A brief analysis of the Union Budget 2015 for India, focusing on India's growth prospects in Infra and Power sector, commitments to support manufacturing, capacity building and entrepreneurship promotion along with improvements proposed for better governance
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Union Budget 2015 - An Analysis by Sandeep Waghmare
1. UNION BUDGET 2015 –
AN ANALYSIS
BY SANDEEP WAGHMARE
Presented at:
Department of Business Management, RTM Nagpur University | 11th Feb, 2015
2. Concept of budget
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Among other things, following are the typical
characteristics of a Public Budget
Estimates of Expenditure and Revenue (Sectoral,
Target/Focus areas, etc.)
Has a tenure of 1 year
Highlights short term goals and long term strategy
3. Indian scenario – challenges of new
economy
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Growing start-up ecosystem
Trend moving towards employment creation than only seeking
employment
Sectors opened: Agriculture, Social Sector, Internet, Urban Transport
Changing commerce: E-Commerce, mCommerce, micro payments
Poor rank on ease of doing business
Significant entry barrier
Sustained red tape
Societal perception
Skills gap across sectors / hierarchy
Reliance on conventional skills
Lower acceptability to change
Access to skill enhancement
4. Vision for growth – a need
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Improve internal business environment to drive “Ease of Doing
Business”
Focussed incentives
Simplified taxation
Reduced red tape
Make India more competitive
Adopting global best practices in business
Provide skilled labour
Diversify from protective policieis
Drive social inclusion, thereby, push towards growth
Ensure financial inclusion (Jan Dhan)
Assure housing (Low Cost Housing schemes)
Improve services (water supply, sanitation, health)
Pushing toward independent India …
5. Marching towards self reliance
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Reform the urban sector
Enhance the quality of urban life via improved services
Improve connectivity within as well as between urban centres
Create environment of brain drain
Raise the outreach of energy via more and better generation and
improved distribution
Focus on renewable sector (Solar / Wind / etc.) (e.g. created 70000 new jobs in
2013-14 while adding 12GW to grid)
Adopt technology based loss reduction (e.g. Nagpur water supply, R-APDRP)
Promote technology innovation to improve outreach to off-grid regions (e.g.
micro grids)
Improve public distribution system
Increase storage capacity (e.g. new warehouses, etc.)
Enhance distribution via rail / road /etc. (e.g. new terminals, etc.)
Improve tracking and quality management
6. While much remains to be done, some of the
key offerings of the Budget 2015 are listed.
Budget 2015 offerings
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By Sandeep Waghmare
7. Overall - Reinstating commitment to growth
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Funding to be raised via..
#1: Road cess in form of increased excise on Petrol and Diesel
#2: Government divestments proposed to the tune of Rs.695 billion
#3: More onus on CPSUs to raise investment/funds via capital markets as well
as otherwise
#4: Private equity via PPPs to raise Rs.200 billion
10. How will the budget boost
manufacturing? ↗
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Support through forward and backward linkages – like road,
rail, etc.
Improvement in ease of doing business – speedy processing,
reformed bankruptcy laws, etc.
Reduction in custom and excise duty on certain inputs -
supporting “Make in India”
11. Capacity building and Entrepreneurship
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National Skills Mission set up under the Skill Development
Authority
New AIIMS, IITs and IIMs along with other National Institutes to be
set up
A fully IT-based Student Financial Aid Authority to be set up. It will
administer and monitor scholarships as well as educational loan
schemes through the Pradhan Mantri Vidya Lakshmi Karyakaram
Visa-on-Arrivals for 150 countries might provide easy access to
students, researchers and academicians
Self Employment and Talent Utilization (SETU) plans an outlay of
Rs.1000 crores for young companies and technologies
“No student should have to miss higher education due to financial
constraint” – Arun Jaitley, Union Minister
12. Services – empowering change
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Greater and more flexible financial allocations to
States
Reformed PPP model to ensure government picks
up more risk of the project
Urban renewal schemes continue to be shared
between Centre and State
Emphasis on technology adoption
13. Building clearer accountability
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Enhanced transparency
Double entry system
attendance.gov.in/
Citizen led initatives
Janaagraha
SLB Connect
Crowd sourcing
IMakeMyCity
Etc.
One other key emphasis on
14. What remains to be done…
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Focussed approach to innovative business models
like eCommerce, etc.
Unstable exchange rate of USD, primary currency
for students going for higher education
And much more…