Ayush Bharat insurance program will help put more money in the hands of Bharat. The social security through pension scheme of Rs 3000 per month for 42L workers in the unorganized sector is a welcome move for these workers who were deeply affected in the last few years. The Personal Income tax slabs going up to Rs 5 lakh, increased standard deduction limits of Rs 50000, along with increase in TDS limits in savings accounts from Rs 10,000 to Rs 40,000 is a welcome move and is pro middle class and will boost urban consumption. Personal consumption will continue to drive growth. Continued spends on Roads (Rs 19,000 cr), Railways (Rs 64,000 cr) and Defence Rs 3 lakh cr by the government is crucial as private investments are yet to kick in. This spend by the govt will be required to keep our GDP growth going. Real Estate, SME sectors also have some benefits announced and will help in revival of these sectors. Overall a good budget, which will keep India oncourse.

Kamal Nandi, president – CEAMA and business head and executive vice president, Godrej Appliances The interim budget for 2019-20 has focused on farmers and the middle class and should boost consumption. Full tax rebate for income up to 6.5 lacs (including investment under 80 C) will boost sentiments and we foresee a rise in demand for the mass segment of consumer durable goods.

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Rural electrification which aims to touch every household by March 2019 coupled with infrastructural push via Gram Sadak Yojana and the rural support schemes will serve as a catalyst in improving the demand for consumer electronics and appliances. Category penetration levels should therefore improve faster. Also, governments continued attention towards skilling will help improve the quality and quantity of skilled labour - critical to industrial growth. We also welcome government’s attention towards climate change and clean energy. We are committed towards the success of the energy efficiency regime and will continue to support the government in thisarea. The FM also talked about the vision of making India a 5 trillion dollar economy in next 5 years and a 10 trillion dollar economy in next 8 years thereafter. We welcome this ambition and would like to affirm that electronics, appliances and AI industry will serve as major growth drivers in achievement of this objective. The interim budget though did not provide much further impetus to the indirect tax reforms which are crucial for manufacturing and Make in India. We hope to hear some major announcements in the full budget which may provide the desired support to the ACE Industry and electronicmanufacturing.

Keshav Murugesh, group CEO, WNS global services & vice chairman NASSCOM “The broad narrative of the Interim Budget 2019 is one that is pro-economy, prodevelopment. It has announced much-needed steps for every section, be it farmer incentive schemes to propel the agrarian economy, tax rebates for the middle class, enabling overall tax compliance bringing more transparency in the systems, real estate, insurance, healthcare, amongst theothers. The 10-point agenda in Vision 2030 lays out a sharp roadmap for India’s growth. It aims to elevate the citizens’ overall standard of living in a clean, healthy and green India, make the nation a world’s launchpad, expand rural industrialization, and make India agriculturallyself-sufficient. It’s laud worthy that the government has given due prominence to the disruptive space of artificial intelligence (AI) for the first time, announcing setting up of a National Centre for AI along with the development of a National AI portal. The technology sector welcomes the move and would like to see a quick turnaround if 52

we aim to catch up with other global economies such as China and the U.S. We are confident that all these measures would bring back economicbuoyancy.”

Sanjay Chamria, vice chairman and MD, Magma Fincorp “A middle class budget with a rural focus is what the government has delivered in an election year. They have managed to focus on rural and SMEs while enabling higher affordable housing too. Farm support schemes will put more money in the hands of farmers thus giving an impetus to rural consumption. MSMEs will benefit from the interest rate subvention and from the sourcing requirement guidelines for government entities. Low income individuals will reap significant benefits from this budget and that will mean a stimulus for affordablehousing. The announcement of benefits under Section 80 - IBA of the Income Tax Act being extended, additional boost from exemption of tax on Notional Rent and capital gains benefits on selling one property and buying two will all give affordable housing financing a leg up. On the interest rate front, the FM has set the stage for a rate cut by the RBI and that is a positive for funding. The removal of three banks from PCA framework and the expected capital infusion in this month, will ease the liquidity problems to a good extent. Fiscal arithmetic however doesn’t seems to be too clear, but in an election year you usually see higher spends.”

Surendra Hiranandani, founder & director, House of Hiranandani “It is an inclusive budget that focused on strengthening the agricultural and rural economy, healthcare, infrastructure, social inclusion, digital and employment generation in the country. It also gave a substantial boost to the residential housing sector. The rise in individual tax exemption up to Rs 5 lakh will impact consumer sentiments positively. The tax savings that the salaried class stand to benefit will lead to higher consumption including investments into residential real estate. The proposal to raise the limit TDS threshold to Rs 40,000 currently will also provide relief to taxpayers who invest in bank deposits and various post office schemes.

