Union Budget 2015-16

Date: February 28, 2015

Budget Deficit.GDP Growth

Budget 2015-16 goes for growth, delays reduction in fiscal deficit

Finance Minister Arun Jaitley presented Union Budeget for the financial year 2015-2016  aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.

Sectorwise this budget have following major points-

TAXATION

1-  abolish wealth tax

2-  Replaces wealth tax with additional 2 pct surcharge on super rich (with income of over Rs. 1 crore.)

3-  Proposes to cut rate of corporate tax to 25 percent over next four years.

4- Net gain from tax proposals seen at 150.68 billion rupees

5- He expects to implement GST (goods and services tax) by April 2016

6- custom duty on commercial vehicle doubled to 20 percent

7- Increase service tax rate and education cess to 14 percent from 12.36 percent

8-  Exemptions for individual tax payers to continue

PERSONAL INCOME TAX

1- No revision of income tax slabs.

2- Limit of deduction of health insurance premium increased to 25,000 rupees from 15,000 rupees; limit increased to 30,000 rupees from 20,000 rupees for the elderly

3- People aged above 80 and not covered by health insurance to be allowed deduction of 30,000 rupees for medical expenses

4-  Additional deduction of 25,000 rupees for the disabled

5-  Limit on deduction for contributions to pension fund and new pension scheme increased to 150,000 rupees from 100,000 rupees

6-  Additional deduction of 50,000 rupees for contribution to new pension scheme under section 80CCD

7-  Monthly transport allowance exemption doubled to 1,600 rupees

IMPORT TAX

1-  Import tax on iron and steel increased from 10 percent  to 15 percent

FISCAL DEFICIT

1-  Fiscal deficit seen at 3.9 percent of GDP in 2015-16

2-  It Will meet the challenging fiscal target of 4.1 percent of GDP

3-  Current account deficit (CAD) below 1.3 percent of GDP

GROWTH

1- The GDP growth seen at between 8 percent- 8.5 percent.

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AGRICULTURE

1- Rs. 25,000 crore for Rural Infrastructure Development Bank.

2- Rs. 5,300 crore to support Micro Irrigation Programme.

3- Farmers credit - target of 8.5 lakh crore.

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INFLATION

1- Budget expects consumer inflation to remain close to 5 percent by March.

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POLICY REFORMS

* To enact a comprehensive new law on black money

* Propose to create a universal social security system for all Indians

* To launch a national skills mission soon to enhance employability of rural youth

* To raise visa-on-arrival facility to 150 countries from 43

* Allocates 346.99 billion rupees for rural employment guarantee scheme

* Raises threshold for application of transfer pricing rules to 200 million rupees from current 50 million rupees

MARKET REFORMS

1- Forward Markets Commission to be merged with SEBI

2- To bring a new bankruptcy code

3- To set up public debt management agency

GENERAL ANTI-AVOIDANCE RULES (GAAR)

1- Government defers rollout of anti-tax avoidance rules GAAR by two years and now GAAR to apply prospectively from April 1, 2017

 

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WELFARE SCHEMES

1- JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.

2- Six crore toilets across the country will be constructed under the Swachh Bharat Abhiyan.

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 Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.

8- New scheme for physical aids and assisted living devices for people aged over 80 .

9- Govt. to use Rs. 9,000 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.

EDUCATION

1-  AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.

2-  IIT in Karnataka; Indian School of Mines in Dhanbad 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.

SUBSIDIES

1- Food subsidy seen at 1.24 trillion rupees

2- Fertiliser subsidy seen at 729.69 billion rupees

3-  Fuel subsidy seen at 300 billion rupees

4- Major subsidies estimated at 2.27 trillion rupees

5- We are committed to subsidy rationalisation based on cutting leakages