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."