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A travel n gadget freak and @ the same time I try and make some Sense in the #Sensex

Friday, February 26, 2010

Budget basics!!!

I.What is general budget and why we need it? 
Like we prepare our family, entrepreneurial or company budget, the government also needs to prepare its own budget. The financial resources for the government are derived through levying taxes, duties and surcharges etc. Often government also requires borrowing money to meet urgent needs. In a democratic country like India government being formed by public representatives (the Parliamentarians) is supposed to collect and spend financial resources in accordance to public opinion. Being difficult to accommodate views of all Indians, to seek vote of account from the Parliamentarians, every government needs to present annual financial statement along with proposed estimated receipts and expenditures for ensuing year to the Parliament for its approval. This financial statement is called as 'General Budget' which contains the following documents– 
1.Key to Budget 
2.Budget Highlights 
3.Budget Speech 
4.Budget at a Glance 
5.Finance Bill 
7.Receipt Budget 
8.Expenditure Budget 
9.Customs and Central Excise 
10Implementation of Budget 
12The Macro Economic Framework Statement 
13The Medium Term Fiscal Policy Statement 
14The Fiscal Policy Strategy Statement 
15The Outcome Budget 

II.What are sources of finance for the general Budget? 
Among three major accounts for the Government, the consolidated count is the main one where all receipts are intentionally mobilized for general budget. The second account is contingency fund where Rs. 500 crores is kept for unforeseen incidences and in case of any emergency, if any amount is used from this account, after approval from the Parliament the same should be transferred back to maintain the balance of contingency account. The third type of account is Public Fund where the Government keeps public funds like savings at Post offices, and EPF etc. Since Government is supposed to be custodian of such funds, there is no need to take any approval of the Parliament to use such fund. 

The Major sources of receipts for the Government may be categorized as revenue receipts and capital receipts. Revenue receipts can further divided into tax revenues and non – tax revenues receipts. All incomes generated by the government through tax, customs, excise and surcharges etc. fall under tax revenue, where as income generated through surplus of income over expenditures in public enterprises are main source of non-tax revenue receipts. The issue of securities, bonds, shares and borrowings are main sources of capital receipts. 

III.What are major heads of expenditures in general budget? 
The government proposes two types of expenses in the general budget i.e. plan expenditure and non-plan expenditure. Plan expenditures are proposed to meet the financial needs to carry the proposed plan by ministries whereas general running expenses fall under non plan expenditures. Both plan and non plan expenditure are further categorized into capital and revenue expenditures depending on nature of expenditures. All expenses which help create asset falls under capital expenses whereas the expenses which not create assets fall under revenue expenditures. The payment of interest over government borrowings is an example of revenue expenditure whereas purchase of automobile is an example of capital expenditure. 

IV.What about constitutional provision of general budget? 
Constitutionally under Article 112, the President is obliged to have the Annual Financial Statement for the ensuing financial year laid on the table of the House. But according to Article 77(3), the Finance Minister has been made responsible to prepare the Annual Financial Statement and pilot it through Parliament. The Finance Bill, Demands for Grants and Appropriation Bill are respectively provisioned under articles 110 (a), 113 and 114 (3) of the constitution. 

V.How the general budget is prepared? 
Though the Finance Minister is responsible to prepare the Union Budget and Budget of states under President Rule, following public organs are involved in budget making – 

1.The Planning Commission is responsible to set overall targets for the ministries. 
2.Comptroller & Auditor General is responsible to check the accounts. 
3.Administrative Ministries are responsible to submit their requirement and priorities. 
4.Each department in the Ministry of Finance is charged with a particular responsibility. 
a.Department of Expenditure evaluates & prepares Expenditure estimates. 
b.Department of Economic Affairs prepares the estimates for Non-Tax Revenue and Deficits budgets. 
c.Department of Revenue prepares the Tax Revenue estimates. 

The budget exercise starts in September when the Budget Division of the Department of Economic Affairs (DoE) issues budget circular to all union ministers, states and UTs, autonomous bodies and departments, and the three arms of the defence forces for preparing revised estimates for the current financial year and the estimated budget for the next financial year. 
After the line ministries submit relevant documents, pre-budget meetings begin. These involve extensive consultation between line ministries and the Department of Expenditure. Meanwhile the DoE and Department of Revenue engage in consultation with stakeholders such as farmers, labour unions, business enterprises, FIIs, chamber of commerce & industries, economists and NGO's etc. 

