After RAILWAY BUDGET 2015-16, there was turn of Union budget which was presented by the Finance Minister Arun Jaitely in Loksabha on Saturday ( 28-02-2015). Although it was first fully fledged budget of Modi Govt. and Arun Jaitely; so everyone was expecting a lot from this budget. But, no one was fully satisfactory with this budget and this give point for opposition to give critics to BJP Govt. After completion of Budget, Arun Jaitely promised to ensure that this budget is benefited for the common people from the future point of view. Here, we are going to present current highlights as well as pros and cons of this budget which could be beneficiary in your govt. Jobs competitive exams;
Important points to learn about union budget 2015-16 which could be asked in further competitive exams;
Amount of different expenditure explained in Union Budget 2015-2016;
NonPlan expenditure : Rs 13,12,200 Cr
Plan expenditure : Rs Rs 4,65,277 Cr
Total expenditure seen at about Rs 17,77,477 Cr
- Target to achieve Fiscal deficit is 3.9% in 2015-16, 3.5% in 2016-17, and 3% in 2017-18.
- Real GDP growth is expected to be 7.4 %; if achieved it would be No. 1 in all over world economy.
Points to be noted related to allocation of fund:
- 34699 Cr has been allocated for MNREGA Scheme.
- 25000 Cr for rural development fund in 2015.
- 1500 Cr for child development scheme.
- 500 Cr for child security scheme.
- 1000 Cr for Nirbhaya Fund.
- 246727 Cr for the defense in 15-16.
- 68968 Crore for Education Sector.
- Rs33,150 billion rupees for health sector.
- To provide Rs7,940 Crore capital infusion to state run banks.
- 5,300 crore to support Micro Irrigation Programme.
Points to be noted related to subsidy:
- Food subsidy seen at Rs1.24 trillion.
- Fertilizer subsidy seen at Rs72,969 crore.
Points to be noted related to different type of deductions given;
- People aged above 80 and not covered by health insurance to be allowed deduction of Rs30,000 for medical expenses.
- Additional deduction of Rs25,000 for the disabled
- Limit on deduction for contributions to pension fund and new pension scheme increased to Rs150,000 from Rs100,000 rupees section 80CCD.
Points to be noted related to impact on different type of taxes;
- You have to quote your pan Card if you are buying any product with worth more than 1 Lac.
- Decrease in the excise duty form 12 % to 6 % on Footwear having retail price more than 1000,
- Increase in transport allowance from Rs. 800 to Rs. 1600 for every taxpayer.
- Any type of contribution to Sukanya Samridhi scheme or Swach suraksha abhiyan would be tax free.
- Individual tax payer can now get benefit up to 4.4lac.
- Smokers have to pay more as there is increase in excise duty by 25% on cigarette with size more than 6.5 Cm and increment of 15 % on other Lengths.
- Present rate of service tax plus education ceases is 12.36 % which is increased to 14%.
- Increment of Rs. 10 Excise duty on Cutting tobacco. Inititlaly, it was Rs. 60 for 1 Kg while It is Rs. 70 Per kg after budget.
- Excise Duty on Ambulance or related service vehicles chassis has been reduced from 24% to 12.5 %.
- Increment in Custom duty from 10 % to 20 % on all commercial vehicles.
- Replaces wealth tax with additional 2% surcharge on superrich
- Proposes to cut to 25% corporate tax over next four years
- Reduce custom duty on 22 items
- Limit of deduction of health insurance premium increased to Rs25,000 from Rs15,000 while limit increased to Rs30,000 from Rs20,000 for the elderly.
- No change in Import Duty i.e.; 10 % which disappoint jewelers.
Points to be noted related to promises or decisions taken in Union Budget 2015-16 by Finance Minister Arun Jaitely;
- Expecting to completed goal of 6 Cr toilets in next 3-4 years.
- Plan to build 2 Cr houses in rural areas and 4 Cr houses in urban areas before 2022.
- Visa on arrival facility has been increased from 43 countries to 150 countries.
- ‘Atul Pension Scheme’ for the people who start pension after the age of 60.
- Accidental insurance coverage of 2 lac to everyone through ‘Pradhan Mantri Suraksha Bima Yojana.
- Scheme named for youth minorities; ‘Nayi Manzil’.
- All Indian Institute of Medical Sciences (AIIMS) each in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Assam, the second in Bihar. IIT in Karnataka, Upgrade the Institute to IIT in Dhanbad.
- Imprisonment of 10 yrs under Black Money Law.
- Proposes to set up 5 ultra mega power projects, each of 4000MW.
- Amount dedicated for increasing Renewable energy; Rs. 75 Cr for electric cars production; Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro.
- Total 31 Schemes would be fully sponsored by the Central Government.
As per recommendation given by the 14th Finance commission to raise state share from the Union tax revenue to increase from 32 to 42 %. Arun Jaitely took this decision also give more freedom to states tp spent themselves according to their requirement on different different sponsored schemes.
Download Current affairs of Union Budget 2015-16 in PDF format;