expectation of people from forth coming budget 2012-2013 up general budget

7/31/2019 Expectation of People From Forth Coming Budget 2012-2013 Up General Budget

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TABLE OF CONTENTS

1. INTRODUCTION2. COMPANY PROFILE3. SCOPE OF STUDY4. OBJECTIVE OF THE RESEARCH5. ASSUMPTION6. RESEARCH METHODOLOGY7. DATA ANALYSIS

8.

FINDINGS

9. CONCLUSION10.SUGGESTIONS11.LIMITATIONS12.BIBLIOGRAPHY13.ANNEXURE( QUESTIONNAIRE)


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EXECUTIVE SUMMARY

The project report is based on the market survey which has been done in the Moradabad district.

The main objective of the survey is to find out expectation of people from forth coming budget.

The sample size of my research is 50. A questionnaire consisting of 12 questions has been used

to do the survey. The data have been tabulated and shown in the form of pie chart. The data col-

lected is interpreted and analyzed and further the conclusion of the study is drawn from it. As

per the study it has been concluded that people dont have any positive expectation from budget

2012-2013. Most of the people expect an increase in the prices of the basic commodities; similar-

ly they assumes an increase in price of fuel, electronic equipment & other goods as well. They

have a overall negative expectation from the budget.


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INTRODUCTION

The Union Budget of India, referred to as the annual Financial Statement in Article 112 of

the Constitution of India, is the annual budget of the Republic of India, presented each year on

the last working day of February by the Finance Minister of India in Parliament. The budget has

to be passed by the House before it can come into effect on April 1, the start of India's financial

year. Former Finance Minister Morarji Desai presented the budget ten times, the most by any.

The Union Budget of India for 2012 - 2013 was presented by Pranab Mukherjee, the Finance

Minister of India on 16th March 2012 ,this was the 7th budget of his career . These budgetary

proposals would be applicable from 1 April 2012 to 31 March 2013.

With the budget season approaching there are a lot of discussions and aspirations of what the

budget would have in store for us. However there are a few questions which most people have in

mind like what exactly is the union budget? How is it going to affect me? Do I have to be happy

or worried? How will it be affecting my lifestyle? Let's answer these questions.
http://en.wikipedia.org/wiki/Constitution_of_Indiahttp://en.wikipedia.org/wiki/Republic_of_Indiahttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/Morarji_Desaihttp://en.wikipedia.org/wiki/Pranab_Mukherjeehttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://trak.in/wp-content/uploads/2012/03/UnionBudget201213.jpghttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/Pranab_Mukherjeehttp://en.wikipedia.org/wiki/Morarji_Desaihttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/Financial_yearhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Parliament_of_Indiahttp://en.wikipedia.org/wiki/Finance_Minister_of_Indiahttp://en.wikipedia.org/wiki/Republic_of_Indiahttp://en.wikipedia.org/wiki/Constitution_of_India


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Just like every household has an income and has its share of expenses so does the country. The

country receives money by way of taxes and has a list of expenditures to be incurred which

should lead to the benefit of the country at large. Just like we have planned and unplanned ex-

penses in every house so also the country has a share of definite and unplanned expenses. In a

household sometimes expenses off shoot our income and we either borrow money or take a loan.

Similarly if the expenses of the government are more than the income it's called fiscal deficit and

if incomes supersede the expenses we call it as fiscal surplus. We hope to see days when we are

in a surplus situation.

Now coming to the question on how will the union budget affect us? Generally people look at

the direct taxation and its implications on self, however it should not be forgotten that a major

impact happens due to the incidence of indirect taxation as well. Direct taxes are the tax slabs

which directly reduce your disposable income (e.g. income tax) indirect taxes come into play

when we manufacture, sell or buy a product or service. (E.g. excise duty, sales tax, service tax).

Now let's understand these concepts and their effect on our lives.

1. Direct Tax: As the name suggests this tax reduces the disposable income available in the

hands of the individual. The effect of this is simple and directly affects your lifestyle and savings

pattern. There are also exemptions which are certain specific investments done which reduce the

extent to which you are taxed. These are basically done for people to inculcate the savings habit

and to enjoy certain benefits like health insurance in the future.

2.Indirect Tax: There are various categories of indirect tax

Service tax - This is the tax charged on services rendered, which has to be collected from the cli-

ents and paid to the government. If these taxes increase there are increase in a plethora of ex-


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penses ranging from mobile bills, insurance premium, professional consultancy, property pur-

chase from the builder, courier expenses, credit card bills etc. there are almost 125 services on

which service tax is levied.

Excise duty - This is the tax charged on manufacturing of a product. A change in excise duty can

make a product dearer or cheaper. For e.g. an increase in excise duty in steel can make a car an

expensive product.

Sales tax: It's the tax charged on sale of goods. An increase in the same will directly make the

products more expensive for the end consumer.

Now let's understand how a government might function in a budget and how it can have an im-

pact on us. Today our country is sitting on a huge fiscal deficit. Moreover we have various de-

velopment projects to be implemented. To increase revenue the government has to increase its

cash inflow. It can do that by increasing direct taxes, however it would lead to less disposable

income which would in turn affect the economy as spending could reduce. It can do away with

certain subsides but this is a very political decision. A high fiscal deficit leads to huge interest

expense to be paid by the country and in short the money left for development becomes less. In

order to raise money the country could propose disinvestment of certain psu's which could help

in raising capital. However that too has its share of problems and risks.

But what does an average household need to take from this? Let's answer this question by under-

standing how the budget can have its effect on the following classes of people.

House Wife: The home maker as she is called today functions like the finance minister at home.

