Thursday, July 30, 2009

Budget 2009-10

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Government of India
“Democracy is the art and science of mobilizing the
entire physical, economic and spiritual resources of various
sections of the people in the service of the common good of
all.”
Mahatma Gandhi
BUDGET 2009-10
July 6, 2009
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Key Features of Budget 2009-2010
CHALLENGES
! to lead economy to high GDP growth rate of 9 per cent per annum at the earliest
! to deepen and broaden the agenda for inclusive development
! to improve delivery mechanisms of the government.
OVERVIEW OF THE ECONOMY
! Growth rate of Gross Domestic Product dipped from an average of over 9 per cent
in the previous three fiscal years to 6.7 per cent during 2008-09.
! Whole sale price index rose to nearly 13 per cent in August, 2008 and had an
equally sharp fall to zero per cent in March, 2009.
! The structure of India’s economy changed over the last ten years with contribution
of the services sector to GDP at well over 50 per cent and share of merchandise
trade doubling to 38.9 per cent of GDP in 2008-09.
! Recognising economic recovery and growth as co-operative effort of the Central
and State Governments, meeting with Finance Ministers of States held as part of
preparation of the Budget. This is intended to become an annual feature.
TOWARDS ECONOMIC REVIVAL
Short-term Measures
! To counter the negative fallout of the global slowdown on the Indian economy,
Government responded by providing three focused fiscal stimulus packages in the
form of tax relief and increased expenditure on public projects along with RBI
taking a number of monetary easing and liquidity enhancing measures.
! Fiscal accommodation led to an increase in fiscal deficit from 2.7 per cent in
2007-08 to 6.2 per cent of GDP in 2008-09.
! The fiscal stimulus at 3.5 per cent of GDP at current market prices for 2008-09
amounts to Rs.1,86,000 crore.
! Measures taken by the Government were effective in arresting the fall in GDP
growth rate in 2008-09. 6.7 per cent growth rate recorded in 2008-09.
Infrastructure Development
! IIFCL to evolve a Takeout financing scheme in consultation with banks to facilitate
incremental lending to infrastructure sector.
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! IIFCL to refinance 60 per cent of commercial bank loans for PPP projects in critical
sectors over the next fifteen to eighteen months. IIFCL and Banks are now in a
position to support projects involving total investment of Rs.1,00,000 crore.
Highway and Railways
! Allocation to National Highways Authority of India (NHAI) for the National
Highway Development Programme (NHDP) increased by 23 per cent over
B.E. 2008-09 in B.E. 2009-10 and allocation for Railways increased from Rs.10,800
crore in Interim B.E. 2009-10 to Rs.15,800 crore in B.E. 2009-10.
Urban Infrastructure
! Allocation under Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
stepped up by 87 per cent to Rs.12,887 crore in B.E. 2009-10 over B.E. 2008-09.
Allocation for housing and provision of basic amenities to urban poor enhanced to
Rs.3,973 crore in B.E. 2009-10. This includes provision for Rajiv Awas Yojana
(RAY), a new scheme announced.
Brihan Mumbai Storm Water Drainage Project (BRIMSTOWA)
! Provision for the project BRIMSTOWA initiated in 2007 and funded through Central
Assistance to address the problem of flooding in Mumbai, enhanced from Rs.200
crore in Interim B.E. 2009-10 to Rs.500 crore in B.E. 2009-10 to expedite
completion of the project.
Power
! Allocation under Accelerated Power Development and Reform Programme
(APDRP) increased by 160 per cent to Rs.2,080 crore in B.E. 2009-10 over
B.E. 2008-09.
Gas
! Blueprint to be developed for long distance gas pipelines leading to a National Gas
Grid to facilitate transportation of gas across the length and breadth of the country.
Assam Gas Cracker Project
! Outlay for Assam Gas Cracker Project stepped up suitably in B.E. 2009-10.
AGRICULTURE DEVELOPMENT
! Target for agriculture credit flow set at Rs.3,25,000 crore for the year 2009-10.
In 2008-09 agriculture credit flow was at Rs.2,87,000 crore.
! Interest subvention scheme for short term crop loans up to Rs.3 lakh per farmer at
the interest rate of 7 per cent per annum to be continued. Additional subvention of
1 per cent to be paid from this year, as incentive to those farmers who repay short
term crop loans on schedule. Additional allocation of Rs.411 crore over Interim
B.E. 2009-10 made for this.
Debt Relief for Farmers
! Time given to the farmers having more than two hectares of land to pay 75 per cent
of their overdues under Debt Waiver and Debt Relief Scheme extended from 30th
June, 2009 to 31st December, 2009.
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! Taskforce to be set up to examine the issue of debt taken by a large number of
farmers in some regions of Maharashtra from private money lenders who were not
covered by the loan waiver scheme announced last year.
Accelerated Irrigation Benefit Programme
! Allocation under Accelerated Irrigation Benefit Programme (AIBP) increased by
75 per cent over B.E. 2008-09.
! Allocation under Rashtriya Krishi Vikas Yojana (RKVY) stepped up by 30 per
cent in B.E. 2009-10 over B.E. 2008-09.
RESTORING EXPORT GROWTH
! Adjustment assistance scheme to provide enhanced Export Credit and Guarantee
Corporation (ECGC) cover at 95 per cent to badly hit sectors extended upto
March 2010.
! Allocation for Market Development Assistance Scheme enhanced to Rs.124 crore
in B.E. 2009-10.
! Interest subvention of 2 per cent on pre-shipment credit for seven employment
oriented export sectors extended beyond the current deadline of September 30,
2009 to March 31, 2010.
! To facilitate flow of credit at reasonable rates, Rs.4,000 crore provided as special
fund out of Rural Infrastructure Development Fund (RIDF) to Small Industries
Development Bank of India (SIDBI). This will incentivise Banks and State Finance
Corporations (SFCs) to lend to Micro and Small Enterprises (MSEs) by refinancing
50 per cent of incremental lending to MSEs during the current financial year.
! Stimulus package for print media comprising waiver of 15 per cent agency
commission on DAVP advertisements and 10 per cent increase in DAVP rates to be
paid as a special relief subject to documentary proof of loss of revenue in nongovernmental
advertisements, extended from 30th June, 2009 to 31st December, 2009.
MEDIUM-TERM SUSTAINABILITY
! To bring the fiscal deficit under control, institutional reform measures to be initiated
during the current year itself.
Fertilizer Subsidy
! To ensure balanced application of fertilizers for increasing agricultural productivity,
Government intends to move towards a nutrient based subsidy regime so as to
