Untitled Document
Financial Mirror  

aa Mr. Anshul Mittal, Chairman, CII Madhya Pradesh State Council on Madhya Pradesh State Annual Budget 2018-19
Bhopal:MMNN: 28 February 2018

Annual state Budget of Madhya Pradesh state for the fiscal year 2018-19 has significantly addressed core sectors like agriculture, infrastructure, health, and education which in turn will act as a growth catalyst for all other sectors. Construction of new roads and improvised power infrastructure will enhance Ease of Doing business for industries in state and would lead to a series of initiatives that will aid in job creation.


aa State budget a public welfare budget: CM Shri Chouhan
Bhopal:MMNN: 28 February 2018

Chief Minister Shri Shivraj Singh Chouhan has termed the states budget as historic and a public welfare budget. He said that the budget keeps in mind all sections of the society and is a budget particularly of women empowerment, employment, farmer, poor, youth and children. For the first time, the budget has crossed over Rs 2 lakh crores. Shri Chouhan was addressing the media during budget presentation in the states Vidhan Sabha. CM Shri Chouhan said that in the budget the works undertaken in infrastructure particularly irrigation and agriculture are the basis of the states prosperity. Provision has been made of Rs 37 thousand 498 for agriculture and related works and Rs 17 thousand crore for energy. This will increase the growth rate besides increasing per capita income. At the end of the day it is the state that flourishes. Provision of Rs 650 crore has been made for Mukhya Mantri Bhavantar Bhugtan Yojana to provide security to the farmers from fall in market price of crops. Onion has been included in Bhavantar. The budget ensures adequate arrangement of food, clothes, shelter, education, medicines to the poor. Adequate fund has been provided for Mukhya Mantri Medhavi Vidyarthi Yojana. There is provision of scholarship, hostel for Scheduled Caste, Tribe, Other Backward Class and Minority section. He told that Mukhya Mantru Rin Samadhan Yojana has been implemented for farmers, who besides being defaulter, are not able to take loan on zero percent interest. The government will pay the interest amount under the scheme. The farmers will be able to pay the principal amount in installments and will be able to take loan on zero percent interest. The Chief Minister said that provision of Rs 18 thousand 165 crore is no less than a boon for rural development. A network of rural roads will be laid under various schemes which is an attempt to connect each village with roads. There is provision of Rs 11 thousand 932 crores for urban development. The work of group drinking water schemes for availability of drinking water during drought is commendable. Adequate provision has been made for technical education for skill upgradation of 7.5 lakh youths and connecting 7.5 lakh youths to self-employment in the efforts of employment generation under Chief Ministers Youth Empowerment Mission. He told that a new scheme has been launched under Public Health Family Welfare to promote government health services in private sector in rural areas. On investment in health sector, the private sector will be provided capital subsidy of 40 percent in rural areas and 50 percent in Scheduled Tribe sector. Effective steps have been taken for employee welfare in the budget.


