Budget is a Financial Muscle to the intents of a Government.. They
also reflect the intent and priorities of the current dispensation.
Although the budget covers the entire gamut of economy there are seven
major areas which have received special attention.
The areas are as follows:-
1) Make in India: This is The Prime Ministers signature call both to Indian as well global investors the idea behind being,
• Creation of more Employment opportunities for youngsters
• Establishment of more Manufacturing firms,
• It has been witnessed that strong economies have large Manufacturing base. Hence, this approach may benefit the Nation by creating more job opportunities for young Indians. It will also lead to country’s overall growth. This measure is also designed to take on the manufacturing muscle of Chinese dragon.
• Reduced Corporate Tax- Attempts are made to reduce corporate tax from current 30 % to 25% over a period of 4 years, making it at par with other Asian economies. This approach will increase the attractiveness of India as a destination for foreign investment.
• India is ranked globally at 142 on the index of ease of doing business, the current Government wants to improve the same to above 50.
• A special portal to clear proposals has been launched to attain the above.
• Modernize Labor laws- India’s current labor laws are regressive in nature and need amendments. Onus has been passed on the individual states to improve the same.
• Defence Budget- India has been the largest Importer of arms for many years. The budget allots 13% to Defence sector. This being a substantial amount of money would definitely attract foreign manufacturers to India.
2) Taxation: The area addresses the following aspects-
• Increased Tax base- Around 4% Indians pay income tax in comparison to 45% in USA. So, India started taxing consumption in the guise of service tax and raised it to 14% from 12.36%.
• New proposal for Wealth tax- : Wealth Tax has been abolished and instead earnings more than 1 Crore will be charged 2% additionally. .
• Tax Evasion- It is a major malady affecting India’s economy. It is estimated that between, 1948 to 2008 25 lakh Crores Rupees was taken away from India and deposited in foreign Banks .This has become a criminal act now attracting imprisonment for 10 years.
• To curb black money, Any transaction of more than 1 Lakh money necessitates PAN number,
• Goods and Service’s tax- Multiple Tax agencies will merge into one GST and would add 0.9% to 1.7%. In our GDP.
3) . Social Responsibilities-Government has initiated 3 major Schemes under this column addressing the needs of poor and unorganized work force. These are-
• PRADHANMANTRI SURAKSHA BEEMA- Depositing 12 Rupees a year will have an insurance cover of Rs.2 Lakh.
• ATAL PENSION YOJNA: A contributory pension scheme.
• PRADHANMANTRI JIVAN JYOTI YOJNA-For the age group 18-50,depositing 330 Rs/year will have an insurance cover of Rs.2 Lakh
4) Revenue Management:
• Fiscal deficit reduction target from current 4.1% to 3% in next 3 years
• Allocation of taxes to State directly- Up to 62% of various taxes received will be allocated to State’s
• Collection of resources by offloading Shares worth 69,000 Crores Rupees from various PSU’s
• Reduction of Leakage in Subsidies –As Subsidies Cover 15% of entire Budget, direct cash transfer schemes have been launched to the beneficiaries account, thus reducing leakages, furthermore many wealthy individuals are expected not to seek subsidies allowing the Government to retain the same.
• Monetize Gold-India is the Largest importer of gold in the world; It imports about 800 to 1,000 tones /year. To encourage countrymen, to monetize gold Govt. has come out with Gold Bond Investment Scheme wherein instead of buying gold, People buy Gold Bond and redeem them in Gold whenever they want to. So instead of giving your daughter during marriage you give her bond’s which she can redeem as gold later on. This will reduce the import of gold.
• About 20,000 tons of gold is lying as a dead asset in the country this can also be monetized.
5) Village Development:
• Manrega- Under this Govt. proposes 35,000 Crore Investment
• Road construction- 1, 00,000 KM road construction has been proposed.
• House Construction- 4 Crore Houses have been proposed to be built. In Villages.
• 2.5 lakh villages will be connected with fibre optic network.
6) Young India-Skill India:
Six new AIIMS , Two new IIMS , Three new Drug Research Institute, For Minority Students introduction of Nayi Manzil Scheme.
7) Infrastructure Development:
Infrastructure will get a fill up as close to Rs.70.000 Crore is proposed to be invested.
