Krishna Swaroop

Ayush Srivastava
Sheeba Singh
Nikhil
Suyesh Arya
Vikram Srivastava

TAX PROPOSALS
Measures to curb Black money

Government Earnings in %

Job creation through revival of growth and

investment
4%
10%
24%
9%

Minimum government and maximum

governance to improve ease of doing
business

10%
9%

Benefits to middle class taxpayers

Improving quality of life and health through
Swachch Bharat initiatives
Stand alone proposals to maximize the benefits to
economy

20%
14%

Borrowings and Other liabilities

Income Tax
Union excise duties
Non-tax Revenue

Corporation tax
Customs
Service and Other Tax
Non.debt Capital Receipts

Proposed to reduce the corporate tax from 30% to 25% over the next 4 years
To have the Permission from the Swiss Authorities to provide information in cases investigated by Income Tax and provide
transparency with equinity in clients
A new and more comprehensive Benami Transactions (Prohibition bill ) to be passed in current session of Parliament.

TAX PROPOSALS

Abolishment of Wealth tax which is replaced by with additional surcharge of 2% on super-rich (taxable income of Rs.1 Crore)
Reiteration of governments resolve of rolling out GST from April 2016
Extension in excise duty exemption and concessions for manufacture of cleaner technology vehicles
Weighted deduction from corporate tax for wages of new workmen reduced from 100 to 50
Enacting of tough penalties for tax evasion in new bill
In domestic Transfer pricing, for small tax payers the threshold limit has increase Rs.5 Crore to Rs.20 crore
Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing
Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6 percent
GDP growth seen at between 8 percent and 8.5 percent with an expectation of double digit growth

SAVINGS RATE

Investments Remain Sluggish

2014-15

34

29.8

2013-14

32

30.7

2012-13

31.9
33.6

28

29

30

31

Column2

32

31.1
30

30

2011-12
27

33

33

34

28

2011-12

2012-13
Column2

2013-14

TAX PROPOSALS

To give a Boost domestic Leather Industry, Excise Duty on leather footwear more than Rs.1000 per pair is reduced to 6%
To facilitate a smooth transition to levy of tax on services by both the Centre and the States, it is proposed to increase the
present rate of service tax plus education cesses from 12.36% to a consolidated rate of 14%.
Proposal of 100% deduction for contributions, other than by way of CSR contributions, to the Swachh Bharat Kosh. A
similar tax treatment is also proposed for the Clean Ganga Fund.
Increment in Clean Energy Cess from Rs.100 to Rs.200 for the Metric tonne of coal
Excise duty on sacks and bags of Polymers for industrial use is increased by 12% to 15%
Increase in limit of deduction in health insurance premium for Rs.15000 to Rs.25000
The deduction limit for the senior citizens under diseases has increased from Rs.60000 to Rs.80000
Limit for the PENSION fund has increased from Rs.1Lakh to Rs.1.5 Lakh
After all the concessions , Individual tax payers will get Rs.4,44,200 benefit

The Revenue loss from direct tax is Rs.8,315 Crore with Revenue Income
From the Indirect tax is yield of Rs.23,823 Crore with the net Impact of
All tax proposals is revenue Gain of Rs.15,068 Crore

FISCAL ROADMAP
HIGHER CAPITAL SPENDING

FISCAL TARGET
3

2.5

5
4.9
4

4.4

4.1

3.9

3.6

2
3

1.5

0.5

0
FY13

FY14

FY15

FY16

FY17

FY18

1.57

1.59

1.67

FY11

FY12

FY13

Column2

1.88

FY14

1.92
FY15

2.41
FY16

Column2

Remain confident an achieving the medium term target up to 3% taking account the increment of public investment
The total public investment is planned to be 1.25 lakh Crore out of which 70,000 crore will be capital expenditure from
budgetary outlays
The Fiscal Space will go towards funding infrastructure and investment

With this compositional shift, the aggregate envelope of Job creation, Poverty Elimination
And Infrastructure is going to bloom in the steps of development

