Photo: Reuters
The Modi Government’s first union budget for the FY was stated on February 28,2015.
The Union Budget has been quiet convincing and benefitting for most of the sectors. The budget was successful in throwing light on some of the pertinent issues of the GAAR.
Finance Minister Arun Jaitley started on a very optimistic note saying that India is to take on a faster growth trajectory. States are economically empowered like never before. He gave quiet a welcoming stand saying that when other countries are facing challenges, India is about to move to at a faster growth.
Also; adding that the rupee has become stronger against the other currencies. The latest CPI inflation is 5.1 per cent. Assuring that people have voted for a change, for faster growth, for a corruption free India, he said, “Credibility of the Indian Economy has been re-established, the world is predicting its India’s time to fly”
The three main achievements of the government were also discussed- Jan Dhan Yojna, Transparent coal auction, Swachh Bharat. The growth for 2015-2016 is also expected to be at 8-8.5 per cent.
The Finance Minister seemed very visionary when he stated that the vision of team India which is guided by the Central Government and by 2020, they aim to have housing for all. Also, he focused on a very important majority of the country, which lies in the rural villages, where he aims to complete the electrification.
The Government has also given an important eye on the importance of good health, hence boosting it by 3,31,500 Crore. Long with which, medical opportunities in the villages will be a vital need. The Finance Minister also stated that the quality of education in India has to improve.
The finance Minister very precisely stated the important challenges that the country faces:
1. Agricultural incomes are under stress.
2. Increasing investment in infrastructure.
3. Manufacturing has declined from 18 per cent to 17 per cent of GDP and manufacturing exports are stagnant.
4. Need for fiscal discipline in spite of rising demand for public investment.
5. Will meet challenging fiscal target of 4.1 per cent of the GDP which have inherited.
“Tax buoyancy is lower but still we will meet the promise of Fiscal deficit of 4.1% of GDP this year. Aim to make the country a prosperous and meaningful global power by 75th year of India’s Independence.” said the finance minister.
Photo: PTI
“Roadmap to achieve Fiscal deficit of 3% of GDP in three years: Target is 3.9% in 2015-16, 3.5% in 2016-17.3% in 2017-18” the Finance Minister has articulated.
The Finance minister gave a hefty sum to the Rural Infrastructure Development Fund of Rs.25000 crore under NABARD. The government has committed to increasing people’s access to formal banking, to expand the postal system. At least one member of each family will have a job. Suraksha beema yojna will cover accidental death at the premium of Rs 12 per year. The Finance Minister has also announced the ‘Atal Pension Yojana’.
The Government has planned to provide Rs 5300 crore to support micro irrigation. Indian Gold coins will have Ashoka chakra minted on it, thus promoting nationalism.
Majority of Indians will have a rupee debit card. The Finance Minister has rightly said that Cash flow encourages black money. “We aim at making India a cashless society. Announcement in this regard to be made soon. More credit and debit cards to be announced” said Arun Jaitely.
Women’s safety and security have been given a major priority here, the government has hence decided to prove 1000 crore for Nirbhaya Fund. Also targeted to improve the tourism in India, they will work towards the improvement of heritage cites like churches in Goa, palaces in Rajasthan, forests in Leh ladhakh, Jaliahwalah bagh, and others.
Coming towards education sector, Jaitley has ensured that no student misses out on education due to lack of funds. Having proposed to set up in IIT in Karnataka, AAIMS in Dhanbad, there will be
film production, animation institute set up in Arunachal. Institutions of science and educational research in Naga and Orissa, said the Finance Minister.
Arun Jaitley has also said that they promise to do much more, to eradicate black money. “Taxation an instrument of social engineering” said the Finance Minister.
The rate of corporate tax as well, has been reduced from 30 per cent to 25 per cent.
The important actions of the Make in India, removal of black money, Minimum government; maximum governance, benefit to tax payers and the Swachh Bharat campaign are taken care in the tax proposals, the Finance Minister implied.
The prime focus still remains curbing corruption and lowering the black money accounts and bringing them back to India.
The Fiscal and Revenue deficit targets will be 3.9 per cent and 2.8 per cent in the F.Y 2015-16.
There will be an increase of 2 per cent surcharge for the ‘super rich’ in the country, with annual income over Rs. 1 crore. Also, the applicability of GAAR will be delayed by 2 years. The Finance Minister has also proposed to abolish wealth tax and replace it with surcharge on income over Rs. 1 crore.
Keeping in account the hygiene and sanity of our country, the finance minister has also generated additional funds for Swach Bharat and Clean Ganga campaign. And the excise duty is to be increased to 12.5 per cent.
Paying careful attention to the Health sector, there is an increase in the limit of deduction of health insurance premium from 15,000 to 25,000. The Finance minister has assured that it will be eligible for tax rebate.
Investment in the Sukanya Samriddhi tax will be fully exempted from tax, said Arun Jaitley.
There will be enactment of Direct Tax code. Much to the benefit of the common man working in the Indian transport, the transport allowance is increased to as good as twice the amount from Rs. 800 per month to now Rs. 1600 per month. Herewith, the individual tax payer can be benefitted over 4 lakh.
Finance Minister Arun Jaitley announced that Individual Tax payer will benefit to the extent of Rs. 4,44,200 from the exemptions, as a result, there will not be a change in the individual tax rates. Ending on a positive note, Finance Minister said that even one of the worst critics will agree that they have moved rapidly.
Apart of that; 4173 crore has been given for water resources. 2,46,727 crore for defence. 1,200 crore has been given to the fast track corridor between AHD and Mumbai. 13.12 lakh crore – Non- plan expenditure expected.
Tags: Arun Jaitley Budget 2015 india Union Budget 2015
