Public Finance

December 25, 2015

Swachh Bharat Cess

The thrust of new Government towards clean India has recently made the government to impose Swachh Bharat Cess of 0.5% on all services liable for service tax. The Swachh Bharat cess will be an additional levy, making the effective service…

November 23, 2015

Tax Information Network

On behalf of the Income Tax Department, the National Securities Depository Limited (NSDL) established Tax Information Network (TIN). This is a source of the countrywide tax related data.  The basic idea behind establishing TIN was to modernise collection, processing, monitoring…

November 23, 2015

Contribution of Raja Chelliah to Indian Public Finance

Raja Chelliah played a major role in reforming Indian economic policies. He was the main architect of the tax reforms programme when the economic reforms were implemented in 1991. He is often referred to as "The Father of Tax Reforms". …

November 23, 2015

General Anti-Avoidance Rules: Current Position

General Anti-Avoidance Rules (GAAR) are general rules that target any transaction of business arrangement that is done for aggressive tax planning, tax avoidance or tax evasion. GAAR were introduced in Australia in 1981, Canada in 1988, South Africa in 2006…

November 23, 2015

Incremental Budgeting

Incremental budgeting is a way of budgeting where the future allocations are based on current allocations. The new budget is prepared by increasing or decreasing the current budget by certain amounts or percentages. The increased amounts are arrived through a…

November 23, 2015

Gender Budgeting in India

A gender budget is not a separate budget for women. Instead, the gender budgets are an attempt to assess government priorities as they are reflected through the budget and examine how they impact women and men. Gender budgets look at…

November 23, 2015

Participatory Budgeting in India

According to the International Budget Project (IBP), participatory budgeting is the process by which citizens deliberate and negotiate over the distribution of public resources. Participatory budgeting creates opportunities for engaging, educating and empowering citizens, which can equip and advance a…

November 23, 2015

Budget Preparation Process in India

The preparation of budget in India involves the several stages before its presentation to the house. The fiscal year of the Union and State Governments is from April to March. The preparatory work on budget documents starts around 6-8 months…

November 23, 2015

Functions of a Budget

The key functions of a government budget are discussed below: Public Policy Document The budget serves as a public policy document expressed in money and is an embodiment of implied policy objective in monetary terms. Redistribution of Wealth The most…

November 23, 2015

History of Budget in India

Etymologically, the term budget is related to Latin bulga , which refers to a ‘leather bag. The term comes from a Gaulish source connected to the Irish bolg, which means a bag. It got associated with finance in mid 18th century following…