The Finance Minister presented the annual budget, which outlined key fiscal and economic targets: - The fiscal deficit is projected to decline gradually from 3.9% of GDP in 2015-16 to 3% by 2017-18. - GDP growth is projected to be between 8-8.5% in 2015-16, with inflation expected to remain close to 5%. - Major reforms were proposed, including enacting a new bankruptcy code, setting up a public debt management agency, and introducing a goods and services tax. - Infrastructure spending and investment were emphasized to boost growth, along with continued support for social programs.

1. Presented By
Shashi Kant Singh
Vivek Verma
Sahana K M
Shravya Bolla
Sushant K S

2. FISCAL DEFICIT
* Fiscal deficit seen at 3.9 percent of GDP in 2015/16
* Will meet the challenging fiscal target of 4.1 percent of GDP
* Remain committed to meeting medium term fiscal deficit
target of 3 percent of GDP
* Current account deficit below 1.3 percent of GDP
* Jaitley says have to keep fiscal discipline in mind despite need
for higher investment
GROWTH
* GDP growth seen at between 8 percent and 8.5 percent
y/y
* Nominal economic growth seen between 11 and 12
percent
* Aiming double digit growth rate, achievable soon

3. INFLATION
* 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
* "One of the achievements of my government
has been to conquer inflation. This decline in
my view represents a structural shift."

4. REVENUES
* Revenue deficit seen at 2.8 percent of GDP
* Non tax revenue seen at 2.21 trillion rupees
* Agricultural incomes are under stress
* Net receipts under market stabilisation scheme estimated at
200 billion rupees
DISINVESTMENT
* Government targets 410 billion rupees ($6.7 billion) from
stake sales in companies in 2015/16
* Total stake sale in 2015/16 seen at 695 billion rupees
* Sets stake sale target for 2016/17 at 550 billion rupees
* Revises down stake sale target for 2014/15 to 313.5 billion
rupees

5. 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

6. 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 346.99 billion rupees for rural employment
guarantee scheme
* Raises threshold for application of transfer pricing
rules to 200 million rupees from current 50 million
rupees

7. BORROWING
* Gross market borrowing seen at 6 trillion rupees
* Net market borrowing seen at 4.56 trillion rupees
GENERAL ANTI-AVOIDANCE RULES (GAAR)
* 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

8. TAXATION
* To abolish wealth tax
* Replaces wealth tax with additional 2 pct surcharge on super
rich
* Proposes to cut to 25 percent corporate tax over next four
years
* Corporate tax of 30 percent is uncompetitive
* Net gain from tax proposals seen at 150.68 billion rupees
* 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.

9. Proposes to rationalise capital gains tax regime for real estate
investment trusts
* Extends withholding tax concession on foreign debt purchases by
two years
* Expects to implement goods and services tax by April 2016
* To reduce custom duty on 22 items
* Basic custom duty on commercial vehicle doubled to 20 percent
* 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

10. PERSONAL INCOME TAX
* No revision of income tax brackets
* Limit of deduction of health insurance premium
increased to 25,000 rupees from 15,000 rupees;
limit increased to 30,000 rupees from 20,000 rupees
for the elderly
* People aged above 80 and not covered by health
insurance to be allowed deduction of 30,000 rupees
for medical expenses
* Additional deduction of 25,000 rupees for the
disabled
* Limit on deduction for contributions to pension
fund and new pension scheme increased to 150,000
rupees from 100,000 rupees
* Additional deduction of 50,000 rupees for
contribution to new pension scheme under section
80CCD
* Monthly transport allowance exemption doubled
to 1,600 rupees

11. INFRASTRUCTURE
* Investment in infrastructure will go up by 700 bln
rupees 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
* 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 100,000 km of road
* Ports in public sector will be encouraged to corporatise
under Companies Act

12. EXPENDITURE
* 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
IMPORT TAX
* Import tax on iron and steel increased to 15
percent from 10 percent
* Import tax on metallurgical coke increased to
5 percent from 2.5 percent

13. INVESTMENT
* Government to provide 79.4 billion rupees
capital infusion to state-run banks
* 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 launch gold deposit accounts and
sovereign bond
* Import duty stays at 10 percent;
disappoints jewellers
* To work on Indian-made gold coin to cut
imports

14. CIGARETTES
•Raises excise duty on
cigarettes by 25 percent
for cigarettes of length not
exceeding 65 mm
* Raises excise duty by 15
percent for cigarettes of
other lengths

15. SUBSIDIES
* Food subsidy seen at
1.24 trillion rupees
* Fertiliser subsidy seen
at 729.69 billion rupees
* Fuel subsidy seen at
300 billion rupees
* Major subsidies
estimated at 2.27 trillion
rupees
* We are committed to
subsidy rationalisation
based on cutting leakages

16. Three Key achievements:
* Financial Inclusion - 12.5 crores families
financially mainstreamed in 100 days.
* Transparent Coal Block auctions to augment
resources of the States.
* Swachh Bharat is not only a programme to
improve hygiene and cleanliness but has become
a movement to regenerate India.
* Game changing reforms on the anvil: . Goods
and Service Tax (GST) . Jan Dhan, Aadhar and
Mobile (JAM) - for direct benefit transfer.

