Union Budget 2015 : Highlights

union-budget-2015-arun-jaitleyFinance Minister Arun Jaitley today presented the Union Budget for 2015-16. It was the first full budget of the Modi government. Though Jaitley had presented the first budget in July 2014, soon after Narendra Modi sworn in as Prime Minister of India, this budget in 2015 is expected to showcase the vision and planning of the current government.

Budget highlights:

  • Goods and Services Tax (GST) to be implemented from 1 April, 2016
  • GDP growth expected at 7.4%
  • Rate of Income-tax on royalty and fees for technical services reduced from 25% to
    10% to facilitate technology inflow
  • National Optical Fibre Network Programme (NOFN) to be further speeded up
    by allowing willing states to execute on reimbursement of cost basis
  • Concerns of IT industries for a more liberal system of raising global capital, incubation facilities in Centres of Excellence, funding for seed capital and growth, and ease of Doing Business etc. would be addressed for creating hundreds of billion dollars in value
  • National Investment and Infrastructure Fund (NIIF), to be established with an annual flow of Rs 20,000 crores
  • Micro Units Development Refinance Agency (MUDRA) Bank, with a corpus of Rs 20,000 crores, and credit guarantee corpus of Rs 3,000 crores to be created
  • Postal network with 1,54,000 points of presence spread across villages to be used for
    increasing access of the people to the formal financial system.
  • Leakage in subsidies will be cut, not the subsidy itself
  • Allocates Rs 346.99 billion to NREGA
  • Rs 2 lakh accidental insurance for Rs 12 premium is offered
  • Investment in infrastructure to go up by Rs 70,000 crore
  • 5 ultra mega power plants of 40,000 MW to be set up
  • Initial sum of Rs 150 crore to set up an IT hub
  • To introduce Indian Gold coin with Ashoka Chakra sign
  • Different types of foreign investment will be replaced by composite caps
  • Visa on arrival for 150 countries
  • Corporate tax reduced to 25% from 30%
  • Reduction of custom duty on 22 items (List will be updated later)

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