If the subsidies are reduced / removed on cooking gas & diesel it would lead to increased cost of

food consumption. This will straight away decrease the disposable income and might have an

effect of life style of the middle income group families.


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Students: Education qualifications to a great extent shape the careers of our students. However

today coaching classes and private tuitions have started having a major impact on their educa-

tional excellence. An increase in service tax in budget can cause an increase in the private tuition

fees and make it more expensive for them. Today education expenses have really sky rocketed

and parents have to really think twice before choosing an institute. Changes of this kind are sure

to impact a student's future career path.

Businessman/professional: An easing in direct taxation slabs will amount to more surplus in the

hands of professional and businessman. This can encourage and lead to further investments in

their business and could lead to generate more employment and betterment of the society. How-

ever the effect could be negated by increase in indirect taxes like service tax, excise duty and

sales tax.

Salaried: This year we are expecting the direct tax code to come into effect. There are various

recommendations in this regards which could have a direct impact on the salaried individual.

There could be a reduction in the tax exemptions from Rs. 1,00,000 to Rs. 50,000 and Equity

Linked Savings Scheme as an investment class might not qualify for tax saving. This could dein-

centivize the salaried to invest more, though tax saving should not be the purpose of planning

one's own investments. Moreover individual with housing loan who were claiming tax exemp-

tion on principal paid might not be able to claim it any longer.

Retired individual: It is proposed in DTC that the annuity part of the pension be made tax free.

The pension product has two phases one being the accumulation phase and the other being the

annuity phase. Removal of taxation on annuity part of pension plans will have a great impact on

the surplus funds available with the individuals invested in pension plans.


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The union budget is not in our hands but what is in our hands is the way in which we deal with it.

So the first thing which a household needs to do is to have its own budget in place. The problem

is not about the fixed and definite expenses but the variable which actually makes all the differ-

ence. Just like the union budget allocates money for projects we need to be sure on what will be

our milestones and goals for which we need to allocate the required funds. It should keep an

emergency provision which could be needed as things could become dearer and necessary. Final-

ly it is important to review whether our proposed plans are actually meeting our targets. If not

then we better review it.

A budget affects us in many ways but what is crucial is to be prepared and make our internal fi-

nancial systems strong enough to manage adversities and gain in case of provisions conducive to

us.

Time of Budget Announcement

Until the year 2000, the Union Budget was announced at 5 pm on the last working day of the

month of February. This practice was inherited from the Colonial Era, when the British Parlia-

ment would pass the budget in the noon followed by India in the evening of the day.

It was Mr.Yashwant Sinha, the then Finance Minister of India in the NDA government (led by

BJP) ofAtal Bihari Vajpayee, who changed the ritual by announcing the 2001 Union Budget at

11 am.
http://en.wikipedia.org/wiki/Yashwant_Sinhahttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Atal_Bihari_Vajpayeehttp://en.wikipedia.org/wiki/Yashwant_Sinha


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Expectations of common man on the union Budget 2012-2013

Expectations are high on the Union Budget, in this year the expectations are more than the previ-

ous due to an excellent raise in price rises and extending financial shortage. People will be ex-

pected the Govt to give some relief in already existing policies.

The common salaried person of India are eagerly waiting for a good news from Union Budget, a

hike in tax exemption slab from the present 1.8 lakhs to 3 lakhs. The Parliament standing com-

mittee headed by Yaswant Sinha has recommended this proposal to finance ministry to imple-

ment from this financial year. There is lot of expectations regarding this issue from common sal-

aried person.

2. Women are expecting a Union Budget with lot of concessions and favors to them. Employed

women expecting more tax exemption than their male counterparts in the present budget. They

want the Government to increase the tax free investment at present 1 lakh to 2 lakhs which help

them to attain more financial independence. Girls students are expecting a waiver on the educa-

tional loans as well as to provide loans at very low interest rate by the Government to seek their

higher studies that will help them to stand on their own feet. Women are expecting more subsidy

to be born by the Government on LPG so that it cost will be in reach of an average income fami-

ly of India.

3. Farmers are expecting a lot of concessions on fertilizers, pesticides, seeds and lot of subsidies

on farming implementations. Lowering of interest on crop loans and waiver of loans taken in the

past. Insurance policy should be implemented for the crops if there is a loss to the crop due to

natural calamities like cyclones, heavy rains or lack of rains etc.


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4. Common man is expecting exemption should be given to the interest paid for house credits

from the present 1.5 lakhs to 3 lakhs.

5. Common man and old people are expecting an increase in interest rates for their investments

to tide over the present volatile economy condition.

6. Common man expecting a relief on common commodities like food grains, sugar, pulses,

cooking oil as their prices skyrocketing day by day or otherwise they are expecting an implemen-

tation of ration system to get all these commodities at fair prices.

7. Common man is expecting there is no hike on train fares for second class travelers, more facil-

ities and safety measures to be implemented for train travelers. They wish to have more trains to

be launched to cover more parts of India, additional bogies to be added to the present trains. For

women, physically handicapped and old people special bogies to be attached for the safety travel

of these people.

8. Common man is expecting a cut reduction in cost price of important life saving drugs and

medicines so that an ordinary man can have a hope for a better treatment for their diseases.

Common man also wish to listen a good news from Union Budget that a good health policy has

to be implemented by the central Government so that every citizen of India will get good health

care.

9. Branded oils for vehicles may become cheaper for common man as Government may consider

the plea of Branded companies to cut down sales tax on them as their sales going down due to

their high prices in the market.

10. At present there is an exemption provision for wealth tax is up to 30 lakhs is there and it may

be increased up to one crore in the present budget.


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11. Common man is expecting a promotion for 3G services may be possible in the present budg-

et by decreasing its service charges by the Government to reach the services easily.

