Indian union Budget 2015-16: Major facts and factors

New Delhi(web team): Finance Minister Arun Jaitley presented the Union Budget for fiscal 2015-16 in the Lok Sabha.

The highlights of the Union Budget are as following:

• Estimated GDP is 7.4 percent.

• We have to think in terms of a quantum jump

• Roof for each family in India, to fulfil Housing by 2022 must build two crore houses in rural India, four crore in urban areas.

• Providing medical facilities to each one of village and city is essential.

• Increase in agriculture productivity is essential for welfare for rural population. We should commit to increase irrigation area.

• 2/3 rd of our population is below 35, to ensure employment we have to aim to make India the manufacturing hub.

• Challenges-Agricultural incomes are under stress, have to increase investment in infrastructure.

• Challenges – manufacturing has declined from 18 percent to 17 percent of the GDP.

Finance Minister Arun Jaitley, proposed to create a national agriculture market to increase farmers’ income.

• Our commitment to farmers runs deep. An ambitious soil health card has been introduced to improve soil fertility.

• To support agricultural sector, I propose to allocate 25,000 crore in 2015 to rural development fund.

• To increase income of our farmers, we propose to create a national agriculture market.

• Just as we are banking the unbanked, we are funding the unfunded.

• The government is committed to utilise the vast postal network spread across villages of country.

• Will bring a bankruptcy code in the year 2015-16 that will meet global standards and provide for judicial capacity.

• The government proposes a Mudra Bank of corpus of 20,000 crores to refinance the MFIs.Will fund the unfunded.

Arun Jaitley said the government is establishing a mechanism ‘self employment’ to support all aspects of start up business.

• Tax free Infrastructure bonds for projects in railways and roads.

• Government is establishing a mechanism ‘self employment’ to support all aspects of start up business.

• PPP model of infrastructure to be revitalised and realigned.

• I am setting aside 1,000 crore for this purpose.

• The government proposes to set up five ultra mega power projects, each of 4,000 MW, will be plug and play projects.

• Will enhance the allocations to MNREGA by 5,000 crore.

• This will have two features– will make this year’s allocation highest, will also help in increasing rural wages.

Also

. Fiscal Deficit targets: FY15-16 3.9 percent, FY16-17 3.5 percent, FY 17-18 3 percent.

. A large portion of population is without insurance of any kind, I propose to work towards universal social security system for all.

. We will also launch the ‘Atal Pension Yojana’, which will provide a defined pension.

. To encourage participation, Government will contribute 50 per cent of beneficiary premium in its new accounts opened before 31st December 2015.

. Government is committed to bring a Universal social security system for all.

. I propose a new scheme of providing physical aids for senior citizens living below poverty line.

. Propose the ‘Nayi Manzil’ Scheme for the youth minorities.

. I intend to establish a national investment and infrastructure fund.

. I intend to create a direct tax regime which is internationally competitive on rates.

. India is the largest consumer of gold in the world, I propose to introduce a gold monetization scheme.

. I propose to work on developing Indian gold coin which carries the Ashok Chakra, will help recycle gold available in country.

. Will deepen Indian Bond Market at par with the World standards.

. In order to support security of women, I have decided to provide another 1000 crores to Nirbhaya fund.

. The government to do away with distinctions between FII and FDI and replace it with Composite Caps.

• After success of visas on arrival in 43 countries, I propose to increase the countries covered under this scheme to 150.

• We are putting scam, scandal and corruption behind us. Parliament needs to look into a procurement law and how it will shape.

• Government proposes to bring in a regulatory reform law.

• We intend to launch a national skills mission, which will consolidate skill initiatives spread over all Ministries.

• Propose to set-up an IT based student financial aid system under the PM Vidya Laxmi scheme to ensure that no student misses out on higher education due to lack of fund.

• I propose to set up All India Institute of Medical Sciences (AIIMS) in J-K, Punjab, Tamil Nadu, Himachal and Assam.

• Keeping in view the need to augment medical services in Bihar, I propose to set up another AIIMS like institution in the state.

• I propose to set up IIT in Karnataka and IIM in J-K and Andhra Pradesh.

. A regime of exemptions has led to loss of revenue, propose to reduce rate of corporate tax from 30 percent to 25 percent.

. It has been our endeavour in last nine months to foster a stable taxation policy.

. Measures to curb black money, job creation through revival of growth and investment, benefit to middle class tax payers.

. Defence allocation for this fiscal is Rs 246,727 crores.

. Unplanned expenditure for 2015-16 is estimated at Rs 13,12, 200 crores.

. GST is expected to play a transformative role in Indian economy, we’re moving on various fronts on GST from next year.

• The problem of poverty and inequity cannot be eliminated unless generation of black money is dealt with effectively.

• Budget Estimates of Expenditure: 17 .77 lakh crore, of which Non Plan is 13.12 lakh crores, and Plan is 4.65 lakh crores.

• For strengthening information collection from various sources, a new structure has been put in place.

• Propose to enact a comprehensive new law on black money to bring back black money stashed abroad.

• This will enable seamless integration of data and effective enforcement.

• PAN number quoting made compulsory for transactions for more than one lakh.