Budget 2015

Finance Minister “Mr. Arun Jaitley” Presents Union Budget 2015 Highlights of Jaitley's budget for the fiscal year that begins on April 1.

FISCAL DEFICIT:  Fiscal deficit seen at 3.9% of GDP in 2015-16.  Will meet the challenging fiscal target of 4.1% of GDP.  Remain committed to meeting medium term fiscal deficit target of 3% of GDP.  Current account deficit below 1.3% of GDP.  Jaitley says have to keep fiscal discipline in mind despite need for higher investment.

GROWTH:  GDP growth seen at between 8% and 8.5% (YoY)  Aiming double digit growth rate, achievable soon INFLATION:  Expects consumer inflation to remain close to 5% by March, opening room for more monetary policy easing  Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below 6%.

POLICY REFORMS:  Propose to create a universal social security system for all Indians  Propose to merge commodities regulator with SEBI  Allocates Rs346.99 billion for rural employment guarantee scheme in 2015-16  To bring a new bankruptcy code in 2015-16  Jaitley says will move to amend the RBI act this year, and provide for a monetary policy committee  To set up public debt management agency  To raise visa-on-arrival facility to 150 countries from 43 TAXATION  Expects to implement goods and services tax by April 2016.  Plans to introduce direct tax regime that is internationally competitive on rates without exemptions.  INFRASTRUCTURE:  Investment in infrastructure will go up by 700 bln rupees in 2015-16 over last year

 Plans to set up national investment infrastructure fund  Proposes tax-free infrastructure bonds for projects in roads, rail and irrigation projects  Proposes 5 'ultra mega' power projects for 4,000 MW each  Second unit of Kudankulam nuclear power station to be commissioned in 2015/16  Will need to build additional 100,000 km of road  Ports in public sector will be encouraged to corporatise under Companies Act EXPENDITURE:  If revenue improves, hope to raise budgeted allocations for rural job scheme by Rs50 billion in 2015-16

INVESTMENT:  Propose to do away with different types of foreign investment and replace them with composite caps  To allow foreign investment in alternative investment funds

GOLD:  To introduce gold monetisation scheme to allow depositors to earn interest.  To introduce Indian-made gold coin to reduce demand for foreign gold coins.

SUBSIDIES:  We are committed to subsidy rationalisation based on cutting leakages FINANCE MINISTER'S COMMENTS:  'The world is predicting it's India's time to fly'  'We inherited a sentiment of doom and gloom. The investment community had almost written us off. We have come a long way since then.'  'We have turned around the economy, dramatically restoring macroeconomic stability and creating the conditions for sustainable poverty elimination, job creation, durable double digit economic growth.'  'While being mindful of the challenges ... this gives us reason to feel optimistic.'  'Domestic and international investors are seeing us with renewed interest and hope.'

OFFICE: - +91 731 6790000 PHONE: +91 731 6669900 Email: info@capitalstars.com http://www.capitalstars.com/ CAPITAL STARS FINANCIAL RESEARCH PRIVATE LIMITED PLOT NO. 12, SCHEME NO. 78, PART II VIJAY NAGAR INDORE 452001 (MP)