BBA budget 2015

Meaning

Budget is an estimation of the revenue and expenses over a specified future period of time. A budget can be made for a person, family, group of people, business, government, country, multinational organization or just about anything else that makes and spends money. A budget is a microeconomic concept that shows the tradeoff made when one good is exchanged for another.

In other words budget is an estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals. One of the most important administrative tools, a budget serves also as:

(1) Plan of action for achieving quantified objectives,

(2) Standard for measuring performance, and

(3) Device for coping with foreseeable adverse situations

Major highlights of budget 2015 are:

·         GST(goods and service tax) to be in place by April 1, 2016

• Target of providing each and every village by 2020
• House for all by 2022
• Investment in infrastructure will go up by Rs 70,000 crore in 2015-16

• Target of reducing fiscal deficit to 3 % by 2018
• Establishment of Expert panel to prepare draft on easing permissions for doing business
• Government to bring a new bankruptcy code in 2015-16
• Rs 34,699 crore allocated to MNREGA(Mahatma Gandhi National Rural Employment Gurantee Act).
• Rs 1000 crore allocated to push IT start-ups
• Government decided to provide another 1000 crores to Nirbhaya fund
• New scheme of providing physical aids for senior citizens living below poverty line.
• Up gradation of 80,000 secondary schools.
• Launch of new ‘Atal pension yojana’, which will provide a defined pension
• FM proposes to introduce a gold monetization scheme
• GDP growth in 2015-16 to be 8-8.5% and target of double-digit growth in later years
• Public procurement law to be introduced
• Public contracts resolution bill will be introduced
• NBFCs With Size Of Over Rs 500 Cr Will Get Access To SARFAESI (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest)
• Aim For Farm Credit Of ‘8.5 Lk Cr In FY16
• New IIT in Karnataka and IIM in J&K and Andhra Pradesh
• Set Up Expert Committee For Legislation On Single-window to Encourage Ports In Public Sector To Corporatise
• Unplanned expenditure for 2015-16 is estimated at 13 lakh 12 thousand and 200 crores
• Visa on arrival to be extended to 150 countries.
• Rigorous imprisonment of 10 years under Black Money Law.300% penalty on concealing income.

Tax Policies :

• No changes in Individual Taxes.
• Corporate tax slashes by 5% from 30 to 25 for next 4 years.
• Government To enact New Law For Black Money
• Foreign Exchange Management Act To Allow For Seizure Of Foreign Assets.
• New Benami Transaction Prohibition Bill For Domestic Black Money
• Wealth tax to be abolished, 2% Extra surcharge on Super richs.
• PAN number quoting made compulsory for transactions for more than 1 Lakh
• Service tax to be increased from 12.36 to 14 %
• Increase exemption on health insurance premium to Rs 25,000 from current Rs 15,000.
• Transport allowance has been increased to 1600 per month, which is currently 800 per month.
• Exemption Of Rs 1.5 Lk Under New Pension Scheme. Additional Deduction Of ‘50,000 For Contribution To NPS
• 100% tax deduction for contribution to Swachh Bharat Fund.
• Online excise and service tax registrations in 2 working days.
• Service Tax Exemption Extended To Pre-cold Storage Warehousing and Yoga classes.

Conclusion

Simply a budget is an itemized summary of likely income and expenses for a given period.  It helps you determine whether you can grab that bite to eat or should head home for a bowl of soup.  It is typically created using a spreadsheet, and it provides a concrete, organized, and easily understood breakdown of how much money you have coming in and how much you are letting go.  It’s an invaluable tool to help you prioritize your spending and manage your money—no matter how much or how little you have. 

Planning and monitoring your budget will help you identify wasteful expenditures, adapt quickly as your financial situation changes, and achieve your financial goals.  When you actually see the breakdown of your expenses, you may be surprised by what you find; this process is essential to fully grasping how things can add up.  Creating a budget will decrease your stress levels because, with a budget, there are no surprises.

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