Union Finance Minister Arun Jaitley presented Union Budget 2015-16 in the Parliament. He announced a budget aimed at high growth, saying the pace of cutting the fiscal deficit would slow as he seeks to boost investment and ensure that ordinary people benefit.

Highlights of Union Budget 2015-16

Taxation

  • No change in the Tax slab on personal income.
  • Abolition of Wealth Tax.
  • Additional 2% surcharge for the super-rich with income more than Rs. 1 crore.
  • For next 4 years, corporate tax has been reduced to 25 percent from present 30 percent.
  • Service tax increased to 14 per cent.
  • Apart from CSR, 100% tax exemption for contribution to Swachch Bharat Abhiyan.

Education

  •  Five more AIIMSs in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
  • IIT in Karnataka. While, the Indian School of Mines in Dhanbad, Jharkhand will be converted into IIT.
  • Two more IIMs in Jammu and Kashmir and Andhra Pradesh.
  • Post-Graduation institutes of Horticulture in Amritsar, Punjab.
  • Kerala to have University of Disability Studies
  • In Andhra Pradesh, Centre of film production, animation and gaming will come up.

Infrastructure

  • Rs. 70,000 crores to Infrastructure sector.
  • Tax-free bonds for projects in rail road and irrigation.
  • PPP model for infrastructure development to be revitalised and govt. to bear majority of the risk.
  • Atal Innovation Mission to be established to draw on expertise of entrepreneurs, and researchers to foster scientific innovations; allocation of Rs. 150 crore.
  • Govt. proposes to set up 5 ultra mega power projects, each of 4000 MW.

Defence

  • Allocation of Rs. 2,46,726 crore; an increase of 9.87 per cent over last year.
  • Focus on Make in India for quick manufacturing of Defence equipment.

Welfare Schemes 

  • GST and JAM trinity (Jan Dhan Yojana, Aadhaar and Mobile) to improve quality of life and to pass benefits to common man.
  • Six crore toilets across the country under the Swachh Bharat Abhiyan.
  • MUDRA bank will refinance micro finance orgs. to encourage first generation SC/ST entrepreneurs.
  • Housing for all by 2020.
  • Upgradation 80,000 secondary schools.
  • DBT will be further be expanded from 1 crore to 10.3 crore.
  • For the Atal Pension Yojana, govt. will contribute 50% of the premium limited to Rs. 1,000 a year.
  •  New scheme for physical aids and assisted living devices for people aged over 80 .
  • Govt. to use Rs. 9,000 crore unclaimed funds in PPF/EPF for Senior Citizens Fund.
  • Rs. 5,000 crore additional allocation for MGNREGA.
  • Govt. to create universal social security system for all Indians.

Renewable Energy

  • Rs. 75 crore 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.

Financial Sector

  • Forward Markets Commission to be merged with the Securities and Exchange Board of India(SEBI).
  • NBFCs registered with the RBI and having asset size of Rs 500 crore and above to be considered as ‘financial institution’ under Sarfaesi Act, 2002, enabling them to fund SME and mid-corporate businesses.
  • Permanent Establishment norms to be modified to that mere presence of offshore fund managers in the country does not lead to “adverse tax consequences.”

Tourism

  • Develpoment schemes for churches and convents in old Goa; Hampi, Elephanta caves, Forests of Rajasthan, Leh palace, Varanasi, Jallianwala Bagh, Qutb Shahi tombs at Hyderabad to be under the new toursim scheme.
  • Visa on Arrival for 150 countries.