The demands for grants by the state governments are sent to the concerned finance ministry for evaluation. The Finance Ministry undertakes an intense internal assessment. The DoE finalizes the spending priority and align the expenditures with policy goals. The Department of Revenue finalizes estimates about revenue mobilization. 

1.Once the pre-budget meetings are over, the approved ceiling for expenditure as finalized in these meetings is communicated. It includes internal ceilings of revenue and capital expenditure. Based on these limits, each ministry / department prepares a final Statement of Budget Estimates (SBE) and send back to the budget division. 
2.The Revenue Department goes through all the demands and works out their revenue implications. A final call on the tax proposals is taken by the Finance Minister. The proposals are discussed with the Prime Minister before final decision is taken. 
3.Budget Division then gets on with the task of preparing all the budget documents and converts these documents into ready to print template formats in a CD. Finally around 24th of February, the Finance Minister hands over the CD to the press for printing of budget documents. 

VI.Where the budget documents get printed? 
Initially, budgets were printed in Rashtrapati Bhawan. From 1950s the printing venue was shifted to Minto Road located security press. And since 1980, the Union Budget is printed at the special printing press in the basement of the North Block of the Central Secretariat in New Delhi. The entire process of collecting data and preparation of the budget document is done by selected officials working on computers which are de-linked from all networks, including NIC hot link. Intelligence Bureau monitors every movement, phone calls and the security of all officials involved with budget preparation and production. All electronic storage devices are out of bounds. All officials, technicians, legal experts on taxation, Press Information Bureau officials who prepare press notes in English, Hindi and Urdu on the budget and other workers involved with the printing are quarantined in the North Block. They all need to sleep in North Block and are allowed to walk out only after the Budget is tabled in the Lok Sabha on the budget day. The Cabinet also gets budget summary only 10 minutes before the Parliament assembles for budget presentation. 

VII.How general budget is presented? 
The Budget session of the Parliament opens with the address by the President on a date fixed by the President. Since 1999, it is being presented at 11.00 am on the last working day of February. Finance Minister presents the Budget Speech in the Lok Sabha in two parts. Part A deals with the general economic survey of the country and policy statements while Part B contains receipts and expenditures proposal. 'Annual Financial Statement' is laid down on the table of Rajya Sabha after the Finance Minister's speech. 

The Railway Budget is presented to the Parliament by the Union Railway Minister, two days prior to the General Budget and the general economic survey of the economy is presented prior to the annual financial statement. The Railway Budget figures relating to the receipt and expenditure of the railways are also shown in the General Budget, since they are part and parcel of the total receipts and expenditures of the Government of India. 

VIII.How general budget is passed? 
Immediately no discussion is followed after the budget is presented in the Parliament. Few days later for 2 to 3 days the Lok Sabha discusses the budget as a whole and not in details. At the end of the discussion, the Finance Minister replies of the queries. A 'Vote of Account' for the expenditure in next two months of ensuing financial year is obtained form Parliament. The House is adjourned for a fixed period. During this period the Demands for Grants of various ministries / departments including Railways are considered by relevant standing committees. 

-Reports by various Standing Committees are presented to the House. In the house these are discussed Ministry-wise and votes on Demands of Grants. 
-The Speaker puts all the outstanding Demands to the Vote of the House. This device is known as the 'guillotine'. The Lok Sabha has the power to assent or refuse to any Demand or even to reduce the amount of grant sought by the government. 
-In the Rajya Sabha, there is only a general discussion on the budget. It does not vote on the Demands for Grants. 
-After general discussion on the budget proposals and voting on Demands for Grants have been completed, government introduces the Appropriation Bill. The Appropriation Bill is intended to give authority to the government to incur expenditure from and out of the consolidated fund of India. 

Considerably if the Budget proposals are defeated in the Lok Sabha, the Government has to resign. 

