Highlights of Union Budget 2015

Finance Minister Arun Jaitley along with his Budget team leaves for Rashtrapati Bhavan in this file photo. Pradeep Gaur/Mint

New Delhi: Presenting the national budget for the next fiscal, Finance Minister Arun Jaitley Saturday said the state of the country’s economy was better placed today with its credibility re-established by a series of measures taken by his government.

“I am presenting the union budget in an economic environment which is far more positive than in the recent past. While major economies of the world face difficulties, India is poised for higher growth trajectory,” Jaitley said as he started his budget speech in the Lok Sabha.

“The real GDP growth is estimated at 7.5 percent for this fiscal, making India the fastest-growing large economy of the world,” said Jaitley, watched keenly by Prime Minister Narendra Modi, seated next to him.

“We inherited a sentiment of doom and gloom and have come a long way by proper actions,” said the finance minister, adding: “Our objective is to improve quality of life and to pass benefits to common man.”

He also said a double-digit growth was now feasible. “Our objective is to conquer inflation. It will be only 5 percent by end of year.”

The finance minister said his government did not intend to do away with subsidies but target them better to achieve the goals. He also said some Rs.8.5 lakh crore will be provided to farmers in the form of credit, along with an allocation of Rs.5,300 crore for irrigation.

He also said allocations for a host of social sector projects was being enhanced substantially along with some new social security schemes. He particularly said the allocation for the rural job guarantee scheme will be the highest ever.

Highlights:

• Changes in excise on tobacco items, including cigarettes, paan masala and gutkha

• Tax exemption for contributions to ‘Swachh Bharat Abhiyan’ and ‘Clean Ganga Fund’ by corporates as part of CSR

• Increase in limit of deduction in health insurance from Rs.15,000 to Rs.25,000

• For senior citizens, this limit to be increased from Rs.30,000 from present Rs.10,000

• Deduction limit of Rs.60,000 on account of serious diseases to be enhanced to Rs.80,000 for senior citizens

• Exemption on contributions to Pension Fund hiked from Rs.1 lakh to Rs.1.5 lakh per year

• All investment payments in ‘Sukanya Scheme’ will be fully exempted from tax

• Transport allowance exemption raised from Rs.800 to Rs.1,600 per month

• Wealth Tax to be abolished and additional two percent tax on super rich to yield Rs.9,000 crore annually

• Excise duty on footwear with leather uppers to be reduced to six percent

• Service tax and education levy to be consolidated from 12.36 percent to 14 percent

• Swachh Bharat cess of two percent, if necessary

• Law against Benami property in fight against black money

• Quoting PAN essential in property transactions

• Splitting of transaction not to be permitted

• Tax regime to be rationalised

• Applicability of General Avoidance Rules (GAR) to be deferred by two years in view of problems faced in its implementation

• Non-Plan expenditure in 2015-16 estimated at Rs.1,312,200 crore; Plan expenditure estimated at Rs.465,277 crore

• Tax collection in 2015-16 estimated at Rs.1,449,490 crore

• Corporate tax to be reduced to 25 percent from 30 percent in four years

• Rigorous imprisonment of up to 10 years for concealing income

• Prevention of Money Laundering Act to be amended to provide for forfeiture of property in India if the one abroad cannot be attached

• Exemption to individual tax payers to continue

• In last nine months several steps taken to effectively deal with problem of black money

• Comprehensive new law to be brought against black money

• New structure to be put in place in banking sector for seamless integration of data

• Adequate provision for defence with Rs.246,727 crore earmarked this year

• Fully IT-based student-help facility for needy students

• Eastern states to be given opportunity to develop faster. Special boost to Bihar and West Bengal as in the case of Andhra Pradesh and Telangana

• Good progress in DMIC corridor and other infra-projects. Rs.1,200 crore earmarked and additional funds if pace of work picks up on ongoing projects

• Procurement law to be drawn up to ensure transparency and remove corruption

• Centenary of Deen Dayal Upadhyay to be celebrated; committee for this to be set up soon

• During 2015-16 AIIMS-like institutes to be set up in Jammu and Kashmir, Punjab, Tamil Nadu and Himachal Pradesh; Bihar to get second AIIMS-like institution

• Karnataka to get an IIT; Indian School of Mines in Dhanbad to be upgraded to IIT

• Good progress being made on Digital India

• To discourage transactions in cash, Rupee debit card to incentivise credit transactions

• In line with ‘Act East Policy’, steps to catalyse investment in this sector through a project development company to oversee investments in Cambodia, Laos and Vietnam

• Tourism has increased after Visa on Arrival introduced for 43 countries. This facility to be increased to 150 countries in different stages

• Public Debt Management Agency to be created to strengthen the bond market

• Gold Monetisation Scheme to be introduced; sovereign gold bonds to be introduced; working on developing Indian gold coin with Ashok Chakra on face

• Vision of making India cashless society

• Foreign Investment in alternative investment funds to be permitted

• Ports in public sector to be encouraged to utilise land under their control

• Make India investment-destination by streamlining permission procedures

• Five ultra-mega power projects each of 4,000 MW to be set up

• MGNREGA allocation to be enhanced by Rs.5,000 crore, if additional funds available

• Integrated education and livelihood scheme to be launched

• “The Everlasting Flame” exhibition on Parsis to be launched

• National investment and infrastructure fund to be launched with corpus of Rs.20,000 crore to generate more funds

• Innovation initiative to be launched in NITI Aayog in the name of former prime minister Atal Bihari Vajpayee

• Government committed to increasing access of people to the banking system

• Universal social security system for all Indians, especially poor and disadvantaged sections

• Atal Pension Yojna for economically disadvantaged

• PPF and EPF corpus to be utilised for senior citizens’ welfare fund

• Physical aids and assisting devices for physically challenged senior citizens

• Main challenges: increasing agricultural production; increasing investment in infrastructure; with manufacturing declining, Make in India will create jobs; cooperative federalism

• Agriculture credit targetted at Rs.8.5 lakh crore

• Rural jobs scheme to get Rs.34,699 crore; Every poor to get a job

• To work with NITI Aayog for creating a National Agricultural Market

• Need well-targeted system for subsidies.

• Direct transfer of subsidy to LPG consumers

• Appeal to well-off consumers to surrender subsidised LPG connections

• Organic farm schemes of agriculture ministry to be supported

• ‘Per drop More crop’ scheme for better irrigation

• Three achievements – Jan Dhan Yojna, coal auctions, Swachh Bharat

• Two more gamechanging reforms: Goods and Services Tax, JAM trinity (Jan Dhan Yojna, Aadhar, Mobile number) to ensure transparency

• Our achievement to conquer inflation, CPI inflation at five percent by year-end

• GDP growth at 7.4 percent in 2014-15 and at 8-8.5 percent in 2015-16; double-digit growth feasible

• We are in an economic environment far more positive than in the recent past

• Undertaken several significant steps to energise the Indian economy in last nine months

• India’s chance to fly

• Budget proposals lay down roadmap for economic growth.