Indian Union Budget 2015-16

SUBMITTED BY

Vishnu Kumawat

SUBMITTED TO

Mr. Dharmesh Doshi

CHALLENGES

AHEAD

Five

Maj

or

Chal

leng

esN

ation

al

Prio

rities

Fisc

al

Defi

cit Agricultural income under stress Increasing investment in infrastructure Decline in manufacturing Optimal allocation of resources Maintaining fiscal discipline

CHALLENGES IN BUDGET 2015

Public sector needs to step in to catalyze investmentMake in India programme to create jobs in manufacturingContinue support to programmes with important national priorities such as agriculture, education, health, MGNREGA, rural infrastructure including roads.

Challenge of maintaining fiscal deficit of 4.1% of GDP met in 2014-15, despite lower nominal GDP growth due to lower inflation and consequent sub-dued tax buoyancy.

FISCAL ROADMAP

To achieve fiscal target of 3% of GDP.

2014-152015-16

2016-172017-18

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

4.50%4.10%

3.90%

3.50%

3.00%

Fiscal Deficit

Fiscal Deficit

Fiscal Roadmap 2015

Fiscal Roadmap 2015

Additionally

Realistic figures shown in fiscal account without showing exaggerated revenue projections.

Additional fiscal space will go to funding infrastructure investment.

Need to view public finances from a National perspective and not just the perspective of the Central Government.

Disinvestment to include both disinvestment in loss making units, and some strategic disinvestment.

Budget Estimates: A Comparison

1219892

5750

00

1794

892

1364

524

1312

200

4652

77

1777

477

1449

490

2014-15

2015-16

Fiscal deficit Revenue deficit

4.10%

2.90%

3.90%

2.80%

2014-152015-16

KEY HIGHLIGHTS

AGRICULTURE

Rs. 25,000 cr for Rural Infrastructure Development Bank.

Rs. 5,300 cr to support Micro Irrigation Programme

Farmers credit - target of 8.5 lakh cr.

INFRASTRUCTURE

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.

Govt. proposes to set up 5 ultra mega

power projects, each of 4000MW.

National Investment and Infrastructure Fund (NIIF), to be established with an annual

flow of `20,000 crores to it.

EDUCATION

AIIMS in J&K, Punjab, Tamil Nadu, Bihar, Himachal Pradesh and Assam.

IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.

Centre of film production, animation and gaming to come up in Arunachal Pradesh.

IIM for Jammu and Kashmir and Andhra Pradesh.

Kerala to have University of Disability Studies

NIPER: National; Institute of Pharmaceutical Education and Research

TOURISM

Tourism ministry gets 33% hike

Increase cover for visa on arrival (VoA) facility to 150 countries against 43.

WELFARE SCHEMES

Direct Benefit Transfers via JAM trinity and GST

J A MPradhan Mantri jan Dhan Yojana is a scheme made for Indiansunder which all Indians will belooking to have a bank accountwith a target to provide “Universal access to banking facilities”.

Aadhaar is a unique 12-digit Identification number issued to individuals for the purpose of establishing unique identification of every single person.

With the advent of new technologies,telecom is now enabling healthcare, education, financial inclusion and much more.

WELFARE SCHEMES

Make in India is an international marketing campaigning slogan coined by Narendra Modi, The prime minister of India on 25th September 2014 to attract business from around the world to invest and manufacture in India.

Objectives:

To make India a global manufacturing hub.Foster innovationTo promote & Facilitate investment in the manufacturing sector

WELFARE SCHEMESSix crore toilets across the country under the Swachh Bharat Abhiyan.

Housing for all by 2020.

Upgradation 80,000 secondary schools.

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

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

Govt. to use Rs. 9,000 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.

Abolition of Wealth Tax. No change in the tax slabFor Individuals

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.

Service tax increased from 12.36 % to14 %

100% exemption u/s 80G for contribution to Swachch Bharat, apart from CSR

GAAR (General Anti-Avoidance Rule) has been deferred by 2 years

If a Company has its “place of effective management” at any point of time in the year in India, then it will be taxed as a domestic company

TAXATION

FINANCE

Proposal to bank the un-bank and fund the un-fund by establishing MUDRA bank to re-finance micro-finance institutions

Proposal to improve liquidity in MSME sector by establishing electronic Trade Receivables Discounting System (‘TReDS’) which shall finance trade receivables of such MSMEs

Proposal to introduce measures that will incentivize credit or debit card transactions, and disincentivize cash transactions.

Monetization by the banks of gold deposits placed by the jewelers. The new scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account.

NBFCs registered with the RBI and having asset size of Rs 5000 MN or above to be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses

Banking

FINANCECapital Market

Forward Markets Commission to be merged with the Securities and Exchange Board of India to reduce wild speculation

Proposal to place the Indian Financial Code, Bankruptcy Code, Benami Transactions (Prohibition) Bill in the Parliament for consideration

The definition of derivatives under SCRA has been amended to include repo and reverse repo, commodity derivatives and such other instruments as may be declared by the Central Government as derivatives

BUDGET IMPACT FOR COMMON MAN

Leather artifacts like shoes

Tablets & Laptops

Ambulance Charges

Cold Fruits and Vegetables

Solar water Heaters

Imported Commercial Vehicles

Cold Drinks & Mineral Water

Cigarettes

Telephone call charges

Executive air fare

Restaurant & Hotel Bills