Union Finance Minister Arun Jaitley presented a balanced and unique budget, which has long-term plans and benefits rather than appeasing all. The Union Budget 2015-16 provides enough opportunity to raise funds and put the nation on the path of growth, while tackling the issues of tax evasion and black money with an iron hand.
# In the last 9 months, our government has taken several steps to energise economy: FM.
# Embraced States as equal partners in economic growth: FM.
# We inherited a sentiment of Doom and gloom and have come a long way by pour actions.
# The credibility of Indian economy has been restablished, the World is predicting that it’s India’s chance to fly.
# Modi govt has taken several steps to re-energise economy.
# Objective is to improve quality of life and to pass benefits to common man.
# Three Key Achievements of the Government – Swachh Bharat, Coal Auction and Jan Dhan Yojana.
Union Budget 2015-16 Highlights:
# Fiscal deficit seen at 3.9 pct of GDP in 2015/16
# Will meet the challenging fiscal target of 4.1 pct of GDP
# Remain committed to meeting medium term fiscal deficit target of 3 pct of GDP
# Current account deficit below 1.3 percent of GDP
# GDP growth seen at between 8 and 8.5% in 2015-16
# Aiming double digit growth rate, achievable soon
# Expects consumer inflation to remain close to 5% by March
# Rs. 25,000 crore for Rural Infrastructure Development Bank.
# Rs. 5,300 crore to support Micro Irrigation Programme.
# Farmers credit – target of 8.5 lakh crore.
# Rs. 70,000 crores to Infrastructure sector.
# Tax-free bonds for projects in rail road and irrigation
# PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.
# Rs. 150 crore allocated for Research & Development
# NITI to be established and involvement of entrepreneurs, researchers to foster scientific innovations.
# Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.
# AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
# IIT in Karnataka; Indian Institute of Mines in Dhanbad to be upgraded to IIT.
# PG institute of Horticulture in Amritsar.
# Kerala to have University of Disability Studies
# Centre of film production, animation and gaming to come up in Arunachal Pradesh.
# IIM for Jammu and Kashmir and Andhra Pradesh.
# Institutions of Science and Educational Research would be set up in Nagaland and Odisha.
# Rs. 2,46,726 crore for Defence.
# Focus on Make in India for quick manufacturing of Defence equipment.
# 50,000 toilets constructed under Swachh Bharath Abhiyan. Target is 6 crore.
# Two other programmes to be introduced- GST & JAM Trinity. GST will be implemented by April 2016.
# MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.
# Housing for all by 2020.
# Upgradation 80,000 secondary schools.
# DBT will be further be expanded from 1 crore to 10.3 crore.
# For the Atal Pension Yojna, govt. will contribute 50% of the premium limited to Rs. 1000 a year.
# Under the Pradhan Mantri Surakhsha Beema Yojana, will cover accidental death risk of Rs 2 lakh for a premium of just Rs 12 per year.
# The Pradhan Mantri Jeevan Jyoti Bima Yojana, will cover both natural and accidental death risk of Rs 2 lakh. The premium will be Rs 330 per year, or less than one rupee per day, for the age group 18-50.
# New scheme for physical aids and assisted living devices for people aged over 80 .
# Govt to use Rs. 9000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
# Rs. 5,000 crore additional allocation for MGNREGA.
# Govt. to create universal social security system for all Indians.
# Rs. 75 crore for electric cars production.
# Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro power.
# Develpoment 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 new toursim scheme.
# Visa on Arrival for 150 countries.
# Abolition of Wealth Tax.
# Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
# Rate of corporate tax to be reduced to 25% over next four years.
# Total exemption of up to Rs. 4,44,200 can be achieved.
# 100% exemption for contribution to Swachch Bharat and Clean Ganga Project, apart from CSR.
# Service tax increased to 14 per cent from existing 12.36%.
# Transport Allowances doubled from Rs 800 per month to Rs 1,600 per month.
# Medical Allowances increased from Rs 15,000 per annum to Rs 25,000 per annum.
# For Senior Citizens, Medical Allowances increased to Rs 30,000 per annnum.
# Limit on deduction on account of contribution to a pension fund and the new pension scheme is proposed to be increased from Rs 1 lakh to Rs 1.5 lakh.
# Additional deduction of Rs 50,000 will be allowed for contribution to the new pension scheme u/s 80 CCD increasing from Rs 1 lakh to Rs 1.5 lakh.
Black Money Menace:
# A New, Stringent Law, namely Benami Property Transaction Prohibition Bill to be introduced.
# FEMA Act to be amended to incorporate black money provisions.
# Concealment of income assets to get 10-year imprisonment.