Union Budget 2015-2016 : Highlights
Union Budget 2015-2016 of India was presented by the Finance Minister of India Sh. Arun Jaitley on 28th February 2015. The knowledge about yearly Union Budget is very important from the examinations point of view. Many questions are based on the Annual Union Budget in exams like UPSC, SSC, BANK PO, BANK Clerical etc .Also, it is the favorite topic of the interview panel in various Job interviews. So, This article will help the students to understand the Key Union Budget Highlights relevant to the exams.
Union Budget Highlights: Introduction
- Indian Economy about to take off on a fast growth trajectory.
- GDP growth expected to be between 8 to 8.5% in 2015-16.
- Most of the growth forecasts have upgraded Indian Economic Growth
- Stock Market- Second Best performing in 2014.
- India – fastest growing large economy in the world with GDP growth expected to be around 7.4%.
- Government to pursue accelerated growth, enhanced investment round the clock, round the year.
- Three Key-achievements:
- Financial Inclusion – 12.5 crore families linked with banking facilities.
- State resources augmented with Transparent Coal Block Auctions.
- Swachcha Bharat Abhiyaan
- Total Expenditure – Rs 17,77,477 crore.
- Union Budget Fiscal Deficit (which is the difference between govt. expenditure and the revenue)- 3.9% of the GDP.
- Union Budget Revenue Deficit (difference between expected revenue and actual revenue)- 2.8 % of GDP.
Vision 2022 – 75th year of Independence
- Housing for all – 2 crore houses in Urban and 4 crore houses in Rural areas.
- Basic facilities of 24×7 power. clean drinking water, a toilet and road connectivity.
- Job for atleast one family member.
- Electrification of remaining 20000 villages.
- Connecting every un-connected habitation
- Medical services in each village and city.
- A Senior Secondary school within 5 kms reach of every child.
- Increasing Irrigated areas and improving existing irrigation systems.
- Communication facilities in all villages.
- Make in India and Skill India programmes- to make India a manufacturing hub.
Main Points of Taxation in Union Budget 2015-2015:
- No change in the tax slab this year.
- Custom and Excise duty concessions on hybrid vehicles extended till 31.03.2016.
- PAN becomes mandatory for any sale and purchase exceeding Rs one lakh.
- GAAR (General Anti-Avoidance Rule) postponed by two years.
- Simplification of Tax procedures and restructuring of E-filing.
- Wealth Tax replaced with additional surcharge of 2 percent on Super-rich (having taxable income of over RS 1 crore ).
- Deduction limit for Health Insurance Premium increased from 15000 to 25000 and 20000 to 30000 for Senior citizens .
- Deduction of 30000 in Income tax for Senior citizens not covered under any health insurance.
- Additional deduction of Rs 25000 for disabled persons.
- Deduction under payment of Pension fund and new Pension Scheme(NPS) increased from Rs 1lakh to Rs 1.5 lakhs.
- Additional deduction of Rs 50000 for payments to new pension scheme u/s 80CCD.
- Donations to National Fund for Control of Drug Abuse to be eligible for 100% deduction u/s 80G of Income tax Act.
- 100% deduction for contributions( not applicable to CSR) to Swachcha Bharat Kosh and Clean Ganga Fund.
- Yoga included under charitable activities for Income Tax purposes.
These have Increased in Union Budget 2015-2016:
- Excise Duty on Sacks and bags of Polymers of Ethylene increased from 12% to 14 %.
- Basic Custom duty on Metallurgical Coke increased from 2.5% to 5%.
- Service tax plus Education cesses increased from 12.36% to 14%.
- Clean Energy Cess increased – from Rs 100 to Rs 200 per metric tonne of coal.
- Tariff rate on iron and steel articles increased from 10% to 15%.
- Tariff rate on commercial vehicle increased from 10% to 40%.
These have Decreased in Union Budget 2015-2016:
- Corporate Tax to be reduced from current 30% to 25 % over next 4 years.