12. Common man is expecting a slash down in the prices of electronic goods like LCD, LED ,

Plasma TV's, DVD's, Computers, Printers, Scanners etc. in the present budget.

Expectations of various sectors on union budget

1. Business sector like to have some exemptions on corporate taxes or other surcharges so that

their business sector may be boosted which is reeling under the pressure of volatile global econ-

omy.

2. Jewelry exporters are expecting a simplified tax regime to boost their business.

3. Cement industries are expecting excise duty rate has to be decreased on cement from 10% to

6.8% to boost the growth of this industry. They also expecting an exemption on duty rate of coal

and pet coke which are so essential for cement industry for the manufacture of cement.This facil-

ity provided by the Government will reduce cost of production of cement and this will benefit the

cement industry.

4. Government may move a special finance policy for boosting small scale industries is one of

the hope of small scale entrepreneurs.

5. Various entrepreneurs of various sectors are expecting many investor friendly policies from

union budget.

6. Business companies are expecting there may not be any change in present tax policy from the

Government in this budget as they are already reeling under volatile global economy conditions.


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7. Pharmaceutical industries are expecting many incentives from the Government in this budget

to spend more money on research and research projects for the development of Pharmaceutical

industry. They also expecting that the Government may reduce taxes and duties on Pharmaceuti-

cal ingredients so that they can manufacture life saving drugs for a lower cost for the benefit of

consumers.

8. Student community is expecting lot of boost to various sectors like IT sector, Biotechnology

entrepreneurs, Industrial sector, Banking sector etc. may help them to provide jobs in their fu-

ture. If Government helps infrastructural development of these sectors will definitely help the

students to get good jobs.

As the Railway and Union Budgets are going to be proposed in few days there are lot of interest-

ing debates and discussions going in both TV media as well as Print media. Eminent personali-

ties are taking part in these lively discussions. There are lot of speculations among the media re-

garding the nature of Union Budget is going to be proposed. The reason for this is the elections

in five states are over and the results are out. Congress party badly suffered in the out come of

the results of the elections and its image is tarnished in the minds of the people. As no elections

are nearby the ruling party may try to implement hard economic policies which are not common

man friendly in order to pick up economic growth to reach more than 8% by this year. Because

of this the Central Government may resort to cutting down all subsidies and increase tax levies to

make up the fiscal deficit by this financial year. But another speculation in the media is Congress

lead UPA Government may not take such harsh decisions and the reason for that is the Congress

supporting UPA partners may not support if Congress resort against aam aadmi budget. Accord-

ing to me the Congress party may resort to a mixed trend in proposing Union Budget. Some of

its proposals may be common man friendly and some of its proposals may be to make up the fis-


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cal deficit for this financial year by way of collecting more direct as well as indirect taxes, in-

creasing service charges, cutting down subsidies, implementing its economic policies etc. Thus

the Union Budget may not be common man friendly and we may see a mixed type of budget in

this financial year.

Why Indian Union Budget 2012-13 becomes more important?

The assembly polls in 5 states has been completed on march 6, and on Tuesday the government

will be announcing the budget session in the parliament on march 12. The union budget 2012-13

will be announced on march 16. As the budget session is always announced on third week of

February, but due to some difficulties in state elections, committee of the cabinet which is main-

ly headed by finance minister pranab mukherjee has told that the budget session will be dis-

cussed on march 12, when president address a joint sitting in the parliament. Go through the de-

tails of the Union Budget 2012-13. The Railway budget will be discussed on march 14 and the

union budget will be discussed on march 15. Mainly the budget session will be handled in the 2

parts and the house going will be on three-week recess, when budget is presented and parliamen-

tary committees will give access to different ministeries. The second session will happen on april

24 and it will continue until may 22. Earlier the Pranab Mukherjee has told that in 2011-12, then

GDP growth has gone down to 6.9 percent and it seems to be bad thing for the government.

How will the upcoming Budget be important for the people?

This Budget has mainly attracted the people in our country, but this budget will hit person who

is having a job, businessmen, investing person, house wife. The union budget which is going
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to presented on march 16 will be having many expectations and Iam listing some of them which

is going to be discussed in our government. The budget mainly aims the following people.

People who are having income: This budget can affect a common person mainly through the

tax exemption and deductions. If the duty is increased in diesel cars, this can affect a person who

is buying the vehicle, as diesel cars are always a expensive one. When there is a change in the

excise duties like consumer goods, computers, mobiles can affect life of a person. If the housing

loan section is making any changes in principal amount or the interest amount, this can affect life

of the people. Utmost care must be taken to withstand this upcoming budget.

Every investor is looking forward into this budget as important one because

the government will change the rate of taxes on transactions which are done on trading and main-

ly in stock market, also called as Securities transaction tax. This budget will also make a

change in the stakes which is owned by the government company and mainly they are targeting

these companies for getting more money in this section. Finance ministry will be allowing inves-

tors from the foreign to buy the corporate bonds directly.

Business people: Business people will be focusing this budget with great importance. They

will be having some wishes to cut the duty from the sectors which they believing in boosting

their performance and the demand across other sectors. The business people will be having some

fear that, whether there will be any increase in the corporate tax or other charges.

People who are House Wives: The union budgets can affect directly or indirectly, because

they are managing the home with the resources which are limited in their hands. If there is any

hike in LPG cylinders it will affect the expenses in our daily life. If there is any decrease in the

household commodities, then it will be good one for our daily life.