PMs Statement on Union Budget 2018-19
MMNN:1 February 2018

I congratulate the Finance Minister Shri Arun Jaitley for this budget. This budget strengthens the foundation stone of New India. The budget focus is on issues ranging from agriculture to Infrastructure. On one hand, budget covers aspects such as health plans to address the concerns of the poor and middle class, while on the other hand it has plans to increase the wealth of small entrepreneurs in the country. Other aspects range from food processing to fiber optics, from road to shipping, concerns of youth and the senior citizens, from rural India to Ayushman India and Digital India to Start up India. This budget is expected to give a boost to hopes and aspirations of 125 crore people of the country. It is expected to accelerate the development process of the country. It is farmer friendly, common man friendly, business environment friendly as well as development friendly. Ease of Doing Business as well as Ease of Living are in focus in this budget. More savings for the middle class, new generation infrastructure for 21st Century India and better health assurance - all are concrete steps towards Ease of Living. Our farmers have contributed in a big way towards the progress of the country with a record production of fruits and vegetables. Several steps have been proposed in this budget to give a boost to the farmers and enhancing their income. A record allocation of Rs. 14.5 lakh crores has been made for rural development and agriculture. Dalits, oppressed and disadvantaged sections of the society will be benefited with out of 51 Lakh new homes, more than 3 lakh kilometers of roads, about 2 crore toilets, electricity connections in 1.75 crore households. These initiatives will create new opportunities especially in the rural areas. I appreciate the decision to provide for one and a half times remunerative price for the cost incurred by the farmers for his produce. Center will put in place a sound system in consultation with the states to ensure that the farmers can avail full benefits from this decision. 'Operation Greens' will prove to be an effective instrument in this direction especially for the farmers engaged in producing vegetables and fruits. We have seen how Amul was instrumental in ensuring of fair price to the farmers engaged in the dairy sector. We are also familiar with the cluster based approach for the development of the industry in our country. Now, keeping in mind the agricultural produce in different districts, agricultural cluster approach will be adopted in different districts across the country. I welcome the plan to develop the storage, processing and marketing facilities for a particular agricultural produce after identifying the districts. In our country, the cooperative societies are exempted from paying income tax. But the 'Farmer Producer Organization' -FPO, that is similar to the cooperative societies, does not get this benefit. Therefore, income tax exemption for the 'Farmer Producer Organization' -FPO, which mint for the welfare of the farmers, is a welcome step. By providing the linkages between the Self Help Groups for women engaged in organic, aromatic and herbal cultivation and the 'Farmer Producer Organizations' the income of the farmers will be increased. Similarly, the Gobar-Dhan Yojana will help in keeping the village clean, while increasing the income of farmers and cattle herders. In our country farmers take up different occupations along with the farming. Some are associated with pisciculture, animal husbandry, poultry or bee-keeping. Farmers have faced difficulty in accessing loans from banks for such additional activities. Arranging loan for pisciculture and animal husbandry by Kisan Credit Card is a very effective step. There are about 7000 blocks in more than 700 districts of India. In these blocks, emphasis has been laid on modernization of infrastructure of 22 thousand rural business centers, on innovation and on increasing connectivity in the villages. In the days to come, these centers will be able to increase the income of farmers, creates employment opportunities and will become new hubs of agro based rural and agricultural economy. Under Pradhan Mantri Gramin Sadak Yojna, now the villages will be connected to rural haats (markets), higher education centers and hospitals. This will make life easier for the people in the villages. We have seen an extension of the spirit of the Ease of Living in Ujjwala Yojana. The scheme has not only provided a relief to the poor women from the smoke but also become