Highlights of the Union Budget 2015

Finance minister Arun Jaitley presented the first full-year Budget of Prime Minister Narendra Modi's government on 28th February 2015 .

EDUCATION

• AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.

• IIT in Karnataka; Indian Institute of Mines in Dhanbad to be upgraded to IIT.

• PG institute of Horticulture in Armtisar.

• 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.

Fiscal deficit 

•  Fiscal deficit seen at 3.9% of GDP in 2015/16 

•  Will meet the challenging fiscal target of 4.1% of GDP 

•  Remain committed to meeting medium term fiscal deficit target of 3% of GDP 

• Current account deficit below 1.3% of GDP 

Growth 

• GDP growth seen at between 8% and 8.5% 
• Aiming double digit growth rate, achievable soon 

Inflation 

• Expects consumer inflation to remain close to 5% by March, opening room for more monetary policy easing 

• Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6%

Policy reforms 

• Propose to create a universal social security system for all Indians 

• Propose to merge commodities regulator with SEBI 

• Allocates 346.99 billion rupees for rural employment guarantee scheme in 2015/16 

• To bring a new bankruptcy code in 2015/16 

• Jaitley says will move to amend the RBI act this year, and provide for a monetary policy committee 

• To set up public debt management agency 

Taxation 

• Expects to implement goods and services tax by April 2016 

• Plans to introduce direct tax regime that is internationally competitive on rates without exemptions

• 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

• 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%

Infrastructure 

• Investment in infrastructure will go up by 700 billion rupees in 2015/16 over last year 

• Plans to set up national investment infrastructure fund 

• Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects 

• Proposes 5 ultra mega power projects for 4,000 MW each 

• Second unit of Kudankulam nuclear power station to be commissioned in 2015/16 

• Will need to build additional 100,000 km of road 

• Ports in public sector will be encouraged to corporatise under Companies Act 

DEFENCE

• Rs. 2,46,726 crore for Defence.

• Focus on Make in India for quick manufacturing of Defence equipment.

WELFARE SCHEMES

• 50,000 toilets constructed under Swachh Bharath Abhiyan.

• Housing for all by 2020.

• Upgradation 80,000 secondary schools.

• New scheme for physical aids and assisted living devices for people aged over 80 .

• Govt to use Rs. 9000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.

• Rs. 5,000 crore additional allocation for MGNREGA

Expenditure 

• If revenue improves, hope to raise budgeted allocations for rural job scheme by 50 billion rupees in 2015/16 

Subsidies 

• We are committed to subsidy rationalisation based on cutting leakages 

Finance minister's comments 

• "The world is predicting it's India's time to fly" 

• "We inherited a sentiment of doom and gloom. The investment community had almost written us off. We have come a long way since then." 

• "We have turned around the economy, dramatically restoring macroeconomic stability and creating the conditions for sustainable poverty elimination, job creation, durable double digit economic growth." 

• "While being mindful of the challenges ... this gives us reason to feel optimistic." 

• "Domestic and international investors are seeing us with renewed interest and hope."

Highlights from Indian Railway Budget 2015-16

Union Railway Minister Suresh Prabhu on 26 February 2015 presented the Railway Budget 2015-16 in the Parliament. Below are the highlights of this Budget:

Railway Fares

• No new hike in passenger fares
• While, the Freight fares have been raised incase of urea by 10%, iron and steel by 0.8%, kerosene and cooking gas by 0.8%, coal by 6.3% and cement by 2.7%.

Railway Finances

• Plan Budget is gone up by 52 percent Rs. 100011 crore for financial year 2015-16 compared to Rs. 65789 crore in FY 2014-15. 
• For next five year envisaged investment for railways is Rs. 8.5 lakh crore.
• Funds for railways will be raised from pension, institutional and multilateral agencies.
• In order to improve passenger amenities, MPs requested to use part of their MPLAD funds. 
• Railways to set up an infrastructure fund and holding company to raise long-term debt.

Passengers Amenities

• 120 days in advance ticket booking facility for passengers instead of earlier 60 days. 
• Railways is aiming to move towards paperless ticketing. 
• Operation 5 minutes- Passengers can buy railway tickets within five minutes. 
• SMS updates to inform passengers about any change in schedule of trains. 
• Open WI-FI facility at 400 railway stations. 
• Mobile charging units will be installed.
• For women safety CCTVs to be installed in selected trains and suburban trains. 
• Food ordering facility food while booking tickets through IRCTC website. 
• Water-vending machines to be set up at stations. 
• 138 will be a nationwide 24×7 helpline number for railway-related queries. While, 182 will be a toll-free number for security-related issues. 
• On-board entertainment in Shatabdi Express.

Infrastructure

• Track capacity will be increased by 10% to 1.38 lakh km. 
• Speed of passenger trains on 9 corridors will increased to 160-200 km/h from 110-130 km/h. 
• Wagon-making scheme will be reviewed in order ease private investment 
• By inviting open bids, station redevelopment policy will be revamped. 
• 10 satellite railway terminals will be developed in major cities in 2015-15. 
• PPP cell of Indian Railways will be revamped. 
• Feasibility report of high-speed train between Mumbai and Ahmedabad expected by mid-2015. 
• Connectivity to North-East India will be improved. In J&K rail connectivity will be on focus.

Tourism

• Railways will promote Gandhi circuit in order to mark centenary year of Mahatma Gandhi’s return from South Africa. 
• Special travel scheme Kisan Yatra for farmers for farming and marketing technique centres. 
• Under Incredible India, Incredible Rail will be launched.