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  • Category: Finance and Investments

    What is a budget of a country and State for a common man?


    Have a query regarding the budget, its significance, highlights and how it impacts the common man? Looking out for all details regarding the budget? Here, scroll through this page and get answers for all your questions.

    We all know that our Finance Minister Ms. Nirmala Sitaraman presented the budget for 2020 on 1st February'20 and many of us had expectations from it. We also know that there are a state budget also for its people. In common, there are some doubts that arises that I request our profound members to provide an answer to it. The doubts are:
    a) What is the difference between a Centre and state budget and its use?
    b) What should a common man expect in both Centre and state budget?
    c) What has the budget to do with the stock and GDP of the country?
    d) What is the main highlights of this years central budget for the common man i.e. Lower and middle class?
    e) What is the budget for health, education, employment, defence, development, agriculture in this years budget i.e. 2020 budget?
    f) What are the waivers for lower, middle and executive class in this years budget?
    f) Any other highlights to look for in any budget?
  • Answers

    3 Answers found.
  • I think the author wants to know the details of the Budget.

    State government and central government are the two bodies that will administer the state and the whole country respectively. Every year the governments have to estimate the income they will get in the form of taxes from the public. The taxes that we pay will get distributed among these two as per the percentages agreed. So they have to have an idea about the income. Then they will make an estimation of various expenditure during the year. To have the balance they will take decisions regarding the increase or decrease of various taxes and allocations to each ministry for meeting their commitments. This what the general understanding of the budget. The State government's budget will be on the State expenditure and taxes that are under their control and the central budget will address the expenses and taxes under their control.

    Now the effect of this budget will be there on all sections. The rate of income tax change will have a say on the salaried employees. The rate of tax on cars will have a say on rich people. The rate of tax on cigarettes and drinks will have a say on the people who drink and smoke.

    The steps that are being taken by the government for the economic growth of the country will be given in the budget. What are the incentives they are announcing for growth of the industry that is the main way of creating wealth and employment in the country are also expressed in this budget? These announcements will give sometimes positive reactions and sometimes negative reactions to the industry. Consequently, that will affect the share market and GDP.

    The author can go through the various newspapers in which the details were given in a very detailed manner. In those articles the changes in income tax. GST changes for various items and allocations for various departments in this year's budget will be given.

    drrao
    always confident

  • Every year budget exercise is conducted and the Govt tries to make it in a way conducive to the economic growth and progress of the country. The experience of last years is taken to craft the todays budget. This is an ongoing process and is based on the past learnings.

    a) Central Govt budget is for the whole country and will present the layout of the revenues received and expenditures expected. It will be crafted on the basic premises like central taxes and levies and central expenditures encountered during the year. The funds would be allocated for the various activities under the central Govt and as well as grants and support to be given to various states.
    At the same time each state would have its own tax collections like state taxes, municipal taxes, road taxes etc. They will also be getting aid from central Govt. So, state Govt will have many departments and schemes for the benefit of the public and will have to spend on them. So they will also have a state budget where all these earnings and expenditures would be presented.

    b) A common man expects more projects and plans from the budget for making his life better. It could be roads, sewage, drinking water, electricity, gas, control on prices, affordable transport etc. He would also like industrial growth so he gets a job in some capacity in any industry.

    c) Budget will contain many measures like tax on dividend income, tax on bank deposits, tax on mutual fund, tax brackets, tax on industry and many things like that. They affect the overall working of the industry and market. It is a complex economic activity and expert economists only can give a verdict on that. However a good budget will push the economy in upward direction increasing the GDP.

    d) The main highlight in the present budget is that a new scheme of slabs and stopping the existing deductions is proposed. This would change the tax amount significantly but at the same time it is also told that if a person is losing in the new system he can adopt to the old system so that he does not incur a loss on this account.

    e) Rs 69,000 crore is allocated to healthcare sector and Rs 99,300 crore for education. Under development many schemes are there like Rs 3.6 lakh crore towards piped water supply to households, Rs 12,300 crore for Swachh Bharat and Rs 6,000 crore for BharatNet programme under which Fibre to Home connections under BharatNet will be provided to 1 lakh gram panchayats this year itself. For agriculture and research development, the government has provided Rs 8,362 crore budget. There is Rs 3.37 lakh crore as the defence budget this time.

    f) The whole budget is redesigned under new slabs and depending upon the range where a person falls under income tax, his tax would increase or decrease. However as there is an option of going back to the earlier rules, there is no issue in that.

    Knowledge is power.

  • There are many differences and expectations from the central and state budget from the common man point of view The central budget makes proposals for all the states and union territories and most of its allocation for the centralized or central sponsored projects. Some national projects are being initiated and the funding would be done through the central budget and Railways provisions are made through the union budget. And the state budget would be for the priorities initiated by the state government and its project. For example, the TS budget would concentrate on Mission Bhaghiratha, Mission Kakatiya, double bedroom home projects and welfare schemes like Kalyana Lakshmi, Shaadi Mubarak, Mid-day meals scheme, Old age pension schemes and differently-abled persons schemes.

    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease


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