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How will the Indian Budget affect the different sectors in our country

The first concern is that Indian Budget will affect Jewellery exporters and mainly they are look-

ing to get simplify the tax in this section. To encourage investments and get a reduced tax rate on

jewellery exporters, they are asking to get reduced rate in the coming budget. The top players in

the diamond industry have given letters to finance ministry to make a tax structure and to make a

1-3 percent on their profit margins. The diamond manufacturer who are making 8 percent profit

are exempted from the income tax department. They have told that it should be extended for the

people who are earning lower profits also, as per the new procedure called Benign assessment

procedure. The promotion council of the gems and jewellery council have told that diamond in-

dustry is mainly getting an 80 percent of profit at 3 percent rate and they are having high compe-

titions to countries like Dubai and they are having tax exemptions in their respective country.

FICCI has told that there should be levy in the cement imports into India and they have told that

some important guidelines has been given for the cement industry.

In our country the capacity of cement is at flop rate, so that the excise duty rate must be reduced

to get a growth in the cement industry. To make a good administration, the prescribed the duty

rate must be prescribed in a good rate. As the dumpers are used in the cement factory for han-

dling the equipments and they are telling that there should be a credit in these goods, so that we

will be having good equipments to manage our process simple one. The government will be

looking back import duty on coal, coke, gypsum and many other fuels. Mainly cement industry is

mainly dependent on coal and pet coke as there is a shortage in the supply of coal. To make a


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good cement industry more flexible excise duty rate must be decreased to 10-6.8% and also the

duty structure must be decreased at a specific rate related to MRP. They have told that cement

must be implemented in declared goods mainly under the section 14 of central sales tax. The ex-

port must be in the form of duty drawback so that it must be introduced mainly to encourage the

exports.


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PROFILE

General implications about Indian Budget

Usually the Union or Indian Budget is for an year which depicts and displays the governments

finances which is considered as an significant financial and economic events where the economic

planning of the Indian government is outlined which is the reason the union budget will also be

termed as general budget which will be presented usually by the union finance minister every

year and on most of the occasions it will be presented on the last working day in the month of

February every year.

The very reason to present the Indian budget on a specific day i.e., last working day is February

as the budget contains revenue expenditure for the present fiscal year which begins from first day

of April till 31st day of March in succeeding year.

In India the process of budget have very powerful legislative control and also involves executive

management just for the reason of its effectiveness on the financial health of India.


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History of Indian Budget

The government will present its 81st Budget proposals in the history of Independent India, when

Finance Minister Pranab Mukherjee reads out his taxation and other economic policies before

Parliament on Friday.

Individually, Mukherjee will present the Union Budget for the seventh time, the second highest

by any Finance Minister.

The Parliament has so far hosted 80 Budget speeches, including interim and special-situation

Budgetary proposals, ever since the first union Budget of independent India was presented by

then Finance Minister R K Shanmukham Chetty on November 26, 1947.

The maximum number of 10 Budgets have been presented by Morarji Desai, while Mukherjee

will join the league of P Chidambaram, Yashwant Sinha, Y B Chavan and C D Deshmukh, who

have presented seven Budgets each in the past.

Prime Minister Manmohan Singh and the country's fourth Finance Minister T T Krishnamachari

have presented six Budgets each during their tenures in the Finance Ministry.

Mukherjee has so far presented six annual Budgets, including the Budgets for two consecutive

financial years, 2010-11 and 2011-12, and an interim Budget before that for the fiscal 2009-10.

Way back in early 80s also, Mukherjee had presented three consecutive Budgets.

Among others, R Venkatraman and H M Patel have presented three Budgets

each, while Jaswant Singh, V P Singh, C Subramaniam, John Mathai and R K Shanmukham

Chetty have two Budgets each to their credits.

Nehru, Indira and Rajiv Gandhi had presented Budget in their capacity as Prime Minister and

Minister of Finance.


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Charan Singh (once) and Morarji Desai (on four occasions) presented Budget as Deputy PM and

Minister of Finance.

So far, the country has seen 64 normal annual Budgets, while there have been 12 interim Budgets

and four specialoccasion Budgetary proposals, also known as mini Budgets.

The first such mini-Budget was presented by T T Krishnamachari on November 30, 1956 in form

of fresh taxation proposals through Finance Bills, demanded by the prevailing domestic and in-

ternational economic situation.

The step was also required to tackle issues like rising inflation and dwindling forex reserves at

that time.

The second mid-year Budget taxation proposals were also presented by Krishnamachari in Au-

gust 1965, while the third mini

-Budget was presented by Y B Chavan in December 1971 wherein he proposed additional

measures for mobilisation of resources for defence requirements.

The last mini-Budget proposals in the Parliament was also made by Chavan in July 1974, where-

in he made fresh taxation proposals to tackle inflation-related issues after only five months of the

regular annual Budget.

Besides, Jawahar Lal Nehru, Indira Gandhi, Rajiv Gandhi, Charan Singh, N D Tiwari, Madhu

Dandwate, S B Chavan and Sachindra Chaurdhuri have presented one Budget each.

Facts Bite

First Finance Minister: Shanmugham Chetty Number of Finance Minister Since Independence: 28 Maximum Number of Budgets Presented by: Morarji Desai


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Economic Liberalization Started by: Mr. Manmohan Singh ( Finance Minister 1991) Current Finance Minister: Mr. Pranab Mukherjee

How the Indian Budget will be presented?

In general there is a general conception that Finance Minister is the responsible person for prepa-

ration of Indian budget but in reality the organizations like the Finance Ministry, the Administra-

tive Ministries, the Planning Commission, and the Comptroller & Auditor General will also in-

volve in preparation of the Indian budget.

In contrast Lok Sabha have the powers to review the budget proposals and can also modify the

proposals if there is any need and this process should be completed on or before first day of April

if not the proposals mentioned in the Indian budget will come into force later Lok Sabha will

pass the resolution for the implementation of the proposals made in the budget and as a last step

President of India will sign the proposals and immediately such proposals will become law.

