General Budget 2015-2016

General Budget 2015-2016

·         GDP growth in 2015-16 projected at between 8-8.5%

·         Fiscal deficit target for 2015-16  3.9% as against 4.1% in 2015-15

·         Taxon services increased to 14% - GST from 1 April, 1, 2016.

·         Corporate tax to be reduced from 30 percent to over 25% - next 4yrs.

·          2% addle surcharge on income above 1 cr.

·         No wealth tax CSGapped).

Money – how 17 comes.

Bomowing & other liabilies    - 24%

Corporation Tax - 20%

Income Tax    - 14%

Union Excise dubied     - 10%

Non- tax revenvie - 10%

Customs    - 9%

Sernze tax 4 other taxed    - 9%

Non- debt capital receipts   - 4%

HOW IT GOES

State‘s share of taxes & duties   - 23%

Interest payment    - 20%

Central plan    - 11%

Defense    - 11%

Other non-plan expenditure   - 11%

Subsidies - 10% 

Plan assistance to states 4 UTS   - 9%

Non- plan assistance to states 4 UTS   - 5%

·         Central govt accepted the recommendation  of the 14^th Finance commission – Share in the net proceeds of union tax revenues hom 32 to 42 percent

·         On other hand, central assistance to states plans had fallen by over 25 percent.  & schemes delinked from central support Nationale  - governance plan, Backward Regions granthund , Modernisahon of polreferce, , Rajvgandhi Panchyat Sashaktikaran Abhiyaan, central assistance to the states for developing export – inhastmcture , schent few developing export in pasture , scheme for setting up of boo model schools, National Mission on Food Processing and tourist Infrastructure . 

National Skill Mission

Govt plans to launch NSM thro’ the skill Development and entrepreneurship ministory. India- with mane than 54% of total population below 25yrs. “ Dean payal upadhyay Grameen Kaushal yojana” – enhance the employability of youth – Rs 1, 5000 cv allotted – disbursement will be thro a digital vochev directly into qualified student’s bank accent  

Atal Innoration mission with initial Rs. 150cv for research and development.

Implementation of GAAR deferred by Two years

General Anti- Avoidance Rules (GAAR) - 1^st proposed in 2012. It sought to prevent companies from routing thro’ other countries to avoid tax, Geated high uncertainty in the mind of foreign investors. 

MUDRA – BANK

 Centre proposes – Micro units Development Refinance Agency (MUDRA) – with corpus of  Rs 20, 000 cv  and credit guarantee of Rs 3, 000 cv. MUDRA – Bank  - refinance Micro – Finance Institution & it will passed on to the SME. CSME s are called ‘Missing middle)’

SARFAESI ACT TO COVER NBFCs

NBFcs vegd with RBT and having assest size of Rs. 500cv and above will be considered for notification ‘financial Institution’ in terms of SARFAESI ACT, 2002- working group of RBI headed by USHA Thorat has recommended that SARFAESI ACT be extended to  cover the NBFcs also.

Banking – PSU

Centre proposes to infuse 7,940cv funds next fiscal in PS banks to enable them maintain adequate capital

The provision – for recapitalization of public sedar banks to enable them to maintain their Tier –T capital at comfortable level.

In order to improve the governance of public sect an banks, the govt intends to setup an autonomous Bank Board Bureau – if will search & select heads of PSBs and help them in developing differentiated strategies and capital graising plans thro’ ignorance Financial methods 4 Instrument.

It ‘s interim steps towards establishing a holding 4 investment company far banks –wherein govt stake in  banks transference to a separate bank investment company will be professionally managed &  be raised resource – is in line with recommendation of Nayak commence public –  dept management to be setup

PDMA – will bring both India’s external borrowings and domestic debt under one roof. This will lead to the market there by leading to Deeping of the Indian Bond Market.

INFRASTRUCTURE

PROPOSED Rs. 70, 000cv far Inf. A national Investment 

Infrasture fund was announced with an annual flow of Rs 20,000cv.

Govt plans to make India energy surplus by 2019 and to provide electricity to each household by 2022.

Govt proposecl 5 new Ultra Mega power projects (UMPPs) each of 4,000 MW- come up in the plug & play mode. Enabling investors to start without mach delay.

India in last 25yrs Dore 34,000 mw of venewalde energy and in next 7yers – target of 1, 75,000 MW

DIGITAL INDIA.  Clavnch July 10, 2014).

Connect all 2.5lakh gram panchayat with broad band connectivity by Dec 2016.

  Agriculture

Rs. 5,300cv allocated far pradhan mantra Gramsinchai vojna – “per drop more crop’ (micro – inigation, watershed development) –

Rs 300cv far Param paragat Krishi Vikas Yojna Corganic farming

Unified National Agriculture Market would be Setup.

Ignored schemes – RKVYojna, N Food security mission, Extn programme crop insurance schemes.

WOMEN AND CHILDREN

 Nirbhaya Fund – Rs 1,000cv

Sukanya samriddhi initiative – Far small savings for educating the girl child – eligible far deduction under sec 80c.

I4B

Rs 3711cv allotecl

-          Kisan channel- launched soon form dour clarshan.

BLACK MONEY

-          Govt will soon introduce a bill on black money to specifically deal with illicit money stashed abroad and Benami Transactions (Prohibition ) Bill

-          10yers RI for concealing income.

Bankruptcy code

Comprehensive bankruptcy code in fiscal 2015-16- if will meet global standards’ 4 provide necessary judicial capacity SICA 4 BIFR – both have failed.