cover larger basket of fertilizers with innovative fertilizer products available in the
market at reasonable prices.
! It is intended to move to a system of direct transfer of subsidy to the farmers in due
course.
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Petroleum and Diesel pricing Policy
! With almost three quarters of our oil consumption met through imports, it is
important to recognise that domestic prices of petrol and diesel are broadly in sync
with global prices. Government to set up an expert group to advise on a viable and
sustainable system of pricing petroleum products.
Taxation
! SARAL – II forms to be introduced early.
People’s ownership of PSUs
! While retaining at least 51 per cent Government equity in Public Sector
Undertakings, people’s participation in disinvestment programmes to be encouraged.
! Public Sector Enterprises such as banks and insurance companies to remain in
public sector and will be given full support including capital infusion to grow and
remain competitive.
Financial Sector
! The threshold for non-promoter public shareholding for all listed companies to be
raised in a phased manner.
! Scheduled commercial banks allowed to set up off-site ATMs without prior approval
subject to reporting.
! A sub-committee of State Level Bankers Committee (SLBC) to identify and
formulate an action plan for providing banking facilities in under-banked/unbanked
areas in the next three years. Rs.100 crore set aside as one-time grant in-aid to
ensure provision of at least one centre/Point of Sales (POS) for banking services in
each of the unbanked blocks.
! Government has established Competition Commission of India, an autonomous
regulatory body. An Appellate body headed by a retired judge of Supreme Court
also constituted.
TOWARDS INCLUSIVE DEVELOPMENT
National Rural Employment Guarantee Scheme (NREGS)
! Allocation under NREGS increased by 144 per cent to Rs.39,100 crore in
B.E. 2009-10 over B.E. 2008-09.
! To increase productivity of assets and resources under NREGA, convergence with
other schemes relating to agriculture, forests, water resources, land resources, rural
roads initiated. In the first stage 115 pilot districts selected for convergence.
National Food Security Act
! National Food Security Act to be brought in to ensure entitlement of 25 kilo of rice
or wheat per month at Rs.3 per kilo to every family living below the poverty line in
rural or urban areas. Food Security Bill to be put on the website of the Department
of Food and Public Distribution for public debate.
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Bharat Nirman
! Allocation for Bharat Nirman increased by 45 per cent in 2009-10 over
B.E. 2008-09. Allocations under Pradhan Mantri Gram Sadak Yojana (PMGSY)
increased by 59 per cent over B.E. 2008-09 to Rs.12,000 crore in B.E. 2009-10.
Under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), allocation increased
by 27 per cent to Rs.7,000 crore.
! Allocation under Indira Awaas Yojana (IAY) increased by 63 per cent to Rs.8,800
crore in B.E. 2009-10. Allocation of Rs.2,000 crore made for Rural Housing Fund
(RHF) in National Housing Bank (NHB) to boost the resource base of NHB for
refinance operations in rural housing sector.
Pradhan Mantri Adarsh Gram Yojana (PMAGY)
! New scheme Pradhan Mantri Adarsh Gram Yojana (PMAGY) with an allocation
of Rs.100 crore launched on pilot basis for integrated development of 1000 villages
having population of scheduled castes above 50 per cent.
EMPOWERMENT OF WEAKER SECTIONS
! The Swarna Jayanti Gram Swarozgar Yojana (SGSY) restructured as National Rural
Livelihood Mission to make it universal in application, focused in approach and
time bound for poverty eradication by 2014-15. In addition to capital subsidy at
enhanced rate, interest subsidy to poor households to be provided for loans upto
Rs.1 lakh from banks.
! There are over 22 lakh Women’s Self Help Groups linked with banks. Reach of
SHGs to be widened to enrol at least 50 per cent of all rural women in India as
members of SHGs over the next five years.
! Corpus of Rashtriya Mahila Kosh to be increased from Rs.100 crore to Rs.500
crore over the next few years.
Female Literacy
! National Mission for Female Literacy to be launched with focus on minorities, SC,
ST and other marginalized groups with the aim to reduce level of female illiteracy
by half in three years.
Integrated Child Development Services (ICDS)
! All ICD Services to be extended to every child under the age of six by
March, 2012.
Student Loans to Weaker Sections
! To enable students from economically weaker sections to access higher education,
a scheme to provide full interest subsidy during the period of moratorium introduced
to cover loans taken from scheduled banks to pursue any of the approved courses
of study in technical and professional streams from recoganised institutions in India.
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Welfare of Minorities
! Plan outlay of Ministry of Minority Affairs enhanced from Rs.1,000 crore in B.E.
2008-09 to Rs.1,740 crore in 2009-10 registering an increase of 74 per cent. This
includes Rs.990 crore for Multi-Sectoral Development Programme for Minorities,
Grants-in-aid to Maulana Azad Education Foundation, National Minorities Development
and Finance Corporation and pre and post matric scholarship for minorities.
! Allocations made for the new schemes of National Fellowship for Students from
minority community and Grants-in-aid to Central Wakf Council for computerization
of records of State Wakf Boards.
! Rs.25 crore each allocated for establishing new campuses at Murshidabad in West
Bengal and Malappuram in Kerala by Aligarh Muslim University.
Welfare of workers in the unorganized sector
! Action initiated to ensure implementation of social security schemes for occupation
like weavers, fishermen and women, toddy tappers, leather and handicraft workers,
plantation labour, construction labour, mine workers, bidi workers and rickshaw
pullers. Necessary financial allocation will be made for these schemes.
Employment Exchanges
! New project for modernization of Employment Exchange in public private
partnership to be launched so that a job seeker can register on line from anywhere
and approach any employment exchange.
Handloom
! One handloom mega cluster each in West Bengal and Tamil Nadu and one
powerloom mega cluster in Rajasthan to be set up. New mega clusters for carpets
to be also set up in Srinagar (J&K) and Mirzapur (UP).
Health
! Allocation under National Rural Health Mission (NRHM) increased by Rs.2,057
crore over Interim B.E. 2009-10 of Rs.12,070 crore.
! All BPL families to be covered under Rashtriya Swasthya Bima Yojana (RSBY).
Allocation under RSBY increased by 40 per cent over previous allocation to Rs.350
crore in B.E. 2009-10.
Environment and climate change