Over all the budget has elicited a positive response, the stock market has touched a historic high and from a personal perspective was worth investing time in.
http://www.sharda.ac.in/blog/a-comprehensive-synopsis-of-budget-2015/
The areas are as follows:-
1) Make in India: This is The Prime Ministers signature call both to Indian as well global investors the idea behind being,
• Creation of more Employment opportunities for youngsters
• Establishment of more Manufacturing firms,
• It has been witnessed that strong economies have large Manufacturing base. Hence, this approach may benefit the Nation by creating more job opportunities for young Indians. It will also lead to country’s overall growth. This measure is also designed to take on the manufacturing muscle of Chinese dragon.
• Reduced Corporate Tax- Attempts are made to reduce corporate tax from current 30 % to 25% over a period of 4 years, making it at par with other Asian economies. This approach will increase the attractiveness of India as a destination for foreign investment.
• India is ranked globally at 142 on the index of ease of doing business, the current Government wants to improve the same to above 50.
• A special portal to clear proposals has been launched to attain the above.
• Modernize Labor laws- India’s current labor laws are regressive in nature and need amendments. Onus has been passed on the individual states to improve the same.
• Defence Budget- India has been the largest Importer of arms for many years. The budget allots 13% to Defence sector. This being a substantial amount of money would definitely attract foreign manufacturers to India.
2) Taxation: The area addresses the following aspects-
• Increased Tax base- Around 4% Indians pay income tax in comparison to 45% in USA. So, India started taxing consumption in the guise of service tax and raised it to 14% from 12.36%.
• New proposal for Wealth tax- : Wealth Tax has been abolished and instead earnings more than 1 Crore will be charged 2% additionally. .
• Tax Evasion- It is a major malady affecting India’s economy. It is estimated that between, 1948 to 2008 25 lakh Crores Rupees was taken away from India and deposited in foreign Banks .This has become a criminal act now attracting imprisonment for 10 years.
• To curb black money, Any transaction of more than 1 Lakh money necessitates PAN number,
• Goods and Service’s tax- Multiple Tax agencies will merge into one GST and would add 0.9% to 1.7%. In our GDP.
3) . Social Responsibilities-Government has initiated 3 major Schemes under this column addressing the needs of poor and unorganized work force. These are-
• PRADHANMANTRI SURAKSHA BEEMA- Depositing 12 Rupees a year will have an insurance cover of Rs.2 Lakh.
• ATAL PENSION YOJNA: A contributory pension scheme.
• PRADHANMANTRI JIVAN JYOTI YOJNA-For the age group 18-50,depositing 330 Rs/year will have an insurance cover of Rs.2 Lakh
4) Revenue Management:
• Fiscal deficit reduction target from current 4.1% to 3% in next 3 years
• Allocation of taxes to State directly- Up to 62% of various taxes received will be allocated to State’s
• Collection of resources by offloading Shares worth 69,000 Crores Rupees from various PSU’s
• Reduction of Leakage in Subsidies –As Subsidies Cover 15% of entire Budget, direct cash transfer schemes have been launched to the beneficiaries account, thus reducing leakages, furthermore many wealthy individuals are expected not to seek subsidies allowing the Government to retain the same.
• Monetize Gold-India is the Largest importer of gold in the world; It imports about 800 to 1,000 tones /year. To encourage countrymen, to monetize gold Govt. has come out with Gold Bond Investment Scheme wherein instead of buying gold, People buy Gold Bond and redeem them in Gold whenever they want to. So instead of giving your daughter during marriage you give her bond’s which she can redeem as gold later on. This will reduce the import of gold.
• About 20,000 tons of gold is lying as a dead asset in the country this can also be monetized.
5) Village Development:
• Manrega- Under this Govt. proposes 35,000 Crore Investment
• Road construction- 1, 00,000 KM road construction has been proposed.
• House Construction- 4 Crore Houses have been proposed to be built. In Villages.
• 2.5 lakh villages will be connected with fibre optic network.
6) Young India-Skill India:
Six new AIIMS , Two new IIMS , Three new Drug Research Institute, For Minority Students introduction of Nayi Manzil Scheme.
7) Infrastructure Development:
Infrastructure will get a fill up as close to Rs.70.000 Crore is proposed to be invested.
Over all the budget has elicited a positive response, the stock market has touched a historic high and from a personal perspective was worth investing time in.
http://www.sharda.ac.in/blog/a-comprehensive-synopsis-of-budget-2015/
