New Delhi, Feb 28, 2015 – States to be equal partners in economic growth; move to making India cashless society; social sector programmes to continue. Some of the challenges mentioned by the Finance Minister are: poor agricultural income, decline in manufacturing ; and the need for fiscal discipline.
Here are sector-wise highlights:
TAXATION
- Abolition of Wealth Tax.
- Additional 2% surcharge for the super rich with income of over Rs. 1 crore.
- Rate of corporate tax to be reduced to 25% over next four years.
- No change in tax slabs.
- Total exemption of up to Rs. 4,44,200 can be achieved.
- 100% exemption for contribution to Swachch Bharat, apart from CSR.
- Service tax increased to14 per cent.
AGRICULTURE
- Rs. 25,000 crore for Rural Infrastructure Development Bank.
- Rs. 5,300 crore to support Micro Irrigation Programme.
- Farmers credit – target of 8.5 lakh crore.
EDUCATION
- AIIMS in Jammu and Kashmir, Punjab, Tamil Nadu, Himachal Pradesh, Bihar and Assam.
- IIT in Karnataka; Indian School of Mines in Dhanbad to be upgraded to IIT.
- PG institute of Horticulture in Amritsar.
- Kerala to have University of Disability Studies
- Centre of film production, animation and gaming to come up in Arunachal Pradesh.
- IIM for Jammu and Kashmir and Andhra Pradesh.
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
- 50,000 toilets constructed under Swachh Bharath Abhiyan.
- Two other programmes to be introduced- GST & JAM Trinity. GST will be implemented by April 2016.
- 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 Yojna, govt. will contribute 50% of the premium limited to Rs. 1000 a year.
- New scheme for physical aids and assisted living devices for people aged over 80 .
- Govt to use Rs. 9000 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.
GOLD
- Sovereign Gold Bond, as an alternative to purchasing metal gold.
- New scheme for depositors of gold to earn interest and jewellers to obtain loans on their metal accounts.
- To develop an Indian gold voin, which will carry the Ashok Chakra on its face, to reduce the demand for foreign coins and recycle the gold available in the country.
FINANCIAL SECTOR
- Forward Markets Commission to be merged with the Securities and Exchange Board of India
- 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.”
Business Line