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Amongst the notable announcements for the real estate sector, the decision to eliminate tax on notional rent on second self-occupied house is a welcome move. This will prep up demand for second homes substantially. Relaxation of notional rent on unsold inventory to 2 years will also ease burden on developers, who now have more time to sell their projects. Continued thrust on affordable housing through tax benefits on projects allows for expansion of this class of the asset even further. The benefit of exemption of capital gains up to Rs 2 crore for investment in two houses will increase sales in the residential sector. The FM has brought about substantial improvements in both personal income and capital gains. This is extremely positive as compared to the slow incremental reforms of the past. The decision to grant significant capital for rural development and infrastructure is a step in the right direction. The impressive development of roads, infrastructure over the last five years has been significant and

if the same momentum is

continued then the increased connectivity will have a positive rub off on all segments of real estate including commercial and industrial developments. To sum it up we definitely believe that this budget has set the tone for future growth of the economy.”

Priti Rathi Gupta, MD and promoter, Anand Rathi Group “The FM did what was the need of the hour by encouraging MSMEs and Women entrepreneurs in boosting the economy. The increase in basic exemption limit to INR 5, 00,000 will stimulate additional investments and disposable income resulting in more Investment power. I also feel tax breaks for women returning to the workforce will prove to be a push in the right direction. Celebrating women and giving them equal and better opportunities in the upcoming budgets will be a positive big contributor to grow the Indian economy.”

Sampad Swain, co-founder & CEO, Instamojo “While ease in obtaining loans for MSMEs continues to remain the need of the hour, additionally aided by the government’s 59-minute loan portal, the hike in the GST threshold has certainly brought about a major relief for MSMEs. 54

Additionally, the government’s aim to empower 1 Lakh villages digitally only gives us further hope to identify an addition of more MSMEs in the country, which is currently populated with 6.3 crore enterprises, given that digital adoption by small businesses has always been a challenge to fight through, for the fin-tech sector. Further, the reduction in the GST slab from 18% to 6% could be a great move to encourage new and aspiring entrepreneurs to begin newventures. The government’s mandates of 25% of goods procurement from SMEs will help the sector scale up, not only in terms of quantity, but will also enable wider reach, thus expanding to different markets.”

Shyamal Mukherjee, chairman, PwC India “The thrust on social infrastructure, ease of living, and technology led governance for inclusive, equitable growth is a welcome move. India would continue to need more structural, policy and economic reforms to become a $5 trillion economy in the next five years. There is a considerable ground to be covered and this Budget has set the tone for future discourse.”

Ashish Mehrotra, MD & CEO, Max Bupa Health Insurance “It’s heartening to see the Government’s continued thrust towards building a Digital India and providing Universal Health Insurance Coverage to about 80% of the Indian population which is grossly underpenetrated. We wholeheartedly support the Government’s resolve to make preventive healthcare and health insurance more affordable for the masses. Ayushman Bharat has the potential to alter the social fabric of the country and with the announcement of two major initiatives - Health and Wellness Centres (HWCs) and Pradhan Mantri Jan Arogya Yojana (PMJAY), the world’s largest social health scheme is expected to provide coverage to nearly 50 crore people. This year, the announcement of a National Centre for Artificial Intelligence, National AI portal, support to digital startups and setting up of Centres of Excellence, is a crucial step towards realizing the vision of building a Digital India. Specifically from a health insurance perspective, AI has the power to revolutionize the sector - personalising, improving and streamliningprocesses 55

from underwriting, claims management, to even product design and innovation. With greater focus on digitization, the play of health tech in the health insurance space will encourage players to provide customers a complete health and wellness ecosystem. The budget has also been encouraging for the common man with increased income tax relief coming theirway. However, as a health insurer, we believe the introduction of Reduced/No GST slab for health insurance would have been a significant driver to increase health insurance penetration in the country. Nonetheless, the overall budget has been reflective of the efforts made by the government to build a healthiernation.”