The tentative date of presentation of Indian Budget is 16th March 2012.

Expectations and anticipations of Indian Budget 2012

which in-

cludes the interest if any paid towards housing loans in one year comparatively the present limit

is Rs.1.5 lakhs this will certainly can be considered as a boost to housing sector


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3-10 lakhs, 20% of tax up

to Rs.20 lakhs and tax of 30% for the rest of the remaining if one see the implementation accord-

ing to this it will certainly a bonanza for salaried class

at 10%, between

%s.5-8 lakhs charged at 20% and those whose incomes exceeds Rs.8 lakhs charged at 30%

loans there is a proposal to decrease the interest rate to 3% to those who pay in time

Security Transaction Tax

branded diesel as it may increase the sale branded diesel

spending in research and developments and there is a proposal to lower the taxes or duties on

certain life saving drugs which will certainly considered as a fillip to pharmaceutical industry

oil, fertilizer, gas certain food products, subsidy in FDI norms in few sectors of retail, media and

also in BFSI, service tax relaxation etc.

to 12% in general as of now the present excise duty is 10% the increase in tax may trigger the

cost of products a bit high if not amended because the few basic products which comes under

purview of excise duty is food products, consumer durables and also automobiles


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Need and Process of making union budget

The most secret, publical issue of India is budget. Speech ofIndian budget are very confiden-

tial. It is kept secretly and carefully as one put is golden ornaments and money in home.

Office of finance minister is the strong box for the budget and security of this office is increased

so much even a bird can not enter without permission. This time Pranab Mukharjee is India's

finance minister.

Heavy Security

How the government is conscious about security of budget the idea can be gauged from the fact

that Agents of Indian spy agency IB monitor the budget since 2006.

They tap the landline and mobile phones of all the working persons at the finance office. About a

dozen of people work to prepare the documents of budget. IB monitors all the activities of those

persons like where they are going, to whom they are meeting with etc.

Even the finance secretary is also be monitored. He is provided Z security before the budget

session. IB keep its eyes on all the activities of him and surrounding him. Mr.Ashok Chawla is

current finance secretary of India.

Email are banned

You will wonder to know email facility is also banned from the office of finance minister at the

time of budget. One can easily leak data from internet outside due to this fear, sometime email

facilities are also banned from financial ministry before the budget. This step is raised only for

security of budget.


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Before and after the printing

After the budget is prepared there arises a question about printing. It is not public issue when the

budget papers are printed. But it is assumed that it is sent for printing one or two day before the

budget is to be presented. It is not sent in a general govt. press.

Central budget is printed in a special press which is situated in north block the most safe place.

This is a press less with all the modern facilities.

All the officers who prepared the budget can not go to home and kept in heavy security between

the time papers are sent to print and the budget is announced. Even they can not talk to other

members outside.

Preparing budget work of many ministries

Preparing budget is not a work of only finance ministry but at least 5 ministries are involved to

complete the budget. Officers of other ministries and specialist of different sectors help the offic-

ers of finance ministry to make a powerful budget. When the budget is prepared, it is sent to law

specialist. Law specialist consider all the point are according to constitution and correct them.

For this work finance ministry take help oflaw ministry.

Indian Budget is kept with full of securities and till the date it is announced.

That is why the finance minister shows the dark red coloured brief case of budget to media be-


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fore going to announce it to all the nation. The importance of that brief case is , that the most se-

cret documents of the country 'budget' are in it.

Why such a privacy

There are different thoughts in this matter. It is a subject of debate in the country why such a pri-

vacy kept for budget. It creates a fear among market. Some of the countries do not have such pri-

vacy for budget. Even in US, president tells publicly that what the changes they are making in

the budget session before announcing budget to get the support of public.

Some people who support the privacy says that if it will be public before the session then there

will be a great fear ofhoarding and tax evasion.

Topics covered in budget session

Budgets specially covers the financial statement of the previous year and the financial excepts in

the coming year. How the govt. spent the money on the country in last financial year and how

will it spent in the coming financial year.

But govt. can change its plan in between the financial year any time if it is required.

Here I am telling some issues covered in budget session.


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Finance bill

Tax plan

Increase and decrease prices of the material

Need and importance of Indian budget

Government budget is a subject of importance for a variety of reasons such as :

Planned approach to government's activities : The importance of governmentbudget arises as the activities of th government has increased tremendously. This

calls for mobilization of large resources to meet the expenditure required to run the

country. There has been a definite planning with regard to the estimated revenue

and proposed expenditure for the proper conduct of the government;s activities.

Integrated approach to the fiscal operations: The government cannot take decisionsregarding the taxation, borrowings, and other fiscal measures at random. All these

decisions and policies are interconnected and they must form a part of overall set of

objectives which he government want to pursue.


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Influences governments; activities: Budgetary operations of the economy influ-ences the functioning of the economy in a big way. There has been a large increase

in the government;s revenue and expenditure since the start of the planning. Such

large scale public operations through budget affects the entire economy. For in-

stance, the level and structure of taxes influence the allocation of resources among

various sectors as well as distribution of income among different classes. Similarly,

the borrowing policy of the government affects the amount of savings available to

the private sector for consumption ad investment.

Instruments of economic policy: A budget is not merely a exercise in the revenueraising and planning expenditure but it is a powerful force for implementing vari-

ous economic and social objectives of the government. Budget is an important in-

strument of promoting economic development, reducing inequalities of income, en-

suring efficient allocation of resources, achieving price stability and securing equi-

librium in the balance of payments.