DISINVESTMENT
PROGRAMME

Year

2014/15

2015/16

Target in Rs
(Crores)

58,425

69,500

Target Achieved
in Rs (Crores)

24,257

MERGE COMMODITY
The proposed merger would help streamline
MARKET REGULATOR FMC
monitoring of commodity futures trading and
curb wild speculations.
WITH SEBI
NEW BANKRUPTCY CODE

Big positive as tightening of defaults will lead

to ease of business

PUBLIC DEBT MANAGEMENT

Not a much need policy at the time, which may
AGENCY (PDMA) &
reduce the powers of the central bank.
MONETARY POLICY
COMMITTEE
AUTONOMOUS BANK BOARD

To improve management of PSU

Reduce the burden of frequent capital infusion
into PSU banks

NEW LAW ON BLACK MONEY

New ones enacted to make life miserable for anyone with

black money.
At present, the income-tax department has no power to
arrest

UNIVERSAL SOCIAL SECURITY

SYSTEM

To protect the individuals of insurance of any kind, health,

accidental or life

NATIONAL SKILLS MISSION TO

ENHANCE EMPLOYABILITY OF
RURAL YOUTH & 346.99 BILLION Highly-skilled educated talent
More employment
RUPEES FOR RURAL
EMPLOYMENT GUARANTEE
SCHEME

VISA-ON-ARRIVAL FACILITY TO 150

COUNTRIES
GOVERNMENT DEFERS ROLLOUT OF
ANTI-TAX AVOIDANCE RULES GAAR
BY TWO YEARS TO APRIL 1, 2017 &
RETROSPECTIVE TAX PROVISIONS
WILL BE AVOIDED

Increase in Tourism
Positive confidence building for
investors

Gold Monetization Scheme

Gold depositors will earn interest on their gold account, while jewellers can obtain
loans on it. Banks and other dealers will be able to monetize the gold.
Banks to hold a part of the deposits as part of the mandatory CRR or the SRR.
Banks can channelize gold held by households to the industry.
Monetary value of gold deposits mobilized may be at least Rs 1 trillion.

Impact
Less buying of gold

Sovereign Gold Bond

The sovereign gold bond will be an alternative to purchasing the metal and will carry a
fixed rate of interest. Holders will be able to redeem them in cash on the face value of
gold.

Indian Gold Coin

To introduce Indian-made gold coin to reduce demand for foreign gold coins, gold
coins with Ashok Chakra
The Indian gold coin will help recycle local gold and cut overseas gold demand.

More liquidity of
money with banks
for lending
Smuggling could rise
20-30 per cent in
2015 from the
estimated 175
tonnes last year due
to the decision to
keep the import duty
intact

INFRASTRUCTURE
Investment in infrastructure will go up by 700 bln rupees in 2015/16 over last year
Plans to set up National Investment and Infrastructure Fund (NIIF) for Infrastructure
Finance Companies like Indian Railway Finance Corporation Ltd.(IRFC) and
National Housing Bond(NHB)
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
Will need to build additional 1,00,000 km of road
Ports in public sector will be encouraged to corporatize under Companies Act

INVESTMENT & EXPENDITURE

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
Plan expenditure estimated at about 4.65 trillion rupees
Non-plan expenditure seen at about 13.12 trillion rupees
Allocates 2.46 trillion rupees for defence spending
Allocates 331.5 billion rupees for health sector
If revenue improves, hope to raise budgeted allocations for rural job scheme by 50 billion
rupees
Gross market borrowing seen at Rs 6 trillion and Net market borrowing seen at Rs 4.56 trillion

TOURISM
While India has 25 (twenty five) Cultural World Heritage Sites. They require
restoration, including landscape restoration; signage and interpretation centres; parking;
access for the differently abled; visitors amenities, including securities and toilets;
illumination and plans for benefiting communities around them.
1. Develpoment schemes for churches and convents in old Goa; Hampi , Elephanta
caves , Forests of Rajasthan, Leh palace, Varanasi , Jallianwala Bagh, Qutb Shahi tombs at
Hyderabad to be under the new toursim scheme.
2.Visa on Arrival for 150 countries. (In the month of January, a total of 25,023 tourists
arrived by availing VoA as compared to 1,903 last year, registering a growth of whooping
1,214.9 % )

RENEWABLE ENERGY GREEN INDIA

RENEWABLE
ENERGY
TARGET
FOR
2022

SOLAR

100K MW in
solar

WIND

60K MW in
wind

BIOMASS

10K MW
in biomass

SMALL HYDRO

5K MW in
small hydro

Rs. 75 crore for electric

cars production.