! In furtherance to National Action Plan on Climate Change, eight national missions
representing a multi-pronged long-term and integrated approach to be launched.
! National Ganga River Basin Authority set up. Budgetary allocation under National
River and Lake Conservation Plans increased from Rs.335 crore in B.E. 2008-09
to Rs.562 crore in B.E. 2009-10.
! Special one-time grant of Rs.100 crore given to Indian Council of Forestry Research
and Education, Dehradun.
! Rs.15 crore each to be allocated to Botanical Survey of India and Zoological Survey of
India. An additional amount of Rs.15 crore to be allocated for Geological Survey of India.
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TOWARDS BUILDING ACOUNTABLE INSTITUTIONS
Improving Delivery of Public Services
! Unique Identification Authority of India (UIDAI) to set up online data base with
identity and biometric details of Indian residents and provide enrolment and
verification services across country. Provision of Rs.120 crore made for this in the
Budget.
! First set of unique identity number to be rolled out in 12 to 18 months.
National Security
! Additional amount of Rs.430 crore provided over Interim B.E. 2009-10
to modernise police machinery in the States.
! Additional amount of Rs.2,284 crore proposed over Interim B.E. 2009-10 for
construction of fences, roads, flood lights on the international borders.
! Programme for housing to create 1 lakh dwelling units for Central Para-military
Forces personnel to be launched through innovative financing model.
One Rank One Pension for Ex-servicemen (OROP)
! Based on the recommendation of the Committee headed by the Cabinet Secretary
on OROP, government has decided to substantially improve the pension of pre
01.01.2006 defence pensioners below officer rank and bring pre 10.10.1997
pensioners on par with post 10.10.1997 pensioners. The decisions to be implemented
from 01st July, 2009 and will cost more than Rs.2,100 crore annually.
Education
! Provision for the scheme ‘Mission in Education through ICT’ substantially increased
to Rs.900 crore and the provision for setting up and up-gradation of Polytechnics
under the Skill Development Mission enhanced to Rs.495 crore.
! Rs.827 crore allocated for opening one Central University in each uncovered State.
! Rs.2,113 crore allocated for IITs and NITs which includes a provision of Rs.450
crore for new IITs and NITs.
! The overall Plan budget for higher education is to be increased by Rs.2,000 crore
over Interim B.E. 2009-10.
! Rs.50 crore allocated for Punjab University, Chandigarh. Plan allocation for
Chandigarh to be suitably enhanced during the year to provide better infrastructure
to the people of Chandigarh.
Commonwealth Games, 2010
! Outlays to be stepped up from Rs.2,112 crore in Interim Budget to Rs.3,472 crore
in regular Budget 2009-10.
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Srilankan Tamils
! Rs.500 crore allocated for rehabilitation of internally displaced persons and
reconstruction of the northern and eastern areas of Sri Lanka. Ministry of External
Affairs to work closely with the Sri Lankan Government.
Cyclone Aila
! Rs.1,000 crore allocated for programme for rebuilding the damaged infrastructure
caused due to cyclone Aila in West Bengal.
BUDGET ESTIMATE 2009-10
! Budget Estimates provide for a total expenditure of Rs.10,20,838 crore consisting
of Rs.6,95,689 crore under Non-plan and Rs.3,25,149 crore under Plan registering
an increase of 37 per cent in Non-plan expenditure and 34 per cent in Plan
expenditure over B.E. 2008-09.
! Total expenditure in B.E. 2009-10 increased by 36 per cent over B.E. 2008-09.
! Increase in Non-plan expenditure is mainly due to implementation of Sixth Central
Pay Commission recommendations, increased food subsidy and higher interest
payment arising out of larger fiscal deficit in 2008-09.
! Interest payments estimated at Rs.2,25,511 crore constituting about 36 per cent of
Non-plan revenue expenditure in B.E. 2009-10.
! Subsidies up from Rs.71,431 crore in B.E. 2008-09 to Rs.1,11,276 crore in B.E.
2009-10.
! Outlay for Defence up from Rs.1,05,600 crore in B.E. 2008-09 to Rs.1,41,703
crore in B.E. 2009-10.
! Gross Budgetary Support for Annual Plan 2009-10 enhanced by Rs.40,000 crore
over Interim B.E. 2009-10.
! State Governments to be permitted to borrow additional 0.5 per cent of their GSDP
by relaxing the fiscal deficit target under FRBM from 3.5 per cent to 4 per cent of
their GSDP. This will enable the States to borrow Rs.21,000 crore additionally
over Interim B.E. 2009-10.
! Gross tax receipts budgeted at Rs.6,41,079 crore in B.E. 2009-10 compared to
Rs.6,87,715 crore in B.E. 2008-09.
! Non-tax revenue receipts estimated at Rs.1,40,279 crore in B.E. 2009-10 compared
to Rs.95,785 crore in B.E. 2008-09.
! Revenue deficit projected at 4.8 per cent of GDP in B.E. 2009-10 compared to 1
per cent in B.E. 2008-09 and 4.6 per cent as per provisional accounts of 2008-09.
! Fiscal deficit as a percentage of GDP is projected at 6.8 per cent compared to 2.5
per cent in B.E. 2008-09 and 6.2 per cent as per provisional accounts 2008-09.
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TAX PROPOSALS
! Tax reform, like all reforms, is a process and not an event. Thrust of reforms has
been to improve the efficiency and equity of our tax system. This is sought to be
achieved by eliminating distortions in the tax structure, introducing moderate levels
of taxation and expanding the base and accompanied by requisite re-engineering
of key business processes coupled with automation.
! Recent initiative, on direct taxes side, of the setting up of a Centralized Processing
Centre (CPC) at Bengaluru where all electronically filed returns, and paper returns
filed in entire Karnataka, will be processed.
! Centre’s Tax-GDP ratio has increased to 11.5 per cent in 2008-09 from a low of 9.2
per cent in 2003-04. Share of direct taxes in the Centre’s tax revenues has increased
to 56 percent in 2008-09 from 41 percent in 2003-04, reflecting sharp improvement
in equity of our tax system.
! Structural changes in direct taxes to be pursued by releasing the new Direct Taxes
Code within the next 45 days and in indirect taxes by accelerating the process for
the smooth introduction of the Goods and Services Tax (GST) with effect from 1st
April, 2010.
! The Direct Taxes Code, along with a Discussion Paper, to be released to the public
for debate. The Direct Taxes Code Bill will be finalised for introduction in Lok
Sabha sometime during the Winter Session based on the inputs received.
! The Authorities for Advance Rulings on Direct and Indirect Taxes to be merged by
amending the relevant Acts.
! Agreement has been reached on the basic structure of GST in keeping with the
principles of fiscal federalism enshrined in the Constitution. Broad contour of the
GST Model envisages dual GST comprising of a Central GST and a State GST.