Index of government's functioning: Budget is an important index of functioning ofthe government. A proper planning with regard to its revenue and expenditure re-

flects the efficiency of the government. Absence of budgetary exercise regarding

assessment of revenue and expenditure may lead to corruption, inefficiency and

bankruptcy of the government. Budget is a mirror of th performance of the gov-

ernment.


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Public accountability : The government budget serve the purpose of the public ac-countability of funds. Budget proposals are discussed in the parliament. A popular

debate also takes place in the media about the budget proposals. Parliament also

exercises control over the government expenditure through various committees-

Public accounts committee, The estimate Committee, and the committee on Public

undertakings. Hence, budget serves as the powerful weapon in respect of collection

of revenue and their disbursement.

Types of budget in India

There are different types ofbudget in India that are as follows:

Union budget

The budget in India is divided on the basis of different layers of the government like central gov-

ernment, state government and local government.

Union budget is the budget prepared by the central government as a whole. This budget is pre-

sented in two parts - railway budget and the main or general budget. The general budget shows

the financial plans for the entire economy describing in details the estimated receipts and the

proposed expenditure for the economy as a whole.

State budget

In India, we have the federal system of government with the union government for the whole and

the state government for different parts of the economy. Therefore, every state government pre-

pares its own budget. State budget is the budget prepared by the state government such as the

budget by the Delhi government, government of Tamil Nadu etc.


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Plan budget

The plan budget is a document which shows the budgetary provisions for important projects,

programs and schemes included in the central plan of the economy. It also shows the central as-

sistance for states and union territories plans. It also give the detailed break up of the proposed

outlays on various government service such as the economic, social, and general services.

Performance budget

Since 1975-76, all the central ministers and departments dealing with developmental activities

prepare performance budgets, which are circulated among the members of the parliament. These

budgets represent the main projects, programs and activities in the light of specific objectives

and an assessment of the previous year's budgets and achievements. They explain the scope and

the objectives of the schemes, their estimated costs, physical targets, reasons for shortfalls if any,

standards of performance etc. Moreover, performance budget of the various departments also

contain statements of various public sector undertakings under the charge of th respective minis-

ters.

Supplementary budget

Budget estimates of the coming year are based on future possibilities with regard to revenue and

expenditure. It is not always possible to foresee and provide for all the emergencies such as war,

natural calamities or a political instability. In these circumstances the government may find it

necessary to present in the parliament a supplementary budget to deal with such eventualities.

Budgetary procedure

The budgetary procedure involves four different operations that are:


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Preparation of the budget Enactment of the budget Execution of the budget Parliamentary control over finance

Preparation of the budget

The exercise of the preparation of the budget by the ministry of finance starts sometimes around

in the month of September every year. There is a budget Division of the Department of Econom-

ic affairs of the ministry of finance for this purpose. The ministry of finance compiles and co-

ordinates the estimates o0f the expenditure of different ministers and departments and prepare an

estimate or an plan outlay.Estimates of plan outlay are scrutinized by the Planning Commission.

The budget proposals of finance ministers are examined by the finance ministry who has the

power of making changes in them with the consultation of the prime minister.

Enactment of the budget

Once the budget is prepared, it goes to the parliament for enactment and legislation. The budget

has to pass through the following stages:

The finance minister presents the budget in the Lok Sabha. He makes his budget in thelok sabha. Simultaneously, the copy of the budget is laid on the table of the Rajya Sabha.

Printed copies of the budget is distributed among the members of the parliament to go

through the details of the budgetary provisions.

The finance bill is presented to the parliament immediately after the presentation of thebudget. Finance Bill relates to the proposals regarding the imposition of new taxes, modi-

fication on the existing taxes or the abolition of the old taxes.


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The proposals on revenue and expenditure are discussed in the parliament. Members ofthe parliament actively take part in the discussion.

Demands for grants are presented to the parliament along wit budget statement. Thesedemands for grants show that the estimates of the expenditure for various departments

and they need to be voted by the parliament.

After the demands for grants are voted by the parliament, the Appropriation Bill is intro-duced, considered and passed by the appropriation of the parliament. It provides the legal

authority for withdrawal of funds of what is known as theConsolidated Fund of India.

After the passing of the appropriation bill, finance bill is discussed and passed. At this

stage, the members of the parliament can suggest and make some amendments which the

finance minister can approve or reject.

Appropriation bill and Finance bill are sent to Rajya Sabha. The Rajya Sabha is requiredto send bank these bills to the Lok Sabha within fourteen days with or without amend-

ments. However, Lok Sabha may or may not accept the bill.

Finance bill is sent to the President for his assent. The bill becomes the statue after presi-dents;s sign. The president does not have the power to reject the bill.

Execution of the budget

Once the finance and appropriation bill are passed, execution of the budget starts. The executive

department get a green signal to collect the revenue ad start spending money on approved

schemes. Revenue Department of the ministry of finance is entrusted with the responsibility of

collection of revenue. Various ministries are authorized to draw the necessary amounts and

spend them. For this purpose, the Secretary of ministers acts as the chief accounting authority.


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The accounts of the various ministers are prepared as per the laid down procedures in this regard.

These accounts are audited by the Comptroller and Auditor general of India.

Parliamentary control over the finance

Parliament exercises control over the budget and finance at various stages. Parliament authorizes

the government to collect revenue and spend money by passing appropriation and finance bill.

Thus, parliament exercises control of sanctioning appropriations.

Second, parliament has the authority of ensuring that the money has been spent for the purpose

stated by it. For this purpose, th parliament constitutes three financial committees - the Public

Accounts committee, the Estimates Committee and the Committee on Public Undertakings.


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SCOPE OF THE STUDY

This scope of the study is quite wide in this the related aspect of the upcoming budget2012-2013 has been taken in consideration which helped in understanding the expecta-

tion of people from budget

This study helps me to know about the budget of a country.

