Highlights of Budget 2015-16

Reuters Updated - December 07, 2021 at 01:32 AM.

FISCAL DEFICIT

* Fiscal deficit seen at 3.9 per cent of GDP in 2015/16

* Will meet the challenging fiscal target of 4.1 per cent of GDP

* Remain committed to meeting medium term fiscal deficit target of 3 per cent of GDP

* Current account deficit below 1.3 per cent of GDP

* Jaitley says have to keep fiscal discipline in mind despite need for higher investment

GROWTH

* GDP growth seen at between 8 per cent and 8.5 per cent year on year

* Aiming double digit growth rate, achievable soon

INFLATION

* Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing

* Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 per cent

* "One of the achievements of my government has been to conquer inflation. This decline in my view represents a structural shift."

REVENUES

* Revenue deficit seen at 2.8 percent of GDP

* Non tax revenue seen at Rs 2.21 lakh crore

* Agricultural incomes are under stress

DISINVESTMENT

* Government targets Rs 41,000 crore from stake sales in companies

* Total stake sale in 2015-16 seen at Rs 69,500 crore

MARKET REFORMS

* Propose to merge commodities regulator with SEBI

* To bring a new bankruptcy code

* Jaitley says will move to amend the RBI act this year, and provide for a monetary policy committee

* To set up public debt management agency

* Proposes to introduce a public contract resolution of disputes bill

* To establish an autonomous bank board bureau to improve management of public sector banks

POLICY REFORMS

* To enact a comprehensive new law on black money

* Propose to create a universal social security system for all Indians

* To launch a national skills mission soon to enhance employability of rural youth

* To raise visa-on-arrival facility to 150 countries from 43

* Allocates Rs 34,699 crore for rural employment guarantee scheme BORROWING

* Gross market borrowing seen at Rs 6 lakh crore

* Net market borrowing seen at Rs 4.56 lakh crore

GENERAL ANTI-AVOIDANCE RULES (GAAR)

* Government defers rollout of anti-tax avoidance rules GAAR by two years

* GAAR to apply prospectively from April 1, 2017

* Retrospective tax provisions will be avoided

TAXATION

* No change in personal Income Tax

* Health Insurance Premium deduction hiked from Rs 15,000 to Rs 25,000; for senior citizens to Rs 30,000

* Transport allowance exemption hiked to Rs 1,600, from Rs 800 per month

* Additional 2% surcharge on people earning over Rs 1 cr; to fetch Rs 9,000 cr

* Wealth tax abolished

* Direct Taxes Code (DTC) dropped

* Rs 50,000 deduction for contribution to New Pension

* To abolish wealth tax

* Replaces wealth tax with additional 2 per cent surcharge on super rich

* Proposes to cut to 25 per cent corporate tax over next four years

* Corporate tax of 30 per cent is uncompetitive

* Net gain from tax proposals seen at Rs 15,068 crore

* Jaitley proposes modification of permanent establishment norms so that the mere presence of a fund manager in India would not constitute a permanent establishment of the offshore fund, resulting in adverse tax consequences.

* Proposes to rationalise capital gains tax regime for real estate investment trusts

* Expects to implement goods and services tax by April 2016

* To reduce custom duty on 22 items

* Basic custom duty on commercial vehicle doubled to 20 per cent

* Proposes to increase service tax rate and education cess to 14 percent from 12.36 percent

* Plans to introduce direct tax regime that is internationally competitive on rates without exemptions

* Exemptions for individual tax payers to continue

* To enact tough penalties for tax evasion in new bill

* Tax dept to clarify indirect transfer of assets and dividend paid by foreign firms

INFRASTRUCTURE

* Investment in infrastructure will go up by Rs 70,000 crore in 2015-16 over last year

* Plans to set up national investment infrastructure fund

* Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects

* Proposes 5 "ultra mega" power projects for 4,000 MW each

* Second unit of Kudankulam nuclear power station to be commissioned

* Will need to build additional 100,000 km of road

* Ports in public sector will be encouraged to corporatise under Companies Act

EXPENDITURE

* Plan expenditure estimated at about Rs 4.65 lakh crore

* Non-plan expenditure seen at about Rs 13.12 lakh crore

* Allocates Rs 2.46 lakh crore for defence spending

* Allocates Rs 33,150 crore for health sector

* If revenue improves, hope to raise budgeted allocations for rural job scheme by Rs 5,000 crore

INVESTMENT

* Propose to do away with different types of foreign investment caps and replace them with composite caps

* To allow foreign investment in alternative investment funds

* Public investment needed to catalyse investment

GOLD

* To develop a sovereign gold bond

* To introduce gold monetisation scheme to allow depositors to earn interest

* To introduce Indian-made gold coin to reduce demand for foreign gold coins

SUBSIDIES

* Food subsidy seen at Rs 1.24 lakh crore

* Fertiliser subsidy seen at Rs 72,969 crore

* Fuel subsidy seen at 300 billion rupees

* We are committed to subsidy rationalisation based on cutting leakages

Published on February 28, 2015 06:11