The Centre and the States will each legislate, levy and administer the Central GST
and State GST, respectively.
Direct Taxes
! No changes made in the Corporate Tax rates.
! Exemption limit in personal income tax raised by Rs.15,000 from Rs.2.25 lakh to
Rs.2.40 lakh for senior citizens; by Rs.10,000 from Rs.1.80 lakh to Rs.1.90 lakh
for women tax payers; and by Rs.10,000 from Rs.1.50 lakh to Rs.1.60 lakh for all
other categories of individual taxpayers.
! Deduction under section 80-DD in respect of maintenance, including medical
treatment, of a dependent who is a person with severe disability being raised from
the present limit of Rs.75,000 to Rs.1 lakh.
! Surcharge on various direct taxes to be phased out; in the first instance, by
eliminating the surcharge of 10 percent on personal income-tax.
! Sun-set clauses for deduction in respect of export profits under sections 10A and
10B of the Income-tax Act being extended by one more year i.e. for the financial
year 2010-11.
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! Fringe Benefit Tax on the value of certain fringe benefits provided by employers to
their employees to be abolished.
! Scope of provisions relating to weighted deduction of 150% on expenditure incurred
on in-house R&D to all manufacturing businesses being extended except for a
small negative list.
! Businesses to be incentivised by providing investment linked tax exemptions
rather than profit linked exemptions. Investment linked tax incentives to be
provided, to begin with, to the businesses of setting up and operating ‘cold chain’,
warehousing facilities for storing agricultural produce and the business of laying
and operating cross country natural gas or crude or petroleum oil pipeline network
for distribution on common carrier principle. Under this method, all capital
expenditure, other than expenditure on land, goodwill and financial instruments
to be fully allowable as deduction.
! Minimum Alternate Tax (MAT) to be increased to 15 per cent of book profits from
10 per cent. The period allowed to carry forward the tax credit under MAT to be
extended from seven years to ten years.
! New Pension System (NPS) to continue to be subjected to the Exempt-Exempt-
Taxed (EET) method of tax treatment of savings. Income of the NPS Trust to be
exempted from income tax and any dividend paid to this Trust from Dividend
Distribution Tax. All purchase and sale of equity shares and derivatives by the
NPS Trust also to be exempt from the Securities Transaction Tax. Self employed
persons to be enabled to participate in the NPS and to avail of the tax benefits
available thereto.
! Alternative dispute resolution mechanism to be created within the Income Tax
Department for the resolution of transfer pricing disputes. Central Board of Direct
Taxes (CBDT) to be empowered to formulate ‘safe harbour’ rules to reduce the
impact of judgemental errors in determining transfer price in international
transactions.
! Commodity Transaction Tax (CTT) to be abolished.
! Donations to electoral trusts to be allowed as a 100 percent deduction in the
computation of the income of the donor.
! Deduction under section 80E of the Income-tax Act allowed in respect of interest
on loans taken for pursuing higher education in specified fields of study to be
extended to cover all fields of study, including vocational studies, pursued after
completion of schooling.
! To mitigate the practical difficulties faced by charitable organisations, anonymous
donations received by charitable organisations to the extent of 5 percent of their
total income or a sum of Rs.1 lakh, whichever is higher, not to be taxed.
! Scope of presumptive taxation to be extended to all small businesses with a turnover
upto Rs. 40 lakh. All such taxpayers to have option to declare their income from
business at the rate of 8 percent of their turnover and simultaneously enjoy exemption
from the compliance burden of maintaining books of accounts. As a procedural
simplification, they are also to be exempted from advance tax and allowed to pay
their entire tax liability from business at the time of filing their return. This new
scheme to come into effect from the financial year 2010-11.
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! Tax holiday under section 80-IB(9) of the Income Tax Act, which was hitherto
available in respect of profits arising from the commercial production or refining
of mineral oil, to be extended to natural gas. This tax benefit to be available to
undertakings in respect of profits derived from the commercial production of mineral
oil and natural gas from oil and gas blocks which are awarded under the
NELP-VIII round of bidding. The section to be retrospectively amended to provide
that “undertaking” for the purposes of section 80-IB(9) will mean all blocks awarded
in any single contract.
Indirect Taxes
! Proposals on indirect taxes to seek to achieve stable framework by maintaining the
overall rate structure for customs and central excise duties as well as service tax.
Customs duties
! Customs duty of 5% to be imposed on Set Top Box for television broadcasting.
! Customs duty on LCD Panels for manufacture of LCD televisions to be reduced
from 10% to 5%.
! Full exemption from 4% special CVD on parts for manufacture of mobile phones
and accessories to be reintroduced for one year.
! List of specified raw materials/inputs imported by manufacturer-exporters of sports
goods which are exempt from customs duty, subject to specified conditions, to be
expanded by including five additional items.
! List of specified raw materials and equipment imported by manufacturer-exporters
of leather goods, textile products and footwear industry which are fully exempt
from customs duty, subject to specified conditions, to be expanded.
! Customs duty on unworked corals to be reduced from 5% to Nil.
! Customs duty on 10 specified life saving drugs/vaccine and their bulk drugs to be
reduced from 10% to 5% with Nil CVD (by way of excise duty exemption).
! Customs duty on specified heart devices, namely artificial heart and PDA/ASD
occlusion device, to be reduced from 7.5% to 5% with Nil CVD (by way of excise
duty exemption).
! Customs duty on permanent magnets for PM synchronous generator above 500
KW used in wind operated electricity generators to be reduced from 7.5% to 5%.
! Customs duty on bio-diesel to be reduced from 7.5% to 2.5%.
! Concessional customs duty of 5% on specified machinery for tea, coffee and rubber
plantations to be reintroduced for one year, upto 06.07.2010.
! Customs duty on ‘mechanical harvester’ for coffee plantation to be reduced from
7.5% to 5%. CVD on such harvesters has also been reduced from 8% to nil, by
way of excise duty exemption.
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! Customs duty on serially numbered gold bars (other than tola bars) and gold coins
