TABLE OF CONTENTS

1. INTRODUCTION 2. COMPANY PROFILE 3. SCOPE OF STUDY 4. OBJECTIVE OF THE RESEARCH 5. ASSUMPTION 6. RESEARCH METHODOLOGY 7. DATA ANALYSIS 8. FINDINGS 9. CONCLUSION 10.SUGGESTIONS 11.LIMITATIONS 12. BIBLIOGRAPHY 13.ANNEXURE( QUESTIONNAIRE)

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 collected 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; similarly they assumes an increase in price of fuel, electronic equipment & other goods as well. They have a overall negative expectation from the budget.

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.

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

penses ranging from mobile bills, insurance premium, professional consultancy, property purchase 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 impact on us. Today our country is sitting on a huge fiscal deficit. Moreover we have various development 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 understanding 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.

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 educational 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. However 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 deincentivize 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 exemption 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.

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 difference. 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. Finally 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 financial 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 Parliament 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) of Atal Bihari Vajpayee, who changed the ritual by announcing the 2001 Union Budget at 11 am.

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 previous due to an excellent raise in price rises and extending financial shortage. People will be expected 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 committee headed by Yaswant Sinha has recommended this proposal to finance ministry to implement from this financial year. There is lot of expectations regarding this issue from common salaried 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 educational 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 family 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.

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 implementation 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 facilities 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.

11. Common man is expecting a promotion for 3G services may be possible in the present budget 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 economy. 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 facility 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.

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 Pharmaceutical 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 future. 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 interesting debates and discussions going in both TV media as well as Print media. Eminent personalities are taking part in these lively discussions. There are lot of speculations among the media regarding 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. According 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-

cal deficit for this financial year by way of collecting more direct as well as indirect taxes, increasing 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. Theunion 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 mainly headed by finance minister pranab mukherjee has told that the budget session will be discussed on march 12, when president address a joint sitting in the parliament. Go through the details 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 parliamentary 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

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 mainly 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 investors 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.

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 looking 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 industry is mainly getting an 80 percent of profit at 3 percent rate and they are having high competitions 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 handling 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

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 export must be in the form of duty drawback so that it must be introduced mainly to encourage the exports.

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.

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.

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 special occasion 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 international 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 August 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, wherein 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

 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 preparation of Indian budget but in reality the organizations like the Finance Ministry, the Administrative Ministries, the Planning Commission, and the Comptroller & Auditor General will also involve 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 includes 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

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 according 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

Need and Process of making union budget

The most secret, publical issue of India is budget. Speech of Indian budget are very confidential. 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.

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 officers 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 of law 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-

fore going to announce it to all the nation. The importance of that brief case is , that the most secret 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 privacy kept for budget. It creates a fear among market. Some of the countries do not have such privacy 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 of hoarding 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.

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 government budget 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 decisions regarding 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.

 Influences governments; activities: Budgetary operations of the economy influences 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 instance, 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 revenue raising and planning expenditure but it is a powerful force for implementing various economic and social objectives of the government. Budget is an important instrument of promoting economic development, reducing inequalities of income, ensuring efficient allocation of resources, achieving price stability and securing equilibrium in the balance of payments.

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

 Public accountability : The government budget serve the purpose of the public accountability 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 committeesPublic 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 of budget 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 government, state government and local government. Union budget is the budget prepared by the central government as a whole. This budget is presented 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 prepares 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.

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 assistance 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 ministers. 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:

 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 Economic affairs of the ministry of finance for this purpose. The ministry of finance compiles and coordinates 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 the lok 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 the budget. Finance Bill relates to the proposals regarding the imposition of new taxes, modification on the existing taxes or the abolition of the old taxes.

 The proposals on revenue and expenditure are discussed in the parliament. Members of the parliament actively take part in the discussion. Demands for grants are presented to the parliament along wit budget statement. These demands 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 introduced, considered and passed by the appropriation of the parliament. It provides the legal authority for withdrawal of funds of what is known as the Consolidated 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 required to send bank these bills to the Lok Sabha within fourteen days with or without amendments. 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 presidents;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.

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.

SCOPE OF THE STUDY

This scope of the study is quite wide in this the related aspect of the upcoming budget 2012-2013 has been taken in consideration which helped in understanding the expectation 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. .

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.

ASSUMPTION
People dont have any positive expectation from budget.

RESEARCH METHOLOGY
METHODOLOGY OF THE PROJECT SAMPLE SIZE SAMPLING UNIT SAMPLE PROCEDURE DATA SOURCES DATA COLLECTION METHOD RESEARCH INSTRUMENT SAMPLE AREA Data collection The task of data collection is begins after a research problem has been defined and research designed/ 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 : 50 : General People : Simple Random Sampling : Primary & Secondary data both. : Survey : Questionnaire : Moradabad

Primary Data In that primary data that 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

 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

DATA ANALYSIS

Q.1. DO you expect that the food inflation to Remain static Increase Decrease

S.No. 1. 2. 3.

Options Remain static Increase Decrease

Respondents 10% 75% 15%

Decrease 15%

Remain static 10%

Increase 75%

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.

