From by the current NDA government that guaranteed to

From the main Budget of
free India that focused on sustenance security to the 2016-17 Budget displayed
by the current NDA government that guaranteed to twofold agriculturists’ income,
the difficulties and issues have stayed much the same, so are the proposed
arrangements. Here, we investigate the most recent 15 years of spending plan
making through the lens of environment and development.

The period of budget
which we are considering is that of Post Liberalization, with a change in
leadership and changing economic scenario in the country and the world, India
opened its arms to a liberalized economy in 1991, before this period India was
predominantly a state run economy and had little to offer to the Private
Players of the corporate world, but as mentioned from 1991 onward the economic
dynamics of the country changed therefore it is very important for us to pay
heed to and discuss  the highlights of
the first budget which opened the way to a liberalized economy:-

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The year 1991-92 marked the beginning of economic liberalisation.
Import-export policy was revised and import duties were slashed to expose
Indian industry to competition from abroad.1 The
government began rationalisation of duty structures by reducing the peak
customs duty from 220 per cent to 150 per cent. This was done because the
balance of payments was precarious. The government introduced service tax in
the 1994 budget and also placed bets on growth through rapid technological development.
2The
1997 budget made tax rates moderate for individuals as well as companies. It
allowed companies to adjust MAT paid in earlier years against tax liability of
subsequent years. The government also launched the Voluntary Disclosure of
Income Scheme (VDIS), to bring out black money.3 It
phased out ad-hoc treasury bills used for financing budget deficit. Budget 1997
aimed to widen the tax base. India had a peak income tax rate in the late 1960s
and early 1970s of 97.5 per cent. The moderation in rates improved overall
compliance as those who used to find rates prohibitive earlier began to pay up
instead of hiding their incomes. Personal income tax collections increased from
1997-98—from Rs 18,700 crore to Rs 100,100 crore during April 2010-January
2011. VDIS garnered about Rs 10,000 crore. Higher disposable incomes in the
hands of taxpayers helped generate demand. The incremental tax revenues were
leveraged to increase public expenditure on social welfare and infrastructure.4

2000 to 2011: 
Incentives for software exporters was phased out during this period. In Budget
1991, income from software exports was made tax-free for three years, and then
the tax holiday was extended to perpetuity in budget 1995.This was to improve
the ratio of taxes to GDP and to promote India as a major software development
centre in the world. The introduction of this tax holiday to software export
sector was followed by exceptional growth in Indian IT industry. Transfer
pricing regulations was also introduced in 2001-02, which required transactions
between associated enterprises to be transparent and whole. 5The
regulation played a big role in the prevention of erosion of the tax base in
India. Gross Domestic Product (GDP) was estimated to have grown at 8.6 per cent
in 2010-11 in real terms. Economy showed remarkable resilience. Continued high
food prices were a principal concern. Consumers were denied the benefit of
seasonal fall in prices despite improved availability of food items, revealing
shortcomings in distribution and marketing systems.  The budget for the
financial year 2010-11 aimed to revive the agriculture sector but mentioned no incentives for organic fertilizers and sustainable
farming. Monetary policy measures were expected to further
moderate inflation in the coming months. Exports grew by 29.4 per cent, while
imports recorded a growth of 17.6 per cent during April to January 2010-11 over
the corresponding period the previous year.

1 indiabudget.gov.in/

 

 

2 http://www.downtoearth.org.in/coverage/analysis-of-union-budget-since-1947-56867#2

3 http://www.indiaenvironmentportal.org.in/content/395976/budgets-during-nda-regime-1998-2004/

 

 

5 http://www.thehindu.com/topic/Union_Budget/