to be increased from Rs.100 per 10 gram to Rs.200 per 10 gram. Customs duty on
other forms of gold to be increased from Rs.250 per 10 gram to Rs.500 per 10
gram. Customs duty on silver to be increased from Rs.500 per Kg. to Rs.1000 per
Kg. These increases also to be applicable when gold and silver (including ornaments)
are imported as personal baggage.
! Customs duty on cotton waste to be reduced from 15% to 10%.
! Customs duty on wool waste to be reduced from 15% to 10%.
! Customs duty on rock phosphate to be reduced from 5% to 2%.
! CVD exemption on Aerial Passenger Ropeway Projects to be withdrawn. Such
projects will now attract applicable CVD.
! Customs duty exemption on concrete batching plants of capacity 50 cum per hour
or more to be withdrawn. Such plants will now attract customs duty of 7.5%.
! On packaged or canned software, CVD exemption to be provided on the portion of
the value which represents the consideration for transfer of the right to use such
software, subject to specified conditions.
! Customs duty on inflatable rafts, snow-skis, water skis, surf-boats, sail-boards and
other water sports equipment to be fully exempted.
Central excise duties
! Excise duty rate on items currently attracting 4% to be raised to 8% with following
major exceptions:
• Specified food items including biscuits, sharbats, cakes and pastries
• Drugs and pharmaceutical products falling under Chapter 30
• Medical equipment
• Certain varieties of paper, paperboard and articles thereof
• Paraxylene
• Power driven pumps for handling water
• Footwear of RSP exceeding Rs.250 but not exceeding Rs.750 per pair
• Pressure cookers
• Vacuum and gas filled bulbs of RSP not exceeding Rs.20 per bulb
• Compact Fluorescent Lamps
• Cars for physically handicapped
! Specific component of excise duty applicable to large cars/utility vehicles of engine
capacity 2000 cc and above to be reduced from Rs. 20,000/- per vehicle to Rs.15,000
per vehicle.
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! Excise duty on petrol driven trucks/lorries to be reduced from 20% to 8%. Excise
duty on chassis of such trucks/lorries to be reduced from ‘20% + Rs.10000’ to
‘8% + Rs.10000’.
! Excise duty on Special Boiling Point spirits to be reduced to 14%.
! Excise duty on naphtha to be reduced to 14%.
! Duty paid High Speed Diesel blended with upto 20% bio-diesel to be fully exempted
from excise duties.
! The ad valorem component of excise duty of 6% on petrol intended for sale with a
brand name to be converted into a specific rate. Consequently, such petrol would
now attract total excise duty of Rs.14.50 per litre instead of ‘6% + Rs.13 per litre’.
! The ad valorem component of excise duty of 6% on diesel intended for sale with a
brand name to be converted into a specific rate. Consequently, such diesel would
now attract total excise duty of Rs.4.75 per litre instead of ‘6% + Rs.3.25 per litre’.
! Excise duty on manmade fibre and yarn to be increased from 4% to 8%.
! Excise duty on PTA and DMT to be increased from 4% to 8%.
! Excise duty on polyester chips to be increased from 4% to 8%.
! Excise duty on acrylonitrile to be increased from 4% to 8%.
! The scheme of optional excise duty of 4% for pure cotton to be restored.
! Excise duty for man-made and natural fibres other than pure cotton, beyond the
fibre and yarn stage, to be increased from 4% to 8% under the existing optional
scheme.
! An optional excise duty exemption to be provided to tops of manmade fibre
manufactured from duty paid tow at par with tops manufactured from duty paid
staple fibre.
! Suitable adjustments to be made in the rates of duty applicable to DTA clearances
of textile goods made by Export Oriented Units using indigenous raw materials/
inputs for manufacture of such goods.
! Full exemption from excise duty to be provided on goods of Chapter 68 of Central
Excise Tariff manufactured at the site of construction for use in construction work
at such site.
! Excise duty exemption on ‘recorded smart cards’ and ‘recorded proximity cards
and tags’ to be made optional. Manufacturers have the option to pay the applicable
excise duty and avail the credit of duty paid on inputs.
! EVA compound manufactured on job work for further use in manufacture of
footwear to be exempted from excise duty.
! Benefit of SSI exemption scheme to be extended to printed laminated rolls bearing
the brand name of others by excluding this item from the purview of the brand
name restriction.
15
http://indiabudget.nic.in
! On packaged or canned software, excise duty exemption to be provided on the
portion of the value which represents the consideration for transfer of the right to
use such software, subject to specified conditions.
! Excise duty on branded articles of jewellery to be reduced from 2% to Nil.
Service tax
! Service Tax to be imposed on the following services:
• Service provided in relation to transport of goods by rail
• Service provided in relation to transport of coastal cargo; and goods through
inland water including National Waterways
• Advice, consultancy or technical assistance provided in the field of law (this
tax would not be applicable in case the service provider or service receiver is
an individual).
• Cosmetic and plastic surgery service
! Exemption from service tax being provided to inter-State or intra-State transportation
of passengers in a vehicle bearing ‘Contract Carriage Permit’ with specified
conditions.
! Exemption from service tax (leviable under Banking and other financial services
or under Foreign exchange broking service) being provided to inter-bank purchase
and sale of foreign currency between scheduled banks.
! Two taxable services, namely, ‘Transport of goods through road’ and ‘Commission
paid to foreign agents’ to be exempted from the levy of service tax, if the exporter
is liable to pay service tax on reverse charge basis. However, present cap of 10%
on commission agency charges is retained. Thus there would be no need for the
exporter to first pay the tax and later claim refund in respect of these services.
! For other services received by exporters, service tax exemption to be operated
through the existing refund mechanism based on self-certification of the documents
where such refund is below 0.25 per cent of FOB value, and certification of
documents by a Chartered Accountant for value of refund exceeding the above
limit.
! Export Promotion Councils and the Federation of Indian Export Organizations
(FIEO) to be exempt from service tax on the membership and other fees collected
by them till 31st March 2010.
Tax proposals on direct taxes to be revenue neutral. On indirect taxes, estimated net gain
to be Rs.2,000 crore for a full year.
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(Paper) Oracle Interview?Questions And Answers Set - 6