- Excise Duty on footwear with Leather uppers and having retail price of more than Rs 1000 per pair reduced to 6%.
- Artificial Heart exempt from basic Custom Duty of 5%.
- Emphasis on two major factors – Soil and Water.
- Full Support to Paramaparagat Krishi Vikas Yojana.
- PradhanMantri Gram Sinchai Yojana to increase net production per irrigated area.
- Rs 5300 crore for Micro-Irrigation programmes.
- Rs 25000 crore to Rural Infrastructure Development Fund set up in NABARD.
- Agricultural Loan Target of 8.5 lakh crore in 2015-16.
- National Investment and Infrastructure Fund to be created with an annual flow of Rs 20000 crore.
- Tax free infrastructure bonds for Rail, Road and Irrigation projects.
- Atal Innovation Mission will be provided with Rs 150 core. This mission is to provide Innovation Promotion platform to foster culture of Innovation, Research and Development.
- 5 new Ultra Mega Power Projects each of 4000 MW.
- PPP model to be revitalised with govt. bearing majorty of risks.
- SETU (Self-employment and Talent Utilisation) programme with Rs 1000 crore to support all aspects of start-up business.
- Forward Markets Commission to be merged with SEBI.
- Public Debt Management Agency to be set up to bring both external and internal borrowings under one roof.
- Indian Financial Code to be introduced soon in parliament.
- Sovereign Gold Bond– an alternative to purchase metal Gold.
- Gold Monetisation scheme – to earn interest on metal accounts.
- Indian Gold Coin to be developed – carrying Ashok Chakra image.
- Rs 1000 crore given under Nirbhaya Fund
- Visas on Arrival to be increased to 150 countries in stages.
- Resources to be provided to improve facilities at various Heritage sites.
- Renewal Energy Target revised to 175000Mw – 100000Mw Solar, 60000Mw Wind, 10000Mw Biomass, 5000Mw Small Hydro.
Education and Skill Development:
- Deen Dayal Upadhyay Grameen Kaushal Yojana – to enhance employability of Rural areas.
- New IIT in Karnataka and ISM Dhanbad to be upgraded into an IIT.
- AIIMs to be set-up in J&K, Punjab, Tamil Nadu, Himachal Pradesh and Assam. Another AIIMS like institution in Bihar.
- A postgraduate institute of Horticulture Research in Amritsar.
- 3 new National institute of Pharmaceuticals in Maharashtra, Rajasthan and Chattisgarh.
- Institute of Science and Education Research in Nagaland and Orissa.
- Centre of film production, animation and gaming to be set up in Arunachal Pradesh.
- IIM in Jammu and Kashmir and Andhra Pradesh.
- University of Disability Studies in Kerala to be set up
Other Welfare Schemes:
- JAM trinity – Jan Dhan, Aadhar and Mobile to improve quality of life.
- Six crore new toilets under Bharat Nirman.
- DBT scheme to be extended to 10.3 crores beneficiaries.
- MUDRA bank to be set up with Rs 20000 crores to refinance micro financing institutions.
- Pradhan Mantri Suraksha Bima Yojana – to cover accidental death risk of Rs 2 lakhs for just a premium of Rs 12 per year.
- Pradhan Mantri Jeevan Jyoti Bima Yojana – to cover both natural and accidental death risk of Rs 2 lakhs for just a premium of Rs 330 per year for age-group of 18-50.
- Atal Pension Yojana – Govt. will contribute 50% of the premium limited to Rs 1000.
- Senior Citizen Welfare Fund to be created with an unclaimed deposits of Rs 3000 crore in PPF and Rs 6000 crore in EPF.
- To create Universal Social Security System for all Indians.
- New scheme for Physical aids and assisted living devices for BPL senior citizens .
These were the Highlights of the Union Budget 2015-2016. All the important points have been included in this Union Budget Highlight article. If you feel anything important is left or something is not clear, Please don’t hesitate to Leave a comment.
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