UNION BUDGET 2015-16 HIGHLIGHTS
Finance Minister Arun Jaitley on 28th February 2015 presented the Union Budget for the year 2015-16. Being termed as 'make or break', this is Arun Jaitley and the NDA Government's first full year Budget. Here are the key highlights of the Budget.
Important Numbers to Note
1. Non-Plan expenditure: Rs 13,12,200 crore.
2. Plan expenditure: Rs Rs 4,65,277 crore.
3. Total expenditure: Rs 17,77,477 crore.
4. Gross Tax receipts: Rs 14,49,490 crore.
5. Devolution to the States: Rs 5,23,958 crore.
6. Share of Central Government: Rs 9,19,842 crore.
7. Non Tax Revenues: Rs 2,21,733 crore.
8. Fiscal deficit : 3.9% of GDP and Revenue Deficit: 2.8% of GDP
Key Features of Union Budget 2015
1. Defer the applicability of GAAR by 2 years; effective from 1.04.2017
2. Wealth Tax to be abolished
3. 2% surcharge on those who have income of over Rs 1 Cr per annum
4. Benami Property Transaction bill to tackle black money transaction in real estate soon
5. PAN must for any sale exceeding Rs 1 lakh
6. High corporate tax with too many exceptions gives us worst of both worlds, we neither get revenues nor investments
7. Taxation is an instrument of socio-economic engineering
8. Corporate Tax to be reduced to 25% from 30%
9. GST expected to play transformative role by creating a common market; have already introduced bill for same
10. Aim to rationalize and cut exemptions in corporate tax
11. Govt. to get tough on Black Money
12. Direct Tax collection is going to be 14.49 lakh crore rupees
13. To avoid surprise in taxation policy
14. Corporate tax to be reduced by 5% over next four years
15. Policy of Make in India in Defence not only to cater our needs but also for export
16. Defence budget enhanced to Rs 2,46,727 crore
17. Special Assistance to Bihar and West Bengal
18. Rs 15,000 crore scheme to skill rural India
19. Poor students get fund aid through PM scheme
20. Renewable energy target will be increased to 1,75,000 MW
21. AIIMS to be set up in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam
22. IIT in Karnataka, IIMs in J&K and Andhra Pradesh
23. ISM Dhanabad will be upgraded to full IIT
24. Section 6 of FEMA to be amended
25. Public procurement law to be introduced
26. Public contracts resolution bill to be introduced
27. Rupay Debit Cards to be incentivised, to move towards paperless transactions
28. Regulatory reform law for infrastructure development
29. To launch National Skills Mission to boost jobs
30. Committee to be set up to plan the celebration of the 100th birth anniversary of Deen Dayal Upadhyaya
31. Govt. to do away with distinctions between FII and FDI and replace it with Composite Caps
32. Another 1,000 crores for Nirbhaya Fund
33. Corpus for maintenance of Global Heritage Sites at Goa, Gujarat, J&K, Mumbai, Punjab and Telangana
34. Environment friendly development process only
35. Foreign investment in alternate investment funds
36. Govt. to introduce Gold Monetization Scheme, Sovereign Gold Bonds
37. EPF & ESI has hostage rather than client ; ESI should be made optional to employees
38. Visa on arrival for 150 countries in phases
39. FMC to be strengthened by merging with SEBI
40. To put in place bankruptcy code soon
41. Employees contribution to EPF should be optional
42. Indian Gold Coin with Ashok Chakra
43. 5 Ultra Mega power projects, of 4000 MW announced
44. Highest ever allocation for MGNREGA, by increasing it this year by 5,000 crore rupees
45. Internationally competitive Direct Tax regime to be put in place
46. Deepening of bond market to complement our world class equity; Public Debt Management agency towards this end
47. Ports in public sector will be encouraged to corporatize & become companies under Companies
48. Plan an expert committee for Drafting Legislation for Regulatory mechanism
49. NBFCs with size of Rs 500 Cr and above to get parity in recoveries
50. Capex for state PSUs to be Rs 3.17 lakh crore
51. PM agri plans get Rs 3,000 crore extra allocation
52. Initial sum of Rs 150 Cr to create world class IT hub to take advantage of our competitiveness
53. Expert committee to examine need for multiple prior clearances for projects
54. PPP model has to be revised and revitalized
55. Rs 30,000 crore allocation for SC welfare schemes
56. Lending priority to be given to SC, ST in Mudra bank
57. Outlay upped by 24,000 Cr for rail, road
58. Capex for state PSUs to be Rs 3.17 lakh crore
59. Atal Innovation Mission to foster culture of research among India's and global brain
60. Investment in Infrastructure to go up by 70,000 crores in 2015-16 over 2014-15
61. Tax free Infrastructure bonds for projects in railways and roads
62. PM Surakhsha Bima Yojna to increase the access to insurance ; it will be linked with Jan Dhan
63. Atal Pension Yojna to provide defined pension according to contribution
64. Divestment in loss making units