Posted January 21st, 2008 by admin

Oracle Interview
Questions And Answers Set - 6

What is an User Exits ?
A user exit is a subroutine which are written in programming languages using pro*C pro *Cobol , etc., that link into the SQL * forms executable.

What is a Trigger ?
A piece of logic that is executed at or triggered by a SQL *forms event.

What is a Package Procedure ?
A Package procedure is built in PL/SQL procedure.

What is the maximum size of a form ?
255 character width and 255 characters Length.

What is the difference between system.current_field and system.cursor_field ?
1. System.current_field gives name of the field.
2. System.cursor_field gives name of the field with block name.

List the system variables related in Block and Field?
1. System.block_status
2. System.current_block
3. System.current_field
4. System.current_value
5. System.cursor_block
6. System.cursor_field
7. System.field_status.

What are the different types of Package Procedure ?
1. Restricted package procedure.
2. Unrestricted package procedure.

What are the types of TRIGGERS ?
1. Navigational Triggers.
2. Transaction Triggers.

Identify package function from the following ?
1. Error-Code
2. Break
3. Call
4. Error-text
5. Form-failure
6. Form-fatal
7. Execute-query
8. Anchor View
9. Message_code?

1. Error_Code
2. Error_Text
3. Form_Failure
4. Form_Fatal
5. Message_Code

Can you attach an lov to a field at run-time? if yes, give the build-in name.?
Yes. Set_item_proprety

Is it possible to attach same library to more than one form?
Yes

Can you attach an lov to a field at design time?
Yes

List the windows event triggers available in Forms 4.0?
When-window-activated,
when-window-closed,
when-window-deactivated,
when-window-resized

What are the triggers associated with the image item?
When-Image-activated(Fires when the operator double clicks on an image Items)
When-image-pressed(fires when the operator selects or deselects the image item)

What is a visual attribute?
Visual Attributes are the font, color and pattern characteristics of objects that operators see and intract with in our application.

How many maximum number of radio buttons can you assign to a radio group?
Unlimited no of radio buttons can be assigned to a radio group

What is an Lov?
A list of values is a single or multi column selection list displayed in a pop-up window

What is a record Group?
A record group is an internal oracle forms data structure that has a similar column/row frame work to a database table

Give built-in routine related to a record groups?
Create_group (Function)
Create_group_from_query(Function)
Delete_group(Procedure)
Add_group_column(Function)
Add_group_row(Procedure)
Delete_group_row(Procedure)
Populate_group(Function)
Populate_group_with_query(Function)
Set_group_Char_cell(procedure)

List the built-in routines for the controlling canvas views during run-time?
Find_canvas
Get-Canvas_property
Get_view_property
Hide_View
Replace_content_view
Scroll_view
Set_canvas_property
Set_view_property
Show_view
Alert

System.effective_date system variable is read only True/False?
False

What are the built_in used to trapping errors in forms 4?
Error_type return character
Error_code return number
Error_text return char
Dbms_error_code return no.
Dbms_error_text return char

What is Oracle Financials? (for DBA)
Oracle Financials products provide organizations with solutions to a wide range of long- and short-term accounting system issues. Regardless of the size of the business, Oracle Financials can meet accounting management demands with:
Oracle Assets: Ensures that an organization's property and equipment investment is accurate and that the correct asset tax accounting strategies are chosen.
Oracle General Ledger: Offers a complete solution to journal entry, budgeting, allocations, consolidation, and financial reporting needs.
Oracle Inventory: Helps an organization make better inventory decisions by minimizing stock and maximizing cash flow.
Oracle Order Entry: Provides organizations with a sophisticated order entry system for managing customer commitments.
Oracle Payables: Lets an organization process more invoices with fewer staff members and tighter controls. Helps save money through maximum discounts, bank float, and prevention of duplicate payment.
Oracle Personnel: Improves the management of employee- related issues by retaining and making available every form of personnel data.
Oracle Purchasing: Improves buying power, helps negotiate bigger discounts, eliminates paper flow, increases financial controls, and increases productivity.
Oracle Receivables:. Improves cash flow by letting an organization process more payments faster, without off-line research. Helps correctly account for cash, reduce outstanding receivables, and improve collection effectiveness.
Oracle Revenue Accounting Gives an organization timely and accurate revenue and flexible commissions reporting.
Oracle Sales Analysis: Allows for better forecasting, planning. and reporting of sales information.

What are the design facilities available in forms 4.0?
Default Block facility.
Layout Editor.
Menu Editor.
Object Lists.
Property Sheets.
PL/SQL Editor.
Tables Columns Browser.
Built-ins Browser.

What is the most important module in Oracle Financials? (for DBA)
The General Ledger (GL) module is the basis for all other Oracle Financial modules. All other modules provide information to it. If you implement Oracle Financials, you should switch your current GL system first.GL is relatively easy to implement. You should go live with it first to give your implementation team a chance to be familiar with Oracle Financials.

What are the types of canvas-views?
Content View, Stacked View.

What is the MultiOrg and what is it used for? (for DBA)
MultiOrg or Multiple Organizations Architecture allows multiple operating units and their relationships to be defined within a single installation of Oracle Applications. This keeps each operating unit's transaction data separate and secure.
Use the following query to determine if MuliOrg is intalled:
select multi_org_flag from fnd_product_groups;

What is the difference between Fields and FlexFields? (for DBA)
A field is a position on a form that one uses to enter, view, update, or delete information. A field prompt describes each field by telling what kind of information appears in the field, or alternatively, what kind of information should be entered in the field.
A flexfield is an Oracle Applications field made up of segments. Each segment has an assigned name and a set of valid values. Oracle Applications uses flexfields to capture information about your organization. There are two types of flexfields: key flexfields and descriptive flexfields.