Sanjaya Gupta, managing director, PNB Housing Finance “Finance Minister Piyush Goyal’s thrust on the middle class, in his Interim Budget 2019-20, is welcome as it will place more disposable income in the hands of the salaried class, small traders and businessmen, which will in turn boost the affordable housing segment. With various sops announced for the middle class — such as the IT exemption on annual income, tax exemption on notional rent on a second self-occupied house and the benefit of rollover of capital gains from investment in one residential house to two residential houses — will help both existing and potential homebuyers. Besides, the extension of benefits under Section 80-IBA of the IT Act for housing projects approved till March 2020 will give a big impetus to the real estate sector. The Budget will also have a positive impact on first-timehomebuyers.”

Ritesh Agarwal, founder & group CEO, OYO Hotels & Homes “This is the Budget for a New India. The honourable interim FM has meticulously balanced priorities of various sections of our society and delivered on his government’s vision of ‘Sabka Saath, Sabka Vikas’. This Budget makes a strong promise to the people to India, which I hope will be backed by an equally strong delivery, especially in the areas of job creation and addressing the skill-talent gap. The announced tax breaks, together with low average inflation, are likely to spur 56

domestic demand and spending, and inject liquidity in the market. This is great news for sectors such as hospitality and travel. The announcements on bridging the digital divide and improving efficiency through technology are also welcome. I am excited about India’s Vision 2030 and believe that it will empower more young entrepreneurs to set off on their entrepreneurialjourneys.

Siddharth Roy Kapur, President, Producers Guild of India

“We are delighted that the immense contribution of Indian cinema towards employment generation in the country has been acknowledged and applauded in Parliament during the presentation of the Union Budget. The announcement of a single-window clearance mechanism for Indian film makers filming within India is a significant step and has the potential to play a huge role in boosting tourism in the country. The amendments in the Anti Cam cording provisions will support the industry’s growth by curtailing illegal recordings of films in cinema halls and will go a long way towards reducingpiracy.”

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles “The mission of bringing an Electric Vehicle revolution to India by 2030 is a truly path-breaking and will surely provide much-needed impetus to the industry. The government’s focus on the use of clean energy in the transportation sector would certainly help our country tackle the issue of climate change. EV industry welcomes our Hon'ble Finance Minister’s commitment towards making the country pollution free, in his budget speech 2019-2020. We hope the government would soon announce a concrete plan of action with its time-bound implementation in order to fulfil its stated vision. SMEV strongly feels that an initial high dose of incentives and actions must be taken in the next 1 or 2 years to relaunch the electric mobility mission that has sort of lost steam in the recent years due to flip flop of policies.”

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Harsh Goenka, Chairman, RPG Enterprises gave a thumbs up to the Budget. "BJP - pro-poor, pro-farmers with path breaking reforms benefiting entire society Opposition - anti-poor, populist, meant for the rich. Lacks imagination and sincerity. How will the jobs come? CII/ FICCI/ Businessmen- Will give a boost to economy. Full of ‘josh’."

Pawan Goenka, managing director, Mahindra and Mahindra The budget was on expected lines, being a pre-election budget. At the same time it was prudent. The government's hasn't gone overboard in trying to be populist. Fiscal prudence has been maintained. An expected fiscal deficit of 3.4% for 20192020 is a good number. However, it is not clear where the revenue will come from to finance the schemes announced by the government. One miss was that there was not enough in this budget that would lead to industrial growth. That might come in the full budget postelection. .

Garima Kapoor, Economist And Vice-President, Elara Capital, Mumbai "The budget is clearly farm-focused, with elections on the mind. Farmers, age-old,

unorganised sector, MSME and middle class - they're all finding favour, with the agricultural sector getting the biggest support. The 750 billion rupees in the Centre's budget for the farmers' scheme is a huge number, so we need to watch out for where the funding is coming from. If the scheme is implemented well, you can expect consumption to be supported next year. The catch here is, even if the BJP does not come back to power in May, the new government will also implement this scheme because no government will want to look anti-poor or anti-farmer. The government will have to find fresh resources to the tune of 750 billion rupees. Although the equity markets will be happy because of the consumption boost, the bond market may not be, as we need to see the intricacies of how much is getting funded through what route and what deficit numbers. If the government has provided enough consumption boost, then RBI would want to take a cautious stance and would not undertake a ratecut."

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Ashok Varma, LeaderSocial sector, PwC India

"Pradhan Mantri Shramyogi Man Dhan Yojana seems to be an extension of the existing Atal Pension Yojana(APY). While APY was meant for workers in the unorganized sector, the new scheme includes marginal wage earners from organised sector as well. Another difference is the upper age limit of 60 years in the new scheme as against 40 years in APY. It is a welcome move and would further provide social security to a larger number of marginal wage earners in the country. Being contributory and designed in line with NPS (National pension scheme), this also makes economic sense.”