This study helps to know what exactly people want in budget..


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OBJECTIVE OF THE STUDY

To find the expectations of people from Budget. To find the awareness of Budget in people. To find whether the forthcoming budget will induce speculative motive. To find what exactly people want in Budget.


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ASSUMPTION

People dont have any positive expectation from budget.


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RESEARCH METHOLOGY

METHODOLOGY OF THE PROJECT

SAMPLE SIZE : 50

SAMPLING UNIT : General People

SAMPLE PROCEDURE : Simple Random Sampling

DATA SOURCES : Primary & Secondary data both.

DATA COLLECTION METHOD : Survey

RESEARCH INSTRUMENT : Questionnaire

SAMPLE AREA : Moradabad

Data collection

The task of data collection is begins after a research problem has been defined and research de-

signed/ plan chalked out. Data collection is to gather the data from the population. The data can

be collection of two types:

Primary Data Secondary Data

Primary Data

In that primary datathat information is used which are based on survey,

The Primary Data are those, which are collected afresh and for the first time, and thus happened

to be original in character.

Observation Personal Interviews Telephonic Interviews


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Questionnaires Schedules

Secondary Data

The Secondary Data are those which have already been collected by someone else and which

have already been passed through the statistical tool. Methods of collection of Secondary data

Newspapers. Magazines Journals

Internet

Libraries Old records.

In this project I am using both the method of data collection

Sample: A subgroup of the elements of the population selected for participation in the study.

In this project sample size is 20 employees

Sampling Unit: The basic unit containing the elements of the population to be sampled.

In this project sampling unit is employees of ICICI Bank

Sampling Technique used in survey

Convenience Sampling and Random Sampling.

Survey Intrument

Questionnaire


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DATA ANALYSIS

Q.1. DO you expect that the food inflation to-

Remain static Increase Decrease

Interpretation:

The pie chart show that 75% of the Respondents expects an increase in the food inflation and

15% Respondents expects a decrease while remaining 10% believes that it will remain static.

Remain static

10%

Increase

75%

Decrease

15%

S.No. Options Respondents

1. Remain static 10%

2. Increase 75%

3. Decrease 15%


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Q.2.Do you expect the prices of basic commodities to-


Interpretation:

The pie chart show that 85% of the Respondents expect an increase in prices of the basic com-

modities and 10% Respondents expects a decrease while remaining 5% believes that it will re-main static.

Remain static

5%

Increase

85%

Decrease

10%


1. Remain static 5%

2. Increase 85%

3. Decrease 10%


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Q.3.Do you expect the prices of electronic equipments to-


Interpretation:

The pie chart show that 40% of the Respondents expects an increase the price of electronic

equipment and 24% Respondents expects a decrease while remaining 36% believes that it will

remain static.

Remain static

36%

Increase

40%

Decrease

24%



2. Increase 40%

3. Decrease 24%


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Q.4.Do you expect that government will-______________ subsidies to farm-

ers/agriculture?


Interpretation:

The pie chart show that 56% of the Respondents expects an increase the subsidies to farmer or

agriculture and 28% Respondents expects a decrease while remaining 16% believes that it willremain static.

Remain static

16%

Increase 56%

Decrease

28%



2. Increase 56%

3. Decrease 28%


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Q.5.Do you expect the prices of automobile to -


Interpretation:

The pie chart show that 62% of the Respondents expects an increase the price of automobile and30% Respondents expects a decrease while remaining 8% believes that it will remain static.

Remain static

8%

Increase

62%

Decrease

30%


1. Remain static 8%

2. Increase 62%

3. Decrease 30%


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Q.6.Do you expect the price of fuel?


Interpretation:

The pie chart show that 88% of the Respondents expects an increase the price of fuel and 4%

Respondents expects a decrease while remaining 8% believes that it will remain static.

Decrease

4%

Increase

88%

Remain static

8%


1. Remain static 8%

2. Increase 88%

3. Decrease 4%


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Q.7.Do you expect that the government will give a good service related to

the development of the nation?

Yes No

Interpretation:

The pie chart show that 26% of the Respondents expect that government will give a good service

related to development of the nation and 74% Respondents expects no.

Yes

26%

No

74%


1. Yes 26%

2. No 74%


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Q.8. Do you expect that the concession limit for income tax to-


Interpretation:

The pie chart show that 46% of the Respondents expects an increase the concession limit for

female and 16% Respondents expects a decrease while remaining 38% believes that it will re-

main static.

Remain static

38%

Increase

46%

Decrease

16%



2. Increase 46%

3. Decrease 16%


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Q.9.Are you expecting any change in the tax slabs of females?

Yes No

Interpretation:

The pie chart show that 52% of the Respondents expects change in the tax slabs of femaleswhile 48% Respondents expects no.

Yes

52%

No

48%

S.No. Options Respondents1. Yes 52%

2. No 48%


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Q.10.Do you expect that government will come up with housing plans for

poor?

Yes No

Interpretation:

The pie chart show that 22% of the Respondents expects that government will come for

housing for poor while 78% Respondents expects no.

Yes

22%

No

78%


1. Yes 22%

2. No 78%


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Q.11.Are you expecting the LPG gases at the subsidies rate?

Yes No

Interpretation:

The pie chart show that 14% of the Respondents expects the LPG gas at a subsidies rate while86% Respondents dont expects the same.

.

Yes

14%

No

86%


1. Yes 14%

2. No 86%


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Q.12.Are you expecting that the government will come up with any education-

al packages?

Yes No

Interpretation:

The pie chart show that 38% of the Respondents expects that government will come up with any

educational packges while 62% Respondents expects no.

