Highlights of the Union Budget 2015-2016 of India
A concise summary of the principal taxation, agriculture, infrastructure, education, defence, welfare, renewable-energy, tourism and gold-related measures presented in the Union Budget 2015-16.
Historical article: The figures, proposals and measures below relate
to the Union Budget 2015-16 and are presented in that historical context.
Budget Effect on Taxation
- Wealth Tax abolished.
- 2% additional surcharge for the super rich with income of over Rs. 1 crore.
- Corporation tax rate to be reduced to 25% over the next four years.
- Income Tax slabs not changed.
- Total exemption of up to Rs. 4,44,200 can be achieved.
- 100% exemption for contribution to Swachh Bharat, apart from CSR.
- Service tax rate increased to 14%.
Budget Effect on the Agricultural Sector
- Rural Infrastructure Development Bank is allotted Rs. 25,000 crore.
- Micro Irrigation Programme is allocated Rs. 5,300 crore.
- Rs. 8.5 lakh crore target for farmers' credit.
Budget Effect on the Infrastructure Sector
- Rs. 70,000 crore for the infrastructure sector.
- Projects in rail, road and irrigation to have tax-free bonds.
- Government to bear the majority of the risk under the PPP model for infrastructure development, which is to be revitalised.
- Research & Development is allocated Rs. 150 crore.
- Rs. 150 crore for the Atal Innovation Mission to draw on the expertise of entrepreneurs and researchers and foster scientific innovation.
- Five Ultra Mega Power Projects, each of 4,000 MW, are proposed by the Government.
Budget Effect on the Education Sector
- Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam to have AIIMS.
- Indian Institute of Mines in Dhanbad to be upgraded to IIT; Karnataka to have an IIT.
- Amritsar to have a PG Institute of Horticulture.
- Kerala to have a University of Disability Studies.
- Arunachal Pradesh to have a Centre of Film Production, Animation and Gaming.
- Jammu and Kashmir and Andhra Pradesh to have IIMs.
Budget Effect on the Defence Sector
- Allocation increase of 9.87% over the previous year, with an allocation of Rs. 2,46,726 crore for the defence sector.
- Focus on Make in India for quick manufacturing of defence equipment.
2015 Budget Welfare Schemes
- Construction of 50,000 toilets under Swachh Bharat Abhiyan.
- GST will be implemented by April 2016. Two other programmes to be introduced: GST & JAM Trinity.
- MUDRA Bank will refinance micro-finance organisations to encourage first-generation SC/ST entrepreneurs.
- Housing facility for all by 2020.
- 80,000 secondary schools will be upgraded.
- Further expansion of DBT from 1 crore to 10.3 crore.
- Government will contribute 50% of the premium, limited to Rs. 1,000 a year, for the Atal Pension Yojana.
- A scheme to be introduced for physical aids and assisted-living devices for people aged over 80.
- Unclaimed funds in PPF/EPF of Rs. 9,000 crore will be used for a Senior Citizens Fund.
- Additional allocation of Rs. 5,000 crore for MGNREGA.
- A universal social security system will be created by the Government for all Indians.
Budget Effect on Renewable Energy
- Rs. 75 crore allocated for electric-car production.
- Renewable-energy target for 2022: 100K MW in solar, 60K MW in wind, 10K MW in biomass and 5K MW in small hydro.
Budget Effect on Tourism
- Development schemes for churches and convents in Old Goa; Hampi; Elephanta Caves; forests of Rajasthan; Leh Palace; Varanasi; Jallianwala Bagh; and Qutb Shahi Tombs at Hyderabad under the new tourism scheme.
- 150 countries to get visa-on-arrival facility.
Budget Effect for Gold
- As an alternative to purchasing metal gold, Sovereign Gold Bonds will be used.
- Interest will be available for depositors of gold, and jewellers will be able to obtain loans on their metal accounts under the new scheme.
- An Indian gold coin carrying the Ashoka Chakra on its face will be developed to reduce demand for foreign coins and recycle gold available in the country.