The document summarizes the key highlights and challenges of the Indian Union Budget for 2015-16. It discusses the fiscal roadmap to achieve a deficit target of 3% of GDP by 2017-18 through fiscal discipline. It outlines priorities like investment in agriculture, infrastructure, education and health. It increases allocation for rural development, Swachh Bharat mission and welfare schemes. Taxation changes include reduced corporate tax rates and increased service tax. The budget aims to boost manufacturing and ease of doing business through initiatives like Make in India and monetary policy reforms.

1. Indian Union Budget 2015-16
SUBMITTED BY
Vishnu Kumawat
SUBMITTED TO
Mr. Dharmesh Doshi

3. CHALLENGES
AHEAD

4. FiveMajor
Challenges
National
Priorities
Fiscal
Deficit
 Agricultural income under stress
 Increasing investment in infrastructure
 Decline in manufacturing
 Optimal allocation of resources
 Maintaining fiscal discipline
CHALLENGES IN BUDGET 2015
Public sector needs to step in to catalyze investment
Make in India programme to create jobs in manufacturing
Continue support to programmes with important national
priorities such as agriculture, education, health, MGNREGA,
rural infrastructure including roads.
Challenge of maintaining fiscal deficit of 4.1% of GDP met in
2014-15, despite lower nominal GDP growth due to lower inflation
and consequent sub-dued tax buoyancy.

5. FISCAL ROADMAP

6. To achieve fiscal target of 3% of GDP.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
2014-15
2015-16
2016-17
2017-18
4.10%
3.90%
3.50%
3.00%
Fiscal Deficit
Fiscal Deficit
Fiscal Roadmap 2015

7. Fiscal Roadmap 2015
Additionally
Realistic figures shown in fiscal account without showing exaggerated revenue
projections.
Additional fiscal space will go to funding infrastructure investment.
Need to view public finances from a National perspective and not just the
perspective of the Central Government.
Disinvestment to include both disinvestment in loss making units, and some
strategic disinvestment.

8. Budget Estimates: A Comparison
1219892
575000
1794892
1364524
1312200
465277
1777477
1449490
Non-Plan
expenditure
Plan
expenditure
Total
Expenditure
Gross Tax
receipts
2014-15
2015-16
4.10%
2.90%
3.90%
2.80%
Fiscal deficit Revenue deficit
2014-15
2015-16

9. KEY HIGHLIGHTS

10. AGRICULTURE
Rs. 25,000 cr for
Rural Infrastructure Development Bank.
Rs. 5,300 cr to support
Micro Irrigation Programme
Farmers credit - target of 8.5 lakh cr.

11. INFRASTRUCTURE
Rs. 70,000 crores to
Infrastructure sector.
Tax-free bonds for
projects in rail road
and irrigation
PPP model for
infrastructure development
to be revitalised and govt.
to bear majority of the risk.
Govt. proposes to set
up 5 ultra mega
power projects, each
of 4000MW.
National Investment and Infrastructure Fund (NIIF), to be established
with an annual
flow of `20,000 crores to it.

12. EDUCATION
AIIMS in J&K, Punjab,
Tamil Nadu, Bihar,
Himachal Pradesh and Assam.
IIT in Karnataka;
Indian School of Mines in
Dhanbad to be upgraded to IIT.
Centre of film production,
animation and gaming
to come up in Arunachal Pradesh.
IIM for Jammu and Kashmir
and Andhra Pradesh.
Kerala to have
University of Disability Studies
NIPER: National; Institute of
Pharmaceutical Education
and Research

13. TOURISM
Tourism ministry gets 33% hike
Increase cover for visa on arrival (VoA)
facility to 150 countries against 43.

14. WELFARE SCHEMES
Direct Benefit Transfers via JAM trinity and GST
J A M
Pradhan Mantri jan Dhan Yojana
is a scheme made for Indians
under which all Indians will be
looking to have a bank account
with a target to provide
“Universal access to banking
facilities”.
Aadhaar is a unique 12-digit
Identification number issued to
individuals for the purpose of
establishing unique identification
of every single person.
With the advent of new
technologies,telecom is now
enabling healthcare, education, f
inancial inclusion and much
more.

15. WELFARE SCHEMES
Make in India is an international marketing campaigning slogan coined
by Narendra Modi, The prime minister of India on 25th September 2014
to attract business from around the world to invest and manufacture in
India.
Objectives:
To make India a global manufacturing hub.
Foster innovation
To promote & Facilitate investment in the
manufacturing sector

16. WELFARE SCHEMES
Six crore toilets across the country under the Swachh Bharat Abhiyan.
Housing for all by 2020.
Upgradation 80,000 secondary schools.
For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs.
1,000 a year.
New scheme for physical aids and assisted living devices for people aged over 80
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.

17. Abolition of Wealth Tax.
No change in the tax slab
For Individuals
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.
Service tax increased from
12.36 % to14 %
100% exemption u/s 80G for
contribution to Swachch
Bharat, apart from CSR
GAAR
(General Anti-Avoidance Rule)
has been deferred by 2 years
If a Company has its “place of
effective management” at any
point of time in the year in
India, then it will be taxed as a
TAXATION

18. FINANCE
Proposal to bank the un-bank and fund the un-fund by establishing MUDRA
bank to re-finance micro-finance institutions
Proposal to improve liquidity in MSME sector by establishing electronic Trade Receivables
Discounting System (‘TReDS’) which shall finance trade receivables of such MSMEs
Proposal to introduce measures that will incentivize credit or debit card
transactions, and disincentivize cash transactions.
Monetization by the banks of gold deposits placed by the jewelers. The new
scheme will allow the depositors of gold to earn interest in their metal
accounts and the jewelers to obtain loans in their metal account.
NBFCs registered with the RBI and having asset size of Rs 5000 MN or above to
be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them
to fund SME and mid-corporate businesses
Banking

19. FINANCE
Capital Market
Forward Markets Commission to be merged with the Securities and Exchange
Board of India to reduce wild speculation
Proposal to place the Indian Financial Code, Bankruptcy Code, Benami
Transactions (Prohibition) Bill in the Parliament for consideration
The definition of derivatives under SCRA has been amended to include repo and
reverse repo, commodity derivatives and such other instruments as may be
declared by the Central Government as derivatives

20. BUDGET IMPACT FOR COMMON MAN
Leather artifacts like shoes
Tablets & Laptops
Ambulance Charges
Cold Fruits and Vegetables
Solar water Heaters
Imported Commercial Vehicles
Cold Drinks & Mineral Water
Cigarettes
Telephone call charges
Executive air fare
Restaurant & Hotel Bills