The data in Economic Survey of India and Union Budget 2018-19 is of immense significance for the preparation of various competitive examinations. The Finance Ministry of India publishes the authentic data with respect to Indian Economy in Economic Survey and various welfare schemes as well as taxation provisions in the Union Budget every year. What matters for the competitive examination aspirants is not political mudslinging on the budgetary provisions but its objective assessment and the relevant impact on Indian economy. This article tries to focus on the correct approach towards studying the Union Budget for various competitive examinations.

 Ideal approach to study Budget- Ideally, the correct method of study of Union Budget is a three step process in which the aspirants should try to decode the basic concepts and economic terms related to various budgetary provisions, followed by remembering the important facts and figures in the budget and most importantly, trying to correlate the impact of relevant provision on Indian economy. For example, the Union Budget 2018-19 has reintroduced the Long Term Capital Gains Tax (LTCG) clause, after a gap of 14 years. Just remember the fact that ‘LTCG rate of 10% for the profit above one lakh Rupees in a financial year’ is not sufficient, but one has to go a step back and try to understand the basic concept of Capital Gains Tax, its types as STCG and LTCG. Secondly, one should also try to assess the impact of reintroduction of LTCG on Indian economy in terms of its effect on foreign investments in India, the sudden fall in SENSEX due to negative sentiment in share market due to LTCG provision in the budget and so on. A systematic understanding of basic concept of LTCG, the present changes in LTCG rate in budget and its impact on Indian economy- gives the competitive examination aspirant complete understanding of the issue needed for solving various MCQs or questions in the competitive exams. Secondly, apart from studying the various provisions mentioned in the budget, the background of Budget, its meaning, historical background, constitutional provisions, recent changes in the budgetary clauses since the year 2017-18 – are important from competitive examinations point of view.

The word ‘Budget’ has been derived from the French word ‘Bougette’ meaning ‘a leather bag’ in which the Finance Minister used to bring the important financial documents to be declared in the Parliament. As per Indian constitution, the word ‘budget’ has not been mentioned anywhere in the constitution, but Art 112 of Indian constitution deals with  ‘Annual Financial Statement’ of Union Government which is nothing but the budget. Since year 2017-18, three major changes have been introduced in the Union budget viz. merger of Railway budget with General Budget; no classification as planned and non-planned expenditure in the budget and presentation of Union Budget on first working day of month of February instead of last day of February. The MCQs has been asked in the past on various aspects of these historical considerations of a budget as well as the process and terms associated with the budget like Guillotine, Vote on Demand, Demands for Grants, Supplementary grants, etc. Thirdly, it is a misconception amongst many competitive examination aspirants that study of Union Budget means mugging up all the numbers and allocations for various schemes mentioned in the budget. In reality, only important figures and numbers need to be remembered like economic growth rate projected; growth rate achieved in agricultural, industrial and services sector in the past year; Fiscal deficit targets achieved and projected for next year; export growth rate achieved; allocations for key flagship schemes of Government of India; various changes in tax rates including Income Tax rates, Corporate tax rates and so on.

Fourthly and most importantly, the focus should be on key declarations in the Union Budget and newly introduced welfare schemes by the Union Finance Minister. The key declarations in Union Budget 2018-19 of – ‘Ayushman Bharat’ i.e. National Health Protection Scheme (world’s largest Government funded Health protection scheme); ‘Operation Green’ for the perishable items like potato,onion,tomato; ‘RISE’ (Revitalising Infrastructure and Systems in Education by year 2022) for upgrading educational infrastructure in India; LTCG rate of 10% for profit above one lakh; MSP for Kharif crops to be at least 1.5 times the production cost (C2 – cost) – need attention of the competitive examination aspirants as various MCQs can be expected on these newly introduced provisions in the budget. Union Budget is considered as one of the most important socioeconomic and political document declared by the Union Finance Minister on the floor of Lok Sabha. The interest of common man into budgetary provisions should go much beyond the knowledge of Income Tax rates and one must have the enthusiasm to know about the condition and the futuristic path of Indian economy through various budgetary provisions. An informed and aware citizen of India only enriches the democracy and contributes to the development of our nation and budget is one of the most important document related to the same.

(The author of this article ,Lt Col (Dr) Satish Dhage, is an ex Army officer and has been qualified for IPS (Indian Police Services) through IPS LCE 2012. Presently, he is Director, MGM Institute of Competitive Exams Aurangabad. For any queries or feedback, he can be contacted on email id : drsatishdhage@gmail.com)