17. STATE OF ECONOMY
Inflation
* Inflation declined - a structural shift *
CPI inflation projected at 5% by the end
of the year, consequently, easing of
monetary policy. * Monetary Policy
Framework Agreement with RBI, to
keep inflation below 6%. * GDP growth
in 2015-16, projected to be between 8
to 8.5%.
Amrut Mahotsav - The year 2022, 75th
year of Independence

18. Vision for "Team India" led by PM
* Housing for all - 2 crore houses in Urban areas and 4
crore houses in Rural areas.
* Basic facility of 24x7 power, clean drinking water, a toilet
and road connectivity.
* At least one member has access to means for livelihood.
* Substantial reduction in poverty.
* Electrification of the remaining 20,000 villages including
off-grid Solar Power- by 2020.
* Connecting each of the 1,78,000 un-connected
habitation.
* Providing medical services in each village
and city.

19. * Ensure a Senior Secondary School within 5 km reach of
every child, while improving quality of education and
learning outcomes.
* To strengthen rural economy - increase irrigated area,
improve the efficiency of existing irrigation systems, and
ensure value addition and reasonable price for farm
produce.
* Ensure communication connectivity to all villages.
To make India, the manufacturing hub of the World through
Skill India and the Make in India Programmes.
* Encourage and grow the spirit of entrepreneurship - to
turn youth into job creators.
* Development of Eastern and North Eastern regions on par
with the rest of the country.

20. Major Challenges Ahead
* Five major challenges: Agricultural income under stress, increasing
investment in infrastructure, decline in manufacturing, resource
crunch in view of higher devolution in taxes to states, maintaining
fiscal discipline.
* To meet these challenges public sector needs to step in to catalyse
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.

21. Fiscal Roadmap
* Government firm on journey to achieve fiscal target of 3% of GDP.
* Realistic figures shown in fiscal account without showing exaggerated
revenue projections.
With improved economy, pressure to accelerate fiscal consolidation too
has decreased.
* Accordingly, journey for fiscal deficit target of 3% will be achieved in 3
years rather than 2 years. The fiscal deficit targets are 3.9%, 3.5% and
3.0% in FY 2015-16, 2016-17 & 2017-18 respectively.
* 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. Aggregate public
expenditure of the Governments, as a whole can be expected to rise
substantially.
* Disinvestment to include both disinvestment in loss making units, and
some strategic disinvestment.

22. Good governance
* Need to cut subsidy leakages, not subsidies
themselves. To achieve this, Government committed to
the process of rationalizing subsidies.
* Direct Transfer of Benefits to be extended further with
a view to increase the number of beneficiaries from 1
crore to 10.3 crore.
Agriculture
* Major steps take to address the two major factors
critical to agricultural production, that of soil and water.
* 'Paramparagat Krishi Vikas Yojana' to be fully supported.
* 'Pradhanmantri Gram Sinchai Yojana' to provide 'Per
Drop More Crop'.

23. * Rs 5,300 crore to support micro-irrigation, watershed development and the
'Pradhan Mantri Krishi Sinchai Yojana'. States urged to chip in.
* Rs 25,000 crore in 2015-16 to the corpus of Rural Infrastructure Development
Fund (RIDF) set up in NABARD; Rs 15,000 crore for Long Term Rural Credit Fund;
Rs 45,000 crore for Short Term Co-operative Rural Credit Refinance Fund; and Rs
15,000 crore for Short Term RRB Refinance Fund.
* Target of Rs 8.5 lakh crore of agricultural credit during the year 2015-16.
* Focus on improving the quality and effectiveness of activities under
MGNREGA.

25. FINANCE MINISTER'S COMMENTS
* "We inherited a sentiment of doom and gloom.
The investment community had almost written us
off. We have come a long way since then."
* "We have turned around the economy,
dramatically restoring macroeconomic stability
and creating the conditions for sustainable
poverty elimination, job creation, durable double
digit economic growth."
* "While being mindful of the challenges ... this
gives us reason to feel optimistic."
* "Domestic and international investors are
seeing us with renewed interest and hope."

26. MODI ON TWITTER
“ Union Budget 2015 is a Budget with a
clear vision. It is a Budget that is
progressive, positive, practical, pragmatic
and prudent ”
- PM Narendra Modi
•2015 Budget will further reignite our
growth engine, signalling the dawn of a
prosperous future.
* Budget is investment friendly & removes
all doubts on tax issues. It assures
investors that we have a stable,
predictable & fair tax system.

28. MARKET REACTION
* BSE index gains 0.48
percent; NSE index up
0.65 percent
* ITC slumps after
budget hikes excise
duty on cigarettes
($1 = 61.6489 rupees)