Anand Kumar Bajaj, Founder & CEO PayNearby

“The 'Thank you note' to Taxpayers, made us feel officially proud for the first time. The focus of government on rural and startup is clearly visible and this is a long-term impact work. We are glad that we are a Startup working towards helping accomplish critical activities which are part of the vision of government. Certain modules of startup growth hack and customer retention have been applied to reward good behavior and we stand validated by the government for our business models. Farmer support income through aadhaar is suggestive of the fact that the construction has begun on the Base (Aadhaar). True grass root level of marginalised beneficiaries have been identified amidst migrants, nomads, small farmers, small taxpayers, small businesses and retiring small salary earners. The budget has been well received, benefits are immense and the future is bright. The environment feels like Diwali in February.”

Suraj Malik, Partner -Transaction Tax/ Tax & Regulatory Services, BDO in India "An interim budget by an interim FM still with a clear focus on long term fundamentals along with targeted proposals crucial to address the current economic, political and social situation. The interim budget focused on inclusive development

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and tax concessions. Policy announcements for agriculture & allied activities, rural communities and welfare of the workmen is outlining the Government’s vision statement for the next term."

Prakash Tulsiani, Executive Director & CEO – CFS & ICD, Allcargo Logistics Ltd “Logistics will play a key role in propelling India to become a USD 5 trillion economy over the next 5 years. The interim budget has broadly outlined the government’s vision to improve the sectorial competencies of Indian logistics and empower supply chain capabilities. A 21 percent allocation for the North Eastern region of the country to Rs. 58,166 crore has the potential to uncork the untapped logistical efficiencies of the region. It will also boost connectivity-driven initiatives to bring the region within the broader national logistics framework to bolster economic growth and development within NE and create employment generation opportunities. The budget provides a wider blueprint of the government’s resolve to continue on the path of the logistics sector empowerment with pro-industry measures like Ease of Doing Business and expediting inter-state freight movement through simplified e-way bills. Emphasis on inland water development is a welcome move. The tax sops will result in more disposable income. This will lead to more discretionary spending, boosting the movement of goods and benefiting the overall logisticssector.” Nimish Gupta, MD South Asia, RICS "The sanctity and prudence generated in the overall economy, on the back of continuous reforms over the last three years was expected to deliver a business environment that was conducive, opening up the economy for

large

hearted

schemes. As RICS, we expect that the Real Estate and Construction sector, which suffered the maximum brunt of some of these reforms, is now expected to grow significantly in light of the changes that these schemes and reforms intended. RERA and the Benami transactions act have already resulted in wider semblance in the market on the back of increasedtransparency

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CHAPTER.4 DATA ANALYSIS AND INTERPRETATION

Q. Classification of table on the basis of Age Table no.1 Age Group 18-25

Numbers

Percentage

58

72.5

25-30

8

10

30-40

10

12.5

Above 40

4

5

Total

80

100

18-25 25-30 30-40

Analysis:Above fig is the representation of the respondent on the basis of age group. This shows that majority of the respondent where in the age group of 18-25 years Followed by the people in the age group of 25-30 we can say that responses is dominated by youth. 61

Q. Classification of table on the basis of Gender?

Table no.2 Gender

Numbers

Percentage

Male

53

66.3

Female

27

33.8

Total

80

100

33.8 Male

66.3

Analysis: Above fig shows that most of the respondent where male female haven’t shows much there interest toward survey as male where 66.3% where as female were 33.8 The responses clearly dominated by male.

62

Q. Classification of table on the basis of Education. Table no.3 Educational

Number Of

Qualification

Respondents

Percentage

Undergraduate

46

58

Graduate

19

24

Post Graduate

10

12

Others

5

6

Total

80

100

Graduate

Others

Analysis:Education wise the table is classified into undergraduate, graduate, post-graduate, professional and others. The table reveals that most of the respondents of the survey were undergraduates i.e. 58%

63

Respondent’s occupation

Table no.4 Occupation

Number Of

Percentage

Respondents Self Employed

32

40

Private Employed

12

15

Unemployed

8

10

Others

28

25

Total

80

100

Self Employed

Unemployed Others

Analysis:The above pie chart shows the respondent on the basis of occupation. Majority of the respondents i.e. 40% are self-employed, followed by 25% by others.