IX.What is the significance of the Finance Bill? 
The Finance Bill seeking to give effect to the government's taxation proposals, which is introduced in the Lok Sabha immediately after the presentation of the budget, is taken up for consideration after the Appropriation Bill is passed. However certain provisions in the Bill relating to levy and collection of fresh duties or variation in the existing duties come into effect immediately on the day the Bill is introduced by virtue of a declaration under the Provisional Collection of Taxes Act. Indirect tax proposals come into force as soon as they are announced; direct tax proposals await approval by the Parliament. Parliament has to pass the Finance Bill within 75 days of its introduction. 

So, the whole process of preparation to finalization of annual general budget around 7 months time where almost all public representatives like Member of Parliament, Secretariat and officials are involved. If general Indians intend to contribute in the budget process, they have better time in September to approach the concerned ministry. The concerned ministry will listen the views of general public and may incorporate their views if find genuine and worthy. The other way is that NGOs may submit their proposals / views to the Budget Division in the Department of Economic Affairs under Ministry of Finance for consideration. Planning commission may also be approached with genuine plans and proposals in this regard. But all submissions should be made before launch of the process instead after presentation of the budget in the Parliament. 

Be sure that every citizen of India duly participates in preparation and implementation of general budget because in a democratic country like India it is our socio – economic obligation. Only public participation can make our system better and negligence invites corrupt people to pervert the system. So be aware and active for general budget. Without public participation we cannot achieve the plan of inclusive growth.

Thursday, February 25, 2010


"It's the Circle of Life, And it moves us all, Through despair and hope, Through faith and love, Till we find our place, On the path unwinding, In the Circle, The Circle of Life"

The circle of life…is what keeps us going. All the ups and downs we go thru..makes us what we are and helps us in being what we want to be tomorrow. Things we repent doing at one point does help us be more strong and confident for a better tomorrow. Never to look back attitude get us striving for more.

"Life has no smooth road for any of us; and in the bracing atmosphere of a high aim the very roughness stimulates the climber to steadier steps, till the legend, over steep ways to the stars, fulfills itself."

Life is like a diamond…..when found it is rough and ugly…it goes thru scratches..moulds..rough edges..cuts…bruises.. and then we have it shining like never before… completely priceless.. We humans are such….the need to shine takes us thru millions of hard ways…a rocky road…a lonely path at times which we would feel it leading us no where…but end of it…these burns make us look better …they make us rise and shine...they make us believe in ourselves…they make us achieve the milestones we set…and in end its all with no regrets.

"The more difficulties one has to encounter, within and without, the more significant and the higher in inspiration his life will be."

Best Friends

It's the times we're so crazy,
that people think we're high.
It's the times we laugh so hard,
we can't help but cry.
It's all the inside jokes
and "remember whens".
those are all the reasons
that we're best friends!

Thursday, February 18, 2010

Interesting quote by Thomas Friedman


Speech by Thomas Friedman in the New York Times....                       
"When we were young kids growing up in America, we were Told to eat our vegetables at dinner and not leave them. Mothers said, think of the starving children in India And finish the dinner.'                                         
And now I tell my children:                                     
'Finish your homework. Think of the children in India who would make you starve, if you don't.'!!!"                   

Monday, February 15, 2010

Evening I can never forget!!!

The whole issue of SRK n MNIK was blown out of proportion. The other side we had a blast… to give more security to theaters etc.. the security was reduced at other places.. What is the government trying to give importance too?? Its a sad world out there…its easy to sit in a AC cabin and discuss issues..but the pain is when someone from family is lost in such days…

I personally can relate it too so much…26/11 Leopolds…I was there …ten mins before the firing…car parked just outside the café. Never feared and scared so much as I was that day.. Had a colleague from Bahrain ..& I was out wid her all over colaba causeway…and this happened.. she was petrified & scared ..could see her crying like anything when she wasn’t allowed to enter President hotel where she was put up. We somehow managed to get her in thinking will take her home wid me wid belongings..but she dint want too..as she wanted to fly asap…took a cab and headed to airport. She was to fly after 3 days…cut short the trip and left the very next flight which she could get thru… She cried nonstop..thinking something will happen to her..she has twin daughters…about which she couldn’t stop talking about… I was never as sad as this day..

