Odisha News Insight

BJP’s Odisha Unit President KV Singhdeo hails Union Budget

BJP's Odisha Unit President KV Singhdeo hails Union BudgetBJP leader of State Unit, K. V. Singhdeo hailed the union budget presented by Finance Minister Arun Jaitley today in Lok Sabha. He said budget 2015 is an innovative pro-poor, development oriented, growth driven budget with special emphasis on women, children, youth and senior citizens.

This budget brings in a paradigm shift, by introducing the idea of social security with rebates, concessions and allocations in insurance, pensions, ICDS etc. Public spending on infrastructure has been increased. The tax reforms leave the consumer with more disposable income thus incentivizing him to spend.

Special emphasis is laid on skill development, start ups, entrepreneurship, reduction of corporate tax, exemptions and rebates on import and excise duty giving a boost to the manufacturing sector which will generate income, jobs for youth as well as increase investment.

This Budget shows good fiscal management with a healthy fiscal deficit at 3.9% Lots of reforms in the governing structure makes doing business easy. Monetisation of gold, establishing MUDRA bank, subsidy on LPG, Jan Dhan – Adhaar linkage, Atal Pension Yojana is all pro- growth ideas.

2015-16 Budget Analysis

**** Overall rating by Experts 8 on 10

  1. Good Fiscal management with focus on change, growth, jobs, upliftment of poor, justice for all castes and sections of society.
  2. Healthy Fiscal deficit at 3.9% and revenue deficit at 2.8% of GDP
  3. Jan Dhan Aadhar mobile and GST- 2 game changing reforms
  4. All pro-poor schemes to continue
  1. Investment in Infrastructure- additional 70,000 cr ; National Investment and Infrastructure Fund 20,000 cr ; permit tax free infrastructure bonds in Rail and road projects; long term infrastructure bonds to raise more money.
  2. MUDRA bank with corpus of 20,000cr to refinance MFIs
  3. Rural Infrastructure Development Fund- 25000cr
  4. Micro irrigation 5300 cr
  5. Focus on jobs and Innovation (1000 cr for start ups; 150 cr for Innovation Mission
  6. 150 cr for wordclass IT hub
  7. Nayi Manzil- new scheme for Minority youth without school certificate to get employment
  8. Reforms in governing structure to increase ease of doing business ( corporate tax reduced from 30% to 25% over 4 years and collection increased by removing exemption; E-portal-14 permissions at 1 point)
  9. Power- (5 ultra mega power projects of 4000MW each through transparent auction process, allocation 10,000cr)
  10. Schemes for social security, pension (highest ever allocation in MGNREGA; ICDS 15000 cr; ICPS 500cr; Krishi Sinchai Yojana 3000 cr); health insurance deduction increased; Sukanya Samriddhi scheme 100% tax exempted; service tax exempted from Barishta Bima yojana to senior citizens)
  11. Growth oriented, boost to manufacturing sector (22 items exempted from import duty)
  12. Boost to domestic leather industry-6% reduction in excise duty
  13. Monetise gold (Gold Monetisation scheme) to generate money
  14. New stringent law (RI upto 10 years and 300% penalty on evasion) for bringing back Black Money, power to confiscate and prosecute; for domestic black money- Benami Property Bill; PAN card mandatory for investments over 1 lakh)
  15. Direct Tax regime to match foreign taxation system= increase investment and transparency;
  16. Indirect tax- reduction of basic custom duty
  17. Direct and indirect tax reforms to generate 15000cr
  1. Wealth tax abolished- replaced by additional 2% surcharge on super-rich with income over 1 cr, this will lead to collections over 9000 cr)
  2. All contributions to Swachh Bharat Abhiyaan and Ganga Action Plan 100% tax free.
  3. Deduction in health insurance premium from 15000 to 25000 and 30000 for senior citizens
  4. Individual tax benefits 4,44,200 cr, no change in tax limits
  5. Clean Energy cess on Coal increased from 100 to 200% per metric ton for Green Energy Fund
  6. Composite foreign investment ( portfolio investment + FDI)
  7. Women’s security and advocacy (1000cr to Nirbhaya Fund)
  8. Higher investment in MSME
  9. Heritage Sites of all communities- upgradation and development
  10. Environment (electric vehicles 75 cr; renewable energy target 175000MW by 2022)
  11. Central Institute in each state ( AIIMS, IIT ISM, Film Institute, Inst for differently-abled- ISER in Odisha)
  12. National Skills Mission, IT based students Finance & Loan scheme, PM Vidya Laxmi Scheme
  13. Make in India focus in Defence sector, 2,46,727 cr
  14. Visa on arrival which has booted tourism (currently to 43 countries) extended to 153 countries.
  15. Resolution of Commercial Disputes
  16. Regulatory Reform Law in Infrastructure
  17. Public Contracts Resolution of Disputes Bill.
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