Union Budget 2015-16: Key Highlights

February 28, Saturday: The Narendra Modi-led government, represented by finance minister Arun Jaitley, has presented its first full Union Budget for 2015-16 at the Parliament today. As the present government has always put main focus on technology since its inception, the electronics and IT industry had pinned high hopes on the Modi government with expectations for reforms and policies that would bring more stability to the sector and ensure further growth.

Here are the key highlights from Union Budget 2015-16 on what’s being offered for the manufacturing sector, technology sector and electronics and IT industry:

• To ensure employment to our youth, we have to make India the manufacturing hub of the world: FM
• Manufacturing has declined, exports are stagnant: FM acknowledges; Fiscal discipline required
• Will meet the challenging fiscal target of 4.1 per cent of GDP: FM
• Roadmap to achieve fiscal deficit of 3 per cent of GDP in three years: Target is 3.9 per cent in 2015-16, 3.5 per cent in 2016-17, 3 per cent in 2017-18
• GST will put in place state of art indirect tax system by 1 April, 2016: FM
• Investment in infrastructure to go up by Rs 700,000 million: Jaitley
• Government is establishing a mechanism called ‘self employment’ to support all aspects of start up business: Jaitley
• Direct tax regime to be introduced that is internationally competitive on rates without exemptions
• Rs 1500 million allocation announced to create world class IT hub
• Corporate tax reduced from 30 per cent to 25 per cent over next four years
• Custom duty on raw materials to be reduced: FM
• Reduced taxes on Technical Services to 10 per cent from 25 per cent
• National investment infrastructure fund to be set up
• PPP model to be revisited and revitalised; Atal Innovation Mission announced for entrepreneurs and researchers to foster a culture of innovation
• Rs 10,000 million announced for a mechanism for techno-financial incubation and facilitation programme
• Rs 750 million announced for electric cars’ production
• Rs 15,000 million National Skills Mission announced for skill development and entrepreneurship
• Fully IT based student financial aid scheme announced for higher education
• We are making good progress in Digital India: FM
• Focus on Make in India for quick manufacturing of Defence equipment; Make in India policy for defence equipment – Rs. 2,467,270 million allocation for defence
• Allocation has been announced for renewable energy – Renewable energy target for 2022: 100K MW in solar; 60K MW in wind; 10K MW in biomass and 5K MW in small hydro; 5 ultra mega power projects, each of 4000MW, to be set up
• Rs. 1500 million allocated for Research & Development
• Rs. 10,000-million fund announced for tech startups, entrepreneurs
        

Here’s what Prime Minister Narendra Modi has to say on Jaitley’s first full-year budget:

“Budget is investment friendly & removes all doubts on tax issues. It assures investors that we have a stable, predictable & fair tax system…I congratulate FM for doing an excellent job in respecting aspirations of the States & at the same time delivering on National priorities.”

Home Minister Rajnath Singh comments on Jaitley’s Budget thus, “Congratulations to Shri @arunjaitley on presenting a forward looking & progressive Budget. This Budget highlights the contours of ‘New India’.”

Jaitley’s most highlighted comments: “The world is predicting it’s India’s time to fly…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.”

Union Minister of Urban Development Venkaiah Naidu on the Budget: Very innovative, very inspiring; people will be very happy

Union Minister of Science and Technology Dr. HarshVardhan on the Budget: Positive budget; vision of clean,green India with insurance & pension for all, women’s safety & skilled new generation

Executive vice chairman and MD of Kotak Mahindra Bank, Uday Kotak, tweets, “5 Budget themes – infra push, financial savings, away from cash, simpler tax, higher deficit = interest rates drop slower. Reasonable budget“

Chanda Kochhar, MD ICICI, speaks to ANI: Clear focus on infrastructure, pragmatic approach towards fiscal discipline, it empowers entire India

Union minister Piyush Goyal speaks to ANI: A budget which transforms people’s future from a pension less society to socially secure society

Former finance minister Yashwant Sinha speaks to ANI: A very comprehensive, competent & good budget has been presented

Jitendra Singh, MoS PMO, speaks to ANI: Positive, constructive and a practical budget

FM Arun Jaitley speaks at post-Budget press conference – key highlights:

• Public spending on infrastructure has been increased, notwithstanding the squeezing on fiscal space
• Concentration is on manufacturing and on correcting inverted duty structures