We were to dine at leopolds…thnx God ..we dint…else am not sure what & where I would have been…I too had to drive down all the way back to Vashi…alone that too… family kept calling me...One evening of my life I would never forget.. don’t want to also..as it would remind me the state we live in…that we need to get up & speak..we need to change so much around us..so that our next Gen is not worried about being at a mall or café or a walk near nairman point as we would be today….

Wednesday, February 10, 2010

Graduation - Vitamin C

Love this song….


And so we talked all night about the rest of our lives 
Where we're gonna be when we turn 25 
I keep thinking times will never change 
Keep on thinking things will always be the same 
But when we leave this year we won't be coming back 
No more hanging out cause we're on a different track 
And if you got something that you need to say 
You better say it right now cause you don't have another day 
Cause we're moving on and we can't slow down 
These memories are playing like a film without sound 
And I keep thinking of that night in June 
I didn't know much of love 
But it came too soon 
And there was me and you 
And then we got real cool 
Stay at home talking on the telephone with me 
We'd get so excited, we'd get so scared 
Laughing at our selves thinking life's not fair 
And this is how it feels 

1 - As we go on 
We remember 
All the times we 
Had together 
And as our lives change 
Come whatever 
We will still be 
Friends Forever 

So if we get the big jobs 
And we make the big money 
When we look back now 
Will our jokes still be funny? 
Will we still remember everything we learned in school? 
Still be trying to break every single rule 
Will little brainy Bobby be the stockbroker man? 
Can we ever find a job that won't interfere with a tan? 
I keep, I keep thinking that it's not goodbye 
Keep on thinking it's a time to fly 
And this is how it feels 

Repeat 1 

La, la, la, la
Yeah, yeah, yeah 
La, la, la, la
We will still be friends forever 

Will we think about tomorrow like we think about now? 
Can we survive it out there? 
Can we make it somehow? 
I guess I thought that this would never end 
And suddenly it's like we're women and men 
Will the past be a shadow that will follow us 'round? 
Will these memories fade when I leave this town 
I keep, I keep thinking that it's not goodbye 
Keep on thinking it's a time to fly 



Can't things get better??

Why is there so much of crap over SRK and his movies…for that matter any movies…why these SS have to stoop down to riot like a situation.

The other day a SS spokesperson said that The So called Mango People had issues with the statement SRK passed…well to which I totally don’t agree. I believe the Mango people just want to watch the movie and really not bother much about what SRK would say intentionally or unintentionally. Why are the theaters targeted or say Film Industry…its sad to know that we live in such a community that even going to watch a movie, to entertain ourselves we have to worry.

Don’t we have bigger issues to sort out..poverty…attacks…half of the population in India mite not be getting a proper one time meal too… why cant these SS guys just spend the day wid the needy rather then creating a mess n fear all over.

Another thing which is bothering me today is the issue about Nooria Haveliwala http://bit.ly/9TyJQs . Well for sure she was drunk heaps that nite…when she rammed into several people killing a few n injuring a few. Now the blood test says that alcohol content in her body was less than one third of what had been detected by the breathanalyser tests done by the traffic police. So does it mean that the units these cops use is faulty…well I don’t think so…am sure it’s got more to it. Just shows how much money talks. Well I wonder how these kind of kids are been treated by the parents.. Way too much freedom n liberty works as a spoil sport sometimes. They drink heavily at such tender age and life becomes a mess!!!

Friday, February 5, 2010

Super Boring Day...

Well day dint start well...ydys sad hangover was still clinged on...but the work at home kept me on toes.. One of the most imp task was done with today..a kind of life changing task..Somethings just cant be described or said..one just has to feel it..

Work @ home is at all time high..loving those nice french windows...wid tiles all around...hmm..nice place now to sit n watch the sun go down....aaah..bliss moment..

Mr Gandhi travld in train today...sound grt..esp a good move to show the MNS n SS dat Mumbai belongs to India..and not just .......

Missing out my practice on my 6 strings...feelin bad when i dont touch it....Hunting for a new tutor who could come home and teach me more and more as i find it a grt destresser.. Hope i get one soon...

Thats it for the day...Markets working tmrw...a chance for it to fall....aah nice time for some bottom fishing...fingers crossed.....

Thursday, February 4, 2010

Seems like a never ending day!!!

