Economics 2 - economy at glance-2 PDF

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Highlights of Union Budget 2015 he Union Finance Minister, Arun Jaitely has presented the Union Budget for the year 2015-16 on last day of February, as is customary. The Finance minister has tried to balance the interests of common man as well as the industry. This budget for year 2015-16 has kept in mind the needs of common man by – incentives for savings, increased social security and pension coverage of citizens. This also plans to harness the power of idle gold lying with citizens. The government will increase allocates sum to the rural jobs scheme. The Budget 2015 also focuses on needs of business and the corporates by means of significantly higher allocation for infrastructure, and a phased reduction in the corporate tax rate. The Finance Minister has also decided to defer GAAR by 2 more years. A agency for refinancing micro-finance, and a law to handle disputes in public contracts. There will be a bankruptcy code formulated from this year onwards. This budget has highlighted that the States to now be equal partners in economic growth. The Budget speech by the Finance minister claims to make India a cashless society. He also highlighted that social sector programmes will continue. The Finance Minister has highlighted the challenges for the economy as poor agricultural income, and a decline in the manufacturing and there is a need for fiscal discipline. The highlights of Union Budget 2015-16 are : On Taxation: 

Abolition of Wealth Tax.

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An additional 2% surcharge is applicable on the super rich with income of over Rs. 1 crore. The Rate of corporate tax will be reduced to 25% over next four years. There is no change in income tax slabs. The total exemption of up to Rs.4,44,200 can be achieved, as has been shown by the finance minster. From now, a 100% tax exemption can claimed for contribution to Swachch Bharat, apart from CSR. The Service tax has been increased from present 12.36% to 14 per cent.

On Agriculture 

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Rs. 25,000 crore have been allocated for Rural Infrastructure Development Bank. Rs. 5,300 crore allocated for supporting Micro Irrigation Programme. The target for farmer’s credit is set at 8.5 lakh crore.

On Infrastructure 

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The finance minister allocated Rs. 70,000 crores to Infrastructure sector. Provision for Tax-free bonds for projects in rail road and irrigation. The PPP model for infrastructure development will be revitalized and government will bear majority of the risk. ‘Atal Innovation Mission’ will be established to draw on the expertise of entrepreneurs and researchers in order to foster scientific innovations. An allocation of Rs. 150 crore has been made. The Government proposes to set up five ultra mega power projects, each of 4000 MW.

On Education: 

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There will be new AIIMS setup in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam. New IITs will be set up in Karnataka and Indian School of Mines (ISM) Dhanbad to be upgraded to IIT. A PG institute of Horticulture will be setup in Amritsar. Kerala will have University of Disability Studies. A Centre of film production, animation and gaming to will be set up in Arunachal Pradesh. New IIM will come up in Jammu and Kashmir and Andhra Pradesh.

On Defence: 

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An increase of 9.87 % over last year’s allocation, of Rs. 2,46,726 crore. There will be a focus on Make in India for quick manufacturing of Defence equipment.

On Welfare Schemes: 

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The GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) will improve quality of life and help in passing on the benefits to common man. There will be 6 crore toilets built across the country under the Swachh Bharat Abhiyan. The ‘MUDRA’ bank will be refinancing the micro finance organisations to encourage the 1st generation SC/ST entrepreneurs. The government plans to provide housing for all by 2020. 80,000 secondary schools will be upgraded. DBT will be expanded from 1 crore to 10.3 crore further. For the ‘Atal Pension Yojana’ the government will be contributing 50% of the premium limited to Rs. 1,000 a year.

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The New scheme for physical aids and provide assistance in form of listening devices for people aged over 80 . The Government will use Rs. 9,000 crore the unclaimed funds in PPF/EPF for Senior Citizens Fund. Rs. 5,000 crore additional allocation to be provided for MGNREGA. The Government will create universal social security system for all Indians.

On Renewable Energy:  

Rs. 75 crore will be provided for electric cars production. Renewable energy target for 2022 has been set up as: 100 K MW in solar, 60K MW in wind, 10K MW in biomass and 5K MW in small hydro power.

On Tourism: 

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The development schemes for churches and convents in old Goa will be implement. From now on Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi, Jallianwala Bagh, Qutub Shahi tombs at Hyderabad will be under the new tourism scheme. From now on Visa on Arrival will be available for 150 countries.

On Gold: 

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From now on Sovereign Gold Bond will be available, as an alternative to purchasing metal gold. A New scheme for depositors of gold in order to earn interest and for jewellers to obtain loans on their metal accounts will be introduced. In order to come up with an Indian gold coin, which will be carrying the Ashok Chakra on it. This will reduce the demand

for foreign coins and also recycle the gold available in the country. In Financial Sector: 

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The Forward Markets Commission (FMC) will be merged with the Securities and Exchange Board of India (SEBI). NBFCs that are registered with the RBI and have the asset size of Rs. 500 crore and above will be considered as ‘financial institution’ under the SARFAESI Act, 2002. This will enable them to fund SME and mid-corporate businesses. From now on Permanent Establishment norms will be modified so that mere presence of offshore fund managers in the country does not lead to adverse tax consequences....