Union Budget 2015: Talking Points and Info-graphics
Upbeat mood in the Indian Economy
India is at a higher growth trajectory with expected GDP growth at 8% upwards for 2015-16. Inflation is under control, foreign exchange reserves are at record high and Rupee has stabilized against a basket of currencies world wide.
Cooperative Federalism
- The architecture of Centre-State relations has been re-written by NDA Government. States have been made co-partners in the task of national development
- The devolution of the states is at 42% of the divisible pool & central revenues will be shared to the extent of 47%
- A share of 62% of total tax revenues of the country is shared by the states while centre has the remaining 38%
Infrastructure
- Despite inadequate fiscal space available due to slowing down of private investment, the public investment in infrastructure has been increased to Rs 70000 Crores
- The spending model will include gross budgetary support, National infrastructure Investment Trust mobilized through private & international funding & tax free bonds
- Expenditure on Railways, highways, power sector, ports & irrigation has been substantially increased
Social Security
- Most Poverty alleviation schemes are funded by the Centre and investment in all social sectors has been maintained or increased
- A comprehensive Social Security scheme for the under-privileged will be initiated as an extension of Jan Dhan Yojna
- Launch of PM Suraksha Bima Yojna offering coverage of Rs 2 Lakh for a premium of just Rs 12
- A natural death insurance will be available to all at for a sum of Rs 2 Lakh on a nominal payment of Rs 330/Year
- Atal Pension plan will be launched; aimed at Indians above 60 years to provide defined pension according to contribution, 50% contribution to be from the Govt
Legal Changes to enhance ‘Ease of Doing Business'
- Important policy changes to be brought in bankruptcy law
- Transparent public procurement guided by non-discretionary public procurement legislation
- A special legislation to replace delays in projects due to multiple prior permissions by a regulatory mechanism
- Expeditious settlement of commercial/contractual disputes in project through a dispute resolution law by removing legal delays
Fund the Unfunded
- Special funds created to fund the unfunded i.e. the average 5 crore of self employed mini & small labour, traders, retailers etc
- MNREGA : Additional allocation of Rs 5000 crore if revenue resouces materialize, making it the highest ever allocation
- National institutions allocated to large number of states & educational loans to the students
- Expenditure target for farm credit increased to Rs 8.5 Lakh Crore
Taxation Proposals
- GST Act will be implemented w.e.f April 1, 2016 once passed by parliament
- Duties have been reduced on various items & inverted duty structures corrected to boost manufacturing sector
- The corporate tax rates would be made competitive to Asian economies & many exemptions would be slowly phased out (Corporate tax will be brought down to 25% from 30% in the next four years)
- Further simplification of taxation regime by abolishing Wealth tax & instead levying 2% surcharge on the super rich with above 1 crore Rs annual income. With no extra cost, it would earn Rs 9000 Crores against a sacrifice of Rs 1008 Crores (that Wealth taxes would have entailed)
- More exemptions to middle & small tax payers by giving tax incentive upto Rs 50000/year for investments in NPS (National Pension Scheme), deduction with regard to health insurance increased to Rs 25000 to normal & Rs 30000 to senior citizens, deduction allowed on transport exemption to Rs 1600 from Rs 800 per month
- The net effect: Individual tax payers to get exemptions up to Rs 4,45,000
Tackling Black Money
- To enact a comprehensive law on black money stashed abroad with a punishment upto 10 years of rigorous imprisonment in current session of Parliament
- New structure including efiling, tracking down, Benami property transaction bill to tackle black money in real estate sector soon
- The Budget overall lays emphasis on infrastructure, incentivizes investment, puts more money in the pocket of salaries class, checks inflation & provides social security to the less-privileged
Some Quotable Quotes from the Speech
- "कुछ तो फूल खिलाए हमने और कुछ खिलाने हैं, मुश्किल ये है बाग में अब तक कांटे कई पुराने हैं"
- We inherited a sentiment of Doom and gloom and have come a long way by our actions
- "Just as we are banking the ‘unbanked', we are also funding the ‘unfunded'". Focus is firmly on the social sector too!
- Subsidy is required for the poor and less well-off. We are committed to the process of rationalizing subsidies by cutting down the leakage & not subsidy itself
- Our commitment is to well being of all "Sarve Bhavantu Sukhinah, Sarve Santu Niramayah"
Comments
union budget 2015 budget arun jaitley finance minister bjp nda indian economy tax taxation income tax wealth assets finance infrastructure black money new delhi
Read in Hindi: आम बजट 2015: भारतीय अर्थव्यवस्था उन्नति के मार्ग पर
Read in Gujarati: જાણો કેવું છે મોદી સરકારનું #sabkabudget
Read in Gujarati: જાણો કેવું છે મોદી સરકારનું #sabkabudget