64

Q.Are you aware about union budget?

Table no.5

Responses

Numbers

Percentage

Yes

74

92.5

No

6

7.5

Total

80

100

Analysis:Above fig shows that majority of the respondent are aware about union budget which is a good sign this might have eliminated information biasness toward survey result. Information biasness can be termed as making opinion without having proper knowledge of the topic.

65

Q. Are you aware about recent changes made in interim budget? Table no.6

Responses

Numbers

Percentage

Yes

64

80

No

16

20

80

100

Total

Analysis:As per the diagram 80% of the respondent are aware about what are the changes made in interim budget or we can say what the changes present interim budget are. Only 20% of the respondent are not aware about the changes this might have effect the result.

66

Q. Do you know the meaning of interim budget? Table no.7 Responses

Numbers

Percentage

Yes

72

90

No

08

10

Total

80

100

10

90

Yes

No

Analysis:

As per above figure 90% of the people are aware about the meaning of Interim budget.

67

Q.Are you satisfied with the budget?

Table no.8

Respondent

Numbers

Percentage

Yes

61

79.2

No

16

20.8

Total

80

100

Analysis:Above fig is the result of the question whether they are satisfied with interim budget or not. Out of 80 respondent 61 respondents are satisfied with the budget where as16 respondent are not satisfied with the budget. Rest 3 respondent are having neutral thought regarding budget neither they are satisfied nor they were dissatisfied.

68

Q.The scheme for farmer introduces in this budget is it suitable for them as per your point of view?

Table no.9

Respondent

Numbers

Percentage

Yes

64

80

No

12

15

Can’t say

4

5

Total

80

100

15

80

Yes

No

Analysis:From the above pie chart we can say that majority of the respondent say that the policy introduced in interim budget is suitable for the farmer. The data is also presented in tabular form

69

Q.In interim budget government has introduce no income tax up to Rs. 5lakhs do u think it was wise decision taken by the government?

Tableno.10

Respondent

Numbers

Percentage

Yes

74

92

No

4

5

Can’t say

2

3

Total

80

100

No

Analysis:Above pie chart is on the basis responses given by the respondent 92% respondent say that making a provision of no income tax up to Rs 5lakhs is a wise decision made by the govt. The data is also presented in tabular form

70

Q.Is interim budget is better than past budget?

Table no.11 Responses

Numbers

Percentage

Yes

68

84.6

No

12

15.4

Total

80

100

Analysis:Above pie chart is made on the basis whether on the responses given by the respondent on following question whether current interim budget is better than past budget or not. And as per responses majority of people i.e.84.6% think that current budget is better than past budget .for this question only 78 respondent out of 80 has given their opinion rest 2 respondent have not shown any response their might be a chances that they are not having knowledge regarding past budget.

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Q.Does G.S.T has affected the interim budget?

Table no.12

Respondent

Numbers

Percentage

Yes

64

80

No

10

12

6

8

80

100

Can’t say Total

No

Analysis 80% of the respondent think G.S.T has play an important role at the time of forming budget While rest 20%people has different point of view toward this question

72

Q.Are you satisfied with the fund allocated toward army?

Table no.13

Responses

Numbers

Percentage

Yes

72

90

No

08

10

Total

80

100

Yes

No

Analysis:Above fig is representation of the question whether they are satisfied with the fund allocated for the army survey results shows that 90% i.e. 72 respondent where satisfied with it. The understand in easy table has also been in drawn.

73

Q.Does budget affect middle class people?

Table no.14

Responses

Numbers

Percentage

Yes

69

87.3

No

11

12.7

Total

80

100

Analysis:Above pie chart shows the respondent point of view whether budget affect the middle class people or not for this particular question 87.3% people said that budget will affect the middle class people. While rest 12.7% people think that it will not having any effect on middle class people

74

Q.Do you budget was in favour of middle class people by introducing no income tax up to Rs 5 lakhs?

Table no.15

Responses

Numbers

Percentage

Yes

76

95

No

04

05

Total

80

100

No

Analysis:In above pie chart majority of the respondent think that budget was in favour for middle class people by introducing no income tax up to Rs 5 lakhs i.e. 95% 75

Q.Do you think the budget will influence election result?

Table no.15 Responses

Numbers

Yes

73

No

7

Total

80

Percentage 91.2 8.8 100

Analysis:From the respondent some indirect question was asked like whether the budget will influence election result or not. And out of 80 respondent 72 respondent think that that budget will affect the election results. While rest of the 8 respondent think that it is not going to affect electionresults.

