frbm act. concept of deficits budget...
TRANSCRIPT
Public budget-2
FRBM Act.
Concept of Deficits
Budget 2018-19GDP growth, Fiscal deficit, revenue
deficit, primary deficit.
Concept of deficits
1.Revenue deficit= revenue expenditure- revenue
receipts
2.Capital deficit= capital exp-capital receipts.
3.Budget deficit= capital deficit-revenue deficit. or
. (Total exp-total revenue)
4.Fiscal deficit= total exp-total receipts other
than borrowing.
FD=TE>TR Other than borrowing
FD=TE-RR +Recoveries of loans.
5.Primary deficit- fiscal deficit-interest payment.
6.Net fiscal deficit- fiscal deficit- loans and
advances.
7.Net primary deficit-net fiscal deficit-net interest
payment.
8.Effective revenue deficit-revenue deficit-grant
for creation of capital asset.
It was introduced in 2011-12 budget.
9.Monetized deficit- increase in RBI credit to govt.Central govt borrow money from RBI.
Budget -2018Deficits 2017-18(revised) 2018-19 (estimated)
1.Fiscal deficit 3.5 % 3.3 %
2.Revenue deficit 2.6 % 2.2 %
3.Primary deficit 0.4 % 0.3 %
4.Effective
revenue deficit1.5 % 1.2 %
The central board of excise and customs (CBEC) to be
renamed as Central board of Indirect taxes and
customs(CBIC)
Some other main points of budget 2018
In budget 2018 Arun Jaitley accepted recommendation
of N.K.Singh on fiscal discipline to reduce debt GDP
ratio to 40% by 2024-25 from 50.1% in 2017-18
MSP for kharif crops increased by one and half of production
cost.(150%)
“Operation Greens” launched to address price fluctuations in
potato, tomato and onion for benefit of farmers and
consumers.(500cr)
1290 cr allocation for national bamboo mission, bamboo known as
green gold.
Tribal student will get Ekalavya residential school in each tribal
block by 2022.
Ujjwala Scheme’s target base for distribution of free LPG
connections increased to 8 crore poor women...
Tax on Long Term Capital Gains exceeding Rs. 1 lakh at the
rate of 10 percent,
Proposal to increase cess on personal income tax and corporation
tax to 4 percent from present 3 percent.
MUDRA Yojana: Target of Rs.3 lakh crore for lending to MSMEs...
Growth for 2018-19 is forecasted at 7.4 per cent by the International
Monetary Fund (IMF).
The government is committed towards doubling the farmers’
income by 2022.
S. No. Organisations 2017-18 2018-19
1 NITI Aayog 6.9-7.0% 7.5%
2
Economy
Survey 2016-17
(Finance
Ministry)
6.75-7.50% -
3 World Bank 7.0% 7.2%
4
International
Monetary Fund
(IMF)
6.7% 7.4%
Frbm act
It means fiscal responsibility budget management.
FRBM bill was introduced by then FM Yashwant
Sinha in 2000.
FRBM Act 2003 –task force headed by Vijay Kelkar.
Main targets of Frbm act 2003 1.Eliminate revenue deficit by 2008.(0.5% reduction every
year)
2.Fiscal deficit reduced to 3% of GDP.(o.3% reduction P.A)
3.Total debt 9% of GDP.
Annual 1% reduction.
Four fiscal indicators were proposed.
4.Total liability of govt should be 9% of GDP.
1.Revenue deficit as % of GDP.(0%)
2.Fiscal deficit as % of GDP.(3%)
3.Tax revenue as % of GDP.(13.2%)
4.Total liabilities as % of GDP.(9%)
Frbm act
In may 2016 the Govt set up committee under
N.K.Singh. To review FRBM
Fiscal deficit target 3% of GDP upto 2020.
F-D target 2.8 in 2021.
Fiscal deficit target 2.5% of GDP upto 2023.