Jaitley says need to keep financial discipline in mind despite want for higher investment: Union Budget 2015

Jaitley says need to keep financial discipline in mind despite want for higher investment: Union Budget 2015

Minister of finance Arun Jaitley presented the primary full-year Budget of Prime Minister Narendra Modi’s government on Sabbatum.

Here are the highlights of the Union Budget 2015:

Fiscal deficit:

* financial deficit seen at three.9 per cent of GDP in 2015/16

* can meet the difficult financial target of four.1 per cent of GDP

* stay committed to meeting medium term financial deficit target of three per cent of GDP

* accounting deficit below one.3 per cent of GDP

* Jaitley says need to keep financial discipline in mind despite want for higher investment

Growth:

* GDP growth seen at between eight per cent and eight.5 per cent y/y

* Aiming whole number rate, possible presently

Inflation:

* Expects shopper inflation to stay near five per cent by March, gap area for additional financial policy easing

* financial policy framework agreement with the run clearly states objective of keeping inflation below half dozen per cent

* “One of the achievements of my government has been to beat inflation. This decline in my read represents a structural shift.”

Revenues:

* Revenue deficit seen at two.8 per cent of GDP

* Non government income seen at Rs two.21 trillion

* Agricultural incomes are underneath stress

Disinvestment:

* Government targets Rs 410 billion from stake sales in firms

* Total stake sale in 2015/16 seen at Rs 695 billion

Market reforms:

* Propose to merge commodities regulator with SEBI

* To bring a replacement bankruptcy code

* Jaitley says can move to amend the run act this year, and supply for a financial policy committee

* to line up debt management agency

* Proposes to introduce a public contract resolution of disputes bill

* to ascertain Associate in Nursing autonomous bank board bureau to enhance management of public sector banks

Policy reforms:

* To enact a comprehensive new law on black cash

* Propose to make a universal social insurance system for all Indians

* To launch a national skills mission presently to boost employability of rural youth

* to lift visa-on-arrival facility to a hundred and fifty countries from forty three

* Allocates Rs 346.99 billion for rural employment guarantee theme

Borrowing:

* Gross market borrowing seen at Rs half dozen trillion

* web market borrowing seen at Rs four.56 trillion

General anti-avoidance rules (GAAR)

* Government defers rollout of anti-tax shunning rules GAAR by 2 years

* GAAR to use prospectively from April one, 2017

* Retrospective tax provisions are going to be avoided

Taxation:

* To get rid of wealth tax

* Replaces wealth tax with extra two per cent surcharge on super wealthy

* Proposes to chop to twenty five per cent company tax over next four years

* company tax of thirty per cent is noncompetitive

* web gain from tax proposals seen at Rs a hundred and fifty.68 billion

* Jaitley proposes modification of permanent institution norms so the mere presence of a fund manager in Bharat wouldn’t represent a permanent institution of the offshore fund, leading to adverse tax consequences.

* Proposes to rationalise capital gains tax regime for land investment trusts

* Expects to implement merchandise and services tax by April 2016

* to cut back custom duty on twenty two things

* Basic custom duty on industrial vehicle doubled to twenty per cent

* Proposes to extend service rate and education cess to fourteen per cent from twelve.36 per cent

* Plans to introduce tax regime that’s internationally competitive on rates while not exemptions

* Exemptions for individual tax payers to continue

* To enact robust penalties for nonpayment in new bill

* Tax department to clarify indirect transfer of assets and dividend paid by foreign corporations

Infrastructure:

* Investment in infrastructure can go up by Rs 700 billion in 2015/16 over last year

* Plans to line up national investment infrastructure fund

* Proposes nontaxable infrastructure bonds for comes in roads, rail and irrigation comes

* Proposes five “ultra mega” power comes for four,000MW each

* Second unit of Kudankulam atomic power station to be commissioned

* can ought to build extra a hundred,000km of road

* Ports publically sector are going to be inspired to corporatize underneath firms Act

Expenditure:

* arrange expenditure calculable at regarding Rs four.65 trillion

* Non-plan expenditure seen at regarding Rs thirteen.12 trillion

* Allocates Rs two.46 trillion for defense defrayment

* Allocates Rs 331.5 billion for health sector

* If revenue improves, hope to lift budgeted allocations for rural job theme by Rs fifty billion

Investment:

* Propose to try to away with differing kinds of foreign investment caps and replace them with composite caps

* to permit foreign investment in various investment

* Public investment required to catalyze investment

Gold:

* To develop a sovereign gold bond

* To introduce gold proof theme to permit depositors to earn interest

* To introduce Indian-made gold coin to cut back demand for foreign gold coins

Subsidies:

* Food grant seen at Rs one.24 trillion

* fertilizer grant seen at Rs 729.69 billion

* Fuel grant seen at Rs three hundred billion

* we tend to are committed to grant rationalization supported cutting leakages

Finance minister’s comments:

* “We familial a sentiment of doom and gloom. The investment community had virtually written US off. We’ve come back an extended method since then.”

* “We have gyrated the economy, dramatically restoring economics stability and making the conditions for property economic condition elimination, job creation, sturdy whole number economic process.”

* “While being aware of the challenges … this provides US reason to feel optimistic.”

* “Domestic and international investors ar seeing US with revived interest and hope.”

 

The budget has not made any single smile on a common man face. But, it is still beneficial for high ends corporate industries. We should hope PM govt. is planning for something good for common man too by some other means as they have promise

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