76

Q.Do you think the budget is in favour of our Indian economy?

Table no.16 Responses

Numbers

Percentage

Yes

68

84.8

No

12

15.2

Total

80

100

Analysis Above diagram shows that majority of the respondent think interim budgetis going to affect Indian economy in positive way. Only 15.2% people thinks that budget will be negative.

77

Q.W hich point of the budget attracted you the more?

Table no.17

Responses

Numbers

Percentage

No income tax up to

37

46.8

30

37.7

13

15.6

80

100

50000 More than 3 lakh crores for defence Pradhan Mantri Kiashan Saman Yojana Total

Analysis:Above figure shows that the major highlight of this year budget was no income taxup to Rs. 5lakhs as 46.5% respondent are in favour of this decision. 78

CHAPTER NO.5 CONCLUSION AND FINDING

The black book topic is based on current interim budget presented by finance minister Piyush Goyal on 1-02-2019 in this budget many reforms has been introduced like  No income tax up to RS. 5lakhs  More than 3 lakhs crore allotted towarddefense  Rs 60000 crore were allocated for the Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA)  10 percent reservation granted to the economically backward among the general category. The main motive behind this project is to see whether youth were aware about all this or not. Therefore my target audience was youngster in the age group of 18-25yrs. To get the information conduction survey with the help of Google document. And the target geographical area was Malad. In survey some indirect questions were also asked like 

Whether budget is going to influence election ornot



Is interim budget is better than past budget ornot

Finding:Through this survey I got the following information  Survey was done the basis of 80 respondents.  Majority of the respondent were in the age group 18-25years.  Majorities of the respondent are under graduate followed by graduate respondent.  Awareness toward union budget among youth seems to be good but not100%.  Male respondent have shown much interest then thefemale. 79

 Majority of the respondent were satisfied with thebudget.  This year budget highlights point was no income tax up to Rs.5lakhs.  91.2% people think that budget is going to effect electionresult.  Majority of the respondent think that G.S.T has effected budgetdecision.  80% of the respondent satisfied with thebudget.

Suggestion  As per young student were not fully aware about the budget which is not a good symbol they should follow some news channel and newspaper this will them to updated theirknowledge.  In research one things was observed that there was less female respondent then male respondent. Which shows that females were not interested toward this topic which not good. This is not a good sign to compete in the future world female should also has to develop their interest in theeconomy.  Colleges and educational institution should conduct some sorts of seminars to make student aware about changes that taking place in theeconomy.  Colleges should also organize some type of quiz competition this will motivated student to learn about budget andall.  Students should read at least one article on daily basis related to current affairs.

80

BIBLIOGRAPHY

WEBSITE http://businessworld.in/article/Union-Budget-2019-Reactions-FromIndustry-Experts/01-02-2019-166706 https://m.economictimes.com/markets/stocks/news/interim-budgetjust-enjoy-the-ride-its-your-reality-no-matter-who-you-votefor/articleshow/67790234.cms https://www.ndtv.com/business/union-budget-2019-live-updates-1february-piyush-goyal-announces-interim-budget-before-lok-sabhaele-1986451 https://www.thehindubusinessline.com/economy/budget/interimbudget-2019-highlights/article26152422.ece Newspaper Times of India newspaper The Hindu newspaper Economic Times Financial express

Appendix

Are you aware about union budget? Yes No Are you aware about recent changes made in interim budget? Yes No

Do you the meaning of Interim Budget? Yes No

Are you satisfied with the budget? Yes No

The scheme for farmer introduces in this budget is it suitable for them as per your point of view? Yes No

In interim budget government has introduce no income tax up to Rs. 5lakhs do u think it was wise decision taken by the government? Yes No

 Can’tsay Is interim budget is better than pastbudget? Yes No

Does G.S.T has affected the interim budget? Yes No

 Can’tsay Are you satisfied with the fund allocated toward army? Yes No Does budget affect middle class people? Yes No Do you budget was in favour of middle class people by introducing no income tax up to Rs 5 lakhs? Yes No Do you think the budget will influence election result? Yes No Do you think the budget is in favour of our Indian economy? Yes No Which point of the budget attracted you the more? No income tax up to Rs.5,00,000 More than 3 lakhs crores fordefence Pradhan Mantri Kishan SamanYojana Other