Union Budget 2015-16 : A Super Balanced Budget

Pro-Poor Pro-Corporate Pro-India Pro-Global

2015 Budget will further reignite our growth engine, signalling the dawn of a prosperous future. Budget is
investment friendly and removes all doubts on tax issues. It assures investors that we have a stable,
predictable and fair tax system.

Prime Minister
Union Finance Minister, Arun Jaitley on 28 February, 2015 presented Union Budget 2015-16 in the Lok
Sabha. This was the first full year Budget of the NDA government and the second budget of Arun Jaitley.

How Rupee Comes From and how goes to:

Rupee comes from

goes to
BorrowingsRupee
& liabilities
Corporation tax Income tax Customs
Union excise duties
Service tax & other taxes
Non-debt capital receipts
Non-tax revenue

(Figure in Rs000 crore)

Revenue Receipts
Capital Receipts
Total Receipts
Non-Plan Expenditure
Plan Expenditure
Total Expenditure
Revenue Deficit
Effective Revenue Deficit
Fiscal Deficit
Primary Deficit

Interest payments
Defence Susidies Central Plan
Plan assistance to States & Uts Non-Plan assistance to
States & Uts
State's share of taxes & duties Other non-Plan
expenditure

Budget at Glance
2013-14
2014-15
Actuals
Budget
Estimates
1,014.7
1,189.8
544.7
605.1
1,559.4
1,794.9
1,106.1
1,219.9
453.3
575.0
1,559.4
1,794.9
357.0
378.3
227.6
210.2
502.9
531.2
128.6
104.2

2014-15
Revised
Estimates
1,126.3
554.9
1,681.2
1,213.2
467.9
1,681.2
362.5
230.6
512.6
101.3

2015-16
Budget
Estimates
1,141.6
635.9
1,777.5
1,312.2
465.3
1,777.5
394.5
283.9
555.6
99.5

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 stabilised against a basket of currencies
worldwide.
SECTOR-WISE ANALYSIS

Common man
Transport allowance increased form Rs. 800 to Rs. 1,600 per month.
Health insurance premium hiked form Rs. 15,000 to Rs. 25,000
For senior citizens aged 80 or more, deduction of Rs. 30,000 on treatment costs
Additional deduction of Rs. 25,000 for disabled
Deduction for Pension Fund/NPS contribution hiked form Rs. 1 lakh to Rs. 1.56 lakh
Additional deduction of Rs. 50,000 for contribution to NPS under Section 80 CCD
Abolition of wealth tax
Nayi Manzil Scheme for Minority Youth
Integrated education and livelihood scheme for minorities._________________________

Corporate
Over the next four years corporate tax to be reduced from 30% to 25% over the next four
Rationalisation and removal of various tax exemptions.
From April, 1st 2016 GST to come into force
Service tax increased from 12.36% to 14%
Income tax rate on royalty/fees for technical services cut from 25% to 10%
Clean energy cess hiked from Rs. 100 to Rs. 200 per tonne on coal______________________

Rural
4 crore houses will be constructed for rural poors
Digital connectivity to drive rural growth
More funds for MNREGA and other poverty alleviating programmes
Six crore toilets will be built
GST and Jan Dhan Yojana, Aadhar and Mobile will be launched
MUDRA bank for poor SC/ST entrepreneurs
Rural Infrastructure Development Bank, Rs. 25,000 crore allocated

Defence
Allocation of Rs. 2,46,726 crore; an increase of 9.87 per cent over last year
Focus on Make in India for quick manufacturing of defence equipment

Infrastructure
Rs. 70,000 crores to infrastructure sector
Tax-free bonds for projects in rail road and irrigation
PPP model for infrastructure development revitalized and govt. to bear majority of the risk
Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to
foster scientific innovations; allocation of Rs. 150 crore
5 Ultra Mega Power Projects, each of 4000 MW will be set up___________________________________

Education
AIIMS in J&K, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam
IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT
PG institution of Horti culture in Amritsar
Kerala to have University of Disability Studies
IIM for J&K and Andhra Pradesh
Renewable Energy
Rs. 75 crore for electric car production
Renewable Energy target for 2022 :100 KMW in solar; 60 KMW in wind; 10 KMW in biomass and
5 KMW in small hydro._________________________________________________________________
Tourism
Development schemes for churches and convents in old Goa; Hampi, Elephant caves, Forests of
Rajasthan, Leh palace, Varanasi, Jallianwala Bagh, Qutab Sahi tombs at Hyderabad to be under the new
tourism scheme
Visa on Arrival for 150 countries
Gold
Sovereign Gold Band, as an alternative to purchasing mental gold
New schemes for depositors of gold to earn interest and jewellers to obtain loans on their metal accounts
To develop an Indian gold coin, which will carry Ashok Chakra on its face to reduce the demand for
foreign coins._________________________________________________________________________

Agriculture
Rs. 5,300 crore to support Micro Irrigation programme
Farmers credit-target of 8.5 lakh crore
Rs. 45,000 crore for short term co-operative rural credit finance fund

Financial Sector
Forward Markets Commission to be merged with the securities and exchange Board of India
NBFCs having asset size of Rs. 500 crore to be covered by Sarfaesi Act, 2002
New bankruptcy code
GAAR will be deterred by two years.________________________________________________

What will be costlier and cheaper:

Expensive
Cigarettes and other tobacco products
Completely built imported commercial
vehicles
Cement
Aerated, flavoured drinks and packaged
water

Cheaper
Leather footwear priced above Rs 1,000 per pair
Locally made mobile phones, LED/LCD panels, LED lights and
LED Lamps
Solar Water heater

Plastic bags and sacks

Tablet computers

Pacemakers, ambulance and ambulance services

Business and executive class air travel

Visit to amusement and theme park
Music concerts
Liquor, chit fund
Lottery

Agarbattis
Microwave ovens
Refrigerator compressors
Peanut butter, packaged fruits and vegetables
Visit to museums, zoos and national parks

Some Quotable Quotes from the Speech

We inherited a sentiment of Doom 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 rationalising
subsidies by cutting down the leakage and not subsidy itself

Our commitment is to well being of all "Sarve Bhavantu Sukhinah, Sarve Santu Niramayah"

MAJOR CRITICISMS
1.
2.
3.

No specific scheme for maturation of children which is alarming and poses a critical threat
Increasing Indirect tax may pain the poor as it will reduce purchasing power
Service tax increase is a concern equally for all section of people