Q.2.Do you expect the prices of basic commodities to Remain static Increase Decrease S.No. 1. 2. 3. Options Remain static Increase Decrease Respondents 5% 85% 10%

Decrease 10%

Remain static 5%

Increase 85%

Interpretation: The pie chart show that 85% of the Respondents expect an increase in prices of the basic commodities and 10% Respondents expects a decrease while remaining 5% believes that it will remain static.

Q.3.Do you expect the prices of electronic equipments to Remain static Increase Decrease S.No. 1. 2. 3. Options Remain static Increase Decrease Respondents 36% 40% 24%

Decrease 24%

Remain static 36%

Increase 40%

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.

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

ers/agriculture?
Remain static Increase Decrease S.No. 1. 2. 3. Options Remain static Increase Decrease Respondents 16% 56% 28%

Decrease 28%

Remain static 16%

Increase 56%

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 will remain static.

Q.5.Do you expect the prices of automobile to Remain static Increase Decrease S.No. 1. 2. 3. Options Remain static Increase Decrease Respondents 8% 62% 30%

Remain static 8% Decrease 30%

Increase 62%

Interpretation: The pie chart show that 62% of the Respondents expects an increase the price of automobile and 30% Respondents expects a decrease while remaining 8% believes that it will remain static.

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

Remain static Increase Decrease S.No. 1. 2. 3. Options Remain static Increase Decrease
Remain static 8%

Respondents 8% 88% 4%
Decrease 4%

Increase 88%

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.

Q.7.Do you expect that the government will give a good service related to the development of the nation?
Yes No

S.No. Options 1. Yes 2. No

Respondents 26% 74%

No 74%

Yes 26%

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.

Q.8. Do you expect that the concession limit for income tax to Remain static Increase Decrease

S.No. 1. 2. 3.

Options Remain static Increase Decrease

Respondents 38% 46% 16%

Decrease 16%

Remain static 38%

Increase 46%

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 remain static.

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

Yes No

S.No. Options 1. Yes 2. No

Respondents 52% 48%

No 48%

Yes 52%

Interpretation: The pie chart show that 52% of the Respondents expects change in the tax slabs of females while 48% Respondents expects no.

Q.10.Do you expect that government will come up with housing plans for poor?
Yes No

S.No. Options 1. Yes 2. No

Respondents 22% 78%

Yes 22%

No 78%

Interpretation: The pie chart show that 22% of the Respondents expects that government will come for housing for poor while 78% Respondents expects no.

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

Yes No S.No. Options 1. Yes 2. No Respondents 14% 86%

Yes 14%

No 86%

Interpretation: The pie chart show that 14% of the Respondents expects the LPG gas at a subsidies rate while 86% Respondents dont expects the same. .

Q.12.Are you expecting that the government will come up with any educational packages?
Yes No

S.No. Options 1. Yes 2. No

Respondents 38% 62%

Yes 38% No 62%

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.

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 nation Maximum number of respondents feel that concession limit of income tax will be increase Most of the people expect that price of basic commodities will be increase

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 development 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 educational packages

 Maximum number of respondents said that government will not give LPG gases at subsidies 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 presented in the parliament on March 16 and we can hope that this will be a good budget.

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 every people.

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.

LIMITATION OF THE REAEARCH

Every project has some limitations even the researcher came across some limitations while working on the project which made the analysis a little inappropriate at times. Some of the basic limitations faced during the research are listed below: Only limited number of Retailers and Customer where it has been found 100 samples was covered 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 researcher. The research was limited to only 50 respondents whereas in reality the universe is too big. 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 towards their response. Because of illiteracy, it was a time consuming method in which continuous guidance was required

WEBLIOGRAPHY
<http://indiabudget.nic.in> <http://www.indianchild.com/indian_budget.htm> <http://budget.up.nic.in/Manual/Table%20Of%20Content.aspx> <http://www.indiastudychannel.com/resources/149931-What-expectationscommon-man.aspx> <www.wikipedia.co.in> <http://m.ibnlive.com/news/union-budget-2012-whats-in-it-for-me/2308737.html> <http://www.indianexpress.com/news/pranab-mukherjee-to-present-81st-unionbudget-in-history/924535/2>

QUESTIONNAIRE

Q.1. DO you expect that the food inflation toa) Remain static b) Increase c) Decrease

Q.2. Do you expect the prices of basic commodities toa) Remain static b) Increase c) Decrease

Q.3.Do you expect the prices of electronic equipments toa) Remain static b) Increase c) Decrease

Q.4.Do you expect that government will-______________ subsidies to farmers/agriculture? a) Remain static b) Increase c) Decrease

Q.5.Do you expect the prices of automobile to a) Remain static b) Increase c) Decrease

Q.6.Do you expect the price of fuel? a) Remain static b) Increase c) Decrease

Q.7 Do you expect that the government will give a good service related to the development of the nation? a) Yes b) No

Q.8. Do you expect that the concession limit for income tax toa) Remain static b) Increase c) Decrease

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