a huge source of their empowerment. I am happy to note that the target for Ujjawala has been enhanced from 5 crore families to 6 crore families. A large number of dalit, tribal and backward class families have been benefited from this scheme. This budget provides for allocation of about Rs 1 lakh crores for the welfare of scheduled castes and scheduled tribes. Medical treatment and its cost has always been a cause of concern for the lower middle class and poor sections of the society. The new scheme 'Ayushman Bharat', presented in the budget, will address this serious concern. This scheme will be available to nearly 10 crore poor and lower middle class families of the country. It means it will provide coverage to 45-50 crore people. Under the scheme these families will get free treatment up to Rs. 5 lakhs per annum in the identified hospitals. This is by far, the world's largest health insurance plan for which government will bear the cost. The idea of setting up 1.5lakh Health Wellness Centers spread over all the major panchayats of the country is commendable. This will provide easy access to health care services to the people living in the villages. Establishment of 24 new medical colleges across the country will not only facilitate the treatment of the people but also help to impart medical education to the youngsters. It is our endeavor to have at least one medical college for covering three parliamentary constituencies across the country. Several important decisions have been taken in this budget keeping in mind the concerns the Senior Citizens. Now the Senior Citizens will be entitled to have minimum interest of 8% on amount up to Rs 15 lakh under the Pradhan Mantri Vaya Vandan Yojana. No tax will be levied on interest up to Rs 50,000 on their Banks and Post Office deposits. Health insurance premium worth Rs 50,000 will exempt from the Income tax. Besides, relief from the Income Tax has been provided on expenditure up to Rs 1 lakh incurred on treatment of serious diseases. For a long time, the small and medium enterprises or the MSME in our country had to pay higher taxes than the big industries. In a bold in this budget, the government has reduced the tax rate for MSME by 5% now they will have to pay 25% tax in place of 30% which was the practice earlier. Credit seeking facility from the banks and NBFCs has been eased to ensure the required working capital for MSME industries. It will give a boost to the mission of Make in India. MSME sector has been experiencing stress due to NPA in big industries. The small entrepreneurs must not suffer because of the fault of others. Therefore, the government will soon announce corrective measures to resolve the problems related to NPA and Stressed Account in the MSME sector. In order to promote the employment and to provide social security to the employees the government has taken a far reaching decision. This will give impetus to the shift from the informal to formal sector and it will generate new job opportunities. Now the government will contribute 12% in the EPF Account of the new laborers for a period of 3 years. Besides, the contribution of new women employees in the EPF for a period of 3 years is being reduced from the existing 12% to 8% so that their take home salary increases and more employment opportunities are available for the women. However, the employer contribution will be maintained at 12%. This is a major step towards empowerment of working women. In order to realize the dream modern India, to enhance the Ease of Living of the common man and to ensure stability in development, India requires a Next Generation Infrastructure. Special emphasis has been given to the development of infrastructure related to Digital India. Allocation of Rs. 6 lakh crores has been made which is Rs. 1 lakh crore more than the previous year. These schemes will enhance the employment opportunity manifold in country. I congratulate the Finance Minister for the tax concession to the salaried and the middle class. This budget will live up to the expectation of every Indian Citizen. The budget has ensured the following remunerative price of the crop to the farmer, upliftment of the poor with the welfare schemes, respecting the honesty of the tax paying citizen, support to the spirit of entrepreneurs with a right tax structure and hailing the contribution of senior citizens for the country. Once again my heartfelt congratulation to the Finance Minister and his team for presenting a budget which enhances the ease of living and laying a strong foundation for the New India.