Explain types of Block in forms4.0?
Base table Blocks.
Control Blocks.
1. A base table block is one that is associated with a specific database table or view.
2. A control block is a block that is not associated with a database table. ITEMS

What is an Alert?
An alert is a modal window that displays a message notifies the operator of some application condition

What are the built-in routines is available in forms 4.0 to create and manipulate a parameter list?
Add_parameter
Create_Parameter_list
Delete_parameter
Destroy_parameter_list
Get_parameter_attr
Get_parameter_list
set_parameter_attr

What is a record Group?
A record group is an internal oracle forms data structure that has a similar column/row frame work to a database table

What is a Navigable item?
A navigable item is one that operators can navigate to with the keyboard during default navigation, or that Oracle forms can navigate to by executing a navigational built-in procedure.

What is a library in Forms 4.0?
A library is a collection of Pl/SQL program units, including user named procedures, functions & packages

How image_items can be populate to field in forms 4.0?
A fetch from a long raw database column PL/Sql assignment to executing the read_image_file built_in procedure to get an image from the file system.

What is the content view and stacked view?
A content view is the "Base" view that occupies the entire content pane of the window in which it is displayed. A stacked view differs from a content canvas view in that it is not the base view for the window to which it is assigned

What is a Check Box?
A Check Box is a two state control that indicates whether a certain condition or value is on or off, true or false. The display state of a check box is always either "checked" or "unchecked".

What is a canvas-view?
A canvas-view is the background object on which you layout the interface items (text-items, check boxes, radio groups, and so on.) and boilerplate objects that operators see and interact with as they run your form. At run-time, operators can see only those items that have been assigned to a specific canvas. Each canvas, in term, must be displayed in a specific window.

Explain the following file extension related to library?
.pll,.lib,.pld
The library pll files is a portable design file comparable to an fmb form file
The library lib file is a plat form specific, generated library file comparable to a fmx form file
The pld file is Txt format file and can be used for source controlling your library files Parameter

Explain the usage of WHERE CURRENT OF clause in cursors ?
WHERE CURRENT OF clause in an UPDATE,DELETE statement refers to the latest row fetched from a cursor. Database Triggers

Name the tables where characteristics of Package, procedure and functions are stored ?
User_objects, User_Source and User_error.

Explain the two type of Cursors ?
There are two types of cursors, Implicit Cursor and Explicit Cursor. PL/SQL uses Implicit Cursors for queries. User defined cursors are called Explicit Cursors. They can be declared and used.

What are two parts of package ?
The two parts of package are PACKAGE SPECIFICATION & PACKAGE BODY. Package Specification contains declarations that are global to the packages and local to the schema. Package Body contains actual procedures and local declaration of the procedures and cursor declarations.

What are two virtual tables available during database trigger execution ?
The table columns are referred as OLD.column_name and NEW.column_name.
For triggers related to INSERT only NEW.column_name values only available.
For triggers related to UPDATE only OLD.column_name NEW.column_name values only available.
For triggers related to DELETE only OLD.column_name values only available.

What is Fine Grained Auditing? (for DBA)
Fine Grained Auditing (DBMS_FGA) allows auditing records to be generated when certain rows are selected from a table. A list of defined policies can be obtained from DBA_AUDIT_POLICIES. Audit records are stored in DBA_FGA_AUDIT_TRAIL. Look at this example:
o Add policy on table with autiting condition...
execute dbms_fga.add_policy('HR', 'EMP', 'policy1', 'deptno > 10');
o Must ANALYZE, this feature works with CBO (Cost Based Optimizer)
analyze table EMP compute statistics;
select * from EMP where c1 = 11; -- Will trigger auditing
select * from EMP where c1 = 09; -- No auditing
o Now we can see the statments that triggered the auditing condition...
select sqltext from sys.fga_log$;
delete from sys.fga_log$;

What is a package ? What are the advantages of packages ? What is Pragma EXECPTION_INIT ? Explain the usage ?
The PRAGMA EXECPTION_INIT tells the complier to associate an exception with an oracle error. To get an error message of a specific oracle error. e.g. PRAGMA EXCEPTION_INIT (exception name, oracle error number)

What is a Virtual Private Database? (for DBA)
Oracle 8i introduced the notion of a Virtual Private Database (VPD). A VPD offers Fine-Grained Access Control (FGAC) for secure separation of data. This ensures that users only have access to data that pertains to them. Using this option, one could even store multiple companies' data within the same schema, without them knowing about it. VPD configuration is done via the DBMS_RLS (Row Level Security) package. Select from SYS.V$VPD_POLICY to see existing VPD configuration.

What is Raise_application_error ?
Raise_application_error is a procedure of package DBMS_STANDARD which allows to issue an user_defined error messages from stored sub-program or database trigger.

What is Oracle Label Security? (for DBA)
Oracle Label Security (formerly called Trusted Oracle MLS RDBMS) uses the VPD (Virtual Private Database) feature of Oracle8i to implement row level security. Access to rows are restricted according to a user's security sensitivity tag or label. Oracle Label Security is configured, controlled and managed from the Policy Manager, an Enterprise Manager-based GUI utility.

Give the structure of the procedure ?
PROCEDURE name (parameter list.....)
is
local variable declarations
BEGIN
Executable statements.
Exception.
exception handlers
end;

What is OEM (Oracle Enterprise Manager)? (for DBA)
OEM is a set of systems management tools provided by Oracle Corporation for managing the Oracle environment. It provides tools to monitor the Oracle environment and automate tasks (both one-time and repetitive in nature) to take database administration a step closer to "Lights Out" management.

Question What is PL/SQL ?
PL/SQL is a procedural language that has both interactive SQL and procedural programming language constructs such as iteration, conditional branching.

What are the components of OEM? (for DBA)
Oracle Enterprise Manager (OEM) has the following components:
. Management Server (OMS): Middle tier server that handles communication with the intelligent agents. The OEM Console connects to the management server to monitor and configure the Oracle enterprise.
. Console: This is a graphical interface from where one can schedule jobs, events, and monitor the database. The console can be opened from a Windows workstation, Unix XTerm (oemapp command) or Web browser session (oem_webstage).
. Intelligent Agent (OIA): The OIA runs on the target database and takes care of the execution of jobs and events scheduled through the Console.

