Budget Sector Analysis Under 40 Characters

BUDGET
• PRESENTED BY :-BABASAB PATIL
4/10/2013 Babasabpatilfreepptmba.com

BUDGET DEFINATION
• A budget is generally a list of all planned expenses and revenues. It is a
plan for saving and spending. A budget is an important concept in
microeconomics, which uses a budget line to illustrate the trade-offs
between two or more goods. In other terms, a budget is an organizational
plan stated in monetary terms.
• CENTRAL BUDGET: The central government budget is defined by law
as a set of financial relationships securing the funding of certain roles of the
State during the financial year. The budget consists of expected revenues
and estimated expenditure and is always prepared for the upcoming
calendar year.

Who prepares the budget?
The responsible authority is the Ministry of Finance, which works with the
designated heading administrators, local authorities and State funds. The resulting draft
law on the central government budget is submitted by the Ministry of Finance to the
Government for approval; the Government then submits this bill to the Chamber of
Deputies.
Purpose of Budget:
1) Provide a forecast of revenues and expenditures i.e. construct a model of how our
business might perform financially speaking if certain strategies, events and plans are
carried out.
2) Enable the actual financial operation of the business to be measured against the forecast

Direct taxes
These are the taxes that are levied on the income of
individuals or organizations. Income tax, corporate tax,
inheritance tax are some examples of direct taxation
Income tax is the tax levied on individual income from
various sources like salaries, investments, interest etc.
Indirect Taxes
These are the taxes paid by the consumer when they buy
goods and services. These include excise and custom duties.

Implementation of budget
on various sectors

Hospitality
The budgetary impact on hospitality was not understood
clearly by many until much later. Budget 2010-11 gives a tax
deduction for new two-star hotels that are to be opened on or
after April 1, 2010. The deduction under Section 35AD of the
Income Tax Act will be up to 100 percent of the capital
expenditure (other than investing in financial instruments,
land, and goodwill ) incurred for the purpose of building and
operating a new hotel of two-star or higher category.

Banking
The budget impact on the banking sector has been
manifold. Capitalization of public sector banks, Reserve Bank
of India (RBI) to permit new private sector banks, conversion
of some non-banking financial companies (NBFCs) into
banks, debt wavier and debt relief scheme for farmers, and
extension of deadline for repayment of loans by six more
months from December 31, 2009 to June 30, 2010.

Infrastructure
The increased budgetary allocation for roads and rural
infrastructure will give additional opportunities for
construction service providers and infrastructure developers.
The budget has reiterated the plan of constructing 20 km of
roads a day to improve the connectivity to rural areas. The
budget has also tied up funding for these projects via tax
deductions on investments in infrastructure bonds.
This budgetary push should bring this sector back into
focus in the stock markets. Overall, the budget is positive for
construction service providers and neutral for infrastructure
developers due to the increase in MAT to 18 percent.

Cement Industry
The cement industry, especially asbestos cement
manufacturers, could benefit from the rural housing impetus in
the budget. Acceleration in urban housing and construction,
and other infrastructure-related activity under the Jawaharlal
Nehru National Urban Renewal Mission (JNNURM) and
National Rural Employment Guarantee Act (NREGA) will
revive demand for various cement products, which is
experiencing excellent demand from the rural markets.

Power
Budget 2010-11 has met one of the key demands of the
sector - extension of excise duty exemption on supplies made
to mega power projects irrespective of type of bidding.
Thermal power plants with a generation capacity of over 1,000
MW and hydel power plants with a capacity of more than 500
MW are defined as mega power projects.

Agriculture
• Rs. 400 crore provided to extend the green revolution to the
eastern region of the country comprising Bihar, Chattisgarh,
Jharkhand, Eastern UP, West Bengal and Orissa.
•Rs. 300 crore provided to organise 60,000 “pulses and oil seed
villages” in rain-fed areas during 2010-11 and provide an
integrated intervention for water harvesting, watershed
management and soil health, to enhance the productivity of the
dry land farming areas.
•Credit support to farmers
•Banks have been consistently meeting the targets set for
agriculture credit flow in the past few years. For the year 2010-
11, the target has been set at Rs.3,75,000 crore.

Energy
• Plan allocation for power sector excluding
RGGVY doubled from Rs.2230 crore in 2009-10 to
Rs.5,130 crore in 2010-11.
• Plan outlay for the Ministry of New and
Renewable Energy increased by 61 percent from
Rs.620 crore in 2009-10 to Rs.1,000 crore in 2010-
11.
•Solar, small hydro and micro power projects at a4/10/2013 Babasabpatilfreepptmba.com

Education
Plan allocation for school education
increased by 16 per cent from Rs.26,800 crore
in 2009-10 to Rs.31,036 crore in 2010-11
• For higher studies government has provided
less interest education loan i.e. 4% for girls
and 6% for boys.

Social welfare
• Plan outlay for Women and Child Development stepped up by
almost 50 per cent.
“Saakshar Bharat” to further improve female literacy rate
launched with a target of 7 crore non-literate adults which
includes 6 crore women.
• Mahila Kisan Sashaktikaran Pariyojana to meet the specific
needs of women farmers to be launched with a provision of Rs
100 crore as a sub-component of the National Rural
Livelihood Mission.

Sector-Wise Expectations
Automobile Sector:

Cement Sector:

Capital Goods, Defense and Engineering:

FMCG Sector:

Education and Media:

CONCLUSION
Finally we can conclude that, This 2010-11
budget is boon for individuals. And corporate
sectors. There are some barriers and problems.
But still it is the best for this year.

THANK YOU

Budget Sector Analysis Under 40 Characters

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Budget Sector Analysis Under 40 Characters