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)