Monday, 2 March 2015

Indian Budget 2015-16 Highlights

  • Fiscal deficit seen at 3.9 percent of GDP in 2015/16
  • Will meet the challenging fiscal target of 4.1 percent of GDP for 2014-15
  • Current account deficit below 1.3 percent of GDP
  • GDP growth is seen at between 8.1 percent and 8.5 percent Year/Year
  • 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 the objective of keeping inflation below 6 percent
  • Revenue deficit seen at 2.8 percent of GDP
  • Non-tax revenue seen at 2.21 Lac Crore Rupees
  • Net receipts under market stabilisation scheme estimated at 20,000 Rupees 
  • Total stake sale in 2015/16 seen at 69,500 Crore Rupees 
  • Sets stake sale target for 2016/17 at 55,000 Crore Rupees
  • Propose to merge commodities regulator with SEBI
  • To bring a new bankruptcy code
  • Amending the RBI act this year, to provide for a monetary policy committee
  • To set up public debt management agency
  • To establish an autonomous bank board bureau to improve management of public sector banks
  • To enact a comprehensive new law on black money
  • To launch a national skills mission soon to enhance employability of rural youth
  • Allocates 34,699 Crore Rupees for rural employment guarantee scheme
  • 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
  • To abolish wealth tax
  • Replaces wealth tax with additional 2 percent surcharge on super-rich
  • Proposes to cut to 25 percent corporate tax over next four years
  • Corporate tax of 30 percent is uncompetitive
  • Proposes to rationalise capital gains tax regime for real estate investment trusts
  • Expects to implement goods and services tax by April 2016
  • To reduce customs duty on 22 items
  • Basic customs duty on commercial vehicle doubled to 20 percent
  • Proposes to increase service tax rate and education cess to 14 percent from 12.36 percent
  • No revision of income tax brackets
  • Limit of deduction of health insurance premium increased to 25,000 Rupees from 15,000 Rupees; limit increased to 30,000 Rupees from 20,000 Rupees for the elderly
  • People aged above 80 and not covered by health insurance to be allowed deduction of 30,000 Rupees for medical expenses
  • Additional deduction of 25,000 Rupees for the disabled
  • Limit on deduction for contributions to the pension fund and new pension scheme increased to 150,000 Rupees from 100,000 Rupees
  • Additional deduction of 50,000 Rupees for contribution to new pension scheme under section 80CCD
  • Monthly transport allowance exemption doubled to 1,600 Rupees
  • Government to provide 79,400 Crore Rupees capital infusion to state-run banks
  • Public investment needed to catalyse investment
  • Plans to set up national investment infrastructure fund
  • 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
  • Plan expenditure estimated at about 4.65 Lac Crore Rupees
  • Non-plan expenditure seen at about 13.12 Lac Crore Rupees
  • Allocates 2.46 Lac Crore Rupees for defence spending
  • Allocates 33,150 Crore Rupees for the health sector
  • To launch gold deposit accounts and sovereign bond
  • Import duty stays at 10 percent; disappoints jewellers
  • To work on Indian-made gold coin to cut imports
  • Raises excise duty on cigarettes by 25 percent for cigarettes of length not exceeding 65 mm and  by 15 percent for cigarettes of other lengths
  • Food subsidy seen at 1.24 Lac Crore Rupees
  • Fertiliser subsidy seen at 72,969 Crore Rupees
  • Fuel subsidy seen at 30000 Crore Rupees
  • Major subsidies estimated at 2.27 Lac Crore Rupees


Indian Budget 2015-16 Highlights

Indian Budget 2015-16 Highlights

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  3. I think more could have been done for generating employment in the Govt and Public Sector.

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