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 BorrowingsRupee goes to
& liabilities Interest payments
■ Corporation tax Income tax Customs ■Defence Susidies Central Plan
■ Union excise duties ■Plan assistance to States & Uts Non-Plan assistance to
Service tax & other taxes States & Uts
■ Non-debt capital receipts ■State's share of taxes & duties Other non-Plan
Non-tax revenue expenditure

Budget at Glance
(Figure in Rs‘000 crore) 2013-14 2014-15 2014-15 2015-16
Actuals Budget Revised Budget
Estimates Estimates Estimates
Revenue Receipts 1,014.7 1,189.8 1,126.3 1,141.6
Capital Receipts 544.7 605.1 554.9 635.9
Total Receipts 1,559.4 1,794.9 1,681.2 1,777.5
Non-Plan Expenditure 1,106.1 1,219.9 1,213.2 1,312.2
Plan Expenditure 453.3 575.0 467.9 465.3
Total Expenditure 1,559.4 1,794.9 1,681.2 1,777.5
Revenue Deficit 357.0 378.3 362.5 394.5
Effective Revenue Deficit 227.6 210.2 230.6 283.9
Fiscal Deficit 502.9 531.2 512.6 555.6
Primary Deficit 128.6 104.2 101.3 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 Cheaper
Cigarettes and other tobacco products Leather footwear priced above Rs 1,000 per pair
Completely built imported commercial Locally made mobile phones, LED/LCD panels, LED lights and
vehicles LED Lamps
Cement Solar Water heater
Aerated, flavoured drinks and packaged
water Pacemakers, ambulance and ambulance services

Plastic bags and sacks Tablet computers

Business and executive class air travel Agarbattis
Visit to amusement and theme park Microwave ovens
Music concerts Refrigerator compressors
Liquor, chit fund Peanut butter, packaged fruits and vegetables
Lottery 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. No specific scheme for maturation of children which is alarming and poses a critical threat
2. Increasing Indirect tax may pain the poor as it will reduce purchasing power
3. Service tax increase is a concern equally for all section of people