UNION BUDGET HIGHLIGHTS 2015-16  

States to be equal partners in economic growth; move to making India cashless society; social sector programmes to continue. Some of the challenges mentioned by the Finance Minister Arun Jaitley  are: poor agricultural income, decline in manufacturing ; and the need for fiscal discipline. Here are sector-wise highlights:

TAXATION 

• Abolition of Wealth Tax.
• Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
• Rate of corporate tax to be reduced to 25% over next four years.
• No change in tax slabs.
• Total exemption of up to Rs. 4,44,200 can be achieved.
• 100% exemption for contribution to Swachch Bharat, apart from CSR.
• Service tax increased to 14 per cent.

 AGRICULTURE 

• Rs. 25,000 crore for Rural Infrastructure Development Bank.
• Rs. 5,300 crore to support Micro Irrigation Programme.
• Farmers credit – target of 8.5 lakh crore.

 INFRASTRUCTURE 

• Rs. 70,000 crores to Infrastructure sector.
• Tax-free bonds for projects in rail road and irrigation
• PPP  model  for  infrastructure  development  to  be  revitalised  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.
• Govt. proposes to set up 5 ultra mega power projects, each of 4000MW.

EDUCATION

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

 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.

WELFARE SCHEMES

• GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.
• Six crore toilets across the country under the Swachh Bharat Abhiyan.
• MUDRA  bank  will  refinance  micro  finance  orgs.  to  encourage  first  generation SC/ST entrepreneurs.
• Upgradation 80,000 secondary schools.
• DBT will be further be expanded from 1 crore to 10.3 crore.
• For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.
• New scheme for physical aids and assisted living devices for people aged over 80.
• Govt.  to  use  Rs.  9,000  crore  unclaimed  funds  in  PPF/EPF  for  Senior  Citizens Fund.
• Rs. 5,000 crore additional allocation for MGNREGA.
• Govt. to create universal social security system for all Indians.

RENEWABLE ENERGY 

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

 TOURISM 

• Develpoment  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 toursim scheme.
• Visa on Arrival for 150 countries.

GOLD 

• Sovereign Gold Bond, as an alternative to purchasing metal gold.
• New scheme for depositors of gold to earn interest and jewellers to obtain loans on their metal accounts.
• 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 

• Forward  Markets  Commission  to  be  merged  with  the  Securities  and  Exchange Board of India.
• NBFCs registered with the RBI and having asset size of Rs 500 crore and above to be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses. Permanent  Establishment  norms  to  be  modified  to  that  mere  presence  of offshore  fund  managers  in  the  country  does  not  lead  to  “adverse  tax consequences.”

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