Now that the Union Budget for 2011-12 has been announced I thought this is the right time to post something on Economy part of the Prelims focusing especially on the important issues related to the Union Budget. Usually 2 or 3 questions based on the Union Budget are asked in the IAS Prelims but more questions also relate to the budget, like Fiscal deficit and others. So how to identify such relevant sections in the Budget? Read on.
Topics to look out for in the Union Budget
- GDP growth figures of the previous year and the financial year just ended
- Share of direct and indirect taxes in the gross revenue
- Fiscal deficit and revenue deficit
- Roll out of important taxes like the GST from from April 1 2012 and changes, if any, in existing taxes like the Service tax
- Launch of new schemes and changes in existing schemes. For instance in the Union Budget 2011-12 entry age for BPL old age pension scheme has been lowered from 65 to 60 years
- Agricultural credit extended and loan waivers if any
- Sectoral outlay in terms of figures and percentage. For instance percentage of total budget outlay marked for the Health, Defence, Education and other sectors
- New tax slabs announced and tax exemptions
As you might have noticed there’s not an awful lot to study in the Union Budget. If you devote just 2-3 hours to the budget highlights as mentioned above it will be enough. Did I miss any point?