BUDGET GLOSSARY
MMNN:1 February 2018

1.Union Budget
Union Budget is the most comprehensive report of the Government's ?nances in which revenues from all sources and outlays for all activities are consolidated. The Budget also contains estimates of the Government's accounts for the next ?scal year called Budgeted Estimates.
2.Direct and Indirect Taxes
Direct taxes are the one that fall directly on individuals and corporations. For example, income tax, corporate tax etc. Indirect taxes are imposed on goods and services. They are paid by consumers when they buy goods and services. These include excise duty, customs duty etc.
3.GST
The constitution de?nes "Goods and Services Tax" means any tax on supply of goods, or services or both except taxes on the supply of the alcoholic liquor for human consumption. goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply services means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged
4.Customs Duty
These are levies charged when goods are imported into, or exported from, the country, and they are paid by the importer or exporter. Usually, these are also passed on to the consumer.
5.Fiscal Deficit
When the government's non-borrowed receipts fall short of its entire expenditure, it has to borrow money form the public to meet the shortfall. The excess of total expenditure over total non-borrowed receipts is called the fiscal deficit.
6.Revenue Deficit
The difference between revenue expenditure and revenue receipt is known as revenue de?cit. It shows the shortfall of government's current receipts over current expenditure.
7.Primary Deficit
The primary deficit is the ?scal de?cit minus interest payments. It tells how much of the Government's borrowings are going towards meeting expenses other than interest payments.
8.Fiscal policy
It is the government actions with respect to aggregate levels of revenue and spending. Fiscal policy is implemented though the budget and is the primary means by which the government can in?uence the economy.
9.Monetary Policy
This comprises actions taken by the central bank (i.e. RBI) to regulate the level of money or liquidity in the economy, or change the interest rates.
10.Inflation
A sustained increase in the general price level. The in?ation rate is the percentage rate of change in the price level.
11.Capital Budget
The Capital Budget consists of capital receipts and payments. It includes investments in shares, loans and advances granted by the central Government to State Governments, Government companies, corporations and other parties.
12.Revenue Budget
The revenue budget consists of revenue receipts of the Government and it expenditure. Revenue receipts are divided into tax and non-tax revenue. Tax revenues constitute taxes like income tax, corporate tax, excise, customs, service and other duties that the Government levies. The non-tax revenue sources include interest on loans, dividend on investments.
13.Finance Bill
The Bill produced immediately after the presentation of the Union Budget detailing the Imposition, abolition, alteration or regulation of taxes proposed in the Budget.
14.Vote on Account
The Vote on Account is a grant made in advance by the parliament, in respect of the estimated expenditure for a part of new ?nancial year, pending the completion of procedure relating to the voting on the Demand for Grants and the passing of the Appropriation Act.
15.Excess Grants
If the total expenditure under a Grant exceeds the provision allowed through its original Grant and Supplementary Grant, then, the excess requires regularization by obtaining the Excess Grant from the Parliament under Article 115 of the Constitution of India. It will have to go though the whole process as in the case of the Annual Budget, i.e. through presentation of Demands for Grants and passing of Appropriation Bills.
16.Budget Estimates
Amount of money allocated in the Budget to any ministry or scheme for the coming ?nancial year.
17.Revised Estimates
Revised Estimates are mid-year review of possible expenditure, taking into account the rest of expenditure, New Services and New instrument of Services etc. Revised Estimates are not voted by the Parliament, and hence by itself do not provide any authority for expenditure. Any additional projections made in the Revised Estimates need to be authorized for expenditure through the Parliament's approval or by Re-appropriation order.
18.Re-appropriations
Re-appropriations allow the Government to re-appropriate provisions from one sub-head to another within the same Grant. Re-appropriation provisions may be sanctioned by a competent authority at any time before the close of the ?nancial year to which such grant or appropriation relates. The Comptroller & Auditor General and the Public Accounts Committee reviews these re- appropriations and comments on them for taking corrective actions.
19.Outcome Budget
From the ?scal year 2006-07, every Ministry presents a preliminary Outcome Budget to the Ministry of Finance, which is responsible for compiling them. The Outcome Budget is a progress card on what various Ministries and Departments have done with the outlays in the previous annual budget. It measures the development outcomes of all Government programs and whether the money has been spent for the purpose it was sanctioned including the outcome of the fund usage.
20.Guillotine
Parliament, unfortunately, has very limited time for scrutinising the expenditure demands of all the Ministries. So, once the prescribed period for the discussion on Demands for Grants is over, the Speaker of Lok Sabha puts all the outstanding Demands for Grants, Whether discussed or not, to the vote of the House. This process is popularly known as 'Guillotine'.
21.Cut Motions
Motions for reduction to various Demands for Grants are made in the Form of Cut Motions seeking to reduce the sums sought by Government on grounds of economy or difference of opinion on matters of policy or just in order to voice a grievance.
22.Consolidated Fund of India
All revenues raised by the Government, money borrowed and receipts from loans given by the Government ?ow into it. All Government expenditure other than certain exceptional items met from Contingency Fund and Public Account are made from this account. No money can be appropriated from the Fund except in accordance with the law.
23.Contigency Fund of India
A fund placed at the disposal of the President to enable him/her to make advances to the executive/Government to meet urgent unforeseen expenditure.
24.Public Account
Under provisions of Article 266(1) of the Constitution of India, Public Account is used in relation to all the fund ?ows where Government is acting as a banker. Examples include Provident Funds and Small Savings. This money does not belong to government but is to be returned to the depositors. The expenditure from this fund need not be approved by the Parliament.
25.Corporate Tax
This is the tax paid by corporations or ?rms on the incomes they earn.
26.Minimum Alternative Tax (MAT)
The Minimum Alternative Tax is a minimum tax that a company must pay, even if it is under zero tax limits.
27. Disinvestment
By disinvestment we mean the sale of shares of public sector undertakings by the Government. The shares of government companies held by the Government are earning assets at the disposal of the Government. If these shares are sold to get cash, then earning assets are converted into cash, So it is referred to as disinvestment.

 

 

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