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Union Budget 2015-16: Highlights & Key Announcements

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Money Background

Union Budget 2015-16 is being presented by Finance Minister Mr. Arun Jaitley in the Parliament today. We are bringing you the highlights and key announcements of Budget 2015-16.

Union Budget 2015-16: Highlights & Key Announcements

  • The objective of this Budget is to improve quality of life and to pass benefits to common man.
  • Indian Govt has 3 major achievements: Jan Dhan Yojana, Coal Auction and Swacch Bharat programme
  • Incremental change is not going to take us anywhere, will need to think in terms of quantum jump
  • Under Swacch Bharat Yojana, 50 lakh toilet already built, 6 crore toilet targeted
  • Government will encourage new start ups and entrepreneurship
  • Government is still firm on achieving fiscal deficit target of 3 % of GDP eventually
  • Real GDP expected to accelerate to 7.4%
  • Current FOREX reserves $340 bn, Second best stock market in Asian economy
  • Govt will utilize vast postal network for increasing access to institutional banking
  • Roadmap to achieve Fiscal deficit of 3% of GDP in three years: Target is 3.9% in 2015-16, 3.5% in 2016-17, 3% in 2017-18.
  • National Insurance scheme called PM Suraksha Bhima Yojana, offering coverage of 2 lakh rupees for just premium of Rs.12 per year. [WOW!]
  • Rs. 5300 crore allocated for micro irrigation
  • Target of 8.5 lakh crores credit to be given to farmers in 2015-16
  • Target of 8.5 lakh crore of credit for agricultural sector
  • Unclaimed deposits of Rs 3,000 crore in PPF and Rs 6000 crore in EPF; to create senior citizens welfare fund from this corpus
  • Atal Pension Yojana to provide defined pension according to contribution ; 50% contribution to be from Govt.
  • Increased Budgetary allocation to Roads & Railways
  • 5 Ultra Mega power projects, of 4000 MW announced
  • Initial sum of Rs 150 Cr to create world class IT hub to take advantage of our competitiveness
  • Start-ups: mechanism for techno-financial incubation for start ups; govt sets aside Rs 1000 crore
  • National Infrastructure Fund will try to leverage Infrastructure companies ; Tax free bonds for Roads , Railways & irrigation
  • Renewable energy target will be increased to 1,75,000 MW
  • Highest ever allocation for MGNREGA, by increasing it this year by 5,000 crore rupees
  • Ports in public sector will be encouraged to corporatize & become companies under companies act
  • EPF & ESI has hostage rather than client ; ESI should be made optional to employees
  • GST will be put in place state of art internationally indirect tax system by April 1st 2016: FM
  • An addition of 1,000 crores for Nirbhaya Fund
  • Govt proposes to increase visa-on-arrival to 150 countries to increase tourism
  • Initial outlay of Rs 75 crore for development of electric vehicles
  • For better regulation a merger of FMC & SEBI is being currently worked out
  • National Skill Mission to be launched through skill development and entrepreneurship ministry, to develop employability of youth, especially below 25 years of age
  • Section 6 of FEMA to be amended
  • Committee to be set up to plan the celebration of the 100th birth anniversary of Deen Dayal Upadhyaya
  • Propose to set-up an IT based student financial aid system under PM Vidya Laxmi scheme
  • The new Pradhan Mantri Vidya Lakshmi Programme will ensure no student misses out on higher education opportunities due to lack of funds
  • Govt announces AIIMS institutions in J& K , Punjab , Himachal Pradesh and Assam.
  • ISM Dhanbad will be upgraded to full IIT
  • Government is pursuing policy of #MakeInIndia in defense not only to cater our needs but also for export
  • Defense budget has been enhanced to 2,46,727 crore rupees, an approx. increase of Rs. 25,000 crore
  • Unplanned expenditure for 2015-16 is estimated at 13 lakh 12 thousand and 200 crores
  • Budget Estimates of Expenditure: Rs. 17 .77 lakh crore of which Non Planned is Rs. 13.12 lakh crore and Plan is 4.65 lakh crores
  • Direct Tax collection is going to be 14.49 lakh crore rupees
  • Basic rate of Corporate Tax to be reduced from 30% to 25% in next 4 years and will be accompanied by reducing exemptions.
  • Exemptions to individual tax payers will remain
  • Non-filing of returns, or filing of returns with inadequate information may attract 10 year Jail term. Even concealment of income will be prosecutable with rigorous imprisonment
  • Government to enact a comprehensive law on black money stashed abroad
  • Benami property transaction bill will be introduced to tackle black money transaction in real estate soon
  • Quoting of PAN is mandatory for any purchase made more than Rs. 1 Lakh.
  • Defer the applicability of GAAR for 2 years ; will only apply prospectively after Apr 2017.
  • Reduced Royalty fees on Technical Services to 10% from 25%.
  • Wealth Tax Abolished, instead super rich will pay extra 2% extra surcharge for people with income over 1 Crore. This will lead to additional 9,000 cr to Tax kitty.
  • Custom duty on raw materials and intermediaries to be reduced
  • Excise duty on Leather footwear reduced to 6%
  • Fuel excise duty will remain unchanged; change in tobacco excise duty.
  • Consolidated Service Tax increased from 12.36% to 14%!
  • Increased in deduction for Health insurance from Rs. 15000 to Rs. 25000. For senior citizens increased to 30,000.
  • Additional deduction of Rs 50,000 for contribution to pension fund and new pension scheme
  • Tax exemption for transport allowance increased from Rs 800 to Rs 1600 per month.
  • Individual tax payer will benefit to the extent Rs.4,44,200/- from the exemptions announced
  • Direct tax proposals will lead to 8315 cr loss and an increase of Rs. 23,000 cr in indirect tax gains.
  1. […] Minister Arun Jaitley had mentioned creation of a massive social security platform during the Union Budget 2015 […]

  2. […] various other announcements made during the Union Budget 2015-16, Finance Minister Arun Jaitley made a very crucial decision of increasing service tax from 12.36% […]

  3. Amit Patekar says

    You can find more details here http://indiabudget.nic.in/ub2015-16/bh/bh1.pdf

  4. […] hailed as a #SuperBudget, which will put India firmly on the growth path. You can check out our live highlights and key announcements of the budget […]

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