Highlights of Budget 2015-16 FISCAL DEFICIT * Fiscal deficit seen at 3.9 per cent of GDP in 2015/16
* Will meet the challenging fiscal target of 4.1 per cent of GDP * Remain committed to meeting medium term fiscal deficit target of 3 per cent of GDP * Current account deficit below 1.3 per cent of GDP * Jaitley says have to keep fiscal discipline in mind despite need for higher investment GROWTH * GDP growth seen at between 8 per cent and 8.5 per cent year on year * Aiming double digit growth rate, achievable soon INFLATION * Expects consumer inflation to remain close to 5 per cent by March, opening room for more monetary policy easing * Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 per cent * "One of the achievements of my government has been to conquer inflation. This decline in my view represents a structural shift." REVENUES * Revenue deficit seen at 2.8 percent of GDP * Non tax revenue seen at Rs 2.21 lakh crore * Agricultural incomes are under stress MARKET REFORMS * Propose to merge commodities regulator with SEBI * To bring a new bankruptcy code * 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 * Proposes to introduce a public contract resolution of disputes bill * To establish an autonomous bank board bureau to improve management of public sector banks POLICY REFORMS * To enact a comprehensive new law on black money * Propose to create a universal social security system for all Indians * To launch a national skills mission soon to enhance employability of rural youth * To raise visa-on-arrival facility to 150 countries from 43 * Allocates Rs 34,699 crore for rural employment guarantee scheme TAXATION * To abolish wealth tax * Replaces wealth tax with additional 2 pct sur charge on super rich * Proposes to cut to 25 per cent corporate tax over next 4 years * Corporate tax of 30 per cent is uncompetitive * Government defers rollout of anti-tax avoidance rules GAAR by two years * GAAR to apply prospectively from April 1, 2017 * Retrospective tax provisions will be avoided * Jaitley proposes modification of permanent establishment norms so that the mere presence of a fund manager in India would not constitute a permanent establishment of the offshore fund, resulting in adverse tax consequences. * Proposes to rationalise capital gains tax regime for real estate investment trusts * Expects to implement goods and services tax by April 2016 * To reduce custom duty on 22 items * Proposes to increase service tax rate and education cess to 14 percent from 12.36 percent * Plans to introduce direct tax regime that is internationally competitive on rates without exemptions * Exemptions for individual tax payers to continue * To enact tough penalties for tax evasion in new bill * Tax dept to clarify indirect transfer of assets and dividend paid by foreign firms INFRASTRUCTURE * Investment in infrastructure will go up by Rs 70,000 crore 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 * Second unit of Kudankulam nuclear power station to be commissioned * Will need to build additional 100,000 km of road * Ports in public sector will be encouraged to corporatise under Companies Act EXPENDITURE * Plan expenditure estimated at about Rs 4.65 lakh crore * Non-plan expenditure seen at about Rs 13.12 lakh crore * Allocates Rs 2.46 lakh crore for defence spending * Allocates Rs 33,150 crore for health sector * If revenue improves, hope to raise budgeted allocations for rural job scheme by Rs 5,000 crore INVESTMENT * Propose to do away with different types of foreign investment caps and replace them with composite caps * To allow foreign investment in alternative investment funds * Public investment needed to catalyse investment GOLD * To develop a sovereign gold bond * To introduce gold monetisation scheme to allow depositors to earn interest * To introduce Indian-made gold coin to reduce demand for foreign gold coins SUBSIDIES * We are committed to subsidy rationalisation based on cutting leakages Smiling is a part of life. But smiling in all the situations is an art of life. Thanks and Regards, Mrs. Surya Jyothi Praneeth, CCT, SBH, RC Puram, Hyderabad, AP. Sent from my I PHONE. Register at the dedicated AccessIndia list for discussing accessibility of mobile phones / Tabs on: http://mail.accessindia.org.in/mailman/listinfo/mobile.accessindia_accessindia.org.in Search for old postings at: http://www.mail-archive.com/accessindia@accessindia.org.in/ To unsubscribe send a message to accessindia-requ...@accessindia.org.in with the subject unsubscribe. To change your subscription to digest mode or make any other changes, please visit the list home page at http://accessindia.org.in/mailman/listinfo/accessindia_accessindia.org.in Disclaimer: 1. Contents of the mails, factual, or otherwise, reflect the thinking of the person sending the mail and AI in no way relates itself to its veracity; 2. AI cannot be held liable for any commission/omission based on the mails sent through this mailing list..