Yes

38%

No

62%


1. Yes 38%

2. No 62%


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FINDINGS

The expectation of the people from the forth coming budget seems to be more or less

negative which is reflected by the study

They expect an increase in food inflation Similarly they feel that the government will not come any housing plan for poor They expect that price of fuel will be increase They expect that government will not come up any educational packages Similarly they feel that government will not give a service related to development of na-

tion

Maximum number of respondents feel that concession limit of income tax will be in-crease

Most of the people expect that price of basic commodities will be increase


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CONCLUSION

During the course of research on this project we have come to know a lot of interesting facts and

Information about budget. After doing the survey it was reflected that the most of the people are

not aware about the budget and most of the people are aware about the budget and after that I

found that most of the people dont have any expectation from budget.

Some other points are also come out after the survey:-

People dont have any positive expectation from budget

Most of the people said price of basic commodities will be increase

Most of the people said price of fuel will be increase

Most of the people said government will not give a good service related to the develop-ment of nation

Maximum number of respondent said price of electronic equipment will be increase

Maximum number of respondent said government will not come with any educationalpackages


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Maximum number of respondents said that government will not give LPG gases at subsi-dies rate

We can hope that the upcoming budget will give good benefits for every kind of people

and will help in every sectors of our country. Wait patiently for union budget to be pre-

sented in the parliament on March 16 and we can hope that this will be a good budget.


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SUGGESTIONS

Budget should be beneficially for every people.

Budget should be come with the related to the expectation of people.

The price of fuel should be decrease for the development nation.

The price of basic commodities should be decrease it will be important benefit for everypeople.

The percentage of tax concession limit should be increase.

Government give subsidies to the farmer/Agriculture.

Government should be come with the plan to given a house to poor.


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LIMITATION OF THE REAEARCH

Every project has some limitations even the researcher came across some limitations while work-

ing on the project which made the analysis a little inappropriate at times. Some of the basic limi-

tations faced during the research are listed below:

Only limited number of Retailers and Customer where it has been found 100 samples was cov-

ered in the study.

There was a bias on the part of the respondents. The research is based on Moradabad and surrounding area At the time of research most of the respondents did not sincerely respond to the re-

searcher.

The research was limited to only 50 respondents whereas in reality the universe is toobig. Hence statistical data might change if we further increase the sample size.

The accuracy of the data is doubtful as the respondents were ignorant and hesitant to-wards their response.

Because of illiteracy, it was a time consuming method in which continuous guidancewas required


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WEBLIOGRAPHY
http://indiabudget.nic.in/http://indiabudget.nic.in/http://www.indianchild.com/indian_budget.htmhttp://www.indianchild.com/indian_budget.htmhttp://budget.up.nic.in/Manual/Table%20Of%20Content.aspxhttp://budget.up.nic.in/Manual/Table%20Of%20Content.aspxhttp://www.indiastudychannel.com/resources/149931-What-expectations-common-man.aspxhttp://www.indiastudychannel.com/resources/149931-What-expectations-common-man.aspxhttp://www.indiastudychannel.com/resources/149931-What-expectations-common-man.aspxhttp://www.wikipedia.co.in/http://www.wikipedia.co.in/http://www.wikipedia.co.in/http://m.ibnlive.com/news/union-budget-2012-whats-in-it-for-me/230873-7.htmlhttp://m.ibnlive.com/news/union-budget-2012-whats-in-it-for-me/230873-7.htmlhttp://m.ibnlive.com/news/union-budget-2012-whats-in-it-for-me/230873-7.htmlhttp://www.indianexpress.com/news/pranab-mukherjee-to-present-81st-union-budget-in-history/924535/2http://www.indianexpress.com/news/pranab-mukherjee-to-present-81st-union-budget-in-history/924535/2http://www.indianexpress.com/news/pranab-mukherjee-to-present-81st-union-budget-in-history/924535/2http://www.indianexpress.com/news/pranab-mukherjee-to-present-81st-union-budget-in-history/924535/2http://www.indianexpress.com/news/pranab-mukherjee-to-present-81st-union-budget-in-history/924535/2http://m.ibnlive.com/news/union-budget-2012-whats-in-it-for-me/230873-7.htmlhttp://m.ibnlive.com/news/union-budget-2012-whats-in-it-for-me/230873-7.htmlhttp://www.wikipedia.co.in/http://www.indiastudychannel.com/resources/149931-What-expectations-common-man.aspxhttp://www.indiastudychannel.com/resources/149931-What-expectations-common-man.aspxhttp://budget.up.nic.in/Manual/Table%20Of%20Content.aspxhttp://www.indianchild.com/indian_budget.htmhttp://indiabudget.nic.in/


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QUESTIONNAIRE

Q.1. DO you expect that the food inflation to-

a) Remain static b) Increase c) Decrease

Q.2. Do you expect the prices of basic commodities to-


Q.3.Do you expect the prices of electronic equipments to-


Q.4.Do you expect that government will-______________ subsidies to farmers/agriculture?


Q.5.Do you expect the prices of automobile to -


Q.6.Do you expect the price of fuel?


Q.7 Do you expect that the government will give a good service related to the development of

the nation?

a) Yes b) No


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Q.8. Do you expect that the concession limit for income tax to-


Q.9 Are you expecting any change in the tax slabs of females?

a) Yes b) No

Q.10 Do you expect that government will come up with housing plans for poor?

a) Yes b) No

Q.11 Are you 2expecting the LPG gases at the subsidies rate?

a) Yes b) No

Q.12 Are you expecting that the government will come up with any educational packages?

a) Yes b) No


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expectation of people from forth coming budget 2012-2013 up general budget

Documents