65. New scheme called Nayi Manzil to enable minority youth without school-leaving certificates to get the employment
66. Exhibition of Parsi culture
67. Senior citizens welfare fund to subsidise the premium for elderly people
68. MUDRA bank to refinance micro finance institution under PMs MUDRA scheme
69. To utilize vast postal network for increasing access to institutional banking
70. To launch PM Surakhsha Bhīma Yojna, offering coverage of 2 lakh rupees for just premium of Rs 12 (Rs 1 per month)
71. Universal Social Security for all Indians
72. New scheme physical aid and assited
73. GST to be in place by April 01. 2016
74. Senior citizens welfare fund to subsidise the premium for elderly people
75. Proposes a Mudra Bank of corpus of 20000 crores to refinance the MFIs
76. To bring a Comprehensive Bankruptcy code for the ease of doing business by 2015-16
77. Committed to increase the access of people to formal financial system
78. Committed to bring a Universal social security system for all
79. Manufacturing Hub through Make in India program
80. Forex reserves at $340 billion
81. We need a well-targeted system of subsidies rather than to cut subsidies
82. Micro irrigation to get Rs 5300 crore
83. Electrification of villages by 2020
84. To continue with MNREGA
85. Agri credit target in 2015-16 increased to 8.5 lakh crore
86. National agri market to increase income of farmers
87. Well-targeted system of Subsidy delivery, cutting down of leakage
88. Need well targeted system to rationalise subsidies
89. LPG direct transfer subsidy to be expanded
90. Rural Infrastructure Development Fund to be at Rs 25000 Cr
91. Road map to achieve Fiscal Deficit of 3% of GDP in three years
92. Target of 3.9% in Fiscal Deficit 2015-16
93. Target of 3.5% in Fiscal Deficit 2016-17
94. Target of 3% in Fiscal Deficit 2017-18
95. Will finish the journey to 3% fiscal deficit in two years
96. Tax buoyancy is lower but still we will meet the promise of Fiscal deficit of 4.1% of GDP this
97. Latest CPI 5.1% WPI negative
98. States to get 62% of the total resources
99. Rural and urban divide to be removed
100. A roof for each family in India by 2022- 75th Year of India's Independence
Sector-wise Highlights of Union Budget 2015
Taxation
1. Abolition of Wealth Tax.
2. Additional 2% surcharge for the super-rich with income of over Rs. 1 crore.
3. Rate of corporate tax to be reduced to 25% over next four years.
4. Total exemption of up to Rs. 4,44,200 can be achieved.
5. 100% exemption for contribution to Swachch Bharat, apart from CSR.
6. Service tax increased to14 per cent.
Agriculture
1. Rs. 25,000 crore for Rural Infrastructure Development Bank.
2. Rs. 5,300 crore to support Micro Irrigation Programme.
3. Farmer’s credit - target of 8.5 lakh crore.
Infrastructure
1. Rs. 70,000 crores to Infrastructure sector.
2. Tax-free bonds for projects in rail road and irrigation
3. PPP model for infrastructure development to be revitalised and govt. to bear majority of the
4. Rs. 150 crore allocated for Research & Development
5. NITI to be established and involvement of entrepreneurs, researchers to foster scientific innovations.
6. Govt. proposes to set up 5 ultra-mega power projects, each of 4000MW.
Education
1. AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
2. IIT in Karnataka; Indian Institute of Mines in Dhanabad to be upgraded to IIT.
3. PG institute of Horticulture in Amritsar.
4. Kerala to have University of Disability Studies
5. Centre of film production, animation and gaming to come up in Arunachal Pradesh.
6. IIM for Jammu and Kashmir and Andhra Pradesh.
Defence
1. Rs. 2,46,726 crore for Defence.
2. Focus on Make in India for quick manufacturing of Defence equipment.
Welfare Schemes
1. 50,000 toilets constructed under Swachh Bahrat Abhiyan.
2. Two other programmes to be introduced- GST & JAM Trinity. GST will be implemented by April 2016.
3. MUDRA bank will refinance micro finance orgs. To encourage first generation SC/ST entrepreneurs.
4. Housing for all by 2020.
5. Upgradation 80,000 secondary schools.
6. DBT will be further be expanded from 1 crore to 10.3 crore.
7. For the Atal Pension Yojna, govt. will contribute 50% of the premium limited to Rs. 1000 a
8. New scheme for physical aids and assisted living devices for people aged over 80.
9. Govt. to use Rs. 9000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
10. Rs. 5,000 crore additional allocation for MGNREGA.
11. Govt. to create universal social security system for all Indians.
Renewable Energy
1. Rs. 75 crore for electric cars production.
2. Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro
Tourism
1. Development schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi, Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the newtoursim scheme.
2. Visa on Arrival for 150 countries
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