What happens if a procedure that updates a column of table X is called in a database trigger of the same table ?
Mutation of table occurs.

Is it possible to use Transaction control Statements such a ROLLBACK or COMMIT in Database Trigger ? Why ?
It is not possible. As triggers are defined for each table, if you use COMMIT of ROLLBACK in a trigger, it affects logical transaction processing.

How many types of database triggers can be specified on a table ? What are they ?
Insert Update Delete
Before Row o.k. o.k. o.k.
After Row o.k. o.k. o.k.
Before Statement o.k. o.k. o.k.
After Statement o.k. o.k. o.k.
If FOR EACH ROW clause is specified, then the trigger for each Row affected by the statement.
If WHEN clause is specified, the trigger fires according to the returned Boolean value.

What are the modes of parameters that can be passed to a procedure ?
IN,OUT,IN-OUT parameters.

Where the Pre_defined_exceptions are stored ?
In the standard package.
Procedures, Functions & Packages ;

Write the order of precedence for validation of a column in a table ?
I. done using Database triggers.
ii. done using Integarity Constraints.?

I & ii.

Give the structure of the function ?
FUNCTION name (argument list .....) Return datatype is
local variable declarations
Begin
executable statements
Exception
execution handlers
End;

Explain how procedures and functions are called in a PL/SQL block ?
Function is called as part of an expression.
sal := calculate_sal ('a822');
procedure is called as a PL/SQL statement
calculate_bonus ('A822');

What are advantages fo Stored Procedures?
Extensibility,Modularity, Reusability, Maintainability and one time compilation.

What is an Exception ? What are types of Exception ?
Exception is the error handling part of PL/SQL block. The types are Predefined and user defined. Some of Predefined exceptions are.
CURSOR_ALREADY_OPEN
DUP_VAL_ON_INDEX
NO_DATA_FOUND
TOO_MANY_ROWS
INVALID_CURSOR
INVALID_NUMBER
LOGON_DENIED
NOT_LOGGED_ON
PROGRAM-ERROR
STORAGE_ERROR
TIMEOUT_ON_RESOURCE
VALUE_ERROR
ZERO_DIVIDE
OTHERS.

What are the PL/SQL Statements used in cursor processing ?
DECLARE CURSOR name, OPEN cursor name, FETCH cursor name INTO or Record types, CLOSE cursor name.

What are the components of a PL/SQL Block ?
Declarative part, Executable part and Exception part.
Datatypes PL/SQL

What is a database trigger ? Name some usages of database trigger ?
Database trigger is stored PL/SQL program unit associated with a specific database table. Usages are Audit data modifications, Log events transparently, Enforce complex business rules Derive column values automatically, Implement complex security authorizations. Maintain replicate tables.

What is a cursor ? Why Cursor is required ?
Cursor is a named private SQL area from where information can be accessed. Cursors are required to process rows individually for queries returning multiple rows.

What is a cursor for loop ?
Cursor for loop implicitly declares %ROWTYPE as loop index, opens a cursor, fetches rows of values from active set into fields in the record and closes when all the records have been processed.
e.g.. FOR emp_rec IN C1 LOOP
salary_total := salary_total +emp_rec sal;
END LOOP;

What will happen after commit statement ?
Cursor C1 is
Select empno,
ename from emp;
Begin
open C1; loop
Fetch C1 into
eno.ename;
Exit When
C1 %notfound;-----
commit;
end loop;
end;
The cursor having query as SELECT .... FOR UPDATE gets closed after COMMIT/ROLLBACK.
The cursor having query as SELECT.... does not get closed even after COMMIT/ROLLBACK.

How packaged procedures and functions are called from the following?
a. Stored procedure or anonymous block
b. an application program such a PRC *C, PRO* COBOL
c. SQL *PLUS??

a. PACKAGE NAME.PROCEDURE NAME (parameters);
variable := PACKAGE NAME.FUNCTION NAME (arguments);
EXEC SQL EXECUTE
b.BEGIN
PACKAGE NAME.PROCEDURE NAME (parameters)
variable := PACKAGE NAME.FUNCTION NAME (arguments);
END;
END EXEC;
c. EXECUTE PACKAGE NAME.PROCEDURE if the procedures does not have any out/in-out parameters. A function can not be called.

What is a stored procedure ?
A stored procedure is a sequence of statements that perform specific function.

What are the components of a PL/SQL block ?
A set of related declarations and procedural statements is called block.

What is difference between a PROCEDURE & FUNCTION ?
A FUNCTION is always returns a value using the return statement.
A PROCEDURE may return one or more values through parameters or may not return at all.

What is difference between a Cursor declared in a procedure and Cursor declared in a package specification ?
A cursor declared in a package specification is global and can be accessed by other procedures or procedures in a package.
A cursor declared in a procedure is local to the procedure that can not be accessed by other procedures.

What are the cursor attributes used in PL/SQL ?
%ISOPEN - to check whether cursor is open or not
% ROWCOUNT - number of rows fetched/updated/deleted.
% FOUND - to check whether cursor has fetched any row. True if rows are fetched.
% NOT FOUND - to check whether cursor has fetched any row. True if no rows are featched.
These attributes are proceeded with SQL for Implicit Cursors and with Cursor name for Explicit Cursors.

What are % TYPE and % ROWTYPE ? What are the advantages of using these over datatypes?
% TYPE provides the data type of a variable or a database column to that variable.
% ROWTYPE provides the record type that represents a entire row of a table or view or columns selected in the cursor.
The advantages are :
I. Need not know about variable's data type
ii. If the database definition of a column in a table changes, the data type of a variable changes accordingly.

What is difference between % ROWTYPE and TYPE RECORD ?
% ROWTYPE is to be used whenever query returns a entire row of a table or view.
TYPE rec RECORD is to be used whenever query returns columns of different table or views and variables.
E.g. TYPE r_emp is RECORD (eno emp.empno% type,ename emp ename %type );
e_rec emp% ROWTYPE
cursor c1 is select empno,deptno from emp;
e_rec c1 %ROWTYPE.


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