Union Budget 2015 - The Highlights

Arun Jaitley, Finance Minister of India announced a budget aimed at high growth ensuring ordinary people benefit.

Highlights of Union Budget 2015 -

Growth

• The GDP growth seen at between 8 percent and 8.5 percent year/year
• The Nominal economic growth seen between 11 and 12 percent
• Also aiming double digit growth rate, achievable soon

Revenues

• The Revenue deficit seen at 2.8 percent of GDP
• The non tax revenue seen at 2.21 trillion rupees
• The agricultural incomes are under stress

Personal Income Tax

• 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 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

Education

•  Announced to open AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
•  Announced to open IIT in Karnataka; Indian Institute of Mines in Dhanbad to be upgraded to IIT.
•  Announced to open PG institute of Horticulture in Amritsar.
•  Announced to open Kerala to have University of Disability Studies
•  Announced to open Centre of film production, animation and gaming to come up in Arunachal Pradesh.
•  Announced to open IIM for Jammu and Kashmir and Andhra Pradesh.

Defence

•   The Allocation of Rs. 2,46,726 crore to defence; 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 given to Infrastructure sector.
•     The Tax-free bonds for projects in rail road and irrigation
•     The PPP model for infrastructure development to be revitalized and govt. to bear majority of the risk.
•     The amount of Rs.150 crore allocated for Research & Development
•     Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.
•     The Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.

Welfare Schemes

•   50,000 toilets constructed under Swachh Bharath Abhiyan.
•   Two other programmes to be introduced- GST & JAM Trinity. GST will be implemented by April 2016.
•   MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.
•   Housing for all by 2020.
•   Upgradation 80,000 secondary schools.
•   DBT will be further be expanded from 1 crore to 10.3 crore.
•   Govt. to create universal social security system for all Indians.

Renewable Energy

•   Rs.75 crore for electric cars production.
•   The Renewable energy target for 2022 - 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro

Tourism

•   Visa on Arrival for 150 countries.

 Subsidies

• The Food subsidy seen at 1.24 trillion rupees
• The Fertilizer subsidy seen at 729.69 billion rupees
• The Fuel subsidy seen at 300 billion rupees
• The Major subsidies estimated at 2.27 trillion rupees

The market reaction seen as BSE index gains 0.48 percent & NSE index up 0.65 percent.