WELFARE SCHEMES

GST and JAM trinity (Jan

Dhan Yojana, Aadhaar
and Mobile) to improve
quality of life and to pass
benefits to common man

Six crore toilets across

the country under the
Swachh Bharat Abhiyan

MUDRA bank will

refinance micro finance
orgs. To encourage first
generation SC/ST
entrepreneurs

Housing for all by 2020

Up gradation 80,000
secondary schools

DBT will be further be

expanded from 1 crore to
10.3 crore

For the Atal Pension Yojana, govt.

will contribute 50% of the premium
limited to Rs. 1,000 a year

Govt. to use Rs. 9,000 crore unclaimed

funds in PPF/EPF for Senior Citizens
Fund

Rs. 5,000 crore additional

allocation for MGNREGA

Govt. to create universal social

security system for all Indians

SKILL INDIA

AIIMS in Jammu and

Kashmir, Punjab, Tamil
Nadu, Himachal Pradesh,
Bihar and Assam

Kerala to have University

of Disability Studies

IIT in Karnataka

PG institute of
Horticulture in Amritsar

Centre of film production,

animation and gaming to come
up in Arunachal Pradesh

IIM for Jammu and

Kashmir and Andhra
Pradesh

AGRICULTURE
The main takeaway for the agriculture sector from the Budget was a proposal to create a
national agricultural market to boost farm productivity and farmers' income.
The finance minister proposed to increase the target of agriculture credit by Rs 50,000 crore to
Rs 8.5 lakh crore
In order to improve soil health, Proposal to support Agriculture Ministrys organic farming
scheme Paramparagat Krishi Vikas Yojana.
DEVELOPMENT FUND
AMOUNT PROPOSED
Rural Infrastructure Development
Fund

Rs.25000 Crore

Long Term Rural Credit Fund

Rs.15000 Crore

Short Term Rural Credit Refinance

Fund

Rs.45000 Crore

Short Term RRB Refinance Fund

Rs.15000 Crore

DIGITAL INDIA
Jan Dhan, Aadhaar & Mobile & GST, will help the government to implement direct transfer of
benefits in leakage proof manner
An overall sum of Rs 2,510 crore has been set aside in the budget for 2015-16 under the head
Digital India Programme and Telecommunications and Electronic Industries
Rs 1,000 crore for promotion of start ups and entrepreneurs particularly in the technology sector
The IT-ITeS sector has raked in revenues of USD 119 billion in 2014-15 and directly employs about
40 lakh people
Postal Department will utilise the services of its vast network for the proposed Payment Bank, so that
it can contribute in Pradhan Mantri Jan Dhan
Government proposes to utilise vast postal network with nearly 1.55 lakh points of presence across
villages of the country. USD 20.9 billion in 2014-15, with a growth of 10 per cent

BUDGET ESTIMATES
Non-Plan expenditure estimates for the Financial Year are Rs. 13,12,220cr.
Plan expenditure is estimated to be Rs. 4,65,277cr.
Total Expenditure has accordingly been estimated at Rs.17,77,477cr.
Gross Tax receipts are estimated to be Rs. 14,49,490cr. Devolution to the States is
estimated to be Rs. 5,23,958cr.
Share of Central Government will be Rs. 9,19,842cr.
Non Tax Revenues for the next fiscal are estimated to be Rs. 2,21,733cr.
Fiscal deficit will be 3.9 percent of GDP and Revenue Deficit will be 2.8 percent of
GDP.

BUDGET
AND SO FOR YOUR EXTRA SAVINGS