End of another day….a hectic day…a rough day….dint expect markets to fall down like it did today….Portfolios are going crazy..silver has come down…hoping markets don't behave crazy and see any sort of blood bath..

Talking about World Markets..there seem no end to avenues to make money…just never ending for the ones running behind it….Learnt a few things about opening a account and etc etc on Nasdaq / NYSE / Sing Markets etc…hoping this new venture is fruitful…

Today day dint end well..someone said something to me without knowing how I would feel for the same. Well I guess some realize the value and importance of  people only once they go far far away….. 

Day dint end the way it should have been…wished it would have ended nice..but it dint budge…The day too is just getting longer and longer....

Losing a Friend

The worst thing in life is to lose a friend,
A friend that means the world to you,
A friend that you put all your trust and faith in.
A friend you believe in from the start.
A friends that took the center of your heart.
A friend you'd die for,
A friend you wanted to cherish for a lifetime,
A friend,
A good friend,
A best friend.

Just lost one today.....

To write or not...

To wirte or not to write …it was always on my mind.. But I always knew I wanted to write. There were days where I used to pen some nice poems…friends used to love them..

Where have those days gone..just been busy busy with the routine..and not time to look back in life for the fun n good moments missed out on.

Last 2 years have started taking life in a different manner. Living life and not just mere dragging it in the Race of corporate structure.

Miss those days when we used to bunk classes for movies…bunk lectures n hang out @ Nariman point and watch the world pass by… Miss those canteen days…where we used to struggle with the pocket money and have those yumm junk food with friends…

My Kine days…amen…blissful days…all over the town wid my kine and a friend…Ya her name was Leena..quite good friends …Miss those late nite @ Three flights up :p …still remember being fired hell out for that nite…Those late nite movies…sneaking back in to the house…Aaah all those affairs n flings…. :p . GNiit classes were jst the best time of my life…made best buddies when there…

But life moves on and on…new people.. new work…new choices…new tastes …new demands…Life has moved on from a Cassette Walkman to an ITouch…from canteen food to CCDs n Barrisatas…Road side food to 5 Star resturas…from a single screen to a multiplex…from a kinetic to a big car…

In short…got everything we need as luxury in life….but peace..love..friends..time for family has gone away..and miss this the most now..

Make the most of every moment we have in life!!!

Wednesday, February 3, 2010

Making Love Flourish

Of late I seem to have this wish
Of us walking hand-in-hand to the finish
I know this may seem childish
But when love grows, it doesn't vanish
I wonder if together we can make it flourish
Leaving us memories for us to cherish?

Husband & Wife :)

One day a young man and his wife were invited to visit an elderly couple for dinner. The elderly couple had been married for about 60 years, and seemed to love each other very much. The husband would always address his wife as honey, pumpkin, etc. When the two women disappeared to the kitchen the younger man asked the elderly man, "How do you manage to keep calling your wife honey and stuff after being married for so long?" The man blushed as he looked away for a moment, then turned back to the young man and relpied, "I forgot her name ten years ago." 

Equity Markets 3rd Feb

Sensex which surged by 170 points in opening trade on Tuesday driven by rally in the global bourses, failed to sustain its uptrend in the afternoon session on heavy selling by funds and retail investors. Among the sectoral indices, realty was down 2.45%, bank 1.99%, PSU 1.71% and oil & gas 1.57%. Today we expect the market to open firm on strong global cues.


US Stocks rallied on Tuesday, with Dow Jones posting their second straight triple-digit gain, as investors welcomed better-than-expected corporate results, signs of stability in the housing sector and solid auto sales. Both Dow Jones Industrial Average & Nasdaq ended up 1.1% & 0.9% respectively.


Asian markets are also trading higher at this point in time with Hang Seng & Nikkei down 0.6% & 0.3% respectively. Indian ADRs ended mixed with Dr Reddy's Lab being the biggest gainer up by nearly 4.5%. Among Tech ADRs while Satyam & Infosys were up 0.6% & 0.4% respectively, Wipro ended the day with losses of 1.5%. Financials ended mixed with ICICI Bank down 0.4% while HDFC Bank was up 0.6%. Sterlite & Tata Motors however were down 0.4% & 0.3% respectively.