UNION
BUDGET
UNION BUDGET OF INDIA, referred
to as the annual financial statement in Article 112 of the constitution.
Budget
is presented every year on the last working day of February in Lok Sabha by the
finance Minister of India.
NOTE:
Finance
Minister Morarji Desai presented the budget ten times, the most by any.
There are 3 types of BUDGET:
1) Revised
budget (2013-14)
2) Actual
budget (2014-15)
3) Estimated
budget (2015-16)
UNION BUDGET is classified into Revenue Budget and
Capital Budget.
Revenue
BUDGET:
Revenue Receipts + Expenditure
Capital
BUDGET:
Capital Receipts + Payments of the Government
NOTE: Fiscal deficit is incurred when the Governments total expenditure
exceeds its total revenue.
UNION FINANCE MINISTER Arun Jaitley
presented the first full UNION BUDGET of MODI’S Government.
HIGHLIGHTS OF UNION BUDGET 2015-2016
STATISTICS
NON-PLANNED
EXPENDITURE: RS 13,12,200 CRORES.
PLANNED
EXPENDITURE: RS 4,65,277 CRORES.
TOTAL
EXPENDITURE: RS 17,77,477 CRORES.
GROSS TAX
RECIEPTS: RS 14,49,490 CRORES.
DEVOLUTION TO
THE STATES: RS 5,23,958 CRORES.
SHAR OF
CENTRAL GOVERNMENT: RS 9,19,842 CRORES.
NON TAX
REVENUES: RS 2,21,733 CRORES.
FISCAL
DEFICIT: 3.9% of GDP and REVENUE DEFICIT: 2.8% of
GDP.
TAXATION
1 Abolition of Wealth Tax.
2 Additional
2% surcharge for the super rich with income of over Rs. 1 crore to fetch Rs
9,000 crore
3 Rate of corporate tax to be reduced to
25% over next four years from 30%.
4 No change in tax slabs.
Tax slab up
to 2.5 Lakh --0%
2.5
to 5 Lakh --10%
5
to 10 lakh --20%
Above
10 Lakh --30 %
5 Total exemption of up to Rs. 4,44,200
can be achieved.
Current
exemption Rs. 2.50 lakh
Exemption
under tax saving schemes Rs.
1.50 lakh
Exemption
with new transportation allowance of Rs. 1,600 per month Rs.19,200
per year
New
deductible health insurance premium Rs.
25,000
Total Rs. 4,44,200
6 100% exemption for contribution to Swachch
Bharat, apart from CSR.
7 Service tax increased by 1.64% to 14
per cent.
8 Health
Insurance Premium deduction hiked from Rs 15,000 to Rs 25,000; for senior citizens to Rs
30,000
9 Transport allowance exemption hiked to
Rs 1,600, from Rs 800 per month
10 Rs 50,000 deduction for contribution to
New Pension Scheme
11 GAAR implementation deferred by 2 years
to April 2017
12 Benami property Transaction bill
to tackle black money transaction in real estate soon
13 GST to be put in place by April 1, 2016
14 Incentivise use of credit, debit cards;
disincentivise cash transaction to curb black money
AGRICULTURE:
1 Rs. 25,000 crore for RIDF (Rural
Infrastructure Development Bank).
2 Rs. 5,300 crore to support Micro
Irrigation Programme.
3 Farmers credit - target of 8.5 lakh
crore.
Note: Few days before
the budget, government has launched a soil health card for farmers, under which
farmers across the country will be provided help in scientifically monitoring
the condition of soil at their farms at regular intervals.
INFRASTRUCTURE:
1 Rs. 70,000 crores for Infrastructure
sector.
2 Tax-free bonds for projects in rail,
road and irrigation.
3 PPP
model for infrastructure development to be revitalized and government to bear
majority of the risk.
4 “Atal
Innovation Mission” to be established to draw on expertise of
entrepreneurs, and researchers to foster scientific innovations; allocation of
Rs. 150 crore.
5 Government
proposes to set up 5 ultra mega power projects, each of 4000MW with total
investments of Rs 1 lakh crore.
EDUCATION:
1 AIIMS
in 5 states: Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and
Assam.
2 IIT in Karnataka; Indian School of
Mines in Dhanbad to be upgraded to IIT.
3 PG institute of Horticulture in
Amritsar.
4 Kerala to have University of
Disability Studies.
5 Centre of film production, animation
and gaming to come up in Arunachal Pradesh.
6 IIM for Jammu and Kashmir and Andhra
Pradesh.
Note: Higher education
budget is increased by 22% so the focus is shifted from school to higher
education.
DEFENCE:
1 Allocation of Rs. 2,46,726 crore; an
increase of 9.87 per cent over last year.
2 Focus on Make in India for quick
manufacturing of Defense equipments.
WELFARE
SCHEMES:
1 GST
and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality
of life and to pass benefits to common man.
2 Six crore toilets across the country
under the Swachh Bharat Abhiyaan.
3 MUDRA
bank will refinance micro finance organizations to encourage first
generation SC/ST entrepreneurs.
4 Housing for all by 2020.
5 Up gradation of 80,000 secondary
schools.
6 DBT will further be expanded
from 1 crore to 10.3crore.
7 For
the “Atal Pension Yojana”, government will contribute 50% of the premium
limited to Rs. 1,000 a year.
8 New scheme for physical aids and
assisted living devices for people aged over 80.
9 Govt. to use Rs. 9,000crore unclaimed
funds in PPF/EPF for Senior Citizens Fund.
10 Rs. 5,000crore additional allocation
for MGNREGA.
11 Government to create universal social
security system for all Indians.
12 Yoga - included
under charitable activities.
RENEWABLE
ENERGY:
1 Rs. 75 crore for electric cars
production.
2 Renewable energy target for 2022: 100K
MW in solar
60K
MW in wind
10K MW in biomass
5K MW in small hydro
TOURISM:
1 Development
schemes for churches and convents in old Goa; Hampi, Elephanta caves,
Forests of Rajasthan, Leh palace, Varanasi, Jallianwala Bagh, Qutb Shahi tombs
at Hyderabad to be under the new tourism scheme.
2 Visa on Arrival for 150 countries to
up tourism.
Currently this facility is only
available for 43 countries.
GOLD:
1 Sovereign Gold Bond, as an alternative
to purchasing metal gold.
2 New
scheme for depositors of gold to earn interest and jewellers to obtain loans on
their metal accounts.
3 To
develop an Indian gold voin, which will carry the Ashok Chakra on its face, to
reduce the demand for foreign coins and recycle the gold available in the
country.
FINANCIAL
SECTOR:
1 Forward
Markets Commission to be merged with SEBI (Securities and Exchange Board of
India).
2 NBFCs
which are registered with the RBI and have asset size of Rs 500crore and above
to be considered as ‘financial
institution’ under Sarfaesi Act, 2002, enabling them to fund SME and
mid-corporate businesses
3 Permanent Establishment norms to be
modified to that mere presence of offshore fund managers in the country does not lead to “adverse tax consequences.”
SARFAESI:-
Securitization and Reconstruction of financial assets and enforcement of
security interest act.
OTHER
IMPORTANT HIGHLIGHTS OF THE BUDGET:
No change in individual IT
slabs.
Individual tax payer can now
get benefit of upto RS 4.4 lakhs.
Corporate tax reduced to 25%.
Target of 8.5 lakh crores
credit to be given to farmers in 2015-16.
Atleast 1 member from each
family to get a job.
Imprisonment of 10 years
under black money law.
GAAR deferred by 2 years.
National skill mission to be
launched for youth below 25 years of age.